HB13 • 2025

AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO PERSONAL INCOME TAX.

Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Lynn
Last action: 2025-06-17
Official status: Lieu/Substituted 4/3/25
Effective date: Not listed

Plain English Breakdown

The official status indicates the bill passed both chambers and reached final enrollment, but does not confirm if it has been signed by the Governor or vetoed.

Delaware Personal Income Tax Bracket Changes

This bill changes tax rates and income levels for Delaware personal income taxes starting in taxable years after December 31, 2025.

What This Bill Does

Combines some existing lower-income tax brackets into fewer groups with new rates.
Creates two new top tax brackets for incomes above $125,000.
Sets the tax rate at 6.75% for income between $125,000 and $250,000.
Sets the tax rate at 6.95% for any taxable income over $250,000.
Keeps the 6.6% tax rate for incomes between $60,000 and $125,000.

Who It Names or Affects

Delaware residents who file personal income taxes with taxable years starting after December 31, 2025.
Taxpayers earning more than $60,000 in taxable income.

Limits and Unknowns

The bill does not state an exact effective date beyond 'taxable years beginning after December 31, 2025'.
It is unclear if the Governor has signed this bill into law based on the provided status.

Bill History

2025-06-17 Delaware General Assembly
Substituted in House by HS 2 for HB 13
2025-04-03 Delaware General Assembly
Substituted in House by HS 1 for HB 13
2025-01-23 Delaware General Assembly
Introduced and Assigned to Revenue & Finance Committee in House

Official Summary Text

AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO PERSONAL INCOME TAX.
This Act adjusts the existing tax brackets and the tax rate for each bracket, combining some existing brackets and creating 2 new brackets. The 2 new brackets are taxed at the highest rates, but by combining some existing brackets, this Act also slightly increases or decreases the tax rate for some incomes. Under current law, taxable income in excess of $60,000 is taxed at a rate of 6.6%. Under this Act, for taxable years beginning after December 31, 2025, income between $60,000 and $125,000 will continue to be taxed at a rate of 6.6%, but income above $125,000 will be taxed as follows:
1. In excess of $125,000 but not in excess of $250,000, at 6.75%.
2. In excess of $250,000, at 6.95%.

Current Bill Text

Read the full stored bill text

Legislation Document

SPONSOR:

Rep. Lynn & Sen. Hoffner

Rep. Morrison

HOUSE OF REPRESENTATIVES

153rd GENERAL ASSEMBLY

HOUSE BILL NO. 13

AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO PERSONAL INCOME TAX.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend § 1102, Title 30 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 1102. Imposition and rate of tax; separate tax on lump-sum distributions.

(a)(14) For taxable years beginning after December 31, 2013,

and before January 1, 2026,

the amount of tax shall be determined as follows:

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.

(15) For taxable years beginning after December 31, 2025, the amount of tax shall be determined as follows:

2.0% of taxable income in excess of $2,000 but not in excess of $5,000;

4.0% of taxable income in excess of $5,000 but not in excess of $20,000;

5.5% of taxable income in excess of $20,000 but not in excess of $60,000;

6.6% of taxable income in excess of $60,000 but not in excess of $125,000;

6.75% of taxable income in excess of $125,000 but not in excess of $250,000; and

6.95% of taxable income in excess of $250,000.

SYNOPSIS

This Act adjusts the existing tax brackets and the tax rate for each bracket, combining some existing brackets and creating 2 new brackets. The 2 new brackets are taxed at the highest rates, but by combining some existing brackets, this Act also slightly increases or decreases the tax rate for some incomes. Under current law, taxable income in excess of $60,000 is taxed at a rate of 6.6%. Under this Act, for taxable years beginning after December 31, 2025, income between $60,000 and $125,000 will continue to be taxed at a rate of 6.6%, but income above $125,000 will be taxed as follows:

1. In excess of $125,000 but not in excess of $250,000, at 6.75%.

2. In excess of $250,000, at 6.95%.