Delaware taxes and cost of living (2026)
Delaware has a graduated income tax from 0.00% to 6.60%. A $100,000 salary is worth about $66,509 a year in national buying power after every tax and Delaware's prices, #38 of 51 (the state average is $70,397). Retiring on $50,000 a year takes about $1.32M, #36 lowest.
- State income tax
- 0.0%–6.60%
- Sales tax (avg. combined)
- 0.00%
- Property tax (effective)
- 0.47%
- Cost of living
- 99.8
- US = 100
- Social Security taxed?
- No
- Median home
- $372K
Take-home pay in Delaware
Single filer, 10% of salary to a pre-tax 401(k), standard deduction, renting. All taxes include estimated sales tax.
| Salary | Federal | FICA | State + local | All-in tax rate | Take-home | In US dollars |
|---|---|---|---|---|---|---|
| $50,000 | $3,220 | $3,825 | $2,021 | 18.1% | $35,934 | $36,004 |
| $75,000 | $6,020 | $5,738 | $3,414 | 20.2% | $52,329 | $52,429 |
| $100,000 | $10,970 | $7,650 | $4,999 | 23.6% | $66,381 | $66,509 |
| $150,000 | $21,134 | $11,475 | $8,169 | 27.2% | $94,222 | $94,403 |
| $250,000 | $43,304 | $15,514 | $14,247 | 29.2% | $151,935 | $152,227 |
What it takes to retire in Delaware
Married couple, age 60, withdrawals 60% from 401(k)/IRA, 20% Roth, 20% brokerage, no Social Security yet, renting. Spending at US-average prices.
| Spending | At DE prices | Income taxes | All taxes | FI number |
|---|---|---|---|---|
| $40,000 | $39,923 | $0 | $0 | $998.1K |
| $60,000 | $59,885 | $479 | $479 | $1.51M |
| $80,000 | $79,846 | $2,572 | $2,572 | $2.06M |
| $120,000 | $119,770 | $7,380 | $7,380 | $3.18M |
Delaware tax rules at a glance
- Income tax: Delaware has a graduated income tax from 0.00% to 6.60%. Same brackets for all filing statuses (joint brackets NOT doubled; spouses may file separately on a combined return to use both sets). Personal credit $110 per person. Extra $2,500 std deduction for age 65+ or blind. HB 13 (new brackets above $125k/$150k) failed in 2025; no 2026 rate change found.
- Payroll: Delaware Paid Leave (employee share): 0.40% of wages up to $184,500.
- Local income tax: Only Wilmington levies a 1.25% earned income/wage tax on residents and people who work in the city. Elsewhere none.
- Social Security: Not taxed. Social Security fully exempt.
- Retirement income: Up to $12,500 per person age 60+ of pensions plus eligible retirement income (IRA/401k, dividends, interest, capital gains, net rents); $2,000 per person under 60 (pensions only). Military pension exclusion larger.
- Capital gains: Taxed as ordinary income (can count toward the age-60+ $12,500 exclusion).
- Sales tax: 0.00% state rate, 0.00% average with local taxes; groceries exempt.
Compare Delaware with
Frequently asked questions
Does Delaware have a state income tax?
Delaware has a graduated income tax from 0.00% to 6.60%. Same brackets for all filing statuses (joint brackets NOT doubled; spouses may file separately on a combined return to use both sets). Personal credit $110 per person. Extra $2,500 std deduction for age 65+ or blind. HB 13 (new brackets above $125k/$150k) failed in 2025; no 2026 rate change found.
How much is $100,000 after taxes in Delaware?
A single filer earning $100,000 who puts $10,000 in a 401(k) takes home about $66,381 after federal, state and local income taxes and payroll taxes, an all-in effective rate of 23.6% including estimated sales tax.
Does Delaware tax Social Security?
No. Delaware does not tax Social Security benefits. Social Security fully exempt.
How much do you need to retire in Delaware?
To spend $50,000 a year (at US-average prices) with withdrawals mostly from a 401(k)/IRA, you'd need about $1.32M in Delaware using the 4% rule, after its cost of living and taxes.
Is Delaware expensive to live in?
Delaware's cost of living index is 99.8, where the US average is 100 (BEA Regional Price Parities, 2024). The median home is worth about $371,600 and median rent is $1,530 a month.
How this is calculated
- Income taxes use 2026 federal and state brackets, standard deductions and personal exemptions or credits. No itemized deductions or other credits. Local income taxes use a typical statewide rate (for example, Maryland's county taxes or New York City's); many places have none.
- Payroll taxes include Social Security (6.2% up to the wage base), Medicare, and employee-paid state programs such as California SDI or Washington's paid leave premium. A married household salary is treated as two equal earners for payroll-tax caps.
- Cost of living uses the Bureau of Economic Analysis's Regional Price Parities (2024), where the US average is 100. Spending you enter at national prices is scaled by each state's index.
- Sales tax is estimated as the average combined state and local rate on about a third of spending (more where groceries are taxed). It is shown for context but not added to costs, because the price parities already include it. Property tax applies the state's effective rate to its median home value (Census ACS 2024) if you own.
- Retirement solves for the withdrawal that covers your spending plus the taxes it triggers, using each state's treatment of Social Security, retirement-account withdrawals and capital gains, then multiplies by 25 (a 4% withdrawal rate).
- Years to FI starts from zero, adds what you save each year in that state, and grows it at a 5% real return until it reaches that state's FI number.
Estimates for comparison, not tax advice. Your actual taxes depend on deductions, credits, where in the state you live and more. Sources: BEA Regional Price Parities, Census ACS, state sales tax rates, IRS, state revenue departments (per state).