Income Tax
Delaware levies a progressive state income tax with a top marginal rate of 6.60%, applied to income above a relatively modest threshold.
Individual income tax collections
1990–2025Census State Government Tax Collections (FRED DEINCTAX).
| Indicator | Delaware | U.S. |
|---|---|---|
| Top income tax rate (%) | 6.6 | 4.5 |
- •Delaware's top income tax bracket kicks in at a relatively low income threshold compared to other states.
Property Tax
Delaware has one of the lowest effective property tax rates in the country at 0.58%, helping offset its higher income tax rates for homeowners.
| Indicator | Delaware | U.S. |
|---|---|---|
| Effective property tax rate (%) | 0.58 | 0.9 |
- •Delaware's low property taxes are a key reason retirees relocate there from higher-tax states.
Sales Tax
Delaware is one of five U.S. states with no state or local sales tax, making it a popular shopping destination for residents of neighboring states.
| Indicator | Delaware | U.S. |
|---|---|---|
| Sales tax rate (%) | 0 | 6.6 |
- •Delaware's lack of sales tax draws many shoppers from Pennsylvania, New Jersey, and Maryland.
Tax Burden
Delaware's overall state and local tax burden is moderate, benefiting from having no state sales tax, though income and property taxes contribute to the total load.
State tax collections per resident
1990–2025Census tax collections (DETOTLTAX) divided by Census resident population (DEPOP).
| Indicator | Delaware | U.S. |
|---|---|---|
| Total tax burden (%) | 9.9 | 9.9 |
- •Delaware is one of only five states with no statewide sales tax.
Tax Revenue
Delaware generates significant tax and fee revenue from corporate franchise taxes tied to its role as the top state for business incorporation, supplementing traditional income tax revenue.
State tax collections
1990–2025Census Annual Survey of State Government Tax Collections, fiscal years (FRED DETOTLTAX).
| Indicator | Delaware | U.S. |
|---|---|---|
| Tax revenue (billions) | 5.5 | 2200 |
- •Corporate franchise taxes from Delaware's 1.9 million registered businesses are a major state revenue source.