Tax rate changes


For tax years 2014 and later.


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

.066


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.


However, $374 is not listed in the tax table.

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 + 1042.50

3986

2943.50 + 1012.50

3956

2943.50 + 990

3934

80,106

80,106

2943.50 + 1397.37

4341

2943.50 + 1357.16

4301

2943.50 + 1327.00*

4271

*Note that the intermediate result, 20106 * 0.066 = 1326.996, is rounded to the penny first, then added to 2943.50. If this is not done, the result will not match our calculations, because 2943.50 + 1326.996 = 4270.496, which would round to 4270.

Direct any questions to david.g.smith@state.de.us.