Delaware
DE · state · 16 cited facts
| Category | Provision | Value | Source |
|---|---|---|---|
| trust-nexus | Incomplete-gift nongrantor trust / ING (income tax reach) | REACHED for DE residents: settlor-based residency plus the 1636 deduction failing for the DE-resident settlor-beneficiary's share. NOTE the flip side: for a NON-Delaware settlor, DE situs itself imposes no tax (why DINGs are sited here) | sources (1)30 Del. C. 1601(8)(b) (resident trust); 1636 (nonresident-beneficiary deduction) · high confidence · as of 2026-07-13 · TY 2026 Delaware taxes a DELAWARE RESIDENT settlor's ING share: the famous DE no-tax result requires no Delaware beneficiaries 'Resident trust' means a trust: a. Created by the will of a decedent who at death was domiciled in this State; b. Created by, or consisting of property of, a person domiciled in this State; or c. With respect to which the conditions of 1 of the following paragraphs are met during more than 1/2 of any taxable year Note: The 1636 deduction (delcode.delaware.gov/title30/c016/sc03) reaches only income set aside for future distribution to NONRESIDENT beneficiaries, computed as if the trust terminated at year-end with discretion presumed unexercised, so the DE-resident settlor-beneficiary's share stays taxable. https://delcode.delaware.gov/title30/c016/sc01/index.html |
| estate-none | Estate and inheritance tax | None | sources (1)30 Del. C. ch. 15 (repealed by 81 Del. Laws, c. 52) · high confidence · as of 2026-07-02 · TY 2025 Delaware estate tax statutes repealed effective Jan 1, 2018 Sec. 1502. Tax on transfers of resident estates [For application of this section, see 81 Del. Laws, c. 52, sec. 2] [Repealed] ... repealed by 81 Del. Laws, c. 52, sec. 1, effective Jan. 1, 2018. Note: Official Delaware Code site shows every section of Title 30 ch. 15 with the same repeal note; the repealed text itself is not reproduced. https://delcode.delaware.gov/title30/c015/index.html |
| rate | Top income tax rate (TY2025) | 0% to 6.6% graduated; 6.6% above $60,000 (same schedule all filing statuses) | sources (1)30 Del. C. §1102 · high confidence · as of 2026-06-10 · TY 2025 Delaware top income tax rate is 6.6% on income above $60,000 (same schedule all filing statuses) For taxable years beginning after December 31, 2013: 2.2% of taxable income in excess of $2,000 but not in excess of $5,000; 3.9% of taxable income in excess of $5,000 but not in excess of $10,000; 4.8% of taxable income in excess of $10,000 but not in excess of $20,000; 5.2% of taxable income in excess of $20,000 but not in excess of $25,000; 5.55% of taxable income in excess of $25,000 but not in excess of $60,000; and 6.6% of taxable income in excess of $60,000. Note: Delaware uses one schedule for all filing statuses; no reference to joint or separate returns in §1102. Maximum marriage penalty on a joint return vs. two singles. Spouses may file separate DE returns, which largely neutralizes the penalty for two-income couples. Age 60+ retiree exclusion covers capital gains up to $12,500/person. Standard deduction $3,250 single / $6,500 MFJ. https://delcode.delaware.gov/title30/c011/sc01/index.html |
| conformity | Loss carryforward | Conforms to IRC §1212 indefinite federal carryforward applies | sources (1)IRC §1212(b) · high confidence · as of 2026-06-21 · TY 2025 IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year. Note: IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged. https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim |
| muni-instate | In-state muni bond interest | Exempt: 30 Del. C. §1106(a)(1): DE-issued bond interest is a subtraction from Delaware income | sources (1)30 Del. C. §1106(a)(1) · high confidence · as of 2026-06-18 · TY 2025 DE exempts DE-issued bonds; out-of-state muni bond interest is taxable per 30 Del. C. §1106(a)(1) Interest qualifying under § 103 of the United States Internal Revenue Code of 1986 [26 U.S.C. § 103] or any similar statute, other than interest on obligations and securities of this State and its political subdivisions and authorities. Note: 30 Del. C. §1106(a)(1) defines subtraction items. IRC §103 interest is subtractable EXCEPT for out-of-state bonds, which are taxable. https://delcode.delaware.gov/title30/c011/sc02/index.html |
| muni-outstate | Out-of-state muni bond interest | Taxable: 30 Del. C. §1106(a)(1): out-of-state bonds are excluded from the IRC §103 subtraction; taxable in DE | sources (1)30 Del. C. §1106(a)(1) · high confidence · as of 2026-06-18 · TY 2025 DE exempts DE-issued bonds; out-of-state muni bond interest is taxable per 30 Del. C. §1106(a)(1) Interest qualifying under § 103 of the United States Internal Revenue Code of 1986 [26 U.S.C. § 103] or any similar statute, other than interest on obligations and securities of this State and its political subdivisions and authorities. Note: 30 Del. C. §1106(a)(1) defines subtraction items. IRC §103 interest is subtractable EXCEPT for out-of-state bonds, which are taxable. https://delcode.delaware.gov/title30/c011/sc02/index.html |
