Does Delaware have a state income tax?

Yes. Delaware uses a progressive state income tax with seven brackets ranging from 0% on the first $2,000 of taxable income to 6.6% on income above $60,000. The intervening brackets are 2.2% on $2,000-$5,000, 3.9% on $5,000-$10,000, 4.8% on $10,000-$20,000, 5.2% on $20,000-$25,000, and 5.55% on $25,000-$60,000. The bracket structure is the same for all filing statuses, which is unusual among states — most expand the brackets for married couples filing jointly. Delaware does not allow joint returns to use doubled thresholds, which means married couples face a relatively quick climb to the 5.55% and 6.6% brackets.

Does Delaware have a sales tax?

No. Delaware is one of only five states with no state sales tax, joining Alaska, Montana, New Hampshire, and Oregon. The state instead funds itself partly through a gross receipts tax on businesses and through corporate franchise fees paid by the more than one million businesses incorporated in Delaware (including most Fortune 500 companies). For residents, the absence of sales tax means significant savings on large purchases — buying a $30,000 car in Delaware saves roughly $1,800 to $2,100 compared to neighboring Pennsylvania or Maryland — and it also explains why retail districts in Wilmington and Newark draw shoppers from across state lines.

How much does a $26/hour worker take home in Delaware?

At $26/hour working 40 hours per week and filing single, your gross annual pay is $54,080. After federal income tax of approximately $4,485, Delaware state tax of approximately $2,108, Social Security of approximately $3,353, and Medicare of approximately $784, your annual take-home is roughly $43,350. That works out to about $1,667 per biweekly paycheck. Wilmington residents pay an additional 1.25% city wage tax on top of state tax, which would reduce annual take-home by roughly $635 for someone at this income level.

What is the Delaware minimum wage in 2025-2026?

The Delaware state minimum wage is $15.00 per hour as of January 1, 2025, the final step in a multi-year increase that began in 2019 when the minimum was $8.25. There is no separate sub-minimum for tipped workers in Delaware — all workers must receive at least $15.00 per hour from a combination of cash wages and tips, with employers responsible for making up any shortfall. A full-time minimum wage worker earns $31,200 annually in gross pay, producing roughly $26,400 in take-home after federal, state, and FICA taxes.

Does Wilmington charge a local income tax?

Yes. The City of Wilmington levies a 1.25% wage tax on all wages earned within the city limits, paid by both residents and non-resident commuters who work in Wilmington. For a worker earning $60,000 annually in Wilmington, the city wage tax adds $750 to the total tax burden on top of state and federal taxes. The tax is withheld directly by employers based in Wilmington. No other Delaware municipality currently charges a local income tax, so workers in Newark, Dover, Middletown, or Rehoboth Beach pay only state and federal taxes.

How does Delaware compare to neighboring states for take-home pay?

Delaware sits in the middle of the pack regionally. Pennsylvania levies a flat 3.07% state income tax that is meaningfully lower than Delaware's top 6.6%, especially for higher earners — though Pennsylvania also has local earned income taxes of 1% to 3.9% that erase the headline advantage in many municipalities. New Jersey runs a progressive 1.4% to 10.75% system, more expensive than Delaware at high incomes but comparable at middle incomes. Maryland is 2% to 5.75%, plus county piggyback taxes of 2.25% to 3.2%, which combined exceed Delaware's top rate. For a $65,000 earner, Delaware owes about $2,800 state tax, PA owes $2,000 state plus possibly $650 local, MD owes $2,600 state plus $1,700 county.

Does Delaware tax retirement income?

Delaware partially shields retirement income. Workers age 60 and over can exclude up to $12,500 of pension and retirement-plan income from state taxation, regardless of source (401(k), IRA, employer pension, military pension, etc.). Social Security benefits are fully exempt from Delaware state income tax at all ages. This makes Delaware moderately retiree-friendly compared with states that fully tax all retirement income, though less generous than the full retirement income exemption offered by Pennsylvania and Mississippi.

