HS1FORHB13 • 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: 2025-05-22
Official status: Lieu/Substituted 6/17/25
Effective date: Not listed

Plain English Breakdown

The official summary does not provide details on the exact tax rates for incomes above $125,000 or how it affects specific groups of taxpayers.

Adjusting Delaware's Personal Income Tax

This act changes how much tax people pay based on their income by creating new tax brackets and lowering rates for incomes under $60,000.

What This Bill Does

Creates additional tax brackets for taxable income not in excess of $60,000 with lower rates.
Decreases the tax rate for all tax brackets for taxable income not in excess of $60,000.
Adds three more tax brackets above $60,000 with higher rates.
Keeps the rate at 6.6% for income between $60,000 and $125,000.
Increases rates for incomes over $125,000.

Who It Names or Affects

Delaware taxpayers with different income levels.

Terms To Know

Tax bracket: A range of incomes that are taxed at the same rate.
Tax rate: The percentage of income taken as tax by the government.

Limits and Unknowns

It is not clear when this act will become law.
Details about how it affects specific groups are limited.

Bill History

2025-06-17 Delaware General Assembly
Substituted in House by HS 2 for HB 13
2025-05-22 Delaware General Assembly
Not Worked in Committee
2025-04-03 Delaware General Assembly
Adopted in lieu of the original bill HB 13, 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 personal income tax brackets and applicable tax rates. Like under House Bill No. 13, under House Substitute No. 1 for HB 13, 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 at higher rates. The result of the changes under this Act will be that those with a taxable income of $134,667 or less will see no increase in personal income taxes, with 92% of Delaware taxpayers receiving an overall tax decrease.

House Substitute No. 1 for House Bill No. 13 differs from HB 13 as follows:
• Creates additional tax brackets for taxable income not in excess of $60,000.
• Decreases the tax rate for all tax brackets for taxable income not in excess of $60,000.
• Creates 3 additional tax brackets for taxable income above $60,000 instead of 2.

In addition, HS 1 for HB 13 is named the “The John Kowalko, Jr., Fairness in Taxation Act”.

Current Bill Text

Read the full stored bill text

Legislation Document

SPONSOR:

Rep. Lynn & Rep. Wilson-Anton & Sen. Hoffner

Rep. Morrison

HOUSE OF REPRESENTATIVES

153rd GENERAL ASSEMBLY

HOUSE SUBSTITUTE NO. 1

FOR

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:

2.175% of taxable income in excess of $2,000 but not in excess of $5,000;

3.875% of taxable income in excess of $5,000 but not in excess of $10,000;

4.775% of taxable income in excess of $10,000 but not in excess of $20,000;

5.175% of taxable income in excess of $20,000 but not in excess of $25,000;

5.525% of taxable income in excess of $25,000 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;

6.85% of taxable income in excess of $250,000 but not in excess of $500,000; and

6.95% of taxable income in excess of $500,000.

Section 2. This Act is known as “The John Kowalko, Jr., Fairness in Taxation Act”.

SYNOPSIS

This Act adjusts the existing personal income tax brackets and applicable tax rates. Like under House Bill No. 13, under House Substitute No. 1 for HB 13, 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 at higher rates. The result of the changes under this Act will be that those with a taxable income of $134,667 or less will see no increase in personal income taxes, with 92% of Delaware taxpayers receiving an overall tax decrease.

House Substitute No. 1 for House Bill No. 13 differs from HB 13 as follows:

• Creates additional tax brackets for taxable income not in excess of $60,000.

• Decreases the tax rate for all tax brackets for taxable income not in excess of $60,000.

• Creates 3 additional tax brackets for taxable income above $60,000 instead of 2.

In addition, HS 1 for HB 13 is named the “The John Kowalko, Jr., Fairness in Taxation Act”.