Does Wilmington have a local income tax?

Yes. The City of Wilmington is the only municipality in Delaware that levies a local income tax. The Wilmington city wage tax is 1.25% on earned income — a flat rate that applies equally to both Wilmington residents and non-residents who work within Wilmington city limits. This is a payroll withholding tax collected by employers. If you live outside Wilmington but work in Wilmington, your employer withholds 1.25% from your wages. If you live in Wilmington but work outside the city, you still owe the 1.25% tax on your earned income, self-reported to the city.

Is Social Security or retirement income taxable in Delaware?

Social Security benefits are fully exempt from Delaware state income tax with no income limit — they are completely excluded from Delaware taxable income. Pension and annuity income receives an exclusion of up to $12,500 per year for taxpayers age 60 and older. For taxpayers under age 60, the pension exclusion is capped at $2,000. Railroad retirement income is also fully exempt. Delaware also provides an additional pension exclusion for state pensioners and fully exempts income from U.S. obligations (interest on U.S. Treasury bonds, savings bonds, etc.).

Delaware Paycheck Calculator 2026 – Estimate Take Home Pay

DELAWARE PAYCHECK CALCULATOR 2026

Q: What are Delaware's income tax rates in 2026?

Delaware has seven progressive income tax brackets in 2026, with rates from 0% to 6.6%. The brackets are: 0% on the first $2,000 of taxable income; 2.2% on $2,001–$5,000; 3.9% on $5,001–$10,000; 4.8% on $10,001–$20,000; 5.2% on $20,001–$25,000; 5.55% on $25,001–$60,000; and 6.6% above $60,000. Delaware's brackets are the same for all filing statuses — Single, Married Filing Jointly, and Head of Household all use the same thresholds. Note: House Bill 13 (which proposed new higher brackets for income above $125,000 or $150,000) was deferred in early 2026 and has not been enacted. The current 6.6% top rate remains in effect.

Q: What is Delaware's standard deduction in 2026?

Delaware has its own state standard deduction separate from the federal standard deduction. For 2026, the Delaware standard deduction is $3,250 for Single filers and $6,500 for Married Filing Jointly. Delaware taxable income equals Delaware adjusted gross income (similar to federal AGI but with Delaware-specific subtractions) minus the Delaware standard deduction or itemized deductions, whichever is greater. Delaware also allows itemized deductions following federal rules, and taxpayers who itemize on their federal return may itemize on their Delaware return.

Q: How much will I take home on a $70,000 salary in Delaware?

On a $70,000 annual salary filing as Single in Delaware (outside Wilmington), Delaware taxable income is approximately $66,750 after the $3,250 standard deduction. Applying the seven brackets: 0% on $2,000 + 2.2% on $3,000 + 3.9% on $5,000 + 4.8% on $10,000 + 5.2% on $5,000 + 5.55% on $35,000 + 6.6% on $6,750 = approximately $3,431 in Delaware state tax. Combined with approximately $6,772 in federal income tax and $5,355 in FICA, estimated annual take-home is about $54,442, or roughly $4,537 per month.

Delaware taxes wages using seven progressive brackets from 0% to 6.6%. The state standard deduction is $3,250 (Single) or $6,500 (MFJ) — separate from the federal amount. The City of Wilmington is the only municipality in Delaware that levies a local wage tax, at a flat 1.25% on earned income for residents and anyone who works within city limits. Social Security is fully exempt at all ages and income levels. There is no state sales tax in Delaware. Use the calculator to estimate your exact Delaware take-home pay.

CALCULATE YOUR DELAWARE NET PAY

7 progressive brackets 0%–6.6% · $3,250 state std deduction · Optional Wilmington 1.25% · 2026 verified data

Gross Pay Amount ($) Rate Type Pay Frequency Filing Status Wilmington City Wage Tax The 1.25% Wilmington wage tax applies to all earned income for Wilmington residents AND for non-residents who work within Wilmington city limits. It is withheld from paychecks by employers.

Take-Home Pay: $0

Federal Tax (Annual) $0

Social Security (Annual) $0

Medicare (Annual) $0

DE State Tax — 0%–6.6% Progressive (Annual) $0

Wilmington City Wage Tax — 1.25% (Annual) $0

Net Take-Home (Annual) $0

Delaware 2026 Tax Summary: 7 progressive brackets: 0% / 2.2% / 3.9% / 4.8% / 5.2% / 5.55% / 6.6% (top rate on income above $60,000). Same brackets for all filing statuses. State standard deduction: $3,250 Single / $6,500 MFJ. Personal credit: $110 per exemption. SS fully exempt. Pension exempt up to $12,500 (age 60+). Wilmington city wage tax: 1.25% (only city in DE with local income tax). No state sales tax.

No State Sales Tax — A Unique Delaware Advantage: Delaware is one of only five states with no state sales tax (along with Montana, New Hampshire, Oregon, and Alaska). Combined with relatively moderate income tax rates, Delaware's overall tax burden is among the lowest on the East Coast. This makes Delaware a popular shopping destination and an attractive state for retirees on fixed incomes.

