Delaware Tax Guide
6.6%top marginal rate
Delaware is notable for having no state sales tax, making it a popular shopping destination. Its progressive income tax tops out at 6.6%, but very low property taxes and no sales tax make it tax-friendly overall, especially for retirees.
Delaware Tax at a Glance
Income Tax
6.6%
Top marginal rate
Sales Tax
None
No state sales tax
Property Tax
0.57%
48% below the national average
Estate Tax
No
No state estate tax
How Delaware Compares to the National Average
Notable Tax Facts
- No state sales tax — one of five states without one
- Very low property taxes, around 0.57% effective rate
- More corporations are incorporated in Delaware than any other state due to business-friendly laws
- Does not tax Social Security benefits
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Delaware Tax FAQ
Does Delaware have sales tax?
No. Delaware is one of five states with no state sales tax. However, the state does levy a gross receipts tax on businesses.
What is Delaware's income tax rate?
Delaware has a progressive income tax with rates from 2.2% to 6.6%. The top rate applies to income over $60,000.
Why do so many companies incorporate in Delaware?
Delaware's Court of Chancery specializes in business law, providing predictable legal outcomes. The state also has business-friendly corporate tax structures and privacy protections.
Is Delaware good for retirees?
Yes. Delaware has no sales tax, low property taxes, doesn't tax Social Security, and offers a $12,500 exclusion on retirement income for seniors.
Compare With Other States
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Educational content, not tax advice. Tax rates are approximate and subject to change. Consult a qualified CPA or tax professional for advice specific to your situation. Data reflects widely-known public information as of early 2026.