Free Delaware Payroll Tax Calculator

Delaware Payroll Tax Calculator (Step-by-Step)

Understanding your paycheck is crucial, and our Delaware Payroll Tax Calculator simplifies the process. Follow these easy steps to get an accurate estimate of your net pay:

Step 1: Enter Your Location and Filing Status

Country: Ensure “United States” is selected. (This is pre-filled.)
Province/State: Choose “Delaware” from the dropdown menu. (This is pre-filled.)
Federal Filing Status: Select your current federal filing status (e.g., Single, Married Filing Jointly, etc.) from the dropdown. This reflects how you file your federal taxes.
Federal Allowances: Enter the number of federal allowances you are claiming. This number affects the amount of federal income tax withheld from your paycheck. (Use your W-4 form as a guide.)
State Filing Status: Choose your current Delaware state filing status from the dropdown. It may be the same as your federal status, but confirm based on your state tax situation.
State Withholding Allowances: Enter the number of state withholding allowances you are claiming. This number affects the amount of Delaware state income tax withheld from your paycheck. (Refer to Form DE W-4 for guidance.)
Annual Pay Periods: Select how often you receive your paycheck (e.g., Bi-Weekly (26), Weekly, Monthly) from the dropdown. This is essential for accurate annual calculations.
Gross Wage / Pay Period: Enter your total earnings before any deductions for the pay period. This is your gross pay.
Pay Date: Select the pay date using the calendar tool. This is for your reference and does not affect the tax calculations.

Step 2: Input Your Pay Information

Annual Pay Periods: Select how often you receive your paycheck (e.g., Bi-Weekly (26), Weekly, Monthly) from the dropdown. This is essential for accurate annual calculations.
Gross Wage/Pay Period: Enter your total earnings before any deductions for the pay period. This is your gross pay.
Pay Date: Select the pay date using the calendar tool. This is for your reference and does not affect the tax calculations.

Step 3: Calculate Your Taxes

Carefully review the calculated results.
If you need to make changes, adjust the input fields and click “Calculate” again.
To start a new calculation with different parameters, click the “New Calculation” button.

Important Notes:

This calculator provides estimates based on the information you provide and current Delaware tax rates and regulations.
Actual tax amounts may vary based on individual circumstances, additional deductions (e.g., pre-tax benefits, healthcare), and any changes in tax laws.
Keep your W-4 form and Form DE W-4 updated to ensure accurate tax withholding.

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Payroll Taxes in Delaware: An Employer's Guide

Payroll taxes represent mandatory contributions that employers are required to withhold from employee compensation or pay directly on behalf of their employees. These funds are essential for financing various government programs at the federal, state, and local levels. Employers operating in Delaware face a specific set of obligations that extend beyond federal requirements, such as Federal Income Tax and FICA (Social Security and Medicare) taxes.

Key payroll tax responsibilities for Delaware employers include managing State Income Tax Withholding (SITW) and State Unemployment Insurance (SUI) tax. Additionally, businesses may encounter local payroll taxes, notably the Earned Income Tax in Wilmington, and must prepare for the statewide Paid Family and Medical Leave (PFML) program, with contributions beginning in 2025.

Navigating Delaware’s payroll tax landscape requires interaction with multiple state agencies, primarily the Division of Revenue for income tax withholding and the Department of Labor (specifically the Division of Unemployment Insurance and the Division of Paid Leave) for unemployment and paid leave contributions. Businesses operating in Wilmington must also coordinate with the city’s Department of Finance. This multi-agency structure necessitates a coordinated approach to registration, filing, and payment to ensure full compliance, adding a layer of administrative complexity compared to states with more unified systems. New employers, in particular, must be diligent to address the requirements of each relevant agency.

Getting Started: Employer Registration in Delaware

Proper registration is the foundational step for payroll tax compliance in Delaware. Any person or company conducting business activities within the state, or employing one or more individuals who work in Delaware or reside in Delaware and are subject to state income tax withholding, is required to register. This mandate applies broadly, encompassing various business structures, including non-profit organizations.

