Overview
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.
State Income Tax (SIT)
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.
| Tax Structure | Progressive with graduated brackets |
| State Withholding Form | Uses federal W-4 |
| Supplemental Rate | 6.6% |
Setup Note: No state-specific form relies entirely on federal W-4.
Supplemental Wages
Delaware supports the following supplemental calculation methods. When using the flat method, the supplemental rate is 6.6%.
Employer State Unemployment Tax (SUTA)
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%.
| Tax Type | Employer-paid only |
| Default New Employer Rate | 1.8% |
| Rate Assignment | Experience-rated; assigned annually by the state |
Other Taxes & Obligations
Delaware does not currently impose significant additional state-level payroll taxes beyond SIT and SUTA. This keeps payroll relatively streamlined compared to states with multiple layers of tax obligations.
Disclaimer: This content is provided for general informational purposes only and does not constitute legal, tax, or accounting advice. Netchex does not provide tax or legal guidance and makes no representations regarding the accuracy or applicability of this information. Laws and regulations may change. The information on this page reflects payroll tax guidelines as of March 2026. For the most current requirements, please refer to: Delaware Division of Revenue
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