Delaware Paycheck Calculator
No sales tax anywhere in Delaware — but Wilmington charges a 1.25% wage tax on everyone who works there.
Your details
Pre-tax — lowers income tax but not Social Security or Medicare.
Section 125 premiums reduce both income tax and FICA.
Wilmington levies a 1.25% city wage tax.
Take-home pay per paycheck
$2,225.90
$57,874 a year after tax · Delaware · 2026 rates
Gross per paycheck
$2,884.62
Total deductions
$17,127
Effective tax rate
22.8%
Where your money goes — Delaware
| Deduction | Per paycheck | Per year |
|---|---|---|
| Federal income tax | $295.00 | $7,670 |
| Social Security (6.2%) | $178.85 | $4,650 |
| Medicare (1.45%) | $41.83 | $1,088 |
| Delaware income tax | $143.04 | $3,719 |
| Net take-home pay | $2,225.90 | $57,874 |
Delaware is one of five states with no sales tax at all, funding itself instead through income tax and corporate franchise fees. The income tax runs from 2.2% to 6.6%, with the first $2,000 of taxable income exempt. Wilmington levies a 1.25% city wage tax on anyone working within its limits, resident or not. Add it below if that applies to you.
The corporate franchise that subsidises everyone else
More than two-thirds of Fortune 500 companies are incorporated in Delaware, drawn by its Court of Chancery and a body of corporate case law unmatched anywhere else. The franchise taxes and fees those registrations generate fund a substantial share of the state budget.
The practical consequence for residents is a tax burden lighter than the state's public services would otherwise imply, and no sales tax at all. Delaware has never levied one, which makes it a shopping destination for neighbouring Maryland, Pennsylvania and New Jersey residents on larger purchases.
That revenue base also makes Delaware's finances unusually dependent on remaining attractive to incorporation. Periodic proposals in other states to compete for that business are watched closely in Dover.
The Wilmington wage tax
Wilmington charges a 1.25% wage tax on earned income, and it applies to non-residents working in the city as well as to residents. There is no reciprocity and no credit from the state for it — it is simply an additional deduction.
Because it is levied on gross wages with no deductions or exemptions, a 1.25% wage tax costs more than a 1.25% income tax would. For someone earning $75,000, it is roughly $940 a year.
No other Delaware municipality levies one, so the tax is entirely a Wilmington question. Given that Wilmington is the state's largest employment centre and draws commuters from all three neighbouring states, it affects a disproportionate share of the people working in Delaware.
Brackets that top out early, and retirement treatment
Delaware's top rate of 6.6% begins at $60,000 of taxable income — low enough that many professionals reach it. Below that, the rates step up through 2.2%, 3.9%, 4.8%, 5.2% and 5.55%, and the first $2,000 is exempt.
Delaware's standard deduction is modest at $3,250 for single filers, so taxable income tracks fairly close to gross pay.
On retirement, Delaware does not tax Social Security benefits. It offers an exclusion for other retirement income that is larger for taxpayers aged 60 and over, and an additional standard deduction for those 65 and over. Combined with no sales tax and low property taxes, that makes Delaware genuinely attractive for retirees — a fact reflected in the state's demographics.
Frequently Asked Questions
What is the Delaware income tax rate?+
Six bands from 2.2% to 6.6%, with the first $2,000 of taxable income exempt. The top rate begins at $60,000, which is low enough that many professionals reach it.
What is the Wilmington wage tax?+
A 1.25% tax on earned income, charged on gross wages with no deductions. It applies to anyone working in Wilmington, including non-residents, and no other Delaware municipality levies one.
Does Delaware have a sales tax?+
No. Delaware is one of five states with no sales tax at all, which makes it a shopping destination for residents of Maryland, Pennsylvania and New Jersey.
Does Delaware tax retirement income?+
Social Security is exempt. Other retirement income qualifies for an exclusion that is larger from age 60, and there is an additional standard deduction from 65.
Other states
- Alabama2%–5%
- AlaskaNo income tax
- Arizona2.5% flat
- Arkansas2%–3.9%
- California1%–13.3%
- Colorado4.4% flat
- Connecticut2%–6.99%
- District of Columbia4%–10.75%
- FloridaNo income tax
- Georgia5.19% flat
- Hawaii1.4%–11%
- Idaho0%–5.3%
- Illinois4.95% flat
- Indiana2.95% flat
- Iowa3.8% flat
- Kansas5.2%–5.58%
- Kentucky3.5% flat
- Louisiana3% flat
- Maine5.8%–7.15%
- Maryland2%–6.5%
- Massachusetts5%–9%
- Michigan4.25% flat
- Minnesota5.35%–9.85%
- Mississippi0%–4%
- Missouri0%–4.7%
- Montana4.7%–5.65%
- Nebraska2.46%–4.55%
- NevadaNo income tax
- New HampshireNo income tax
- New Jersey1.4%–10.75%
- New Mexico1.5%–5.9%
- New York3.9%–10.9%
- North Carolina3.99% flat
- North Dakota0%–2.5%
- Ohio0%–2.75%
- Oklahoma0%–4.5%
- Oregon4.75%–9.9%
- Pennsylvania3.07% flat
- Rhode Island3.75%–5.99%
- South Carolina0%–6%
- South DakotaNo income tax
- TennesseeNo income tax
- TexasNo income tax
- Utah4.5% flat
- Vermont3.35%–8.75%
- Virginia2%–5.75%
- WashingtonNo income tax
- West Virginia2.22%–4.82%
- Wisconsin3.5%–7.65%
- WyomingNo income tax
This calculator is for informational and educational purposes only. Results are estimates and should not be considered financial advice. Always consult a qualified financial professional before making financial decisions. Rates shown are for the 2026 tax year; confirm current figures with the Delaware revenue department.
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