Registering with the Division of Revenue (Withholding Tax):
- The primary purpose of this registration is to obtain a unique 13-digit Delaware Withholding Tax Account Number. This number is essential for filing withholding tax returns and remitting the State Income Tax Withheld (SITW) from employee wages.
- Registration is accomplished by completing the Delaware Combined Registration Application (CRA).
- The recommended method for submitting the CRA is through the state’s online portal, the Delaware OneStop Business Licensing and Registration System. This system allows businesses to manage various state registrations and licenses efficiently. Alternatively, the paper Form CRA can be completed and submitted via fax or mail.
- New businesses should note that the initial CRA package includes a preliminary withholding tax form, which should be used for remitting the first withholding payment.
Registering with the Department of Labor (Unemployment Insurance & PFML):
- This registration is necessary to obtain a State Unemployment Insurance (SUI) Employer Account Number, required for filing quarterly SUI reports (Forms UC-8/UC-8A) and paying SUI taxes. It also establishes the framework for managing contributions related to the new Paid Family and Medical Leave (PFML) program.
- Initial SUI registration can often be completed concurrently with the Division of Revenue registration via the Delaware OneStop portal. Direct contact with the Department of Labor’s Division of Unemployment Insurance, specifically the Employer Contributions Operations (ECO) unit, is another avenue.
- Crucially, registration for the PFML program requires interaction with a separate, dedicated portal: Delaware LaborFirst. Employers must register on this platform to manage PFML contributions, opt-in/out decisions, and potential private plan exemptions. The LaborFirst system is also slated to handle Unemployment Insurance processes in the future.
- Businesses needing to locate existing account numbers can find their Withholding Tax Account Number on notices received from the Division of Revenue (or by calling 302-577-8779). The SUI Employer Account Number appears on Department of Labor notices (or can be obtained by calling the ECO unit at 302-761-8484). The PFML account number is assigned upon registration within the LaborFirst portal.
Delaware OneStop Portal: This central online platform (onestop.delaware.gov) is promoted by the state as the primary tool for initial business registration and licensing. It aims to simplify the setup process by consolidating applications for multiple agencies.

While the OneStop portal streamlines initial business setup, the introduction of the specialized LaborFirst portal for PFML (and future UI functions) signals a potential shift towards more specialized online systems for ongoing payroll management. Employers must be prepared to navigate and potentially maintain accounts across multiple state platforms – including OneStop, LaborFirst, and the Delaware Taxpayer Portal (tax.delaware.gov) used for tax payments and filings – to ensure comprehensive compliance.

Delaware State Income Tax Withholding (SITW)

Employers who maintain an office or transact business within Delaware are legally required to deduct and withhold Delaware State Income Tax (SITE) from wages or other remuneration paid to resident or non-resident employees, provided those payments are taxable in Delaware and subject to federal income tax withholding. This obligation extends to organizations that might be exempt from income tax themselves, such as religious or governmental entities.

Employee Withholding Setup: The DE W-4

Accurate withholding begins with proper employee setup, centered around the state-specific withholding certificate.

Form Requirement: Upon hiring an employee, Delaware employers must obtain a completed and signed Delaware-specific Form DE W-4, Employee’s Withholding Allowance Certificate. This form is distinct from the federal Form W-4. While federal W-4 forms completed prior to 2020 may continue to be used for Delaware purposes if the employee’s situation hasn’t changed, using the DE W-4 ensures greater accuracy. Importantly, federal Form W-4 versions from 2020 or later, which eliminated withholding allowances, are not acceptable for determining Delaware withholding.
Rationale for DE W-4: The federal W-4 redesign in 2020 removed the concept of allowances. However, Delaware’s income tax calculation still incorporates personal exemptions, providing a $110 tax credit for each allowance claimed. The DE W-4 was created specifically to allow employees to declare these allowances, enabling more precise state tax withholding aligned with Delaware law. This divergence from the federal system necessitates that employers manage a separate state withholding form process.
Completing the DE W-4: The form requires employees to provide standard personal information (name, address, SSN), select a marital status (Single or Married), and declare the total number of allowances they are claiming. It includes detailed worksheets to help employees calculate the appropriate number of allowances based on factors such as dependents, age (65+), blindness status, eligibility for child/dependent care credits, anticipated itemized deductions, and significant non-wage income. Employees can also specify an additional dollar amount to be withheld per paycheck.
Default Withholding: If an employee fails to furnish a valid DE W-4, the employer is required by law to withhold Delaware income tax as if the employee were single and claiming zero withholding allowances. This typically results in higher withholding than if allowances were claimed.
Special Reporting Requirement: Employers must take specific action if they receive a DE W-4 where an employee claims 14 or more allowances for Delaware purposes, or claims complete exemption from withholding while reasonably expected to earn more than $168.50 per week. In such cases, the employer must submit a copy of that DE W-4 certificate to the Delaware Division of Revenue within five working days of receipt.
Non-Resident/Specific Forms: While the standard DE W-4 is common, non-residents may use alternative forms like the SD/W4A or W-4NR. Additionally, Form W-4DE exists specifically for military spouses claiming exemption under certain conditions.

The mandatory use of the state-specific DE W-4 introduces an additional administrative step for employers during onboarding and requires updates to payroll systems and procedures to accommodate this Delaware-specific requirement. Failure to use the correct form can lead to inaccurate withholding and potential tax liabilities for the employee upon filing their annual return.

Calculating SITW: Methods and 2025 Rates

Delaware provides employers with two primary methods for calculating the amount of SITW to withhold from each paycheck. Supplemental wages, such as bonuses, are generally taxed using the same method as regular wages.

