Tool | January 2018

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—and for 2018, it buried its estate tax. 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 expired at the end of 2017. The estate-tax exemption was $5.49 million for 2017. Rates range from 0.8% to 16%. There is no inheritance tax.

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