2/7/2024 0 Comments 2021 nj income tax brackets1, 2018, there is no estate tax in Delaware. The tax on beer is 26 cents a gallon, while the taxes on liquor and wine are $4.50 and $1.63 per gallon, respectively. These are generally close to national averages, however. While there is no sales tax collected on purchases of alcohol in Delaware, some excise taxes still apply. Wholesalers pay a 30% tax on other tobacco products, including cigars and chewing tobacco, when they bring them into the state of Delaware. Delaware Cigarette Taxĭelaware charges a tax of $2.10 per pack of 20 cigarettes. There’s also valuable information for any current Delaware residents thinking of refinancing their home. If those rates have you thinking of purchasing a vacation home or a full-time residence in Delaware, read our Delaware mortgage guide for information on rates and getting a mortgage in the First State. The average homeowner in Delaware pays $1,602 annually in property taxes. The state’s average effective property tax rate is just 0.53%. Property taxes in Delaware are among the lowest in the U.S. This rate applies to the gain less any selling expenses. However, gains realized from real estate sales in Delaware by those who live in another state are taxed at a rate of 6.60%. This applies to both long- and short-term capital gains. Most capital gains in Delaware are taxable at the full personal income tax rates listed above. The amounts of these credits typically vary each tax year. Other commonly claimed credits include the Child Care Credit, the Earned Income Tax Credit, the Volunteer Firefighter's Credit and the Historic Preservation Tax Credit. Additional credits of $110 may be claimed if you or your spouse is 60 or over. So, for example, if you have exemptions for yourself, your spouse and two dependents, you would have a total personal credit of $440 (4 x $110). The most significant is the personal credit, which is equal to $110 for every exemption claimed on your federal income tax return. There are a number of income tax credits in Delaware that can be used to lower your total tax bill. For filers claiming the standard deduction, additional deductions of $2,500 may be claimed if either they or their spouse is 65 or older or blind. That is $6,500 for joint filers and $3,250 for all other filers. It you did not itemize deductions federally, then you can claim the Delaware standard deduction. For example, the credit for state and local taxes must be subtracted from the total if you claimed it on your federal taxes. The amount claimed on your federal return will be equal to the amount on your Delaware return, with a few small differences. Itemized deductions in Delaware adhere to federal itemized deduction rules, and you can only claim itemized deductions if you did so on your federal tax return. If you're younger than 60, though, this exclusion is capped at $2,000. The same is true of income from a pension, as those 60 or older can exclude up to $12,500 annually. Social Security income is not taxable in Delaware and it can be subtracted from income. The largest difference is the state’s treatment of retirement income. Brackets are the same for all filing statuses.ĭelaware's adjusted gross income (AGI) is very similar to federal AGI, but with a few differences. The table below shows tax brackets and rates for the Delaware income tax. For everyone who does not live or work in Wilmington, however, only the state tax is due. Additionally, the city of Wilmington collects its own income tax, at a flat rate of 1.25%. The state of Delaware collects income taxes based on seven tax brackets, with rates ranging from 0% to 6.6%. If you’re ready to find an advisor who can help you achieve your financial goals, get started now. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. The most significant tax is the state income tax, with rates ranging from 0% for low earners to 6.6% for earners in the top tax bracket.Ī financial advisor can help you understand how taxes fit into your overall financial goals. It also has some of the lowest property taxes around, as Delaware’s effective property tax rate of 0.53% ranks as one of the lowest in the country. There is no state sales tax in Delaware, which makes it a popular place for shoppers. Gas tax: 23 cents per gallon of regular gasoline, 22 cents per gallon of dieselĭelaware’s state and local taxes are among the lowest in the nation.Property tax: 0.53% average effective rate.
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