Delaware Tax Calculator 2023-2024: Estimate Your Taxes - Forbes Advisor (2024)

What You Need To Know About Delaware State Taxes

Delaware requires you to pay taxes if you’re a resident, or a nonresident who receives income from a Delaware source. The state’s income tax rates run from 0% up to 6.6%. Delaware doesn’t have a state sales tax.

Numerous tax deductions and credits are available in Delaware to reduce your tax liability. These include a charitable mileage deduction, a volunteer firefighter tax benefit and a child care credit.

Delaware Income Tax Brackets and Rates for All Filing Statuses

Income Tax Deductions for Delaware

Standard Deduction

Delaware allows taxpayers to take advantage of a standard deduction; the amount of the deduction is determined by your filing status. For the 2021 tax year, the standard deduction amount is $6,500 for married taxpayers filing jointly and $3,250 for all other filing statuses.

Itemized Deductions

You may choose to itemize deductions on your Delaware return even if you take the standard deduction on your federal tax return. But it’s important to note that your federal return serves as the basis for itemizing your Delaware return.

As on your federal return, Delaware allows you to deduct eligible medical and dental expenses, state and local taxes, interest paid, gifts to charity, and casualty and theft losses. The federal limits on itemized deductions apply at the state level.

Other Deductions

Delaware offers a few state-specific deductions, including a mileage deduction of 26 cents per mile when you use your car for charitable work; a write-off for any foreign taxes you paid; and a deduction for charitable contributions of gifts of land to nonprofit organizations.

Delaware State Income Tax Credits

Volunteer Firefighter Tax Credit

A Delaware resident who’s an active volunteer firefighter with a fire company, auxiliary or rescue squad can claim a tax credit worth $500. Each year, your active status will be verified with your volunteer company by the state Department of Revenue.

The credit is nonrefundable.

Child Care Tax Credit

Taxpayers who are eligible for the federal child and dependent care credit can claim a similar state credit. The Delaware credit is worth 50% of the federal one.

Generally, if a couple elect to file separate state tax returns, the credit will apply to the parent with the lowest taxable income.

This credit is nonrefundable.

The child care credit should not be confused with the federal child tax credit, which does not have a state-level version on the Delaware return.

Earned Income Tax Credit

Delaware offers an earned income tax credit, similar to the federal earned income credit. The state’s taxpayers can choose between a refundable credit worth 4.5% of the federal credit amount or a nonrefundable credit worth 20% of the federal amount.

In the case of a refundable tax credit, you will receive a refund if you don’t owe any taxes or if the tax credit is greater than the taxes due. Unlike a refundable tax credit, a nonrefundable tax credit reduces your tax liability to zero.

This state credit doesn’t carry forward.

Do I Have to File Taxes in Delaware?

Delaware requires full-time residents to file a state tax return if their Delaware adjusted gross income (AGI) exceeds the following:

Under age 60:

• Single, head of household, or married filing separately: $9,400
• Married filing jointly: $15,450

Ages 60 to 64:

• Single, head of household, or married filing separately: $12,200
• Married filing jointly: $17,950

Age 65 or older OR blind

• Single, head of household, or married filing separately: $14,700
• Married filing jointly: $20,450

Age 65 or older AND blind

• Single, head of household, or married filing separately: $17,200
• Married filing jointly: $22,950

You also must file a Delaware state tax return if you’re a part-year resident and earn income while living in Delaware or receive income from a Delaware source during your nonresident time.

Sales Tax and Sales Tax Rates

Delaware has no sales tax, either at the state or local level.

Property Taxes and Property Tax Rates

Property Tax Rates

Property taxes are administered on a local level.

Capital Gains Taxes

Capital gains are taxed as ordinary income in Delaware.

Inheritance and Estate Taxes

There is no inheritance tax for deaths that occurred on Dec. 31, 1998, or later. Delaware doesn’t have an estate tax.