Paycheck Calculator Delaware - DE

Income Information

Federal Withholding

State Withholding


Additional Information


Delaware-DE Paycheck Calculator: Hourly and Salary

Delaware, also known as "First State", is a long and thin state, located at the "estuary" of Delaware River and the Atlantic Ocean. This State has plenty of beaches, coves and bays to explore, with a fantastic climate, nightlife, quality of schooling, low taxes and massive job opportunities, giving you numerous reasons to settle in here.

This diamond state is considered one of the most desirable places in the nation to live and work, due to its cost of living, which is significantly lower than its majority of states in the Eastern Coast. Moreover, it is also denoted as a tax haven, due to lower tax burden onto its residents, compared to the rest of the nation.

However, denoting it as tax heaven doesn't mean that its residents are free from all taxes. In fact, they are required to pay several taxes, including payroll tax like state income tax.

There are seven tax brackets for State income tax, ranging from 0 to 6.6%, in addition to local tax, in one of the cities in the state.


So, if you are planning to move to Delaware, and start a new life, business or job, then you must know, how much you are going to pay in a paycheck as an employer or earn as an employee.

As you know, Paycheck Calculation isn't as simple as it sounds. In fact, you have to deal with numerous elements and laws, for the correct determination of take-home pay. Therefore, our experts have created an excellent Delaware Paycheck Calculator along with a fantastic guide, to provide you with a perfect, instant and effective payroll solution.


Delaware Tax Facts:

  • Delaware State charges a comparatively low state income taxes, ranging from 0% to 6.6%, having seven tax brackets that only depends on the income, regardless of your filing status.
  • The State requires the employer to pay State Unemployment (SUI) Taxes, which ranges from 0.3 - 8.2%.
  • Wilmington is the only city in this state that requires the employers to withhold a flat rate of 1.25% of local taxes from employee's paycheck. Moreover, Employers are also subjected to taxes like head-tax while working in this city.
  • The minimum wage of employees is $8.75, and for hourly employees, it is $9.25. Moreover, for Youth, it is $8.75.
  • The Minimum Cash Wage for tipped employees, it is $2.23 with a maximum tip credit of $6.52. Besides, voluntarily, Tip Pooling is also permitted.
  • The Median Household income of Delaware Residents is $63,036, According to the United States Census Bureau.
  • Delaware State doesn't have any reciprocity agreement with any state.
  • State also requires the employers to withhold state income tax from the paychecks of non-residents of Delaware, for services performed in the state.
  • Delaware State entitles the employers having one or more employees, to register for Workers' Compensation However, no withholding or deductions for this insurance shall be made from the employee's paycheck.

How to calculate Take-Home Pay in Delaware?

To calculate Take Home Pay or Paycheck, you need to go through several steps that include calculation of Gross Pay, Pre-Tax Deductions, Federal Taxes, State Taxes, Post Tax Deductions, Local Tax, etc.

To make it easy for you, we have divided this guide into steps, which would give a general idea. However, there may be some differences or additional taxes that you may be subjected to, according to your situation. As it's a comprehensive guide, we can only discuss general aspects.


Step 1 - Calculating Gross Pay:

  1. To calculate Gross Pay, first, you need to determine the Pay Type of an employee. It is whether an employee is paid on an hourly basis or salary basis.

Hourly Employees:

Hourly Base Employees are paid for each hour they work in a day or a week, at the mutually agreed hourly rate. However, mutually agreed hourly rate must be as per the Federal and State Minimum Wage law.

Hourly Employees are also entitled to receive overtime, for each excess hours worked after Regular worked hours in a day or week. The overtime rate in most of the state is one and a half time the regular hourly rate.


Salaried Employees:

Salaried employees receive a fixed but mutually agreed on pay, for a decided pay frequency, usually semi-monthly or monthly. However, for gross payment determination for a pay period, the annual salary is divided by the pay frequency.

Most of the salaried employees are exempted from Overtime law. Therefore, they are not entitled to receive overtime, regardless of how many excess hours they work. However, some exceptional salaried employees may be eligible to receive overtime according to federal or state law.


