Delaware: Who Pays? 7th Edition
Delaware
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All figures and charts show 2024 tax law in Delaware, presented at 2023 income levels. Senior taxpayers are excluded for reasons detailed in the methodology. Our analysis includes nearly 100 percent of state and local tax revenue collected in Delaware.
State and local tax shares of family income
| Top 20% | |||||||
| Income Group | Lowest 20% | Second 20% | Middle 20% | Fourth 20% | Next 15% | Next 4% | Top 1% |
| Income Range | Less than $23,300 | $23,300 to $48,600 | $48,600 to $90,100 | $90,100 to $143,200 | $143,200 to $285,400 | $285,400 to $571,300 | Over $571,300 |
| Average Income in Group | $14,100 | $37,600 | $68,800 | $115,200 | $190,400 | $382,900 | $928,900 |
| Sales & Excise Taxes | 3.4% | 2.2% | 1.6% | 1.3% | 1% | 0.8% | 0.4% |
| General Sales–Individuals | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
| Other Sales & Excise–Ind | 2.5% | 1.3% | 0.9% | 0.7% | 0.5% | 0.3% | 0.1% |
| Sales & Excise–Business | 0.9% | 0.8% | 0.7% | 0.6% | 0.5% | 0.4% | 0.3% |
| Property Taxes | 3.4% | 2.4% | 2.2% | 2.2% | 1.8% | 1.9% | 1.1% |
| Home, Rent, Car–Individuals | 2.9% | 2% | 1.7% | 1.8% | 1.4% | 1.3% | 0.7% |
| Other Property Taxes | 0.5% | 0.4% | 0.5% | 0.4% | 0.5% | 0.6% | 0.4% |
| Income Taxes | 1% | 2.7% | 3.8% | 4.4% | 4.6% | 4.8% | 5.1% |
| Personal Income Taxes | 0.9% | 2.6% | 3.6% | 4.3% | 4.5% | 4.6% | 5% |
| Corporate Income Taxes | 0.2% | 0.1% | 0.2% | 0.1% | 0.2% | 0.3% | 0.2% |
| Other Taxes | 0.4% | 0.3% | 0.3% | 0.3% | 0.3% | 0.3% | 0.2% |
| TOTAL TAXES | 8.2% | 7.6% | 7.9% | 8.1% | 7.7% | 7.7% | 6.8% |
| Individual figures may not sum to totals due to rounding. | |||||||
ITEP Tax Inequality Index
ITEP’s Tax Inequality Index measures the effects of each state’s tax system on income inequality. According to this measure, Delaware has the 40th most regressive state and local tax system in the country. Income disparities are larger in Delaware after state and local taxes are collected than before. (See Appendix B for state-by-state rankings and the report methodology for additional detail.)
Tax features driving the data in Delaware
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Graduated personal income tax structure, though top rate kicks in at $60,000 so a large share of families face top rate
Refundable Earned Income Tax Credit (EITC) (4.5 percent refundable/20 percent nonrefundable)
Exemption credit in place of personal exemption
Levies a business franchise tax
Levies a state estate tax
No statewide sales tax
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Real estate transfer tax does not include higher rate on high-value sales
No property tax “circuit breaker” credit for low-income taxpayers
Does not use combined reporting as part of its corporate income tax
Comparitively low Earned Income Tax Credit (EITC)
No Child Tax Credit (CTC)
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