Delaware Paycheck Calculator (Hourly) — Free Take-Home Pay Estimator

How the Delaware Paycheck Calculator Works

This Delaware paycheck calculator hourly tool estimates your take-home pay by subtracting federal income tax, Delaware's progressive state income tax (0% to 6.6%), and FICA (Social Security and Medicare) from your gross earnings. Delaware uses seven brackets, beginning with a zero-rate exemption on the first $2,000 of taxable income, which slightly softens the effective rate for very low earners.

The core formula:

Take-Home = Gross - Federal Tax - DE State Tax - Social Security - Medicare

P_{net} = P_{gross} - T_{fed} - T_{DE} - T_{SS} - T_{Med}

Annual gross pay equals hourly wage x hours per week x 52 weeks, which can also be expressed as an annual salary by multiplying hourly rate by 2,080. Per-period pay divides the annual figure by 52 (weekly), 26 (biweekly), 24 (semi-monthly), or 12 (monthly).

Federal income tax for 2026 uses progressive brackets: 10% on the first $11,925 single, 12% to $48,475, 22% to $103,350, 24% to $197,300, 32% to $250,525, 35% to $626,350, and 37% above. Federal standard deduction is $15,000 single, $30,000 married, $22,500 head of household. Delaware state tax then applies its seven brackets to taxable income after Delaware's smaller standard deduction of $3,250 single or $6,500 married. FICA is 6.2% Social Security on wages up to $176,100 plus 1.45% Medicare on all wages, with a 0.9% Medicare surtax on wages above $200,000 single or $250,000 married.

Delaware Hourly Paycheck Tax Breakdown

Delaware's progressive income tax was last meaningfully restructured in 2010 when the top rate dropped from 6.95% to 6.75%, then to the current 6.6% in 2014. The seven-bracket structure means that workers face increasing marginal rates as income climbs, but the rates accelerate quickly: a single filer earning $25,000 already faces the 5.2% bracket on a slice of income, and one earning $60,000 hits the top 6.6% bracket. By contrast, Connecticut requires $500,000 of income to hit its top 6.99% rate, and California requires $1,000,000 for 13.3%. This means Delaware's "top rate" applies to a much larger share of middle-class workers than top rates in most other progressive states.

The standard deduction in Delaware is notably small: $3,250 for single filers and $6,500 for married filing jointly, compared with federal amounts of $15,000 and $30,000. This means a much larger portion of your gross income is subject to Delaware state tax than to federal income tax. A single filer earning $50,000 has $46,750 of Delaware taxable income but only $35,000 of federal taxable income.

Compared to neighbors, Delaware's structure is moderate. Pennsylvania's flat 3.07% is dramatically lower at the headline level, but Pennsylvania's local Earned Income Tax (EIT) added by most municipalities (typically 1% but reaching 3.9% in Philadelphia) often closes the gap. New Jersey's progressive 1.4% to 10.75% system is gentler at the bottom but much steeper at the top, with the top rate kicking in above $1,000,000. Maryland's 2% to 5.75% state rate is lower than Delaware, but Maryland's 2.25% to 3.2% county piggyback income tax pushes the total combined rate above Delaware's for most residents. For a $75,000 single earner, Delaware owes roughly $3,450 in state tax, PA owes $2,303 plus possibly $750 local, MD owes $3,360 state plus about $2,250 county.

Your Delaware paycheck deductions come from four sources (plus city wage tax if you work in Wilmington):

Federal income tax: Calculated using progressive IRS brackets. Use our income tax calculator to model your full-year liability.
Delaware state income tax: Progressive rates from 0% to 6.6% applied to Delaware taxable income.
Wilmington wage tax (if applicable): 1.25% of wages earned in Wilmington, applied to residents and commuters alike.
Social Security: Flat 6.2% on wages up to the 2026 wage base of $176,100.
Medicare: Flat 1.45% on all wages, plus a 0.9% surtax on wages above $200,000 (single) or $250,000 (married).

