What is Delaware Income Tax? Rates & Tax Brackets

Updated for tax year 2025.

If you live in Delaware, or if you’re a part-year resident or nonresident with Delaware-source income, you may need to file a Delaware state income tax return along with your federal return.

Delaware uses a progressive income tax system with seven brackets, so the rate you pay depends on your taxable income.

This guide explains Delaware’s 2025 income tax rates and brackets, standard deduction, available exemptions and credits, and the updates for the current tax year. When you’re ready to file, TaxAct® automatically applies Delaware’s tax rules to help you accurately prepare your Delaware return alongside your federal return.

What is the Delaware state income tax?

Delaware state income tax is a tax on income earned by individuals. It is collected by the Delaware Division of Revenue and helps fund state services.

Delaware taxes individual income using a progressive bracket system. For tax year 2025, Delaware’s top marginal rate is 6.6% on taxable income over $60,000. Delaware adjusted gross income generally starts with federal adjusted gross income, with Delaware-specific additions and subtractions applied on Form PIT-RES.

Delaware income tax rates and tax brackets

Delaware’s income tax brackets apply to taxable income for 2025. The rates are the same regardless of filing status. View Delaware’s tax rate schedule.

If you need more information on how federal tax brackets work, you can use our tax bracket calculator for federal taxes.

Delaware standard deduction

Delaware allows you to take a standard deduction or itemize deductions on your state return. You may choose to itemize on your Delaware return even if you took the standard deduction on your federal return. See the Delaware Individual Income Tax Return Resident Instructions for more info.

Delaware taxpayers who take the standard deduction and are age 65 or older or blind may qualify for an additional standard deduction allowance of $2,500 for the taxpayer and/or spouse.

Delaware exemptions, deductions, and credits

Delaware offers several exclusions and credits that may reduce what you owe. Common items include:

• Pension exclusion — taxpayers age 60 and older may exclude up to $12,500 of pension and eligible retirement income per person; taxpayers under age 60 may exclude up to $2,000 of pension income.
• Social Security exclusion — Social Security benefits are not taxable in Delaware.
• Personal Credit — Delaware allows a $110 credit for you, your spouse, and each qualifying dependent, as applicable. You may also qualify for an additional $110 credit if you or your spouse were age 60 or older at the end of the year.
• Credit for income tax paid to another state — Delaware residents may qualify for a credit when income taxed by Delaware is also taxed by another state. If you’re claiming the credit for more than one state, you’ll generally complete Schedule I of Form PIT-RSS.
• Volunteer firefighter, fire auxiliary, and rescue squad credit — a nonrefundable $1,000 credit for eligible active firefighters, or members of fire company auxiliaries or rescue squads. To qualify, you must be an active volunteer firefighter on call to fight fires on a regular basis, a member of a fire company auxiliary, or an active member of an organized rescue squad in a Delaware Volunteer Company.

For a full list of Delaware income tax subtractions, deductions, and credits, see the Delaware Division of Revenue.

Delaware state income tax filing deadlines 2025

The Delaware Division of Revenue has issued the following guidance for tax year 2025 individual income tax returns:

• The state tax filing due date for 2025 Delaware income tax returns is April 30, 2026.
• If you need more time to file your Delaware return, you can request an automatic extension by filing Form PIT-EXT by April 30, 2026. An approved extension gives you until Oct. 15, 2026, to file, but it does not give you more time to pay. Interest may apply to any unpaid tax after the original due date.

Delaware tax changes for 2025

• Delaware’s itemized deduction rules reflect the higher federal SALT deduction cap for 2025, which increased to $40,000 under the OBBB.
• The new federal deductions for qualified tips, overtime pay, and car loan interest do not flow through to Delaware personal income tax for tax year 2025.
• House Bill 255 created additional Delaware decoupling rules for certain federal business deductions. For individuals with business income, those personal income tax changes generally take effect Jan. 1, 2026.

FAQs

The bottom line

Delaware has a progressive state income tax with seven brackets for 2025, topping out at 6.6% on taxable income over $60,000. Standard deductions, pension exclusions, and credits such as the Personal Credit can reduce what you owe.

When you’re ready to file, TaxAct can help you prepare your federal and Delaware returns in one place so you can file with confidence.

Already filed your taxes and waiting for your refund? Learn more about where your Delaware state tax refund is.

This article is for informational purposes only and not legal or financial advice.

All TaxAct offers, products and services are subject to applicable terms and conditions.

The OBBB is now also being referred to by lawmakers as the Working Families Tax Cut Act. You may see one or both names used here, but they refer to the same set of tax changes.

Citations

Delaware Division of Revenue. “Tax Rate Changes.” Accessed 21 Aug. 2026.
Delaware Division of Revenue. “Employer’s Guide (Withholding Regulations and Employer’s Duties).” Accessed 21 Aug. 2026.
Delaware Division of Revenue. “Personal Income Tax FAQs.” Accessed 21 Aug. 2026.
Delaware Division of Revenue. “Technical Information Memorandum 2025-02: Delaware HB 255.” Accessed 21 Aug. 2026.
Delaware Division of Revenue. “Personal Income Tax Forms Current Year (2025-2026).” Accessed 21 Aug. 2026.
TaxAct. “Working Families Tax Cuts Act: 2025 Tax Reform Explained.” TaxAct Blog.
TaxAct. “Where Is My Delaware State Tax Refund?.” TaxAct Blog.