Compare state tax rates and rules — on income, ordinary purchases, gas, sin products, property, and more — across the U.S. Go to the Kiplinger Tax Map Delaware Add to State Compare List | View List View State Compare List (0) selected | Compare up to 5 The Bottom Line 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), and the capital city of Wilmington imposing its own wage tax. 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). 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 $233,100 is $1,274.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 Cigarettes: $2.10 a packSnuff: $0.92 per ounceAll other tobacco products: 30% of the wholesale priceBeer: $0.26 per gallonWine: $1.63 per gallonLiquor: $4.50 per gallonVapor products: $0.05 per ml of e-juice. Travel Taxes Hotel: Delaware levies an 8% state tax on lodging. Rental Cars: 2% state tax. Taxes On Wireless Service 6.45% Inheritance and Estate Taxes Delaware's estate tax expired at the end of 2017. About our methodology