  1. Remember, Supplementary Wages like bonuses, commissions and paid leaves, as well as double time and fringe benefits, are also taxable wages. Therefore they must also be included in gross pay, before federal and state tax calculation.

Note:

  • Delaware State, in accordance with FLSA Law, requires the employers to pay overtime at the rate of one and half of regular hourly rate to all non-exempted employees for every excess hours work after 40 Regular hours in a workweek.
  • Some States provides a separate state income tax rate for Supplemental Wages. Then you must use specified rates to calculate income tax separately for "Gross Salary plus Overtime" and Supplemental wages. However, Delaware State has no provision on supplemental wages, so you use the same state income tax rate for both.

Step 2 – Subtracting Pre-Tax Deductions (If Any):

Pre-Tax Deduction is an amount, deducted from employee's gross pay before any withholding tax is deducted. These deductions have several advantages, including the reduction of taxable wage. Hence, increasing the take-home pay of an employee. However, not all deductions can be considered as free from all taxes, which means some of the deductions may require certain taxes to be withheld.

Some of the standard Pre-tax deductions are:

  • Health Savings Accounts or FSA or HSA plans
  • Commuter Benefits
  • Healthcare Insurance
  • Short-Term Disability
  • Dental Insurance
  • Medical Expenses and Flexible Spending Accounts
  • Vision Benefits
  • Retirement funds like a traditional 401(k)

Note: Pre-Tax deduction rate changes from year to year, according to inflation and costs of living by the federal government. Therefore, you must keep yourself updated with all rates before, making any deductions.


Step 3 – Calculate and Subtract Federal Taxes:

Federal Taxes are taxes deducted from almost every employee, regardless of which state or county they work in.

Federal Taxes are calculated according to the details provided by the employee on Form W-4, which comprises of Income, filing status, number of dependents, number of allowances, number of jobs, etc.

The details are form W-4, are assessed and used by the employer to deduce the federal tax bracket, in which the employee's taxable wage lay upon.

Federal Taxes ranges from 0% to 37% have seven tax brackets, depending on filing status, income and number of allowances claimed. Below is the income tax details for the year 2019:

Single Filers
Taxable Income Rate
$0 - $9,525 10.0%
$9,525 - $38,700 12.0%
$38,700 - $82,500 22.0%
$82,500 - $157,500 24.0%
$157,500 - $200,000 32.0%
$200,000 - $500,000 35.0%
$500,000+ 37.0%

Married, Filing Jointly
Taxable Income Rate
$0 - $19,050 10.0%
$19,050 - $77,400 12.0%
$77,400 - $165,000 22.0%
$165,000 - $315,000 24.0%
$315,000 - $400,000 32.0%
$400,000 - $600,000 35.0%
$600,000+ 37.0%

Married, Filing Separately
Taxable Income Rate
$0 - $9,525 10.0%
$9,525 - $38,700 12.0%
$38,700 - $82,500 22.0%
$82,500 - $157,500 24.0%
$157,500 - $200,000 32.0%
$200,000 - $500,000 35.0%
$500,000+ 37.0%

Head of Household
Taxable Income Rate
$0 - $13,600 10.0%
$13,600 - $51,800 12.0%
$51,800 - $82,500 22.0%
$82,500 - $157,500 24.0%
$157,500 - $200,000 32.0%
$200,000 - $500,000 35.0%
$500,000+ 37.0%

Step 4 – Deduct FICA Taxes:

Along with Federal Withholding, employers are also required to withhold Federal Insurance Contributions Act (FICA) taxes from the employee's paycheck as well as pay a matching amount themselves to the IRS.

There are two types of FICA taxes:

  1. Social Security:

Employers are entitled to withhold 6.2% from the first $132,900 (wage base limit for 2019), taxable wages earned by the employee. Moreover, the employer is also required to pay an equal amount to the IRS for each employee.

