Determination engine

Which state do you actually withhold in?

Reciprocity, convenience-of-the-employer, nonresident thresholds and unemployment localization, applied together to one employee's facts. Every answer cites the state source it came from.

Withhold Delaware income tax.

Maryland residents get no exemption from Delaware tax, so the work state governs.

Income tax withheld to

Delaware

Graduated, top rate 6.6%

Employee certificate

DE W-4

Delaware Employee's Withholding Allowance Certificate

Unemployment insurance

Delaware

Localized under factor 1: Localization.

Reciprocal agreement

Delaware has no reciprocal agreements.

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Withhold Delaware nonresident income tax

Delaware taxes wages earned inside the state by nonresidents, and no reciprocal agreement covers Maryland residents. Delaware requires withholding from the first dollar of in-state wages.

Maryland also taxes this income, with a credit

The residence state taxes worldwide income. The employee claims a credit on the Maryland return for tax paid to Delaware, which prevents true double taxation but usually still leaves a balance if Maryland's rate is higher. Some employers withhold for both states; many withhold only for Delaware and let the employee manage the difference.

Delaware has local income taxes

The City of Wilmington imposes a 1.25% earned income (wage) tax on residents and on nonresidents working in Wilmington, plus a separate employer head tax. Administered by the City of Wilmington, not the Delaware Division of Revenue.

Maryland has local income taxes at the residence

EVERY Maryland county and Baltimore City imposes a local income tax, collected together with the state tax through payroll withholding at combined state+local rates. Nonresidents working in Maryland who are not covered by reciprocity pay a special nonresident rate (state rate plus a statutory nonresident surcharge) in lieu of a county rate.

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Delaware paid family and medical leave contributions

Delaware Paid Leave contributions began January 1, 2025 and BENEFITS began January 1, 2026. The total rate is guaranteed at 0.80% of wages through 2026 (medical, parental and family caregiving components combined); employers may deduct up to 50% (0.40%) from employees. Employers with fewer than 10 employees are exempt; 10-24 employees are covered for parental leave only. Employee contribution: 0.4%. These follow the state of unemployment coverage, not the income tax state.

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Employer registrations you will need

Delaware — Income tax withholding: Delaware Division of Revenue
Delaware — Unemployment insurance: Delaware Department of Labor, Division of Unemployment Insurance

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Get the form

DE W-4 — Delaware (official state source)

Delaware profile Maryland profile Full write-up for this pair

Change the inputs

Withholding determination

Answer six questions. The result is a shareable link, so you can paste it into a ticket or an email.

Employee lives inState of residence

Work is performed inWhere the employee physically sits

Employer is based inWhere the work is directed from

Days in the work stateThis calendar year, leave blank if unknown

Wages from work-state daysUS dollars, leave blank if unknown

Arrangement Works remotely rather than at an employer location Remote work is an employer necessity, not employee preference

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This is a determination aid, not advice. StateSide encodes published state rules and applies them mechanically to the facts you enter. It does not know your entity structure, your nexus history, your equity compensation, or the dozens of exceptions that turn a clean rule into a judgement call. Every determination cites the state source it came from — verify against that source, and take anything consequential to a payroll tax professional before you act on it.