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Delaware Nanny Tax Guide

Delaware has progressive income tax and is implementing a paid family leave program. Wilmington residents or workers should be aware of the local city income tax.

State Income Tax
State Unemployment
Disability Insurance
Paid Family Leave

Minimum Wage

$15.00/hour

SUTA Rate Range

0.1% - 8.0%

Key Things to Know

  • Progressive state income tax (2.2% - 6.6%)
  • Paid Family Leave program launching soon
  • State minimum wage is $15.00/hour
  • Wilmington has local city tax (1.25%)

Delaware Employer Requirements

State Income Tax

Delaware uses progressive tax brackets ranging from 2.2% to 6.6%. The first $2,000 of income is exempt from state tax.

Paid Family Leave

Delaware is implementing a paid family leave program with contributions starting in 2025 and benefits available in 2026. The rate is 0.5% of wages.

State Unemployment Insurance

Employers pay SUI tax on the first $10,500 of wages. New employer rate is 1.0%, with rates ranging from 0.1% to 8.0% based on experience.

Wilmington City Tax

Employees who work or reside in Wilmington are subject to a 1.25% city income tax. Employers must withhold this if applicable.

What will it cost?

Wondering what you'll actually owe as a Delaware employer? Adjust the numbers below to get a quick estimate of your annual tax obligations.

This guide is for informational purposes only and should not be considered legal or tax advice. Tax laws change frequently. Always verify current requirements with your state's tax agency or consult with a qualified tax professional.

Verified accurate as of February 2026Sources: Delaware tax agency, IRS Publication 926

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