Delaware has progressive income tax with 7 brackets in 2025: $0-$2,000: 0%, $2,001-$5,000: 2.2%, $5,001-$10,000: 3.9%, $10,001-$20,000: 4.8%, $20,001-$25,000: 5.2%, $25,001-$60,000: 5.55%, $60,001+: 6.6% (top rate).

Example: $75,000 salary = $3,960 DE state tax annually ($330/month).

Calculation: First $2,000 at 0% = $0, $2,001-$5,000 at 2.2% = $66, $5,001-$10,000 at 3.9% = $195, $10,001-$20,000 at 4.8% = $480, $20,001-$25,000 at 5.2% = $260, $25,001-$60,000 at 5.55% = $1,942.50, $60,001-$75,000 at 6.6% = $990.

Total = $3,933.50.

Delaware offers standard deduction $3,250 single, $6,500 married filing jointly (2025).

Personal exemption credits reduce liability further.

Total tax burden breakdown for Delaware resident: Federal income tax: 10-37% (based on income, average 15-25% for middle class).

Delaware state tax: 0-6.6% (effective rate ~3-5% for most earners).

FICA taxes: 7.65% (Social Security 6.2% + Medicare 1.45%, capped at $168,600 for 2025).

Local taxes: Wilmington city tax 1.25% for residents (only city in DE with local income tax).

Example: $60,000 salary in Wilmington: Federal tax ~$7,200 (12% bracket after deductions), DE state tax ~$2,880 (4.8% effective), FICA $4,590, Wilmington $750 = Total taxes $15,420 (25.7%).

Take-home: $44,580 ($3,715/month).

Without Wilmington tax: Take-home $45,330 ($3,777/month).

Delaware has no sales tax, offsetting higher income tax compared to neighboring states.