Retirement taxes by state
How Delaware taxes retirement income in 2026
Delaware's income tax rates run from 2.2% to 6.6%. Here's how Delaware treats Social Security, retirement-account withdrawals, pensions and Roth conversions in 2026 — and what that means in dollars: a retired couple, both 67, with $98,000 of income pays nothing in Delaware income tax.
Updated October 2026 · 2026 tax year
Delaware at a glance
- Income tax from 2.2% to 6.6%.
- Social Security isn't taxed.
- Pension income: up to $2,000 per person excluded under age 60.
- Retirement income (pensions, 401(k)s, IRAs, Roth conversions, interest, dividends and gains): up to $12,500 per person excluded from age 60.
- Extra $2,500 deduction per person from age 65.
- Extra $110 tax credit per person from age 60.
Delaware retirement tax questions
Does Delaware tax Social Security?
No. Social Security isn't taxed.
Does Delaware tax 401(k) and IRA withdrawals?
Partly. Retirement income (pensions, 401(k)s, IRAs, Roth conversions, interest, dividends and gains): up to $12,500 per person excluded from age 60. Also: extra $2,500 deduction per person from age 65. extra $110 tax credit per person from age 60.
Does Delaware tax pensions?
Partly. Pension income: up to $2,000 per person excluded under age 60. Retirement income (pensions, 401(k)s, IRAs, Roth conversions, interest, dividends and gains): up to $12,500 per person excluded from age 60.
Does Delaware tax Roth conversions?
Partly. Retirement income (pensions, 401(k)s, IRAs, Roth conversions, interest, dividends and gains): up to $12,500 per person excluded from age 60. Anything above that is taxed like other income.
What is Delaware's income tax rate in 2026?
Delaware's income tax rates run from 2.2% to 6.6%.
What retirees actually pay in Delaware: three examples
Calculated with Retirology's tax engine under 2026 law, using each state's standard deduction, its retirement breaks and the 2026 federal rules for how much Social Security is taxable. That couple would owe nothing in Delaware — one of 24 states (counting DC) where they'd pay $0.
| Household | Total income | Delaware tax | Share |
|---|---|---|---|
| Retired couple, both 67 $48,000 of Social Security, $40,000 drawn from IRAs and 401(k)s, and $10,000 of qualified dividends | $98,000 | $0 | 0.0% |
| Single retiree, 70 $30,000 of Social Security, a $25,000 pension and $15,000 of IRA withdrawals | $70,000 | $612 | 0.9% |
| Early-retired couple, both 56, converting to Roth A $60,000 Roth conversion and $20,000 of long-term gains and qualified dividends, living on savings | $80,000 | $3,614 | 4.5% |
State income tax only — before local taxes, property tax relief and credits not listed above. Federal income tax is extra and the same in every state.
Delaware income tax brackets (2026)
Rates apply to Delaware taxable income, after the state's deductions and the retirement breaks above.
| Single | Rate | Married filing jointly | Rate |
|---|---|---|---|
| Up to $2,000 | 0% | Up to $2,000 | 0% |
| $2,000 – $5,000 | 2.2% | $2,000 – $5,000 | 2.2% |
| $5,000 – $10,000 | 3.9% | $5,000 – $10,000 | 3.9% |
| $10,000 – $20,000 | 4.8% | $10,000 – $20,000 | 4.8% |
| $20,000 – $25,000 | 5.2% | $20,000 – $25,000 | 5.2% |
| $25,000 – $60,000 | 5.55% | $25,000 – $60,000 | 5.55% |
| Over $60,000 | 6.6% | Over $60,000 | 6.6% |
Details and limits
60+ exclusion of $12,500 per person covers pensions, IRAs, dividends, interest and gains.
Sources
Rates and rules for the 2026 tax year, from Retirology's state tax data (reviewed October 2026):
This page explains state tax rules in general terms. It isn't tax advice — check your state's official instructions or a tax professional for your situation.