Disclaimer: The calculations are estimates based on tax rates as of December 2021 and data from the tax organization. These prices are subject to change. Check the IRS website for the latest information on income taxes and your state tax website for state-specific information. Our calculator does not take into account 401k and IRA deductions due to tax law restrictions. Please note that the amount of your IRA deductions may vary. You should speak with a tax professional to determine your tax situation.
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What you need to know about Delaware taxes
Delaware requires you to pay taxes if you are a resident or non-resident who receives income from a Delaware source. State income tax rates range from 0% to 6.6%. Delaware does not have a state sales tax.
Many Delaware tax deductions and credits are available to reduce your tax liability. These include the charitable mileage deduction, tax benefits for volunteer firefighters and the childcare credit.
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Delaware income tax brackets and rates for all filings
Delaware income tax deductions
Delaware allows taxpayers to take advantage of the standard deduction; The amount of the discount is determined by your registration status. For tax year 2021, the standard deduction amount is $6,500 for married taxpayers who file jointly and $3,250 for all other filings.
You can choose to itemize deductions on your Delaware return even if you take the standard deduction on your federal tax return. But it is important to note that your federal return serves as the basis for detailing your return to Delaware.
As on your federal return, Delaware allows you to deduct eligible medical and dental expenses, state and local taxes, interest paid, gifts to charity, and casualty and theft losses. Federal limits apply to statewide itemized deductions.
Delaware offers some state-specific discounts, including a mileage rebate of 26 cents per mile when you use your car for charity; Write off any foreign taxes you have paid; A deduction for charitable contributions from land gifts to non-profit organizations.
Delaware Income Tax Credits
Tax credit for volunteer firefighters
A Delaware resident who is an active volunteer firefighter with a fire company, aid, or rescue squad can claim a $500 tax credit. Each year, your active status with your volunteer company will be verified by the State Revenue Service.
Credit is not refundable.
Child Care Tax Credit
Taxpayers who qualify for the Federal Child and Dependent Care Credit can claim similar state credit. The Delaware Credit is 50% of the Federal Credit.
Generally, if a spouse chooses to file separate state tax returns, the credit will be applied to the parent with the lowest taxable income.
This credit is not refundable.
The Child Care Credit should not be confused with the Federal Child Tax Credit, which does not have a statewide release in the Delaware return.
Received tax revenue
Delaware offers an Earned Income Tax Credit, similar to the Federal Earned Income Credit. State taxpayers can choose between a refundable credit of 4.5% of the federal credit amount or a non-refundable credit of 20% of the federal amount.
In the case of a refundable tax credit, you will receive a refund if you do not owe any taxes or if the tax credit is greater than the taxes due. Unlike a refundable tax credit, a non-refundable tax credit reduces your tax liability to zero.
This status credit is not carried over.
Do I have to file taxes in Delaware?
Delaware requires full-time residents to file a state tax return if their Delaware Adjusted Gross Income (AGI) exceeds:
Under the age of 60:
- Single applicant, head of household or married separately: $9,400
- Joint application for spouses: $15.450
Ages 60 to 64 years old:
- Single applicant, head of household or married separately: $12,200
- Spouse joint filing: $17,950
Age 65 or older or blind
- Provided by individual, family head, or married separately: $14,700
- Joint application for spouses: $20,450
Age 65 and over and blind
- Single applicant, head of household or married separately: $17,200
- Spouse joint filing: $22,950
You must also file a Delaware tax return if you have been a resident for a year and earn income while living in Delaware or receive income from a Delaware source while you are not residing.
Sales tax and sales tax rates
Delaware does not impose a sales tax, either at the state or local level.
Property taxes and property tax rates
property tax rates
Property taxes are administered at the local level.
Capital Gains Taxes
Capital gains are taxed as ordinary income in Delaware.
Inheritance and estate taxes
There is no inheritance tax for deaths that occurred on or after December 31, 1998. Delaware does not have an estate tax.
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