TITLE 30

State Taxes

Income, Inheritance and Estate Taxes

CHAPTER 11. PERSONAL INCOME TAX

Subchapter I. General Provisions


Any term used in this chapter shall have the same meaning as when used in a comparable context in the laws of the United States referring to federal income taxes, unless a different meaning is clearly required. Any reference to the laws of the United States shall mean the Internal Revenue Code of 1986 [26 U.S.C. § 1 et seq.] and amendments thereto and other laws of the United States relating to federal income taxes, as the same may have been or shall become effective, for any taxable year.

30 Del. C. 1953, § 1101; 57 Del. Laws, c. 737, § 1; 67 Del. Laws, c. 408, § 1; 71 Del. Laws, c. 347, § 7.;

(a)(1) For taxable years beginning before January 1, 1985, the amount of tax shall be determined as follows:

1.4% of the amount of taxable income not in excess of $1,000;

2.0% of the amount of taxable income in excess of $1,000, but not in excess of $2,000;

3.0% of the amount of taxable income in excess of $2,000, but not in excess of $3,000;

4.2% of the amount of taxable income in excess of $3,000, but not in excess of $4,000;

5.2% of the amount of taxable income in excess of $4,000, but not in excess of $5,000;

6.2% of the amount of taxable income in excess of $5,000, but not in excess of $6,000;

7.2% of the amount of taxable income in excess of $6,000, but not in excess of $8,000;

8.0% of the amount of taxable income in excess of $8,000, but not in excess of $10,000;

8.2% of the amount of taxable income in excess of $10,000, but not in excess of $15,000;

8.4% of the amount of taxable income in excess of $15,000, but not in excess of $20,000;

8.8% of the amount of taxable income in excess of $20,000, but not in excess of $25,000;

9.4% of the amount of taxable income in excess of $25,000, but not in excess of $30,000;

11.0% of the amount of taxable income in excess of $30,000, but not in excess of $40,000;

12.2% of the amount of taxable income in excess of $40,000, but not in excess of $50,000;

13.5% of the amount of taxable income in excess of $50,000.

(2) For taxable years beginning after December 31, 1984, and before January 1, 1986, the amount of tax shall be determined as follows:

1.3% of the amount of taxable income not in excess of $1,000;

1.8% of the amount of taxable income in excess of $1,000, but not in excess of $2,000;

2.7% of the amount of taxable income in excess of $2,000, but not in excess of $3,000;

3.8% of the amount of taxable income in excess of $3,000, but not in excess of $4,000;

4.7% of the amount of taxable income in excess of $4,000, but not in excess of $5,000;

5.6% of the amount of taxable income in excess of $5,000, but not in excess of $6,000;

6.5% of the amount of taxable income in excess of $6,000, but not in excess of $8,000;

7.2% of the amount of taxable income in excess of $8,000, but not in excess of $10,000;

7.4% of the amount of taxable income in excess of $10,000, but not in excess of $15,000;

7.6% of the amount of taxable income in excess of $15,000, but not in excess of $20,000;

7.9% of the amount of taxable income in excess of $20,000, but not in excess of $25,000;

8.5% of the amount of taxable income in excess of $25,000, but not in excess of $30,000;

9.9% of the amount of taxable income in excess of $30,000, but not in excess of $40,000;

10.7% of the amount of taxable income in excess of $40,000.

(3) For taxable years beginning after December 31, 1985, and before January 1, 1987, the amount of tax shall be determined as follows:

1.2% of the amount of taxable income not in excess of $1,000;

1.6% of the amount of taxable income in excess of $1,000, but not in excess of $2,000;

2.5% of the amount of taxable income in excess of $2,000, but not in excess of $3,000;

3.5% of the amount of taxable income in excess of $3,000, but not in excess of $4,000;

4.3% of the amount of taxable income in excess of $4,000, but not in excess of $5,000;

5.1% of the amount of taxable income in excess of $5,000, but not in excess of $6,000;

5.9% of the amount of taxable income in excess of $6,000, but not in excess of $8,000;

6.6% of the amount of taxable income in excess of $8,000, but not in excess of $10,000;

6.7% of the amount of taxable income in excess of $10,000, but not in excess of $15,000;

6.9% of the amount of taxable income in excess of $15,000, but not in excess of $20,000;

7.2% of the amount of taxable income in excess of $20,000, but not in excess of $25,000;

7.7% of the amount of taxable income in excess of $25,000, but not in excess of $30,000;

9.0% of the amount of taxable income in excess of $30,000, but not in excess of $40,000;

9.7% of the amount of taxable income in excess of $40,000.

