Delaware Wage and Payroll Tax Facts

February 02, 2024

Having to comply with unique state taxes and wage laws can make processing payroll doubly daunting. Here’s everything you need to know about these rates and laws for the state of Delaware.

Delaware imposes a substantially higher minimum wage rate than the one required by the federal government in the Fair Labor Standards Act (FLSA). This is reflected in the higher rates for both tipped minimum wage and tip credits. 
When it comes to processing payroll, Delaware-based organizations must handle the following taxes in addition to those required by the federal government:

The below information was last updated January 30, 2024. It is not intended as legal or tax advice.

Delaware Minimum Wage Rates

Wage Type

Delaware Rates

Federal Rates

Minimum Wage



Tipped Minimum Wage



Actual Tip Credit



Delaware State Income Tax (SIT) Rates

Delaware's SIT is progress, meaning it adjusts based on the income level of the employee paying the tax:

Income Tax Bracket
[Over X] - [But not over Y]
2024 Income Tax Rate
$0 - $2,000 0.00%
$2,000 - $5,000 2.20% of excess over $2,000
$5,000 - $10,000 $66.00 + 3.90% of excess over $5,000
$10,000 - $20,000 $261.00 + 4.80% of excess over $10,000
$20,000 - $25,000 $741.00 + 5.20% of excess over $20,000
$25,000 - $60,000 $1,001.00 + 5.55% of excess over $25,000
$60,000 or greater $2,943.50 + 6.60% of excess over $60,000


Additional Delaware SIT Details

Supplemental Withholding Computation

Calculate the taxes owed for the employee's regular wages and the regular wages combined with supplemental wages. Subtract the taxes owed on the regular wages from the taxes owed on the combined wages to find the withholding. 

Valid Filing Statuses

  • S = Single
  • MS = Married; claiming self
  • MJ = Married; claiming both


  • Any services or individuals not subject to withholding under the Internal Revenue Code (IRC)
  • Interstate carrier employees
  • Military pay of members of the armed forces
  • Nonresident military spouses

Form W-4

Form DE-W4

Reconciliation Frequency


Delaware State Unemployment Insurance (SUI) Rates

SUI provides unemployment benefits to eligible workers who are unemployed through no fault of their own (as determined by state law) and meet the state’s eligibility requirements.

Delaware SUI Tax Details

Taxable Wage Base


Employee Subject to Tax


Rates for Experienced Employers

0.30% - 6.50%

Rates for New Employers

  • Construction: 2.30%
  • All other industries: 1.80%

Effective Period

Calendar Year

Voluntary Contributions Allowed


Delaware State Disability Insurance (SDI) Rates

SDI benefits are funded by employees through mandatory payroll deductions from each paycheck. Delaware, however, doesn't require employers to collect an SDI tax.

Miscellaneous Delaware Tax Information

Reciprocal Agreement(s)

Reciprocal agreements are when workers who live and work in different states are only required to pay taxes to the state where they live. Delaware currently has no reciprocal agreements with any other states.

This doesn’t mean, however, that interstate workers living in Delaware pay double. It’s federally illegal for two states to tax the same income. In most cases, the employee’s work state will credit or refund them at tax time based on the taxes they owe their home state. If the tax rates differ, the employee must cover the difference.

Paid Sick Leave (PSL) Taxes

The state of Delaware doesn’t require employers to collect PSL taxes, nor does the state have a program providing such leave to employees.

Paid Family and Medical Leave (PFML) Taxes

Like SDI, Delaware's PFML program will be funded via mandatory deductions and employer contributions. The program will begin collecting tax contributions on January 1, 2025. Eligible employees can begin submitting claims on January 1, 2026.

Delaware PFML Details

Covered Employees

Employed at least one year and for at least 1,250 hours with a single employer

Covered Employers*

All with 10 or more employees, though employers with 10-24 employees are only required to provide parental leave

Amount of Leave

6-12 weeks depending on the reason for use

Leave Use Maximum

12 weeks per year

Tax Rate

0.8% (paid by employers, but employers can require employees to pay up to 50% of this tax)

Wage Replacement

Up to 80% of wages (up to $900 a week)

Acceptable Uses
  • Care for new child
  • Care for family member with serious health condition
  • Address personal serious health condition or injury
  • Assist while loved ones are on overseas military deployment
FAQs Delaware Paid Leave FAQs

*Federal and seasonal employers (who shut down for one month or more) are exempt.

Local Taxes

In addition to the state-wide taxes mentioned above, the city of Wilmington also imposes two local taxes:

Delaware Employer Registration

The agencies below can help with your state-based employer registration, including best practices, account numbers, and unemployment information. Contact the Department of Revenue for withholding tax topics and the Department of Labor for unemployment tax topics.

Registration Details

Department of Revenue

Department of Labor


(302) 577-8778 (302) 761-8482

Online Registration

Delaware One Stop Registration Page

Registration Instructions

Online registration is required. Account numbers will be issued during the online process.

Separate account numbers for each tax type will be issued under the combined registration.

Employer Self-Service Login

Delaware Taxpayer Portal Login Page

Additional Delaware Payroll Tax Resources


This information is provided as a courtesy and may be updated at any time. It is not intended as legal or tax guidance. If you have questions or concerns, we encourage you to seek the advice of a qualified CPA, tax attorney, or advisor.


Get Taxes Done Right, Without the Stress

We know there's a lot that goes into preparing and filing payroll tax forms. Save time and get support from our expert team. As a Registered Reporting Agent with the IRS, we can help prepare and file all the necessary forms you need to remain compliant - even in the face of changing legislation. Learn more here.

Payroll Tax Services