Delaware state income tax
Delaware has a state income tax. It is graduated, with a top marginal rate of 6.6%. Graduated rates: 0% up to $2,000; 2.2% on $2,000-$5,000; 3.9% on $5,000-$10,000; 4.8% on $10,000-$20,000; 5.2% on $20,000-$25,000; 5.55% on $25,000-$60,000; 6.6% on income over $60,000 (top bracket, unchanged since 2014; no 6.75%/6.95% brackets exist in current law) Capital gains are taxed as ordinary income (no special lower rate).
Does Delaware have a state income tax?
Yes. Delaware taxes individual income on a graduated schedule topping out at 6.6%. Graduated rates: 0% up to $2,000; 2.2% on $2,000-$5,000; 3.9% on $5,000-$10,000; 4.8% on $10,000-$20,000; 5.2% on $20,000-$25,000; 5.55% on $25,000-$60,000; 6.6% on income over $60,000 (top bracket, unchanged since 2014; no 6.75%/6.95% brackets exist in current law)
| Item | Delaware |
|---|---|
| State income tax | Yes, graduated |
| Top marginal rate | 6.6% |
| Capital gains | Taxed as ordinary income, up to 6.6% |
| State sales tax | 0% |
| Avg. property tax rate | 0.54% of home value |
| Estate / inheritance tax | None |
How does Delaware tax capital gains?
Delaware has no separate, lower rate for capital gains. They are taxed as ordinary income at the same rates as your wages, up to 6.6%, on top of federal capital gains tax. See how capital gains tax works in 2026.
What about retirement income in Delaware?
Retirement income is taxed differently from wages in many states. For how Delaware treats Social Security, pensions, and 401(k)/IRA withdrawals, see Delaware retirement taxes.
Sources
- Delaware income tax rates and brackets: Delaware Department of Revenue / Taxation.
- Delaware capital gains treatment: Delaware tax authority.
- Delaware sales tax: Delaware Department of Revenue.