(4) For taxable years beginning after December 31, 1986, and before January 1, 1988, the amount of tax shall be determined as follows:

1.0% of the amount of taxable income not in excess of $1,000;

1.4% of the amount of taxable income in excess of $1,000, but not in excess of $2,000;

2.3% of the amount of taxable income in excess of $2,000, but not in excess of $3,000;

3.2% of the amount of taxable income in excess of $3,000, but not in excess of $4,000;

3.9% of the amount of taxable income in excess of $4,000, but not in excess of $5,000;

4.6% of the amount of taxable income in excess of $5,000, but not in excess of $6,000;

5.4% of the amount of taxable income in excess of $6,000, but not in excess of $8,000;

6.0% of the amount of taxable income in excess of $8,000, but not in excess of $10,000;

6.1% of the amount of taxable income in excess of $10,000, but not in excess of $15,000;

6.3% of the amount of taxable income in excess of $15,000, but not in excess of $20,000;

6.5% of the amount of taxable income in excess of $20,000, but not in excess of $25,000;

7.0% of the amount of taxable income in excess of $25,000, but not in excess of $30,000;

8.2% of the amount of taxable income in excess of $30,000, but not in excess of $40,000;

8.8% of the amount of taxable income in excess of $40,000.

(5) For taxable years beginning after December 31, 1987, and before January 1, 1996, the amount of tax shall be determined as follows:

3.2% of taxable income in excess of $2,000, but not in excess of $5,000;

5.0% of taxable income in excess of $5,000, but not in excess of $10,000;

6.0% of taxable income in excess of $10,000, but not in excess of $20,000;

6.6% of taxable income in excess of $20,000, but not in excess of $25,000;

7.0% of taxable income in excess of $25,000, but not in excess of $30,000;

7.6% of taxable income in excess of $30,000, but not in excess of $40,000;

7.7% of taxable income in excess of $40,000.

(6) For taxable years beginning after December 31, 1995, and before January 1, 1997, the amount of tax shall be determined as follows:

3.2% of taxable income in excess of $2,000 but not in excess of $5,000;

5.0% of taxable income in excess of $5,000 but not in excess of $10,000;

6.0% of taxable income in excess of $10,000 but not in excess of $20,000;

6.35% of taxable income in excess of $20,000 but not in excess of $25,000;

6.65% of taxable income in excess of $25,000 but not in excess of $30,000;

7.1% of taxable income in excess of $30,000.

(7) For taxable years beginning after December 31, 1996, and before January 1, 1999, the amount of tax shall be determined as follows:

3.1% of taxable income in excess of $2,000 but not in excess of $5,000;

4.85% of taxable income in excess of $5,000 but not in excess of $10,000;

5.8% of taxable income in excess of $10,000 but not in excess of $20,000;

6.15% of taxable income in excess of $20,000 but not in excess of $25,000;

6.45% of taxable income in excess of $25,000 but not in excess of $30,000;

6.9% of taxable income in excess of $30,000.

(8) For taxable years beginning after December 31, 1998, and before January 1, 2000, the amount of tax shall be determined as follows:

2.60% of taxable income in excess of $2,000 but not in excess of $5,000;

4.30% of taxable income in excess of $5,000 but not in excess of $10,000;

5.20% of taxable income in excess of $10,000 but not in excess of $20,000; and

5.60% of taxable income in excess of $20,000 but not in excess of $25,000.

(9) For taxable years beginning after December 31, 1998, and before January 1, 2000, the amount of tax shall be determined by reference to paragraph (a)(8) of this section and 5.95% of taxable income in excess of $25,000 but not in excess of $60,000; and 6.40% of taxable income in excess of $60,000.

(10) For taxable years beginning after December 31, 1999, and before January 1, 2010, the amount of tax shall be determined as follows:

2.2% of taxable income in excess of $2,000 but not in excess of $5,000;

3.9% of taxable income in excess of $5,000 but not in excess of $10,000;

4.8% of taxable income in excess of $10,000 but not in excess of $20,000;

5.2% of taxable income in excess of $20,000 but not in excess of $25,000; and

5.55% of taxable income in excess of $25,000 but not in excess of $60,000.

