Taxes are a common theme on news shows in the U.S.; you may have even seen the Tax Foundation’s very own Kyle Pomerleau speaking about the presidential candidates’ tax plans. However, Americans rarely see a sitcom or...
The facts on Delaware’s Tax Climate
6.6%individual income taxTop rate
8.7%corporate income taxFlat rate
$762property taxcollections per capita
Delaware's Individual Income Tax System
Delaware's personal income tax system consists of six brackets and a top rate of 6.6%. That rate ranks 17th highest among states levying an individual income tax. Delaware's state and local income tax collections per person were $1368 in 2012 which ranked 8th highest nationally.
50-State Table of Individual Income Tax Rates
50-State Table of State Individual Income Tax Collections
50-State Table of State and Local Individual Income Tax Collections Per Capita
Delaware's Corporate Income Tax System
Delaware's corporate income tax system consists of a flat rate of 8.7%. That rate ranks 9th highest among states levying a corporate income tax. Delaware's state and local corporate income tax collections per person were $293 in 2012 which ranked 6th highest nationally.
50-State Table of Corporate Income Tax Rates
50-State Table of State and Local Corporate Income Tax Collections Per Capita
50-State Table of State Corporate Income Tax Collections Per Capita
Delaware Sales and Excise Taxes
Delaware levies a 0% general sales or use tax on consumers, which is below the national median of 5.95%. Delaware's state and local governments collect $0 per person in general sales taxes and $553 per person in excise taxes, for a combined figure of $553, which ranks 3rd lowest nationally. Delaware's gasoline tax stands at 23¢ (19th lowest nationally), while its cigarette tax stands at $1.6 (21st highest nationally.)
50-State Table of State and Local General and Selective Sales Tax Collections Per Capita
Delaware Property Tax Collections Relatively Low
Delaware's state and local governments collected approximately $762 per person in property taxes in 2012, which ranks 6th lowest nationally.
State and local property tax collections per capita by state
Tax Freedom Day Arrives on April 18th in Delaware
Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2014, Delaware taxpayers worked until April 18th (19th latest nationally) to pay their total tax bill. The Tax Freedom Days of neighboring states are: Pennsylvania, April 21st (ranked 15th latest nationally); New Jersey, May 9th (ranked latest nationally); and Maryland, April 28th (ranked 7th latest nationally).
Delaware's State and Local Tax Burden In Line with National Average
Delaware's 2011 tax burden of 10.1% ranks 15th highest out of 50 states, and is above the national average of 9.8%. Delaware's taxpayers pay $4209 per capita in state and local taxes.
Delaware's State-Local Tax Burden, 1977-Present
Other States' State/Local Tax Burdens
Map of U.S. Showing all State's Burdens and Ranks
Historical Chart Comparing All States' State/Local Tax Burdens from 1977 to 2009
Delaware's 2015 Business Tax Climate Index Ranks 14
Delaware ranks 14th in the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes, individual income taxes, sales taxes, unemployment insurance taxes, and taxes on property, including residential and commercial property. The ranks of neighboring states are as follows: Pennsylvania, 34th, New Jersey, 50th, and Maryland, 40th.
State Business Tax Climate Index (full study)
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