For more on how deductions change taxable wages, see our
pre-tax vs. post-tax deductions guide.
Delaware Payroll Tax Calculator: How Withholding Works
A Delaware paycheck calculator has up to three state
and local lines to get right: income tax under the annualized method,
your share of Delaware Paid Leave and, for Wilmington residents and
workers, the city's 1.25% wage tax. On your pay stub the income tax
usually appears as
SIT or state withholding;
our pay stub abbreviations list
explains the other codes.
The Wilmington Wage Tax
Wilmington is the only Delaware city with a wage tax. It's 1.25% of
gross earned income, and it applies to everyone who lives in
Wilmington, wherever they work, and to nonresidents for work done
inside city limits. It's figured on gross pay, so pre-tax 401(k)
contributions don't reduce it. For nonresidents working in multiple locations, the city has apportionment and remote-work rules. The calculator applies the rate to the full paycheck when selected. See the City of Wilmington regulations for details.
Bonuses and Supplemental Pay
Delaware doesn't have a flat bonus rate. Employers annualize your
regular wages and figure the tax, then do it again with the bonus
added, and withhold the difference. That puts a bonus at your top
Delaware rate, often 5.55% or 6.60%. See
why bonuses are taxed so high
for the federal side.
Federal Withholding for Delaware Paychecks
Federal withholding uses your Form W-4 and the 2026 IRS Publication
15-T tables. The calculator supports filing status, Step 2(c), Step 3
credits and Step 4(a), 4(b) and 4(c). If you claim the new overtime
or tips deductions, our
W-4 Step 4(b) worksheet guide
shows how to enter them, and our
2026 federal tax withholding guide
covers the rest.
Working Across State Lines
Delaware has no reciprocal agreements. People who live in
Pennsylvania,
Maryland or
New Jersey
and work in Delaware have Delaware tax withheld and claim a credit
at home. Delaware residents who work in another state owe Delaware
tax on all income and take a credit for the other state's tax.
Employer Payroll Costs in Delaware
Employers pay state unemployment insurance
on the first $14,500 of each employee's wages in 2026 (1.0% for new
employers), at least half of Paid Leave, their share of Social
Security and Medicare and federal unemployment tax. At year-end, our
W-2 form generator
can use the same wage and withholding totals.
Why Your Actual Delaware Paycheck May Differ
This calculator is a close estimate, not your employer's payroll
run. Your allowances on file, your employer's Paid Leave coverage and
cost split, the Wilmington share of your work, benefit elections,
year-to-date wages and a 27th biweekly payday in some years can all
move the result a little. For a full checklist, see
why your paycheck is lower than expected.
Official 2026 Delaware Payroll Sources
Payroll facts on this page are checked against the
Delaware Division of Revenue employer's guide,
the Delaware Paid Leave employer guide,
the Division of Industrial Affairs,
the Delaware Department of Labor,
the City of Wilmington tax rates
and IRS Publication 15-T for 2026.
Reviewed September 24, 2026.
