Delaware State Taxes

Delaware Income Tax

Delaware has a graduated tax rate ranging from 2.2% to 5.55% for income under $60,000. For income of $60,000 or more, the tax rate is 6.6%. The rates are the same regardless of your filing status.

Delaware Individual Income Tax Rates

Tax Rate	Income
0%	$0 – $2,000
2.2%	$2,000 – $5,000
3.9%	$5,000 – $10,000
4.8%	$10,000 – $20,000
5.2%	$20,000 – $25,000
5.55%	$25,000 – $60,000
6.6%	$60,000 or more

Who Must File?

Full-year Delaware residents are required to file an annual income tax return if their age, filing status, and adjusted gross income (AGI) exceeds the thresholds below.

Age	Filing Status			Claimed as a dependent on another person’s return
	Single	Married Filing Jointly	Married Filing Separately
Under 60	$9,400	$15,450	$9,400	$5,250
60 to 64	$12,200	$17,950	$12,200	$5,250
65 and older, OR blind	$14,700	$20,450	$14,700	$7,750
65 and older, AND blind	$17,200	$22,950	$17,200	$10,250

If you are a part-year resident, you must file an income tax return if you have income from any source while residing in the state, or you had income from a Delaware source while residing outside the state. You can elect to file either a resident or non-resident return.

Non-residents who had gross income from sources in Delaware are required to file, as well.

Delaware Sales Tax

Delaware does not have state or local sales taxes.

Delaware Property Taxes

Delaware has one of the lowest median property tax rates in the country. Property taxes are collected at the county level. The median annual amount for Delaware property taxes is $1,594. New Castle County has the highest average at $2,369 annually. Sussex County currently has the lowest average property tax at $1,122 per year.

Delaware Property Tax

Highest	$2369
Median	$1594
Lowest	$1122

Yearly Cost Per Resident

Delaware Tax Holidays

Delaware does not participate in tax holidays.

Delaware Tax Relief

Dealing with unpaid Delaware taxes can be challenging, particularly when penalties and interest cause your balance to grow over time. Whether you fell behind because of unfiled returns, financial difficulties, or business tax obligations, it’s important to address the issue before it escalates. The Delaware Division of Revenue has several methods for collecting past-due taxes, making early action an important part of getting your account back on track.

If you can’t afford to pay your Delaware tax balance in full, you may have options for resolving what you owe. Depending on your circumstances and eligibility, you may be able to arrange a payment plan, delay collections, or pursue another available resolution option. Finding a suitable solution can help you address your balance and potentially prevent more serious collection measures, including tax liens, wage garnishments, and levies.

Understanding your options and how the Delaware tax collection process works can make it easier to determine what to do next. Taking steps to resolve your outstanding taxes can help you move toward bringing your account into compliance and putting your Delaware tax problems behind you.

Common Delaware State Tax Problems

How Delaware Collects Tax Debt

If you don’t pay your Delaware income taxes on time, the Division of Revenue will send a demand for payment on the outstanding balance.

Should you fail to respond or pay the balance due, the state will file a Notice of Judgment. This is essentially a tax lien that attaches to all your property and lets other creditors know that the state has a claim against your property.

In addition to the Notice of Judgment, the state will move to serve a Notice of Warrant. This means that they will seize (levy) and sell your property to pay off your tax debt. They may also garnish your wages and levy your bank accounts.

It’s important to note that penalties and interest continue to accrue until the balance is paid, so addressing your tax debt as early as possible can help you avoid additional costs and more serious collection actions.

Demand for payment sent to taxpayer

Notice of Judgment filed

Notice of Warrant served

Delaware State Tax Relief Options

Delaware offers several tax relief options, including:

• Installment Payments – Delaware offers payment plans up to 48 months without a lien. For those who need more time to pay, a Notice of Judgment will be filed.
• Penalty Relief – Although Delaware does not have a formal penalty abatement program like the IRS, it does review penalty relief requests on a case-by-case basis.
• Delaying Collection – If you are experiencing a financial hardship, the Delaware Division of Revenue may temporarily delay collection until your financial condition improves. A Notice of Judgment (lien) will be filed to protect the state’s interest in your assets.

If you’re experiencing financial hardship and can’t pay your Delaware income tax bill, contact the Division of Revenue as soon as possible to avoid escalated collection actions.

When to Seek Tax Relief Help

If you’re experiencing any of the following, it may be time to explore your tax relief options:

The sooner you address your tax debt, the more options you may have available to resolve your balance and minimize additional collection actions.

Delaware Tax Relief FAQs

How do I set up a Delaware payment plan?

If you’re interested in making payments on your tax balance, you can submit a form requesting one of two options:

1. Payment in full within 48 months or less, with no lien filed.
2. Full payment taking longer than 48 months with a Notice of Judgment filed.

You can also request an automatic payment plan, which automatically deducts payments from your bank account each month.

What happens if I ignore Delaware tax notices?

Ignoring requests for payment from the DE Division of Revenue, it will escalate to collections, including wage garnishments, bank levies, tax liens, and other methods allowed by law. Responding to notices promptly can help you avoid more serious enforcement actions.

Can Delaware garnish my wages for unpaid taxes?

Yes, Delaware can garnish your wages for unpaid state taxes. The state enforces stricter limits than the IRS, generally taking no more than 15% of your disposable income.

Can Delaware levy my bank account?

Yes. The Division of Revenue can issue a Notice of Warrant to seize your bank account funds without a court order.

How long does Delaware have to collect back taxes?

Once your taxes are assessed, the state generally has 10 years to collect the debt. The state can extend this timeline, however, by using judgment liens that remain in place for up to 20 years.

Delaware Tax Resources

If you need assistance preparing your Delaware state taxes, you can speak with a tax professional from Tax Defense Network by calling 855-476-6920.

You can also visit the Delaware Division of Revenue website for additional resources.

• Current year tax forms
• Personal income tax assistance: 302-577-8200
• Refund assistance: 302-577-8784
• Delaware Taxpayer Portal