How does Delaware’s tax code compare? Delaware has a graduated state individual income tax, with rates ranging from 2.20 percent to 6.60 percent. There is also a jurisdiction that collects local income taxes. Delaware has an 8.70 percent corporate income tax rate and a state gross receipts tax. Delaware does not have a state sales tax rate. Delaware has a 0.50 percent effective property tax rate on owner-occupied housing value.
Delaware does not have an estate tax or inheritance tax. Delaware has a 23 cents per gallon gas tax rate and a $2.10 cigarette excise tax rate (per pack of 20 cigarettes). The State of Delaware collects $7,693 in state and local tax collections per capita. Delaware has $7,236 in state and local debt per capita and an 89 percent funded ratio of public pension plans. Delaware’s tax system ranks 24th overall on the 2026 State Tax Competitiveness Index.
Each state’s tax code is a multifaceted system with many moving parts, and Delaware is no exception. The first step toward understanding Delaware’s tax code is knowing the basics. How does Delaware collect tax revenue? Click the tabs below to learn more! You can also explore our state tax maps, which are compiled from our annual publication, Facts & Figures 2025: How Does Your State Compare?
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