What is the Delaware sales tax rate?

Delaware does not levy a general sales tax.

How are capital gains taxed in Delaware?

Delaware taxes long-term capital gains at roughly 6.60%, on top of federal LTCG and 3.8% NIIT.

Is retirement income taxed in Delaware?

Partial exemption (age / income limits apply). Specific exclusions vary by age and AGI.

What is the property tax rate in Delaware?

The average effective property tax is 0.61% of assessed value. Local rates vary widely by county and city.

Does Delaware tax Social Security?

Social Security may be taxed depending on AGI and filing status. Check current-year exclusions with the Delaware Department of Revenue.

What filing deadlines apply in Delaware?

Delaware follows the federal April 15 deadline. Extensions are typically granted on request — see the state DOR for current forms.

Are pension distributions taxable in Delaware?

Partially. Many states exclude part of pension income based on age or AGI; verify the current-year threshold.

Does Delaware have an estate or inheritance tax?

Federal estate tax applies above the unified credit; only a handful of states levy their own estate or inheritance tax. Verify current rules with a CPA.

Is the standard deduction the same as federal?

Most states allow a separate state standard deduction or personal exemption. The federal standard deduction is $16,100 single / $32,200 MFJ for 2026.

Can I deduct state taxes on my federal return?

Yes — state + local taxes (SALT) are deductible up to $10,000 if you itemize. The cap is set in current law through 2025; check 2026 status before filing.

Does Delaware accept the federal EITC?

Many states offer a state EITC matched as a percentage of the federal credit. Eligibility tracks the federal rules.

Are there local income taxes in Delaware?

Delaware generally does not impose local income taxes beyond the state rate.

Where can I find official Delaware tax forms?

Visit the Delaware Department of Revenue or Department of Taxation site for current forms, brackets, and credits.

How often does TaxEase update this guide?

Annually after IRS Revenue Procedures publish, and within 14 days for any major state legislative change. See our Editorial Policy.

Delaware Tax Guide 2026

Everything residents of Delaware need to know about state taxes in 2026 — income brackets, property tax, sales tax, capital gains, retirement, and small-business taxation, with planning tips aligned to current IRS guidance.

At a glance

Income tax system

Progressive bracketed income tax

Effective income rate

6.60%

Capital gains

6.60%

Property tax

0.61%

Combined sales tax

0.00%

Retirement income

Partial exemption (age / income limits apply)

Income tax

Delaware uses a progressive bracketed income tax. The average effective rate on wage income is 6.60%. Federal tax still applies; see our income tax calculator for a full breakdown.

Property tax

Effective property tax averages 0.61% of assessed home value. On a $400,000 home that is roughly $2,440 per year. Run your own number with the property tax calculator.

Sales tax

Combined state + local sales tax averages 0.00%. There is no general sales tax in this state.

Capital gains

Delaware taxes long-term capital gains at approximately 6.60%. Federal rates of 0/15/20% plus 3.8% NIIT above MAGI thresholds apply on top.

Estimate yours with the capital gains calculator.

Retirement taxation

Partial exemption (age / income limits apply). Adjust contributions in our calculators to model the impact of pre-tax 401(k) / Traditional IRA contributions on your Delaware liability.

Business taxation

No sales tax; corporate franchise tax favors incorporation.

Delaware tax credits & deductions

Earned Income Tax Credit (state match)
Child & Dependent Care credit
Residential energy credit

Eligibility usually depends on AGI, filing status, and residency. Verify current-year rules with the Delaware Department of Revenue or a CPA.

Planning tips for Delaware residents

Maximize pre-tax retirement contributions to reduce state taxable income.
Bunch itemizable deductions into a single year when above the standard deduction.
Time long-term capital gains for years of lower other income.