(11) For taxable years beginning after December 31, 1999, and before January 1, 2010, the amount of tax shall be determined by reference to paragraph (a)(10) of this section and 5.95% of taxable income in excess of $60,000.

(12) For taxable years beginning after December 31, 2009, and before January 1, 2012, the amount of tax shall be determined as follows:

2.2% of taxable income in excess of $2,000 but not in excess of $5,000;

3.9% of taxable income in excess of $5,000 but not in excess of $10,000;

4.8% of taxable income in excess of $10,000 but not in excess of $20,000;

5.2% of taxable income in excess of $20,000 but not in excess of $25,000;

5.55% of taxable income in excess of $25,000 but not in excess of $60,000; and

6.95% of taxable income in excess of $60,000.

(13) For taxable years beginning after December 31, 2011, and before January 1, 2014, the amount of tax shall be determined as follows:

2.2% of taxable income in excess of $2,000 but not in excess of $5,000;

3.9% of taxable income in excess of $5,000 but not in excess of $10,000;

4.8 % of taxable income in excess of $10,000 but not in excess of $20,000;

5.2% of taxable income in excess of $20,000 but not in excess of $25,000;

5.55% of taxable income in excess of $25,000 but not in excess of $60,000; and

6.75% of taxable income in excess of $60,000.

(14) For taxable years beginning after December 31, 2013, the amount of tax shall be determined as follows:

2.2% of taxable income in excess of $2,000 but not in excess of $5,000;

3.9% of taxable income in excess of $5,000 but not in excess of $10,000;

4.8% of taxable income in excess of $10,000 but not in excess of $20,000;

5.2% of taxable income in excess of $20,000 but not in excess of $25,000;

5.55% of taxable income in excess of $25,000 but not in excess of $60,000; and

6.6% of taxable income in excess of $60,000.

(b)(1) In addition to the tax imposed under subsection (a) of this section, there is hereby imposed a separate tax in the amount determined in paragraph (b)(2) of this section, on the ordinary income portion of a lump sum distribution received by every resident individual, estate or trust.

(2) The amount of the tax imposed by this subsection for any taxable year shall be an amount equal to the amount of the initial separate tax for such year, multiplied by a fraction, the numerator of which is the ordinary income portion of a lump sum distribution for the taxable year, and the denominator of which is the total taxable amount of such distribution for such year.

(3) The initial separate tax for any taxable year is an amount equal to 10 times the tax which would be imposed by subsection (a) of this section if the taxable income referred to were equal to one tenth of the total taxable amount of the lump sum distributed for the taxable year.

(4) The recipient of a lump-sum distribution shall be liable for the tax imposed by this subsection.

(5) For purposes of this subsection, the rules concerning multiple distributions and distributions of annuity contracts as specified in § 402(e)(2) of the Internal Revenue Code [26 U.S.C. § 402(e)(2)] shall be applicable.

(6) For purposes of this subsection, the definition and special rules applying to the tax on lump-sum distributions as specified in § 402(e)(4) of the Internal Revenue Code [26 U.S.C. § 402(e)(4)] shall be applicable.

(7) For purposes of this subsection, the rules relating to rollover as specified in § 402(c) and (e)(1)(B) of the Internal Revenue Code [26 U.S.C. § 402(c) and (e)(1)(B)] shall be applicable.

(c) The tax rates established by paragraph (a)(4) of this section shall be revoked effective January 1, 1988, unless the Secretary of Labor has, on or before June 10, 1987, made a written determination, submitted to the Governor, Speaker of the House and President Pro Tempore of the Senate, that the total full-time equivalent employment in the State, as regularly reported by the State Department of Labor, has averaged an annual increase of 6,000 full-time equivalent jobs in nonagricultural wage and salary employment as reported by the Delaware Department of Labor during the period from June 1, 1984, through May 31, 1987. Once the condition of this subsection has been satisfied, there shall be no revocation of the paragraph (a)(4) of this section rates by reason of this subsection. In the event of any revocation of the tax rates established by paragraph (a)(4) of this section, the following rates shall become effective:

1.0% of the amount of taxable income not in excess of $1,000;

1.4% of the amount of taxable income in excess of $1,000, but not in excess of $2,000;

2.3% of the amount of taxable income in excess of $2,000, but not in excess of $3,000;