| qoz-conformity | QOZ conformity (IRC §1400Z-2) | Conforms to IRC §1400Z-2 QOZ gain deferral and 10-year exclusion via rolling IRC conformity | sources (1)Del. Code Ann. tit. 30 §1105; §1106; §1903 · medium confidence · as of 2026-06-19 · TY 2025 Delaware conforms to IRC §1400Z-2 QOZ gain deferral and exclusion There shall be subtracted from Federal adjusted gross income or Federal taxable income, as the case may be, the following items of income to the extent included in the computation of Federal adjusted gross income or Federal taxable income: Items of income which are exempt from state income taxes pursuant to the laws of the United States. Note: The quoted §1106(a)(1) subtraction provision covers items federally exempt from state tax under U.S. law; it does not cite §1400Z-2 directly. Delaware's specific QOZ conformity provision needs separate identification in Title 30. URL resolves to Title 30, Chapter 11 index. Verify specific section: §1105 vs §1106(a)(1). https://delcode.delaware.gov/title30/c011/index.html |
| qsbs-conformity | QSBS conformity (IRC §1202) | Conforms to IRC §1202 QSBS gain exclusion via rolling IRC conformity; no addback provision | sources (1)Del. Code Ann. tit. 30 §1105 · medium confidence · as of 2026-06-19 · TY 2025 Delaware conforms to IRC §1202 QSBS gain exclusion via rolling IRC conformity There shall be subtracted from Federal adjusted gross income or Federal taxable income, as the case may be, the following items of income to the extent included in the computation of Federal adjusted gross income or Federal taxable income: Items of income which are exempt from state income taxes pursuant to the laws of the United States. Note: The quoted §1106(a)(1) subtraction provision covers items federally exempt from state tax; it does not cite §1202 directly. Delaware's specific QSBS treatment needs separate identification in Title 30. URL resolves to Title 30, Chapter 11 index. Verify specific section: §1105 vs §1106(a)(1). https://delcode.delaware.gov/title30/c011/index.html |
| agency-obligations | FNMA/FHLMC bond interest | Taxable: 30 Del. C. §1106(a)(1) subtraction covers only income 'exempt from state income taxes pursuant to the laws of the United States'; FNMA/FHLMC have no federal bondholder exemption statute | sources (1)30 Del. C. §1106(a)(1) · high confidence · as of 2026-06-20 · TY 2025 Delaware subtraction for income 'exempt from state income taxes pursuant to the laws of the United States' does not cover FNMA and FHLMC bond interest; no federal bondholder exemption exists Items of income which are exempt from state income taxes pursuant to the laws of the United States. Note: 30 Del. C. §1106(a)(1) provides a subtraction only for income 'exempt from state income taxes pursuant to the laws of the United States.' FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) have no bondholder exemption statute; their bondholder interest income is not 'exempt from state income taxes pursuant to the laws of the United States.' https://delcode.delaware.gov/title30/c011/sc02/index.html |
| dividend-qualified | Qualified dividend rate (IRC §1(h)(11)) | Ordinary rate: Delaware has no IRC §1(h)(11) preferential rate; qualified dividends taxed at ordinary rates up to 6.6% | sources (1)30 Del. C. §1102 · high confidence · as of 2026-06-10 · TY 2025 Delaware top income tax rate is 6.6% on income above $60,000 (same schedule all filing statuses) For taxable years beginning after December 31, 2013: 2.2% of taxable income in excess of $2,000 but not in excess of $5,000; 3.9% of taxable income in excess of $5,000 but not in excess of $10,000; 4.8% of taxable income in excess of $10,000 but not in excess of $20,000; 5.2% of taxable income in excess of $20,000 but not in excess of $25,000; 5.55% of taxable income in excess of $25,000 but not in excess of $60,000; and 6.6% of taxable income in excess of $60,000. Note: Delaware uses one schedule for all filing statuses; no reference to joint or separate returns in §1102. Maximum marriage penalty on a joint return vs. two singles. Spouses may file separate DE returns, which largely neutralizes the penalty for two-income couples. Age 60+ retiree exclusion covers capital gains up to $12,500/person. Standard deduction $3,250 single / $6,500 MFJ. https://delcode.delaware.gov/title30/c011/sc01/index.html |
| treasury | U.S. Treasury interest | Exempt: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations (T-bills, T-notes, T-bonds, TIPS, I-bonds) | sources (1)31 U.S.C. §3124(a) · high confidence · as of 2026-06-20 · TY 2025 U.S. Treasury interest exempt from Delaware income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax. Note: 31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption. https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3124 |
