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Division of
Revenue

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@delaware.gov.


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