Delaware Tax Guide for Employers (2026) 

Delaware uses a progressive income tax system and relies on the federal W-4 for withholding purposes. There is no state-specific withholding form, making setup relatively simple for employers who already have their employees’ federal W-4 on file. 

Delaware imposes a progressive state income tax on wages. The state uses the federal W-4 form for withholding calculations, meaning there is no additional state-specific form for employees to complete. Tax rates are graduated and increase as income levels rise. 

Delaware supports the following supplemental calculation methods. When using the flat method, the supplemental rate is 6.6%. 

Your assigned SUTA rate will be based on your company’s experience with unemployment claims. New employers typically start at the default rate of 1.8%. 

Follow these steps to begin withholding Delaware payroll taxes for your employees: 

1. Obtain your Federal EIN at irs.gov
2. Register with the Delaware Division of Revenue at revenue.delaware.gov
3. Register for SUTA with the Delaware Department of Labor at ui.delawareworks.com
4. Submit a Netchex tax team request to enable Delaware SIT and SUTA
5. Have each employee complete their tax forms with an automated onboarding task in Netchex, digitally storing tax forms
6. Configure any additional tax settings in the employee profile

Once setup is complete in Netchex, the system will automatically calculate, withhold, and remit all Delaware payroll taxes on your behalf. 

The following are general filing and deposit deadlines for Delaware payroll taxes. Deadlines may vary based on your employer size and deposit frequency. Always verify current schedules at Delaware Division of Revenue. 

Note: Deadlines are subject to change. Always confirm current requirements directly with Delaware Division of Revenue at https://revenue.delaware.gov/employers/. 

The following official resources will help you stay current on Delaware payroll tax requirements: 

• Delaware Division of Revenue
• Delaware Division of Revenue — Withholding

Does Delaware have its own withholding form? 

Delaware employees complete a Delaware-specific withholding form (Delaware Form W-4). 

What is Delaware’s top income tax rate? 

Delaware’s top marginal income tax rate is 6.6%. 

What is Delaware’s SUTA wage base? 

Delaware’s SUTA wage base is $10,500 per employee per year. Verify at ui.delawareworks.com. 

Does Delaware have local payroll taxes? 

Wilmington, Delaware imposes a city wage tax on wages earned within the city. 

What is Delaware’s supplemental withholding rate? 

Delaware uses the employee’s regular withholding rate for supplemental wages.