    HB13 Update — Proposed Higher Brackets NOT Enacted: Delaware House Bill 13, which proposed adding new income tax brackets of 6.75%, 6.85%, and 6.95% for high earners (income above $125,000–$250,000), was deferred in early 2026 after Delaware's revenue estimates for 2026 were revised upward, reducing the urgency for new tax revenue. The current 0%–6.6% bracket structure remains in full effect for Tax Year 2026. Always use the 6.6% top rate for 2026 paycheck and tax planning purposes.
  

Wilmington Workers — City Wage Tax Applies: If you work within Wilmington city limits — even if you live in Newark, Wilmington suburbs, New Jersey, or Pennsylvania — your employer must withhold the 1.25% Wilmington city wage tax from every paycheck. This is one of the most significant differences between working in Wilmington vs. working in other Delaware cities like Dover or Newark, where no local income tax applies.

COMPARE OTHER STATE PAYCHECK CALCULATORS

EVERY DEDUCTION ON A DELAWARE PAYCHECK IN 2026

Delaware paychecks have four deduction lines for most workers — five for those in Wilmington. Delaware has no state disability insurance and no paid family leave payroll deduction:

Federal Income Tax — Progressive 10%–37% applied after the 2026 federal standard deduction ($16,100 Single / $32,200 MFJ / $24,150 HOH).
Social Security — 6.2% of gross wages up to the $176,100 annual wage base. Wages above this threshold are SS-exempt for the rest of the year.
Medicare — 1.45% on all wages with no cap. An additional 0.9% Medicare surtax applies on wages above $200,000.
Delaware State Income Tax — Seven progressive brackets (0%–6.6%) applied to Delaware taxable income (gross wages minus the Delaware standard deduction of $3,250 Single / $6,500 MFJ), minus a $110 personal credit per exemption.
Wilmington City Wage Tax (if applicable) — Flat 1.25% on all earned income for Wilmington residents and non-residents working within Wilmington city limits. Only city in Delaware with a local income tax.

Example — Single, $70,000 gross wages (outside Wilmington, 2026):
DE Taxable = $70,000 − $3,250 = $66,750
0% × $2,000 = $0
2.2% × $3,000 ($2,001–$5,000) = $66
3.9% × $5,000 ($5,001–$10,000) = $195
4.8% × $10,000 ($10,001–$20,000) = $480
5.2% × $5,000 ($20,001–$25,000) = $260
5.55% × $35,000 ($25,001–$60,000) = $1,942.50
6.6% × $6,750 ($60,001–$66,750) = $445.50
Subtotal: $3,389 − $110 personal credit = $3,279 DE tax

DELAWARE TAX BRACKETS 2026 — ALL FILING STATUSES

Unlike most states, Delaware uses the same bracket thresholds for Single, Married Filing Jointly, and Head of Household filers. The only difference between filing statuses is the standard deduction amount ($3,250 vs. $6,500) and the number of personal exemption credits ($110 each).

Delaware Taxable Income	Rate	Tax on This Bracket	Cumulative Tax at Top
$0 – $2,000	0%	$0	$0
$2,001 – $5,000	2.2%	Up to $66	$66
$5,001 – $10,000	3.9%	Up to $195	$261
$10,001 – $20,000	4.8%	Up to $480	$741
$20,001 – $25,000	5.2%	Up to $260	$1,001
$25,001 – $60,000	5.55%	Up to $1,942.50	$2,943.50
Above $60,000	6.6%	6.6% on excess	—

The top bracket of 6.6% applies to all Delaware taxable income above $60,000. Because Delaware's brackets are not doubled for married filers — unlike most progressive-bracket states — a married couple earning $120,000 combined ($60,000 each) both hit the 6.6% bracket on the portion of their individual income above the threshold. Delaware does not have a "marriage bonus" in its bracket structure.

DELAWARE STANDARD DEDUCTION VS FEDERAL

Filing Status	Delaware Std Deduction (2026)	Federal Std Deduction (2026)	Difference
Single	$3,250	$16,100	Federal is $12,850 higher
Married Filing Jointly	$6,500	$32,200	Federal is $25,700 higher
Head of Household	$3,250	$24,150	Federal is $20,900 higher

Delaware's state standard deduction is much smaller than the federal standard deduction. A Single filer with $70,000 in gross wages has Delaware taxable income of $66,750 (after $3,250 deduction), while their federal taxable income is only $53,900 (after $16,100 federal standard deduction). This means Delaware taxes a larger share of a worker's income than the effective rates might suggest. Delaware taxpayers who itemize on their federal return may also itemize on their Delaware return using the same amounts.

