Delaware Personal Income Tax

Free guide to personal income tax in Delaware.

Delaware personal income tax is 6.95% for net income over 25,000.

People forming Delaware LLCs and Delaware corporations declared as an S corp with the IRS could be subject to this if you are actually doing business in Delaware.

You would have to actually have nexus in Delaware to be forced to pay Delaware personal income tax.

Delaware has specific statutes stating that having a Delaware business license or renting a Delaware virtual office or using a Delaware mail forwarding service to have mail service at does not qualify you as having nexus in Delaware. Good news for the Delaware incorporation business!!

Just don’t actually do any business in Delaware and you’ll only be forced to pay the annual $25 Delaware LLC report fee, or the minimum $125 Delaware corporation franchise tax fee.

Delaware has no sales tax, which is attractive because people setting up Delaware corporations or LLCs can buy things with no sales tax applied.

Delaware Department of Revenue
Carvel State Office Building
820 North French Street
Wilmington, DE 19801
Telephone: 302-577-8205
Fax: 302-577-8202