Basic Info
Deductions
Insurance Premiums
Your Delaware Paycheck Results
Calculating your paycheck…
Take-Home Pay:
$0.00
Per Pay Period:
$0.00
Tax Breakdown
Federal Income Tax:
$0.00
State Income Tax (DE):
$0.00
Social Security:
$0.00
Medicare:
$0.00
Additional Medicare:
$0.00
Total Tax:
$0.00
Deduction Breakdown
401(k) Contribution:
$0.00
Traditional IRA:
$0.00
HSA Contribution:
$0.00
FSA Contribution:
$0.00
Health Insurance:
$0.00
Dental Insurance:
$0.00
Vision Insurance:
$0.00
Other Deductions:
$0.00
Total Deductions:
$0.00
Gross Annual Income:
$0.00
Effective Tax Rate:
0.00%
Delaware State Income Tax Information
The American state employs a progressive income tax system with seven brackets, ranging from 0% to 6.6%. This structure ensures that higher earners contribute a larger percentage of their income in taxes.
| Taxable Income | Tax Rate |
|---|---|
| $0 – $2,000 | 0% |
| $2,001 – $5,000 | 2.20% |
| $5,001 – $10,000 | 3.90% |
| $10,001 – $20,000 | 4.80% |
| $20,001 – $25,000 | 5.20% |
| $25,001 – $60,000 | 5.55% |
| $60,001 and above | 6.60% |
Standard Deduction: $3,250 (Single), $6,500 (Married Filing Jointly)
Personal Exemption: $110 per taxpayer and dependent
Federal Income Tax
Federal income taxes apply to all U.S. residents based on income, filing status, and deductions. The IRS uses a progressive tax rate structure from 10% to 37%.
FICA Taxes
| Component | Rate | Income Limit |
|---|---|---|
| Social Security | 6.2% | Up to $168,600 |
| Medicare | 1.45% | No Limit |
| Additional Medicare | 0.9% | Above $200,000 (Single) / $250,000 (Married) |
Pre-Tax Deductions
These deductions reduce your taxable income and can significantly lower your tax burden:
- 401(k), 403(b), and similar retirement contributions
- Health and dental insurance premiums
- Health Savings Account (HSA) and Flexible Spending Account (FSA) contributions
- Pre-tax commuter and transit benefits
State-Specific Deductions and Credits
| Credit or Deduction | Description |
|---|---|
| Earned Income Tax Credit (EITC) | Refundable credit equal to 4.5% of the federal EITC; nonrefundable option at 20% of the federal credit |
| Senior School Property Tax Credit | Homeowners aged 65 or over may receive a credit of 50% (up to $500) against school property taxes |
| Retirement Income Exemption | Individuals aged 60 or over can exclude up to $12,500 of pension and eligible retirement income |
| Active Labor Organization Dues Deduction | Deductible up to $500 or the actual amount paid, for union dues not already deducted federally |
| Research and Development Tax Credit | Startups can claim up to 50% of the federal R&D credit for qualifying in-state expenses |
| Clean Vehicle Rebate | Residents may receive up to $2,500 rebate for purchasing or leasing a new or used electric vehicle |
Interesting Facts About the State’s Taxes
- The American state does not impose a sales tax, making it attractive for shoppers and businesses.
- It offers a refundable EITC, providing financial support to low- and moderate-income working families.
- Retirees benefit from generous exemptions on pension and retirement income.
- The state provides incentives for clean energy adoption, including rebates for electric vehicle purchases.
- There is no local income tax, simplifying tax calculations for residents.
FAQs – State Paycheck Tax
- 1. Does the state tax Social Security benefits?
- No, Social Security benefits are exempt from state income tax.
- 2. Are there any local income taxes in the state?
- No, the state does not impose local income taxes; residents are subject only to state and federal income taxes.
- 3. Can I deduct contributions to a Health Savings Account (HSA)?
- Yes, contributions to an HSA are deductible on both federal and state income tax returns, reducing your taxable income.
- 4. Is there a tax credit for renters?
- Currently, the state does not offer a specific income tax credit for renters, but property tax relief programs may be available at the municipal level.
- 5. How does the state handle capital gains taxation?
- Capital gains are taxed as regular income, subject to the state’s progressive income tax rates.