3.2% of the amount of taxable income in excess of $3,000, but not in excess of $4,000;

3.9% of the amount of taxable income in excess of $4,000, but not in excess of $5,000;

4.6% of the amount of taxable income in excess of $5,000, but not in excess of $6,000;

5.4% of the amount of taxable income in excess of $6,000, but not in excess of $8,000;

6.0% of the amount of taxable income in excess of $8,000, but not in excess of $10,000;

6.1% of the amount of taxable income in excess of $10,000, but not in excess of $15,000;

6.3% of the amount of taxable income in excess of $15,000, but not in excess of $20,000;

6.5% of the amount of taxable income in excess of $20,000, but not in excess of $25,000;

7.0% of the amount of taxable income in excess of $25,000, but not in excess of $30,000;

8.2% of the amount of taxable income in excess of $30,000, but not in excess of $40,000;

9.2% of the amount of taxable income in excess of $40,000, but not in excess of $50,000;

10.1% of the amount of taxable income in excess of $50,000.

(d)(1) In lieu of the tax imposed by subsection (a) of this section there is imposed for each taxable year on the tax table income of every individual whose tax table income for the taxable year does not exceed $60,000, or such lesser amount as the Director may determine but in any event not less than $20,000, a tax determined under tables, applicable to such taxable years, which shall be prescribed by the Director of Revenue. The amounts of tax prescribed in such tables shall be computed on the basis of the rates prescribed by subsection (a) of this section.

(2) For purposes of this subsection, the term "tax table income" means Delaware taxable income as defined in § 1105 (residents) and § 1121 (nonresidents) of this title.

(3) This subsection shall not apply to an estate or trust.

(e) Where the rates of tax prescribed in subsection (a) of this section are changed during a taxable year, the Secretary of Finance shall prescribe such rules and regulations as are necessary to compute the increase in rates of tax on the proportion of income earned subsequent to the effective date of change in rate.

30 Del. C. 1953, § 1102; 57 Del. Laws, c. 737, § 1; 58 Del. Laws, c. 300, §§ 1, 2, 4; 59 Del. Laws, c. 152, § 1; 62 Del. Laws, c. 23, § 1; 62 Del. Laws, c. 56, § 1; 64 Del. Laws, c. 317, § 1; 64 Del. Laws, c. 325, §§ 2-4; 64 Del. Laws, c. 376, §§ 1, 2; 65 Del. Laws, c. 204, §§ 1-4; 65 Del. Laws, c. 394, §§ 1-4; 66 Del. Laws, c. 86, §§ 1, 2; 67 Del. Laws, c. 407, § 1; 68 Del. Laws, c. 82, § 1; 70 Del. Laws, c. 117, §§ 1, 2; 70 Del. Laws, c. 454, §§ 1-3; 70 Del. Laws, c. 455, § 1; 71 Del. Laws, c. 347, §§ 1, 2; 71 Del. Laws, c. 350, § 1; 72 Del. Laws, 1st Sp. Sess., c. 242, § 1; 72 Del. Laws, 1st Sp. Sess., c. 248, §§ 1, 2; 77 Del. Laws, c. 77, §§ 1, 2; 77 Del. Laws, c. 77, §§ 1, 2, 4; 78 Del. Laws, c. 74, §§ 1, 2[1], 2[2]; 79 Del. Laws, c. 10, § 1.;

A resident individual of this State means an individual:

(1) Who is domiciled in this State to the extent of the period of such domicile; provided, however, an individual who is present in a foreign country or countries for at least 495 full days in any consecutive 18-month period, and during such period of 18 consecutive months is not present in this State for more than 45 days, and does not maintain a permanent place of abode in this State at which the individual's spouse, children or parents are present for more than 45 days, and is not an employee of the United States, its agencies or instrumentalities (including members of the Armed Forces) shall not be considered a resident of this State during such period; or

(2) Who maintains a place of abode in this State and spends in the aggregate more than 183 days of the taxable year in this State.

30 Del. C. 1953, § 1103; 57 Del. Laws, c. 737, § 1; 63 Del. Laws, c. 122, § 1; 70 Del. Laws, c. 186, § 1.;

A nonresident individual of this State means an individual who is not a resident individual of this State.

30 Del. C. 1953, § 1104; 57 Del. Laws, c. 737, § 1.;