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DE · payroll profile

Delaware

Everything an out-of-state employer needs before running a Delaware payroll: what to withhold, which form the employee signs, whether reciprocity applies, and who to register with.

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Personal income tax
Graduated to 6.6%
Reciprocal agreements
None
SUI wage base 2026
$14,500
Local income taxes
Yes

Income tax withholding

Imposes wage income tax Yes
Rate structure Graduated, top marginal rate 6.6%
Withholding certificate DE W-4
Delaware Employee's Withholding Allowance Certificate
Accepts federal Form W-4 No
Convenience-of-the-employer rule Yes
Remote days worked outside Delaware for a Delaware employer can still be sourced to Delaware unless the arrangement is an employer necessity.
Nonresident withholding threshold From the first dollar
Withholding required from the first dollar of Delaware-source wages. Delaware applies a convenience-of-the-employer test, so days worked remotely outside Delaware for a Delaware employer may still be sourced to Delaware unless the remote work is required by the employer.
Local income taxes Yes
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.

Reciprocity

States that exempt Delaware residents

A Delaware resident working in these states files that state's certificate and is taxed only by Delaware.

District of Columbia

Unemployment insurance and paid leave

Taxable wage base 2026 $14,500
2025 base was $12,500.
New employer rate 1%
Experience rate range 0.4% – 5.4%
Experience-rating method benefit wage ratio
Employee UI contribution No
Paid family / medical leave Yes
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.

Employer registration

Tax agency
Delaware Division of Revenue
UI agency
Delaware Department of Labor, Division of Unemployment Insurance

Sources

revenue.delaware.gov · nj.gov · taxfoundation.org · oui.doleta.gov · oui.doleta.gov · oui.doleta.gov · laborfiles.delaware.gov

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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.