Delaware Standard Deduction

For tax year 2024, the Delaware standard deduction is $3,250.00 for single filers and $6,500.00 for married couples filing jointly, as published by the Delaware Division of Revenue. It is subtracted from your gross income to give your Delaware taxable income.

The standard deduction lowers your Delaware taxable income, which is the figure the state income tax brackets are applied to. A single filer with $60,000.00 of gross income and the $3,250.00 standard deduction has $56,750.00 of Delaware taxable income before any other adjustments.

Take whichever is larger. If your total itemised deductions allowed by Delaware exceed the standard deduction of $3,250.00 (single) or $6,500.00 (married jointly), itemising lowers your taxable income more. Otherwise the standard deduction is simpler and larger. Check the rules with the Delaware Division of Revenue.

Delaware uses the same six-bracket schedule for all filing statuses. The first $2,000 is taxed at 0%, then 2.2% on $2,001-$5,000, 3.9% on $5,001-$10,000, 4.8% on $10,001-$20,000, 5.2% on $20,001-$25,000, and 6.6% on income above $25,000. All filing statuses use this same schedule. Authority: Delaware Division of Revenue, Delaware Code Title 30 §1102.

Delaware's standard deduction is $3,250 for single filers and $6,500 for married filing jointly. This is set by Delaware law (Title 30 §1115) and is separate from the federal standard deduction, which is significantly higher. Delaware also allows a $110 personal tax credit per exemption, which directly reduces the tax owed rather than reducing taxable income.

Delaware is generally considered tax-friendly for several reasons. It has no state sales tax, which is rare among US states. Its income tax top rate of 6.6% applies at a relatively low threshold of $25,000, but the absence of sales tax means everyday purchases are untaxed. Delaware also offers favorable treatment for retirement income and Social Security. The combination of no sales tax and moderate income taxes makes it attractive compared to neighboring states like New Jersey, Pennsylvania, and Maryland.

Delaware provides a personal tax credit of $110 per exemption rather than a traditional exemption deduction. This means the $110 reduces your tax owed dollar-for-dollar, not just your taxable income. For example, a married couple with two dependent children would receive four credits totaling $440 off their Delaware income tax bill. Delaware Code Title 30 §1115.