[{"data":1,"prerenderedAt":34},["ShallowReactive",2],{"state-content-delaware":3},{"id":4,"title":5,"body":6,"description":26,"extension":27,"meta":28,"navigation":29,"path":30,"seo":31,"stem":32,"__hash__":33},"states\u002Fstates\u002Fdelaware.md","Delaware Tax Overview",{"type":7,"value":8,"toc":22},"minimark",[9,13,16,19],[10,11,12],"p",{},"Delaware has a graduated income tax with a top rate of 6.6%, which applies to income above $60,000. The brackets below that top out at 5.55% for income between $25,000 and $60,000, and lower rates apply below $25,000. For a median-income worker earning around $65,000, the effective Delaware state rate typically lands around 5%.",[10,14,15],{},"Delaware has no sales tax, which is one of its most distinguishing features. Workers keep more of their after-tax income when making purchases. This zero sales tax rate is the reason Delaware attracts so many outlet shoppers from neighboring states. It does not reduce income taxes, but it reduces the total state and local tax drag on take-home pay compared to high-sales-tax neighbors like Pennsylvania and New Jersey.",[10,17,18],{},"The state allows a deduction for retirement income in certain cases, and people over 60 can exclude up to $12,500 of pension or retirement income from Delaware taxable income. For active workers, the more relevant deduction is the standard deduction of $3,250 for single filers, which is modest compared to the federal standard deduction.",[10,20,21],{},"Wilmington levies a city wage tax of 1.25% on residents and 1.25% on non-residents working in the city. Workers employed in Wilmington need to factor in this additional withholding. Outside Wilmington, no other Delaware municipality imposes a wage tax, so the state rate is the full picture for most of the state's workforce.",{"title":23,"searchDepth":24,"depth":24,"links":25},"",2,[],"How Delaware's income tax affects your paycheck","md",{},true,"\u002Fstates\u002Fdelaware",{"title":5,"description":26},"states\u002Fdelaware","h0EklVoPwnY_ZFU58cAskxCZTYI_ad48ObYZoMYrhR0",1776796069584]