Bill > HB13

This bill modifies Delaware's personal income tax structure by introducing new tax brackets and rates for taxable years beginning after December 31, 2025. The legislation slightly reduces tax rates for lower income levels (such as reducing the rate for income between $2,000 and $5,000 from 2.2% to 2.1%) while introducing progressive higher tax rates for higher income brackets. Specifically, for taxable income above $150,000, the bill establishes three new tax brackets: 6.75% for income between $150,000 and $250,000, 6.85% for income between $250,000 and $500,000, and 6.95% for income above $500,000. The bill also updates income thresholds for filing requirements, marginally increasing the adjusted gross income levels that trigger the need to file a state income tax return. These changes aim to create a more graduated tax system where higher-income earners pay slightly higher rates. The legislation is named the "John Kowalko, Jr., Fairness in Taxation Act" and will take effect for tax years beginning after December 31, 2025.

Budget and Finance

https://legis.delaware.gov/BillDetail?LegislationId=141813