taxes

State taxes: Delaware

Taxes » Income Taxes » State Taxes » Delaware

Delaware's income tax covers six tax brackets, ranging from 2.2 percent to 6.75 percent. More on Delaware taxes can be found in the tabbed pages below.

Personal income tax

Delaware collects income taxes from its residents at the following rates.

  • No tax on the first $2,000.
  • 2.2 percent on taxable income between $2,001 and $5,000.
  • 3.9 percent on taxable income between $5,001 and $10,000.
  • 4.8 percent on taxable income between $10,001 and $20,000.
  • 5.2 percent on taxable income between $20,001 and $25,000.
  • 5.55 percent on taxable income between $25,001 and $60,000.
  • 6.75 percent on taxable income over $60,000.

Delaware residents must file Form 200-01, Individual Resident Tax Return, by April 30. When that date falls on a weekend or holiday, the due date is the next business day. You can download Delaware tax forms.

Most Delaware taxpayers may electronically file personal income tax returns for 2010, as well as late returns for tax years 2007 through 2009.

Active firefighters, or members of fire company auxiliaries or rescue squads, can apply for a state tax credit up to $400 for the purchase of clothing, equipment, motor fuel and other items necessary to perform their duties. Credit details can be found in the Form 200-01 instructions.

Sales taxes

Delaware does not assess a sales tax on consumers.

The state does, however, impose a tax on the gross receipts of most businesses. Business and occupational license tax rates range from 0.1037 percent to 2.0736 percent, depending upon the category of business activity.

Unless otherwise specified, the term "gross receipts" means the total receipts of a business, with no deductions for the cost of goods or property sold, labor costs, interest expense, discounts paid, delivery costs, state or federal taxes or any other expenses.

Personal and real property taxes

Delaware does not assess a state-level tax on real or personal property.

Real estate is subject to county property taxes, school district property taxes, vocational school district taxes and, if located within an incorporated area, municipal property taxes.

Oct. 1 is the assessment date for all municipalities. All owners of personal property, other than registered motor vehicles, must file a declaration with the assessor on or before Nov. 1.

The variables differ for each geographical area, so contact the property tax office for your county with specific questions.

Delaware offers various property tax relief programs for residents 65 years of age and older, as well as property tax exemptions for residents with disabilities. All senior property tax credit applications must be filed by Sept. 1 and include proof of age (driver's license or birth certificate) and separate applications for all qualified joint-property owners.

Inheritance and estate taxes

Estate tax is imposed for decedents dying on July 1, 2009, or thereafter.

Due to the phase-out of the federal estate tax, no Delaware estate was imposed on individuals who died between Jan. 1, 2005, and June 30, 2009.

There is no inheritance or gift tax in Delaware.

Other Delaware tax facts

Taxpayers in the First State can track the status of their refunds online.

The state maintains an online list of delinquent taxpayers.

Intangible personal property taxes are not levied in Delaware.

For more information, contact the Delaware Division of Revenue at (302) 577-8200 or go to the website.

To download tax forms on this site, you will need to install a free copy of Adobe Acrobat Reader. Click here for instructions.

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