Delaware State Income TaxesThe state of Delaware collects income taxes on April 30th, which gives you an extra fifteen days to complete your state return after filing your federal return.
This page:
• Lists basic Delaware state tax information
• Links to the major Delaware income tax forms
• Shows you how you can save time and money by e-filing
Delaware state taxes at a glance:
Tax Rate Range: Low - 2.2%; High - 5.95%
Income Brackets: Lowest - $5,000; Highest - $60,000
Number of Brackets: 7
Tax Credit: Single - $110; Married - $220; Dependents - $110
Standard Deduction: None
Medical/Dental Deduction: None
Federal Income Tax Deduction: None
Filing your Delaware state income tax returnDelaware has a graduated tax rate ranging from 2.2% to 5.55% for income under $60,000 and 5.95% for income of $60,000 or over.
The filing status on the federal return is the same on the Delaware return for Single, Head of Household and Qualifying Widower. You may file Joint or Separate Delaware returns even if you filed Joint federal returns. However, if you filed Separate federal returns, you must file separate Delaware returns.
Also, you can itemize deductions on your Delaware return even if you did not itemize deductions on your federal return.
If you do not live or work in Delaware, you are not liable to pay Delaware taxes. However, if you are receiving severance pay from a Delaware company, the income is considered taxable to Delaware. Severance pay is taxable, based on the years of service rendered to Delaware.
Delaware income tax credits are:
Personal credits are allowed for each exemption claimed on your federal return. The credita mount is $110 per exemption.
Additional personal credits are allowed if you and/or your spouse were 60 years of age or over on December 31, 2002 then you are allowed an additional personal credit of $110.
A Dealware tax credit is allowed for residents who paid income taxes to another state on income earned.
Also, a volunteer firefighter's credit of up to $300 may be granted to Delaware residents who are active firefighters, or members of fire company auxiliaries or rescue squads. The credit compensates for the purchase of clothing, equipment, and supplies necessary to b a firefighter.
Other Non-refundable credits:
• Blue Collar credit,
• Green Industry credit,
• Brownfield credit
• Land and Historic Resource Tax credit,
• Historic Preservation Tax credit.
• Child Care Credit: 50% of federal child care credit
A Non-Resident is not allowed a Volunteer Firefighter's credit or the Child Care Credit.
Out-of state retirement income taxable in Delaware. If you are over 60 years of age, you are allowed an exclusion of up to $12,500 for pension an eligible retirement income. If the taxpayer is under 60 years of age, then they are allowed an exclusion up to 2,000 for pension income.
Eligible retirement income includes:
• dividends,
• capital gains,
• interest,
• net rental income from real property and
• qualified retirement plans.
In Delaware, capital gains are taxed at the same rate as the rest of your income.
Finally, as Delaware wage earner you must file a Delaware state income tax return even if you do not live in the state.
Sidebar
You can work on your Delaware tax return online while filing your federal return (you can work on it for free, and pay nothing until you are ready to file).
Note: if you are filing more than one state return, you must file a paper return for each additional state, as TurboTax for The Web only allows one state prep.
Delaware income tax forms
The main Delaware tax forms are:
Form 200-01 | 2006 Delaware Individual Income Tax Return| Instructions
Form 200-EZ | 2006 Short Delaware Income Tax Return
If you need Delaware income tax forms that are not listed here, you can download them from the Delaware tax forms site.
Or, just simply e-file!
Additional DE state taxes help
If you need help with your federal tax return, start with our basic guide to tax filing.
For additional help with filing DE income tax returns, see the official site of the Delaware Division of Revenue.
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