TAX TABLE CALCULATION FOR SOFTWARE DEVELOPERS
Tax rate change
For tax years 2010 - 2013, the tax rate for income over $60,000 is increased by one percentage point, to 0.0695.
| Taxable income range | Base | Rate | Tax years | |
|---|---|---|---|---|
| At least | But less than | |||
| $0 | $2,000 | $0 | 0 | 2000 - 2013 |
| 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 | 2000 - 2009 | |
| .0695 | 2010 - 2013 | |||
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 | Tax years |
|---|---|---|---|---|
| 12,345 | 12,325 | 261 + 111.6 | 373 | 2000 - 2013 |
| 27,555 | 27,575 | 1001 + 142.9125 | 1144 | |
| 75,000 | 75,000 | 2943.50 + 892.50 | 3836 | 2000 - 2009 |
| 2943.50 + 1042.50 | 3986 | 2010 - 2013 | ||
| 82,605 | 82,605 | 2943.50 + 1345.00* | 4289 | 2000 - 2009 |
| 2943.50 + 1571.05 | 4515 | 2010 - 2013 |
Direct any questions to david.g.smith@state.de.us.
