Delaware payroll taxes
Every tax withheld from a Delaware paycheck or paid by the employer in 2026, with rates and wage limits.
Last verified November 2, 2026. Sources: teamed.global, taxfoundation.org, taxnews.ey.com, oregon.gov.
| Tax | Employee pays | Employer pays | Wage limit |
|---|---|---|---|
| Social Security | 6.2% | 6.2% | $184,500 |
| Medicare | 1.45%* | 1.45% | No limit |
| FUTA | — | 0.6% | $7,000 |
| Delaware SUTA | — | 1.2% (new) | $14,500 |
| Delaware Paid Leave | 0.4% | 0.4% | $184,500 |
| Delaware income tax | 0%–6.6% | — | — |
*Plus 0.9% Additional Medicare Tax withheld on wages over $200,000. FUTA rate shown is net of the state credit.
The Delaware SUTA wage base changes to $16,500 in 2027.
State unemployment insurance
Delaware charges new employers 1.2% on the first $14,500 each employee earns in a year. After a few years, the rate is based on the employer's layoff history and ranges from 0.6% to 5.6%. New employer rate is 1.0% UI + 0.2% OTA. Schedule B UI range is 0.4%-5.4%. The wage base was fixed by 2025 legislation ($14,500 in 2026, $16,500 from 2027), and the UI program is being overhauled for 2027.
Operations and Technology Assessment 0.2% (drops to 0.175% in 2027), included in the rates
Register and file with the Delaware unemployment tax agency.
Paid leave and disability programs
- Delaware Paid Leave: employees pay 0.4%, employers pay 0.4% on wages up to $184,500. Total 0.8% (medical 0.40%, family 0.08%, parental 0.32%); employer may deduct up to 50% from employees. Employers with 10-24 employees pay only the parental portion (0.32%); 9 or fewer employees exempt from parental/family (medical only if opted). Contributions began Jan 1, 2025; benefits Jan 1, 2026. Rate fixed through 2026; 2027 not found.
Income tax withholding
Delaware has a graduated income tax with 7 brackets, from 0% up to 6.6% on taxable income over $60,000 for single filers. Wilmington 1.25% earned income tax (residents and nonresidents working in city)
Frequently asked questions
- What payroll taxes do employers pay in Delaware?
- Social Security, Medicare, federal unemployment (FUTA) and Delaware unemployment insurance (SUTA), plus Delaware Paid Leave.
- What is the Delaware SUTA wage base for 2026?
- $14,500 per employee. It changes to $16,500 in 2027.
- Does Delaware require state income tax withholding?
- Yes. Employers withhold Delaware income tax based on the employee's state withholding certificate or federal W-4.