| fhlb-ffcb | FHLB and FFCB bond interest | Exempt: 12 U.S.C. §1433 (Federal Home Loan Bank Act) and 12 U.S.C. §2023 (Farm Credit Act) mandate state tax exemption for FHLB and FFCB securities | sources (2)12 U.S.C. §1433 (Federal Home Loan Bank Act) · high confidence · as of 2026-06-20 · TY 2025 FHLB and FFCB bond interest exempt from Delaware income tax: federal enabling statutes mandate state tax exemption Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority. Note: 12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states. https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1433&num=0&edition=prelim12 U.S.C. §2023 (Farm Credit Act) · high confidence · as of 2026-06-20 · TY 2025 Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124). Note: 12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check. https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2023&num=0&edition=prelim |
| carryback | Capital loss carryback | None: IRC §1212(b) provides carryforward only for non-corporate taxpayers; no carryback to prior years | sources (1)IRC §1212(b) · high confidence · as of 2026-06-21 · TY 2025 IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year. Note: IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged. https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim |
| character | Long-term capital gains treatment | Ordinary rate: no preferential long-term rate; capital gains taxed as ordinary income up to 6.6% (30 Del. C. §1102) | sources (1)30 Del. C. §1102 · high confidence · as of 2026-06-10 · TY 2025 Delaware top income tax rate is 6.6% on income above $60,000 (same schedule all filing statuses) For taxable years beginning after December 31, 2013: 2.2% of taxable income in excess of $2,000 but not in excess of $5,000; 3.9% of taxable income in excess of $5,000 but not in excess of $10,000; 4.8% of taxable income in excess of $10,000 but not in excess of $20,000; 5.2% of taxable income in excess of $20,000 but not in excess of $25,000; 5.55% of taxable income in excess of $25,000 but not in excess of $60,000; and 6.6% of taxable income in excess of $60,000. Note: Delaware uses one schedule for all filing statuses; no reference to joint or separate returns in §1102. Maximum marriage penalty on a joint return vs. two singles. Spouses may file separate DE returns, which largely neutralizes the penalty for two-income couples. Age 60+ retiree exclusion covers capital gains up to $12,500/person. Standard deduction $3,250 single / $6,500 MFJ. https://delcode.delaware.gov/title30/c011/sc01/index.html |
| filing-status-identical | Same bracket schedule for all filing statuses | Yes: 30 Del. C. §1102 provides one rate schedule for all filing statuses; same thresholds for Single and MFJ, creating the maximum marriage penalty on a joint return vs. two singles | sources (1)30 Del. C. §1102 · high confidence · as of 2026-06-10 · TY 2025 Delaware top income tax rate is 6.6% on income above $60,000 (same schedule all filing statuses) For taxable years beginning after December 31, 2013: 2.2% of taxable income in excess of $2,000 but not in excess of $5,000; 3.9% of taxable income in excess of $5,000 but not in excess of $10,000; 4.8% of taxable income in excess of $10,000 but not in excess of $20,000; 5.2% of taxable income in excess of $20,000 but not in excess of $25,000; 5.55% of taxable income in excess of $25,000 but not in excess of $60,000; and 6.6% of taxable income in excess of $60,000. Note: Delaware uses one schedule for all filing statuses; no reference to joint or separate returns in §1102. Maximum marriage penalty on a joint return vs. two singles. Spouses may file separate DE returns, which largely neutralizes the penalty for two-income couples. Age 60+ retiree exclusion covers capital gains up to $12,500/person. Standard deduction $3,250 single / $6,500 MFJ. https://delcode.delaware.gov/title30/c011/sc01/index.html |
| migration-loss-conformity | Migration loss carryforward conformity | Full conform (structural inference): Delaware computes its income tax from the federal base, so an imported federal section 1212 capital-loss carryforward flows through to offset post-residency gains; no published guidance addresses the imported pre-residency carryforward. | sources (1)30 Del. C. §1102 · medium confidence · as of 2026-07-03 · TY 2025 Delaware conforms to the federal capital-loss base; treatment of an imported pre-residency section 1212 carryforward is a structural inference Any term used in this chapter shall have the same meaning as when used in a comparable context in the laws of the United States referring to federal income taxes, unless a different meaning is clearly required. Note: 30 Del. C. §1101 (the definitional companion to the §1102 imposition, both on the cited subchapter page) ties Delaware terms to the federal income tax laws, so Delaware taxable income tracks the federal base and the section 1212 capital-loss carryover flows through. Quote verbatim from the live delcode.delaware.gov page. No published guidance addresses the imported pre-residency carryforward, so that application remains a structural inference. https://delcode.delaware.gov/title30/c011/sc01/index.html |