Delaware State Taxes: A Simple Guide

🦅Delaware state income tax

Delaware taxes personal income using its own brackets and rules. In general:

• •Residents above certain income thresholds generally must file a Delaware income tax return.
• •Nonresidents may need to file if they earn Delaware-source income.
• •Delaware's definitions of income, deductions, and credits may differ from federal rules.

A typical resident files a federal Form 1040 and a Delaware state return for the same year if they meet filing requirements.

🛍️No state sales tax

Delaware is known for having no state or local sales taxon most retail purchases. That means you usually do not see a sales tax line added at the register the way you do in many other states.

However, there are still other state fees and taxes in specific areas (such as certain business or excise taxes), which are not covered in detail here.

🏡Property taxes

Property taxes in Delaware are levied by counties, school districts, and municipalities, based on the assessed value of real property like homes and land.

• •Homeowners receive property tax bills from local authorities.
• •Property taxes fund schools and local services, though overall levels may differ from other states.
• •Some taxpayers may qualify for credits or relief programs, depending on age, income, or other factors.

🔗Putting Delaware taxes together

A typical Delaware resident may deal with:

• •Federal income tax (Form 1040)
• •Delaware state income tax
• •No regular state sales tax on purchases
• •Local property taxes if they own a home

Once you understand how to file your taxes at the federal level, it's easier to see how Delaware's income tax and property taxes fit into your overall situation.