Delaware's income tax tops out at 6.6%, reached at just $60,000 of taxable income, so many full-time workers hit the top bracket. But Delaware has no sales tax at all, which offsets part of that bite.
If you live or work in Wilmington, a 1.25% city wage tax stacks on top. Here is how the graduated state rate works on your paycheck, and what the missing sales tax is worth. See your exact take-home with the free Delaware paycheck calculator.
How Delaware's income tax works
Delaware uses graduated brackets from 0% on the first $2,000 up to 6.6% on income over $60,000, after a standard deduction ($5,700 single / $11,400 married). The same brackets apply to every filing status. Because the top rate starts at $60,000, many workers reach 6.6% on their last dollars.
The city of Wilmington levies a 1.25% local wage tax on residents and people who work there. We model the state tax only, so add that 1.25% if Wilmington applies to you.
| Taxable income | Rate |
|---|---|
| $0 – $2,000 | 0% |
| $2,000 – $20,000 | 2.2% – 4.8% |
| $20,000 – $60,000 | 5.2% – 5.55% |
| Over $60,000 | 6.6% |
Your take-home on a $65,000 salary in Delaware
Here is how a $65,000 salary breaks down for a single filer, using 2025 federal and FICA figures alongside Delaware's graduated rates up to 6.6%.
| Item | Annual |
|---|---|
| Federal income tax | $5,246 |
| FICA (Social Security + Medicare) | $4,973 |
| Delaware income tax | $2,905 |
| Take-home pay | $51,877 |
| Percent of gross kept | 79.8% |
On a $65,000 salary a single filer owes about $2,905 in Delaware income tax, an effective rate near 4.5%, and keeps roughly $51,877, or 79.8% of gross, before any Wilmington wage tax. Delaware's lack of any sales tax is a real offset: you pay more on income but nothing at the register, which especially helps big-ticket shoppers. Compare with Pennsylvania.
No sales tax, but a Wilmington wage tax
Delaware's defining feature is that it has no state or local sales tax at all, one of only a handful of states. That partly compensates for an income tax whose 6.6% top rate arrives at a relatively low $60,000. The trade-off favors people who spend a lot relative to what they earn.
If you live or work in Wilmington, add the city's 1.25% wage tax. Delaware also excludes a meaningful amount of retirement income and does not tax Social Security, easing the rate for retirees.
How to keep more of your Delaware paycheck
Because Delaware starts from a federal-style base, a traditional 401(k) and HSA lower your Delaware and federal taxable income together (and the HSA also avoids FICA), the simplest way to trim a bill that reaches the 6.6% top rate quickly.