If you are a taxpayer getting ready to file an income tax return in Delaware, you'll want to know what forms you need, where and how to file them and how much you can expect to be taxed. Delaware state tax is applied to the same earnings and income subject to federal tax. The state has a progressive income tax structure, depending on your taxable income.
Who Must File Delaware Income Taxes?
Full-year residents of Delaware must file a Delaware state income tax return based on a combination of age, filing status and adjusted gross income (AGI).
Those under 60 must file if their AGI exceeds $9,400 when filing separately or $15,450 if filing jointly. From age 60 to 64, the limits for single and joint filers are $12,200 and $17,950, respectively. Residents who are age 65 and over or blind have limits of $14,700 for single filing and $20,450 for joint filing. If a resident is both 65 or over and blind, the limits are $17,200 for single filing and $22,950 for joint filing.
Residents of Delaware are defined as those who maintain a permanent residence in Delaware or spend more than 183 days in the state. Part-year residents and nonresidents who earned income from Delaware sources must file a Delaware state income tax return. Part-year residents may file a resident or nonresident return, depending on which yields an advantage to the taxpayer.
If you are a part-year resident and taxed in another state, you will be able to take credit on your Delaware income tax form for any taxes imposed by other states. Likewise, if you are a Delaware resident but work in another state, you can take credit for the other state's tax on your Delaware return, but you must include a copy of the income tax return you filed with the other state when submitting your Delaware income tax return.
If you live and work in different states, be sure to check the filing requirements of the other state as well.
What Are the Forms to Use?
Full-year and part-year residents file Delaware Form 200-01, while nonresidents file Form 200-02. For claiming credit for taxes paid to another state, residents complete Tax Form Schedule 200-01 Sch and nonresidents complete Tax Form Schedule 200-02 Sch.
Refer to the Delaware Division of Revenue instructions for residents and nonresidents for details regarding how to fill out the forms and schedules correctly. Any other individual tax forms can be found on the Forms page of the Delaware Division of Revenue website.
The Division of Revenue publishes fillable forms on the website. If you would like to receive paper forms, you may print them at home from the website or request to have them mailed to you.
What Is the Tax Rate in Delaware?
Delaware has a graduated tax rate with a range of 2.2 percent to 6.6 percent, regardless of filing status and depending on taxable income:
- 2.2 percent for $2,000 and over
- 3.9 percent for $5,000 and over
- 4.8 percent for $10,000 and over
- 5.2 percent for $20,000 and over
- 5.55 percent for $25,000 and over
- 6.6 percent for $60,000 and over
Delaware publishes a detailed tax table for incomes up to $60,000 on Delware.gov. Beyond adjusted gross income of $60,000, the rate is a flat 6.6 percent.
What Are the Filing Deadline and Extension Process?
Delaware state tax returns are usually due by April 30, but since this falls on a weekend in 2022, the deadline will be May 2, 2022.
Taxpayers in Delaware are eligible for a six-month extension. You can file an extension by the tax filing deadline by submitting paper Form 200-EX or online Form 1027.
If you filed for a federal extension with the IRS and do not owe Delaware state taxes, submitting a form to Delaware is not necessary. You will be granted an automatic extension. However, if you owe Delaware taxes, you must file Form 200-EX by the deadline, even if you have applied for a federal extension.
An extension to file your return is not an extension to pay. Late tax payments will be subject to penalties and interest.
What Are the Penalties for Late Filing and Underpayment of Taxes?
The Delaware Division of Revenue will charge a penalty if your income tax return or tax payment is late or underpaid:
- .05 percent interest per month for underpayment or late payment
- 5 percent penalty per month for late-filed returns with a balance due
- 1 percent penalty per month for failure to pay, up to 25 percent of net tax liability
- 1.5 percent penalty per month for failure to pay estimated taxes
Delaware also imposes severe penalties for filing a false or fraudulent return. Rather than be subject to these fees, the Division of Revenue recommends setting up a payment plan. Note, however, that the unpaid balance will continue to accrue interest and penalties.
Where Do I Mail/E-file My Delaware Return?
Free e-filing is available to Delaware taxpayers through the Division of Revenue online. You may also use commercially available tax preparation software.
To file paper forms without taxes due, mail the forms to the Delaware Division of Revenue, P.O. Box 8711, Wilmington, DE 19899-8711.
If you are mailing your forms with payment, note that the address is different: Delaware Department of Revenue, P.O. Box 508, Wilmington, DE 19899-508. If expecting a refund, mail your return to this address: P.O. Box 8710, Wilmington, DE 19899-8710.
Before mailing forms, review the Delaware Division of Revenue personal income tax mailing addresses to confirm.
How Do I Pay Taxes Due?
Regardless of how you file your state income tax return, you may mail a check to the Delaware Division of Revenue to pay taxes due. Be sure to include your completed tax form or the payment voucher.
If you are paying by check but you e-filed, you must complete and submit Form 200-V with a check made payable to "Delaware Division of Revenue." Send the voucher and check to the Delaware Division of Revenue, P.O. Box 830, Wilmington, DE, 19899-0830.
Whether you e-filed or filed a paper return, you may pay taxes due electronically with a debit or credit card or e-check. Each of these methods has a shorter processing timeline and can be completed through the online Form 200-VI on the online payment portal.
If you need assistance with your payment, contact the Division of Revenue at (302) 577-8785.
Where Can I Check My Delaware Refund Status?
You can check your Delaware refund status through Delware.gov. You'll need to know the exact expected refund amount as well as your Social Security number. If you have issues with the tool or have another inquiry regarding your refund, you can contact DOR_PublicService@delware.gov. Do not include a Social Security number on any email inquiry.
What About Delaware State Taxes if You're Self-employed?
As a self-employed individual, you may be required to submit estimated tax payments with Form 200-ES. Underpayment of estimated taxes must be reported on Form 2210. Consult with a tax professional and review the Business Taxpayer Services information for details regarding what, how and when to submit Delaware taxes when you are self-employed.
What About Delaware State Taxes if You're a Business?
Businesses required to file a federal income tax return must file a Delaware corporate income tax return, Form 1100. The corporate tax rate in Delaware is 8.7 percent. If your business operates both in Delaware and Maryland, visit the website of the Comptroller of Maryland for withholding specifics for this situation.
Rates and dates in this article are correct as of publication. But check for any changes with the Delaware Division of Revenue before you file.
Melissa is a writer and editor from Chicago, with a background in small business ownership. After selling her business, she moved into marketing for nonprofits and now manages volunteers at a large medical association. She is a writing and editing contractor and contributed to dozens of blogs and websites.