  1. Medicare:

Medicare tax is another type of FICA Tax that an employer must withhold from the taxable gross wage of the employee, at the rate of 1.45%. Unlike social security, there is no wage base limit. However, if the employee earns more than the defined threshold than he/she is subjected to an additional 0.9% of Additional Medicare Tax rate, for every dollar earned above the threshold amount.

Like Social Security, IRS also requires the employer to pay an equal amount of Medicare tax for each employee.


Step 5 – Payment of FUTA Taxes

The Federal Unemployment Tax Act (FUTA) is a tax, that IRS requires the employer to pay, without deducting anything from the employee's paycheck.

The FUTA Tax rate for 2019 is 6.0% of the first taxable wage up to $7000 of an employee. However, once the taxable wage limit is crossed for a particular employee than the employer no longer have to pay this tax.

What to reduce FUTA Tax?

Yes! Then you must pay State Unemployment Insurance (SUI) tax in full and on time and get a FUTA tax credit of up to 5.4%. Which means, you saved a whopping 90% from FUTA Tax.


Step 6 – Subtract Post-Tax Deductions (If any):

Although, employers are not required to withhold any amount as a post-tax deduction, unless if an employee voluntarily asks to do so. However, there are some deductions, ordered by the court like child support or wage garnishment, which the employer is entitled to deduct.


Step 7 – Withhold Delaware State Payroll Taxes:

Once you are done with federal taxes, Delaware State also requires the employer to withhold a portion from employee's gross wage as State Income Tax.

Delaware State charges the progressive income tax rates having seven tax brackets that range from 0% to 6.6%, depending on the income. However, unlike most of the states, Delaware income tax rates are not dependent on filing status.

All Filers
Delaware Taxable Income Rate
$0 - $2,000 0.00%
$2,000 - $5,000 2.20%
$5,000 - $10,000 3.90%
$10,000 - $20,000 4.80%
$20,000 - $25,000 5.20%
$25,000 - $60,000 5.55%
$60,000+ 6.60%

Step 8 – Withhold Local Tax:

Only Wilmington City in Delaware requires the employer to withhold a flat rate of 1.25% as local tax, from the employee's paycheck, who are working or earning from this city.


Step 9 – Pay State Unemployment Tax (SUI):

Like FUTA tax by IRS, Delaware State also entitles the employer to pay SUI Tax. The employer must only pay this tax. This tax has a wage base of $16,500 (2019) and ranges from 0.3% to 8.2%. However, the new employers get a little relief, as they only have to pay a flat rate of 1.5%. Moreover, Delaware State gives an exception to a new employer in the construction industry to pay a flat rate of 2.5%.


Note: As we have stated earlier, that paying SUI taxes in full and on time, can get the employer, a FUTA tax credit of up to 5.4%, that an employer should avail.


Step 10 – Calculate Pay Check:

Once you are done with all elements (steps) discussed earlier, you will have a net pay amount for each employee. Now all you have to do is pay employees on time. Also, to file all Federal Taxes, State Taxes, FICA and FUTA taxes on time, to avoid any penalties.

FAQs

Answer: Following are the taxes taken out of a paycheck of employee working or earning from Delaware:

  1. Federal Income Tax, ranging from 0% to 37%
  2. FICA Tax (Social Security – 6.2% + Medicare – 1.45% + Additional Medicare – 0.9% (only when income exceeds the certain threshold)
  3. Delaware State Income Tax ranging from 0% to 6.6%
  4. Local Income Tax (Only by Wilmington City, on a flat rate of 1.25%)

Answer: The Delaware State Income Tax rate has seven tax brackets, ranging from 0% to 6.6%, depending on tax-payers income, regardless of filing status.


https://smartasset.com/taxes/delaware-paycheck-calculator#delaware/overall

Answer: Delaware is known as Tax Heaven, due to no Sales tax and gross receipts tax. However, Delaware residents are subjected to several taxes including Federal, State and local payroll taxes.

Answer: Yes, only Wilmington City in Delaware, have local taxes, at a flat rate of 1.25% on employee's payroll.

Answer: No, the Delaware State does not have any Reciprocal Agreements on the subject of taxation of non-resident employees, with any other state.

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