Delaware State Income Tax in 2025: A Guide

Delaware’s state income tax follows a graduated structure, meaning your tax rate increases as your income rises. The state has several tax brackets, ranging from 0% and 2.2% for lower-income earners to 6.6% for those with higher taxable incomes. In comparison, New York’s state income tax tops out at 10.9% for high earners and New Jersey sits at 10.75%, making Delaware’s rates more moderate for upper-income brackets.  

The amount of money you make, your filing status, and your eligibility for deductions or credits can influence how much you owe when it’s time to file taxes.  

If you’re a full-time resident, part-time resident, or someone earning income in the Diamond State, understanding these variables can help you tackle your state taxes for the 2024 tax season (the taxes you file in 2025). In this guide, we’ll break down who needs to file income taxes in Delaware, how residency impacts your taxes, and the credits and deductions that could lower your tax bill. 

*Note that you are still responsible for federal taxes if you meet the IRS income filing threshold. This article addresses state-specific taxes only.

Delaware state income tax rates

Delaware has seven income tax brackets, with rates up to 6.6%. For individuals earning up to $60,000, rates range between 0% and 5.55%. However, those with taxable incomes of $60,001 or more are taxed at the top rate of 6.6%.  

State income tax returns in Delaware are due on April 30. Filing on time ensures you avoid penalties and keeps you on track for potential refunds. 

To help you understand how these rates apply, here’s a chart detailing Delaware’s tax brackets and rates for all filing statuses, making it easier to calculate what you owe.  

Note: Delaware applies the same income tax rates across all filing statuses, including single, married filing jointly, married filing separately, and head of household.

Taxable Income Range	Tax Rate
$0 to $2,000	0%
$2,001 to $5,000	2.2%
$5,001 to $10,000	3.9%
$10,001 to $20,000	4.8%
$20,001 to $25,000	5.2%
$25,001 to $60,000	5.55%
More than $60,000	6.6%

Source: State of Delaware 2024 Individual Income Tax Return Form and Instructions

What is the standard deduction in Delaware?

In Delaware, the standard deduction helps lower your taxable income and makes filing state income taxes easier if you don’t choose to itemize deductions. Itemizing deductions involves listing specific eligible expenses instead of taking the standard deduction. For the 2024 tax year, Delaware’s standard deduction amounts are: 

• Married filing jointly: $6,500 
• All other filing statuses (single, head of household, married filing separately): $3,250 

If you’re 65 or older, you can claim an additional $2,500. 

Choosing the standard deduction often makes sense if it’s higher than the total of your itemized deductions. It’s a straightforward way to reduce your taxable income and simplify your tax return.

Who has to file Delaware state income tax?

Delaware residents and part-year residents must file a state income tax return if their Delaware adjusted gross income (AGI) exceeds the following amounts: 

Filing Status	Under 60	Ages 60 to 64	Age 65+ OR blind	Age 65+ AND blind
Single Married filing separately Head of household	$9,400	$12,200	$14,700	$17,200
Married filing jointly	$15,450	$17,950	$20,450	$22,950

Additionally, you must file if: 

• You had Delaware income tax withheld. 
• You made estimated tax payments to Delaware. 
• You are claiming a refund. 

Nonresidents with income from Delaware sources must file if their gross income from Delaware exceeds $9,400.

How Delaware residency impacts tax filing

Delaware breaks taxpayers into three residency categories for state taxes: resident, part-year resident, and nonresident. Each comes with its own rules. Check out the chart below to see what each status means and how Delaware taxes your income. 

Residency status	Definition	How Delaware taxes income
Resident	An individual domiciled in Delaware for any part of the taxable year or maintaining a place of abode in Delaware and spending more than 183 days there.	Taxed on all income from all sources.
Part-year resident	An individual who moved into or out of Delaware during the taxable year.	Taxed on all income while a resident and on income from Delaware sources while a nonresident.
Nonresident	An individual not domiciled in Delaware who earns income from Delaware sources.	Taxed only on income from Delaware sources.

Other income tax considerations in Delaware

Beyond regular wages, Delaware taxes other income types differently. Here’s a snapshot of how the state treats certain income sources: 

• Retirement and pension income tax: Residents 60 or older can exclude up to $12,500 of eligible pension or retirement income, whichever is lower. 
• Investment income tax: Capital gains are taxed at the same rates as regular personal income. 
• Social Security income tax: Social Security benefits are fully excluded from Delaware taxable income. 
• Military income tax: If you’re a Delaware resident, military and nonmilitary pay may be taxed whether you’re stationed in Delaware or not.

Common Delaware state tax credits

Delaware offers a variety of tax deductions and credits designed to reduce your taxable income or lower your tax liability directly. Here’s a breakdown of the most common state-specific tax credits: 

Tax Credit	Description	Amount
Other State Tax Credit	Credit for Delaware residents taxed by another state on income also taxable in Delaware.	Varies based on taxes paid.
Volunteer Firefighter’s Credit	Credit for active firefighters, fire company auxiliary members, or rescue squad members.	Up to $1,000.
Child Care Credit	Credit equal to 50% of the federal child and dependent care credit.	Up to $300 for one dependent
Earned Income Tax Credit (EITC)	Credit of 4.5% (refundable) or 20% (nonrefundable) of the federal Earned Income Credit.	Varies.
Organ and Bone Marrow Transplantation Tax Credit	Covers unreimbursed expenses for organ or bone marrow donation, including medical costs.	Expenses up to $10,000.

How to file Delaware state income tax

Filing your Delaware state income tax can feel complicated, but you don’t have to handle it alone. TurboTax is here to help, whether you want to do your taxes yourself or need professional assistance. 

We help you claim every deduction and credit you’re eligible for to keep more money in your pocket. Whether you’re a resident, part-year resident, or nonresident with Delaware income, TurboTax makes the process smooth and stress-free so you can get the maximum refund you deserve. Need expert help? Connect with a local tax pro in Delaware anytime. Our team can provide tailored advice or even file your taxes for you.