The IRS has issued a new Form W-4 that does not allow for exemptions when calculating employee withholding. Because Delaware still allows taxpayers to take a deduction or a personal credit for exemptions, Delaware has created a new form, a Delaware-specific W-4, for taxpayers to use in connection with calculating their withholding for Delaware purposes.

• Did Delaware have its own W-4 prior to tax year 2020?
  Prior to 2020, employees who were subject to Delaware withholding could use either the federal W-4, or they could use the Delaware withholding allowance computation worksheet to calculate the appropriate number of allowances for withholding purposes.
• Can Delaware employers accept a federal Form W-4 that is completed prior to 2020 for Delaware withholding purposes?
  Yes. But because Delaware continues to permit employees to claim exemptions as part of the withholding calculation, withholding will be more accurate if employees use the Delaware form W-4. If an employee does not wish to change their withholding, employers may continue to rely on federal W-4 forms that were completed prior to 2020.
• Can an employer accept a federal Form W-4 that is completed in 2020 (the 2020 version which eliminates the use of withholding allowances) for Delaware withholding purposes?
  No.

W-4 Employee’s Withholding Allowance Certificate

Questions? Call (302) 577-8779.