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

Checked against official source text during the last sync.

Adjusting Delaware's Personal Income Tax Brackets

This act changes the personal income tax brackets and rates in Delaware for taxable years starting after December 31, 2025.

What This Bill Does

Combines some existing tax brackets to create two new higher-rate brackets.
Income between $60,000 and $125,000 will continue to be taxed at 6.6% after the changes.
Income over $125,000 but under $250,000 will now be taxed at 6.75%
Income above $250,000 will be taxed at 6.95%

Who It Names or Affects

People who file personal income taxes in Delaware.

Terms To Know

Tax Bracket: A range of incomes that are subject to a specific tax rate.
Tax Rate: The percentage of income that is taxed within a certain bracket.

Limits and Unknowns

This act does not specify how the changes will affect people with incomes below $60,000.
It's unclear what impact these changes will have on state revenue or individual taxpayers' finances.

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%.