Tool | October 2017

State-by-State Guide to Taxes

Compare state tax rates and rules -- on income, ordinary purchases, gas, sin products, property, and more -- across the U.S.

Delaware

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The Bottom Line
Map of Delaware

Most Tax-Friendly

The First State is a standout among its East Coast neighbors with no sales tax and and low property taxes. Income taxes escalate quickly, though, with the top rate of 6.6% hitting taxable income over $60,000 (for both single and joint filers). Delaware is one of Kiplinger's top ten most tax-friendly states

Sales Tax

Neither the state nor localities impose a sales tax. In response, New Jersey has halved the sales tax on many items in Salem County, which borders Delaware.

Income Tax Range

Low: 2.2% (on taxable income from $2,001 to $5,000)

High: 6.6% (on taxable income above $60,000).

Effective income tax rate: 4.4%/individual, 5.6%/joint

See Kiplinger.com’s Retiree Tax Map to learn how Delaware taxes Social Security income and other forms of retirement income.

Motor Fuel Taxes

Gasoline: $0.23 per gallon.
Diesel: $0.22 per gallon.

Property Taxes

Median property tax on Delaware's median home value of $231,500 is $1,243.

See Kiplinger.com’s Retiree Tax Map to learn how Delaware taxes Social Security income and other forms of retirement income.

Vehicle Taxes

At registration, state charges a fee for documentation. The rate is 4.25% of purchase price or NADA book value, whichever is greater.

Sin Taxes

Beer: $0.16 per gallon
Wine: $0.97 per gallon
Liquor: $3.75 per gallon

Cigarettes: $1.60 a pack
Snuff: $0.54 per ounce
All other tobacco products: 15% of the wholesale price

Travel Taxes

Hotel: Delaware levies an 8% state tax on lodging.

Rental Cars: 2% state tax.

Taxes On Wireless Service

6.34%

Inheritance and Estate Taxes

Delaware's estate tax will expire at the end of 2017. The estate-tax exemption is $5.49 million for 2017. Rates range from 0.8% to 16%. There is no inheritance tax.

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