Delaware income tax goes up to 6.6% at the top bracket. Calculate your combined federal + state effective tax rate for 2026. Formula shown, sources cited — no account required.
Delaware's graduated income tax starts at 2.2% and climbs to 6.6% at the top bracket, reached at relatively modest income levels. For a median earner at $87,534, the blended effective state rate typically lands in the 5–6% range after personal exemptions and standard deductions. Delaware conforms closely to federal AGI definitions, which keeps the state return relatively straightforward to file. One meaningful Delaware-specific advantage is the absence of sales tax, which does not affect the income tax return but significantly reduces the effective cost of living for taxpayers at every income level. At the combined federal and state level, the median Delaware household faces an effective all-in rate typically in the 24–28% range depending on filing status. Delaware also allows a retirement income exclusion that partially offsets the graduated rate impact for older earners. Use the tax bracket calculator to map your Delaware income across both federal and state brackets and find where your marginal rate creates planning opportunities.
Delaware Tax Brackets Explained (2026)
Delaware has a state income tax with a top marginal rate of 6.6%. On top of federal rates (10%–37%), residents can face a combined marginal rate exceeding 35% at higher income levels. However, your effective rate is always lower than the marginal rate because only income above each threshold is taxed at that bracket's rate.
The median household in Delaware earns $87,534/year. At that income (single filer), the federal effective rate is approximately 12–14%, bringing total income tax (federal + state) to roughly 16–19%.
How Marginal vs. Effective Rate Works
The marginal rate is the rate on your last dollar of income — it does not apply to all income. The effective rate is your total tax divided by total income. For example, someone earning $100,000 in Delaware has a 22% federal marginal rate but an effective federal rate of roughly 15%, because the first $44,725 (2024) is taxed at 10% and 12%, not 22%.