TAX TABLE CALCULATION FOR SOFTWARE DEVELOPERS
Delaware Individual Income Tax Table Calculation (for
software developers)
The tax rates in effect starting January 1, 2000 are as follows:
| Taxable income range | Base | Rate | |
|---|---|---|---|
| At least | But less than | ||
| $0 | $2,000 | $0 | 0 |
| 2,000 | 5,000 | 0 | .022 |
| 5,000 | 10,000 | 66 | .039 |
| 10,000 | 20,000 | 261 | .048 |
| 20,000 | 25,000 | 741 | .052 |
| 25,000 | 60,000 | 1,001 | .0555 |
| $60,000 | $2943.50 | .0595 | |
The basic tax calculation is Base + (Rate * (Income - Range start)
| For example, the tax on $12,345 is | 261 + (.048 * (12345-10000)) |
| = | 261 + (.048 * 2345) |
| = | 261 + 112.56 |
| = | 373.56, which would be rounded to $374. |
For taxable income up to $60,000, the amount listed in the tax table is calculated on the middle of a $50 range. For taxable income over $60,000, the tax amount is not listed in the table, and should be calculated on the exact income amount.
If the calculated tax amount ends in .50 or higher, it is rounded up to the next whole dollar.
Examples
| Taxable income | Calculate tax on | Tax amount | Rounded tax amount |
|---|---|---|---|
| 12,345 | 12,325 | 261 + 111.6 | 373 |
| 27,555 | 27,575 | 1001 + 142.9125 | 1144 |
| 75,000 | 75,000 | 2943.50 + 892.50 | 3836 |
| 82,605 | 82,605 | 2943.50 + 1345.00* | 4289 |
Direct any questions to david.g.smith@state.de.us.