Variable Definitions

Hourly Wage: Your gross pay per hour before deductions. Delaware's labor market is diverse: a Wilmington banking analyst at one of the city's many financial services firms earns $30 to $50 per hour, a Newark University of Delaware research technician earns $24 to $32 per hour, a Dover Air Force Base civilian contractor earns $28 to $45 per hour, and a Rehoboth Beach hospitality manager earns $22 to $30 per hour. All face the same Delaware bracket structure but reach different top marginal rates based on annual income.

Hours per Week: Total hours worked each week. Delaware follows federal Fair Labor Standards Act rules, requiring overtime at 1.5x for hours above 40 per workweek. A New Castle warehouse worker at one of Amazon's three Delaware fulfillment centers averaging 48 hours weekly should enter 40 here and treat 8 overtime hours separately.

Pay Frequency: How often you receive a paycheck. Most Delaware private-sector workers are paid biweekly. State employees are paid biweekly as well, while school district employees often select a 12-month or 10-month pay schedule. A Brandywine School District teacher earning $58,000 over a 10-month contract receives $5,800 per month if they choose the 10-month option.

Filing Status: Your federal and Delaware filing status. Delaware uses the same brackets for all filers, which means joint returns face the same bracket thresholds as single returns. A married couple in Hockessin filing jointly with $80,000 combined income lands well into the 5.55% bracket, while two unmarried partners each earning $40,000 each stay in the 4.8% bracket — a meaningful marriage penalty for middle-income Delaware couples.

Pre-Tax Deduction: Percentage contributed to a 401(k), 403(b), HSA, or traditional IRA. A Dover DuPont chemist earning $85,000 who contributes 10% to a 401(k) reduces Delaware taxable income by $8,500, saving roughly $471 in Delaware state tax (at 5.55% marginal) plus $1,870 in federal tax (at 22% marginal) for $2,341 in immediate tax savings.

Worked Example 1: Delaware Hourly Paycheck at $20/Hour

A single filer earning $20/hour, working 40 hours/week, biweekly pay, with no pre-tax deductions:

Annual gross: $20 x 40 x 52 = $41,600
Federal taxable income: $41,600 - $15,000 = $26,600
Federal tax: ($11,925 x 10%) + ($14,675 x 12%) = $1,192.50 + $1,761.00 = $2,953.50
DE taxable: $41,600 - $3,250 (DE std ded) = $38,350
DE state tax: ($2,000 x 0%) + ($3,000 x 2.2%) + ($5,000 x 3.9%) + ($10,000 x 4.8%) + ($5,000 x 5.2%) + ($13,350 x 5.55%) = $0 + $66 + $195 + $480 + $260 + $740.93 = $1,741.93
Social Security: $41,600 x 6.2% = $2,579.20
Medicare: $41,600 x 1.45% = $603.20
Total deductions: $2,953.50 + $1,741.93 + $2,579.20 + $603.20 = $7,877.83
Annual take-home: $41,600 - $7,877.83 = $33,722.17
Biweekly take-home: $33,722.17 / 26 = $1,297.01

Worked Example 2: Delaware Hourly Paycheck at $42/Hour

A married-filing-jointly Wilmington couple where one spouse earns $42/hour, working 40 hours/week, biweekly pay, with a 7% pre-tax 401(k) contribution. Spouse does not work this year:

