January 13, 2015


State & Local Taxes in 2015


Delaware Tax Code Features

Progressive Features

• Graduated personal income tax structure

• Provides an exemption credit in place of personal exemption

• Provides a non-refundable 20 percent Earned Income Tax Credit (EITC)

• No statewide sales tax

Regressive Features

• Fails to provide a property tax “circuit breaker” credit for low-income taxpayers

• Fails to use combined reporting as part of its corporate income tax

Tax Changes Enacted in 2013 & 2014

• Top personal income tax rate was increased from 5.9% to 6.6%

ITEP Tax Inequality Index

According to ITEP’s Tax Inequality Index, Delaware has the 51st most unfair state and local tax system in the country making it the least regressive tax system. States with regressive tax structures have negative tax inequality indexes, meaning that incomes are less equal in those states after state and local taxes than before (See Appendix B for state-by-state rankings and more details).

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