WILMINGTON CITY WAGE TAX — FULL DETAILS

Item	Detail
Wilmington city wage tax rate	1.25% flat rate (set by Delaware General Assembly)
Who pays — residents	All City of Wilmington residents on all earned income, regardless of where earned
Who pays — non-residents	Anyone who works within Wilmington city limits, even if they live in Newark, suburban DE, NJ, or PA
How collected	Withheld by employer from each paycheck; employer remits to City of Wilmington
What income is subject	Earned income (wages, salaries, self-employment); capital gains, dividends, interest are NOT subject
Maximum annual tax on $100k wages	$1,250 (1.25% × $100,000)
Other DE cities with a wage tax	None — Wilmington is the only city in Delaware with a local income tax
Authority	City of Wilmington; rate set by Delaware General Assembly

DELAWARE RETIREMENT INCOME EXEMPTIONS

Income Type	Delaware Treatment (2026)	Age / Limit
Social Security benefits	Fully exempt — subtracted from Delaware AGI	Any age, no income limit
Railroad retirement	Fully exempt	Any age, no income limit
U.S. obligation interest (Treasury bonds, savings bonds)	Fully exempt	Any age
Military retirement pay	Subject to income tax (no special exemption in DE)	N/A
Pension / annuity income	Up to $12,500 per year excluded	Age 60 or older
Pension / annuity income	Up to $2,000 per year excluded	Under age 60
IRA / 401(k) distributions	Taxable; may qualify for pension exclusion if age 60+	Pension limit applies
Additional standard deduction	+$2,500 (Single) / +$5,000 (MFJ) added for age 65+	Age 65 or older

DELAWARE VS MID-ATLANTIC NEIGHBORS — $70,000 TAKE-HOME

State	Tax Structure (2026)	State Tax on $70k (Single)	Est. Annual Net
Delaware (outside Wilmington)	Progressive 0%–6.6%	~$3,279	~$54,442
Delaware (Wilmington worker)	Progressive 0%–6.6% + 1.25% city	~$4,154	~$53,719
Pennsylvania	Flat 3.07%	~$2,149	~$55,724
New Jersey	Progressive up to 10.75%	~$3,100	~$54,773
Maryland	Progressive + local 2.25%–3.2%	~$4,800+	~$53,073
Virginia	Progressive up to 5.75%	~$3,186	~$54,687
New York	Progressive up to 10.9% + NYC	~$3,700+	~$54,173
Connecticut	Progressive 2%–6.99%	~$3,100	~$54,773
Massachusetts	Flat 5% + 0.46% PFML	~$3,008	~$54,865

2026 FEDERAL TAX BRACKETS — SINGLE FILERS

Federal Taxable Income (Single, 2026)	Federal Rate
$0 – $11,925	10%
$11,926 – $48,475	12%
$48,476 – $103,350	22%
$103,351 – $197,300	24%
$197,301 – $250,525	32%
$250,526 – $626,350	35%
Above $626,350	37%

DELAWARE PAYCHECK CALCULATOR — FAQs

What are Delaware's income tax rates in 2026?
Delaware's seven tax brackets for 2026 are: 0% on the first $2,000, 2.2% on $2,001–$5,000, 3.9% on $5,001–$10,000, 4.8% on $10,001–$20,000, 5.2% on $20,001–$25,000, 5.55% on $25,001–$60,000, and 6.6% above $60,000. These brackets are the same for all filing statuses. Delaware House Bill 13, which proposed new higher brackets for high earners, was deferred in early 2026 and has not been enacted. The 6.6% top rate remains in effect.

What is Delaware's standard deduction in 2026?
Delaware's state standard deduction is $3,250 for Single filers and $6,500 for Married Filing Jointly. This is significantly lower than the federal standard deduction ($16,100 Single / $32,200 MFJ). Taxpayers age 65 or older receive an additional $2,500 (Single) or $5,000 (MFJ) added to their Delaware standard deduction.

Do I pay the Wilmington city wage tax?
You pay the 1.25% Wilmington wage tax if you live in the City of Wilmington (on all earned income) OR if you work within Wilmington city limits (even if you live elsewhere in Delaware or in a neighboring state). It is withheld by your employer. Workers in Dover, Newark, Rehoboth Beach, or anywhere else in Delaware outside Wilmington pay no local wage tax.

Is Social Security taxable in Delaware?
No. Social Security benefits are fully exempt from Delaware state income tax at all ages and income levels — they are excluded from Delaware adjusted gross income entirely. Railroad retirement income and interest from U.S. Treasury obligations are also fully exempt. Pension income is exempt up to $12,500 per year for taxpayers age 60 and older ($2,000 for those under 60).

How much will I take home on a $70,000 salary in Delaware?
Outside Wilmington, Single filer: DE taxable income = $66,750 (after $3,250 deduction). Bracket calculation yields ~$3,389 DE tax minus $110 personal credit = $3,279. Combined with ~$6,772 federal tax and ~$5,355 FICA, estimated annual take-home: ~$54,442 (~$4,537/month). In Wilmington: subtract another $875 (1.25% × $70,000), giving ~$53,567/year.

Run your Delaware estimate again anytime: Delaware Paycheck Calculator 2026