Annual gross: $42 x 40 x 52 = $87,360
Pre-tax 401(k): $87,360 x 7% = $6,115.20
Taxable gross: $87,360 - $6,115.20 = $81,244.80
Federal taxable income: $81,244.80 - $30,000 (married std ded) = $51,244.80
Federal tax: ($23,850 x 10%) + ($27,394.80 x 12%) = $2,385 + $3,287.38 = $5,672.38
DE taxable: $81,244.80 - $6,500 (DE married std ded) = $74,744.80
DE state tax: ($2,000 x 0%) + ($3,000 x 2.2%) + ($5,000 x 3.9%) + ($10,000 x 4.8%) + ($5,000 x 5.2%) + ($35,000 x 5.55%) + ($14,744.80 x 6.6%) = $0 + $66 + $195 + $480 + $260 + $1,942.50 + $973.16 = $3,916.66
Wilmington city wage tax: $81,244.80 x 1.25% = $1,015.56
Social Security: $81,244.80 x 6.2% = $5,037.18
Medicare: $81,244.80 x 1.45% = $1,178.05
Total deductions: $6,115.20 + $5,672.38 + $3,916.66 + $1,015.56 + $5,037.18 + $1,178.05 = $22,935.03
Annual take-home: $87,360 - $22,935.03 = $64,424.97
Biweekly take-home: $64,424.97 / 26 = $2,477.88

This Wilmington single-earner couple pays an effective Delaware state tax rate of roughly 4.5% plus the city wage tax of 1.25%, totaling about 5.75% to Delaware jurisdictions. Federal tax is relatively low at 6.5% effective because of the doubled married standard deduction and lower bracket thresholds. Combined federal plus Delaware plus Wilmington income tax burden runs about 12.2%, with FICA adding another 7.65% for a total deduction rate near 26.3%.

Edge Cases and Advanced Scenarios

Social Security wage base cap: A high-earning DuPont executive earning $400,000 pays Social Security only on the first $176,100, capping FICA SS withholding at $10,918.20. The cap resets each January 1.

Additional Medicare surtax: Single filers above $200,000 (married above $250,000) pay an extra 0.9% Medicare tax on the excess. A Wilmington corporate attorney earning $275,000 single owes ($275,000 - $200,000) x 0.9% = $675 in additional Medicare tax. The employer withholds the surtax once year-to-date wages cross $200,000.

Cross-border commuter complications: Many Delaware residents commute to Pennsylvania (Philadelphia, West Chester), Maryland (Baltimore, Aberdeen), or New Jersey (Camden) for work, and many non-residents commute into Wilmington from those same states. Delaware has reciprocal tax agreements with no neighboring state for personal income tax purposes, meaning income earned in another state is generally taxable there, but you receive a Delaware credit for taxes paid to the other state to avoid double taxation. The interaction with the Wilmington city wage tax adds another layer: non-residents who work in Wilmington owe the 1.25% city wage tax, while Delaware residents who work outside the state typically owe no Wilmington tax. Cross-border workers should file both states' returns and carefully track which days were worked in each jurisdiction.

What to Do with Your Delaware Paycheck Result

Compare your calculated take-home pay to your actual paycheck stub. Differences usually come from health insurance, dental, vision, or other voluntary deductions not modeled here.
If you work in Wilmington, remember to add the 1.25% city wage tax to your effective state burden. The calculator above estimates state tax only, not local.
Take advantage of Delaware's no-sales-tax environment for large purchases. The savings on a car, appliance, or furniture purchase often equal a full extra paycheck per year compared with making the same purchase in PA or MD.
Use our federal income tax percentage calculator to check your effective federal rate and confirm withholding accuracy.

Related Calculators

Washington DC Paycheck Calculator (Hourly) — DC's progressive rates from 4% to 10.75% are steeper than Delaware's.
Connecticut Paycheck Calculator (Hourly) — Connecticut also runs progressive rates topping at 6.99%, slightly above Delaware.
Illinois Paycheck Calculator (Hourly) — Illinois's flat 4.95% offers a comparison to Delaware's progressive structure.
Salary Calculator — convert between hourly and annual pay.
Income Tax Calculator — estimate your total federal income tax liability.
Federal Income Tax Percentage Calculator — find your effective federal tax rate.
Paycheck Calculator by State — compare take-home pay across all 50 states and DC.

Delaware Paycheck Calculator (Hourly)