Delaware State Tax Guide

Delaware state tax rates and rules for income, sales, property, fuel, cigarette, and other taxes that impact Delaware residents.

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Delaware State Tax: Overview

You can enjoy making tax-free purchases in Delaware since it is one of the states with no sales tax. The property tax rate in Delaware is relatively low, and the state won't tax income below $2,000.

Delaware's highest income tax bracket is 6.6%, but if you have taxable income greater than $60,000, you will pay the 6.6% rate.

[Data for this state tax guide was gathered from several sources including the U.S. Census Bureau, the state’s government website, the Sales Tax Handbook, and the Tax Foundation. Property taxes are cited as a rate percentage rather than the assessed value.]

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Delaware Income Tax

Delaware tax on retirement benefits: Delaware does not tax Social Security benefits or Railroad Retirement benefits. Retirees age 60 and older may exclude up to $12,500 of pension or retirement income from a qualified retirement plan in Delaware. This income includes but is not limited to:

  • Interest income
  • Capital gains income
  • Net rental income 
  • Income from dividends

(Note: The pension exclusion is limited to $2,000 for taxpayers under 60.)

Delaware Income Tax Range

Delaware's income tax brackets are the same for every filing status. The city of Wilmington imposes its own income tax rate.

Swipe to scroll horizontally
Up to $2,0000%
$2,001 to $5,0002.2%
$5,001 to $10,0003.9%
$10,001 to $20,0004.8%
$20,001 to $25,0005.2%
$25,001 to $60,0005.55%
More than $60,0006.6%

Delaware Sales Tax

Delaware does not impose any state or local sales tax.

How Much Are Property Taxes in Delaware?

In Delaware, the average effective property tax rate is 0.58%, which is lower than in most other U.S. states.

Delaware Property Tax Breaks for Retirees

Senior Property Tax Credit: Some homeowners can get a property tax credit of up to $500 against school property taxes. Delaware requires homeowners meet certain eligibility criteria to qualify for the credit.

  • Homeowners must have paid their entire property tax bill for the prior year.
  • The property must be the homeowner's primary residence.
  • Homeowners must be 65 or older.

Note: If one spouse is not yet 65, the other spouse may apply for the school property tax credit when the home is jointly owned.

Delaware Motor Vehicle Taxes

Delaware taxes gasoline at $0.23 per gallon.

Delaware does not impose sales tax or personal property tax on motor vehicles.

Delaware Alcohol and Tobacco Taxes

Swipe to scroll horizontally
Cigarettes$2.10 per pack
Other tobacco products30% of wholesale price
Vapor products$0.05 per ml
Beer$0.26 per gallon (rounded to the nearest cent)
Wine$1.63 per gallon
Liquor (25% or less ethyl alcohol by volume)$3.00 per gallon
Liquor (More than 25% ethyl alcohol by volume)$4.50 per gallon

Delaware Estate and Inheritance Taxes

Delaware is one of the states with no estate or inheritance taxes.

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Katelyn Washington
Tax Writer

Katelyn has more than 6 years’ experience working in tax and finance. While she specializes in tax content, Katelyn has also written for digital publications on topics including insurance, retirement and financial planning and has had financial advice commissioned by national print publications. She believes that knowledge is the key to success and enjoys helping others reach their goals by providing content that educates and informs.

With contributions from