2025-2026 Tax Season Updates

Delaware has decoupled from several elements of the One Big Beautiful Bill Act (OBBBA)

• With the enactment of HB 255, Delaware has decoupled from the OBBBA’s for the following:
  • Retroactive treatment of unused capitalized qualified R&D expenditures for tax years 2022 to 2024.
  • 100% bonus depreciation.
  • 100% special depreciation allowance for Qualified Production Property.
  • For more details, refer to TIM 2025-02

Other elements of OBBBA that impact Delaware income tax returns:

• Delaware conforms with Federal Adjusted Gross Income (AGI) and with federal definition of Itemized Deductions.
  • For Tax Year 2025, Delaware’s Personal Income Tax calculation will pick up OBBBA changes that increased the cap on state and local tax (SALT) deductions to $40,000.
  • OBBBA deductions for no tax on tips, overtime, and car loan interest are not defined federally as itemized deductions and will not flow through to the Delaware Personal Income Tax
• For the Corporate Income Tax, Delaware conforms at Federal Taxable Income (FTI) and, except for the decoupled provisions above, Delaware returns should reflect OBBBA changes to the definition of FTI.

Additional Information:

• Delaware 2026 personal income tax refunds for Tax Year 2025 will not be issued before February 16, 2026.
• Did you sell property recently?
  Individuals who sold property in Delaware with transactions closing on or after January 1, 2019 should submit Form REW-EST Real Estate Tax Return – Declaration of Estimated Income Tax.
• Division of Revenue P.O. Box Changes – Find the updated mailing addresses for Delaware tax returns here!
• File Online – Free! No income requirements. Faster refunds.
• Libraries stocking print versions of Delaware Personal Income Tax forms – locations.
• Find and Print Personal Income Tax Forms

Business Tax

In Delaware, due dates for Delaware business income tax returns follow the due dates for federal business income tax returns, as follows:

• Partnership returns are due on or before March 16, 2026 for calendar year taxpayers.
• S corporation returns are due on or before March 16, 2026 for calendar year taxpayers.
• Returns for C corporations are generally due on or before April 15, 2026 for calendar year taxpayers.

Business Licenses

• Delaware’s current gross receipts tax rates: GRT Rates
• Business License Renewal Forms: for faster service and to print a temporary license right from your personal computer, renew online.

Business Tax Forms

• Get your business tax forms online.