Delaware levies no sales tax at all, which is why people cross state lines to shop there. It pays for that with an income tax whose top rate of 6.6% arrives at just $60,000.
| Gross pay | — |
| Federal income tax | — |
| Social Security6.2% up to $184,500 | — |
| Medicare1.45%, no cap | — |
| State income tax | — |
| 401(k) contribution | — |
| Health and HSA | — |
Useful if you are comparing a job that pays monthly against one that pays every two weeks, or working out what a raise is worth per paycheck.
| Pay schedule | Gross | Take-home |
|---|
Delaware is one of five states with no general sales tax. For residents of neighbouring Maryland, Pennsylvania and New Jersey this is well known — the retail corridors near the state line exist largely because of it.
The income tax is where Delaware recovers it. Six brackets run from 2.2% to 6.6%, and the top rate begins at $60,000 of taxable income. That is a low threshold: a mid-career professional salary is entirely in the top band.
The first $2,000 is untaxed, and the standard deduction is $3,250 for a single filer or $6,500 for a couple, with the personal exemption delivered as a $110 credit per person. Those allowances are small, so Delaware taxable income sits close to gross wages.
Whether Delaware is cheap for you depends on the ratio of your spending to your income. A retiree spending down savings benefits enormously from no sales tax. A high earner who saves heavily pays the income tax without getting much back.
Wilmington levies a wage tax of 1.25% on residents and on non-residents who work in the city. It is the only Delaware municipality that does, and it applies based on where the work is performed as well as where you live.
Against a state structure that already reaches 6.6% at $60,000, that additional 1.25% puts a Wilmington worker close to 8% on marginal income — a materially different position from the rest of the state. This calculator shows state tax only.
More than a million business entities are registered in Delaware, including a majority of Fortune 500 companies, drawn by the Court of Chancery — a specialised business court with no juries and a deep body of corporate case law — and by flexible corporate statutes.
Franchise taxes and fees from those registrations fund a substantial share of the state budget, which is a large part of how a state this small manages without a sales tax. For a Delaware wage earner it is invisible on a pay stub but it is the structural reason the rest of the tax picture looks as it does.
Delaware also excludes $12,500 of pension and eligible retirement income for taxpayers aged 60 and over, and does not tax Social Security.
No general sales tax, which is why retail corridors cluster near its borders. Delaware levies a gross receipts tax on businesses instead, which is not itemised at the till.
At $60,000 of taxable income — a low threshold, so most professional salaries sit entirely in the 6.6% band.
1.25% on residents and on non-residents working in the city. Wilmington is the only Delaware municipality that levies one.
Social Security is exempt, and taxpayers 60 and over can exclude $12,500 of pension and eligible retirement income.