Wage-Bracket Tables: The Division of Revenue publishes tax tables for various pay frequencies (daily, weekly, bi-weekly, semi-monthly, monthly). These tables simplify the process by showing the pre-calculated withholding amount based on the employee’s wage range and the number of allowances claimed on their DE W-4. These tables incorporate the standard deduction and the $110 personal exemption credit. Links to the current tables (effective Jan 1, 2025, unchanged from 2014) can be found in the official Employer’s Guide.
Annualized Wages Method (Percentage Method): This method involves a formulaic calculation based on the employee’s annualized earnings and deductions. The steps are as follows :
- Calculate the employee’s adjusted gross wages for the pay period by subtracting any pre-tax deductions (e.g., contributions to 401(k) plans, health savings accounts, or certain health insurance premiums).
- Annualize these adjusted gross wages (multiply by the number of pay periods in the year – e.g., 52 for weekly, 12 for monthly).
- Subtract the applicable Delaware standard deduction amount for the employee’s filing status (see table below) to arrive at the estimated annual taxable income.
- Use the 2025 Delaware Tax Computation Table to calculate the gross annual tax liability based on the estimated taxable income.
- Calculate the total annual personal exemption credit by multiplying the number of allowances claimed on the employee’s DE W-4 by $110.
- Subtract the total annual personal exemption credit from the gross annual tax liability calculated in step 4.
- Divide the resulting net annual tax liability by the number of pay periods in the year to determine the amount of Delaware SITW to withhold for that specific paycheck.

Remitting SITW: Deposit Schedules and Filing

Employers are required to remit the Delaware SITW withheld from employee wages to the Division of Revenue according to a specific schedule.

Frequency Determination: The required deposit frequency (Quarterly, Monthly, or Eighth-Monthly) is determined annually based on the total amount of Delaware SITW the employer reported during a defined “lookback period.” This lookback period is the 12-month fiscal year from July 1st to June 30th immediately preceding the calendar year for which the frequency is being set. For example, the deposit frequency for calendar year 2025 is based on the total tax reported between July 1, 2023, and June 30, 2024.
Thresholds and Frequencies: The specific thresholds determining the 2025 filing frequency are outlined in the table below.
New Employers: Businesses newly registered for Delaware withholding, with no prior reporting history within the lookback period, are assigned a Monthly filing frequency by default. They will follow this schedule until the next annual determination based on their actual reporting history.
Payment Methods: Employers can remit withheld taxes electronically through the Delaware Taxpayer Portal (tax.delaware.gov) or via Electronic Funds Transfer (EFT) using either ACH Debit or ACH Credit methods. Payment by mail with the appropriate withholding form (W-1Q, W-1, or W-1A) is also an option, though electronic methods are encouraged. Notably, employers required by federal law to deposit federal employment taxes via EFT must also use EFT for Delaware withholding tax deposits, effective one year after the federal mandate begins. Failure to comply with mandatory EFT carries penalties.
Reporting Period: Withholding tax is reported based on the month in which the payroll is completed, meaning the month the pay date falls into. Payrolls that cross month-end are reported in the month the pay period concludes.

Annual Reconciliation Requirements (W-2/W-3)

In addition to periodic deposits, employers have annual reporting and reconciliation duties.

Form W-2: By January 31st of each year, employers must furnish each employee with a federal Form W-2, Wage and Tax Statement. This form details the employee’s total wages, federal taxes withheld, and crucially for state purposes, the total amount of Delaware income tax withheld during the preceding calendar year.
Delaware Form W-3: Employers must also file an annual reconciliation return, Delaware Form W-3 (Annual Reconciliation/Transmittal of Income Tax Withheld), with the Division of Revenue. This form summarizes the total Delaware income tax withheld from all employees throughout the year.
Submission Deadline and Requirements: The Delaware Form W-3, along with copies of all corresponding employee Forms W-2 showing Delaware withholding, must be submitted to the Division of Revenue by January 31st following the tax year. For businesses ceasing operations, the filing is due within 30 days of the final wage payment. Electronic filing options are typically available and encouraged.

This annual reconciliation process is a critical control for the Division of Revenue. It allows the agency to verify that the cumulative amount of SITW remitted by the employer throughout the year aligns with the total withholding reported on individual employee W-2 forms. Maintaining meticulous payroll records is therefore essential for employers to ensure the W-3 accurately reflects deposits made and matches the W-2 data provided to employees, thereby preventing discrepancies that could trigger audits or adjustments.

Delaware State Unemployment Insurance (SUI) Tax

SUI Tax Basics and Employer Liability

Delaware’s State Unemployment Insurance (SUI) program provides temporary financial assistance to eligible workers who become unemployed through no fault of their own. This program operates under state administration but adheres to federal guidelines.

Employer-Funded: Unlike income tax, Delaware SUI tax is solely an employer responsibility. It is calculated based on employee wages but is paid entirely by the employer; no amount is withheld from employee paychecks for SUI.
Liability Determination: The Delaware Department of Labor’s Division of Unemployment Insurance, specifically the Employer Contributions Operations (ECO) unit’s Status and Charging Office, is responsible for determining whether a business operating in Delaware is liable for paying SUI taxes. New businesses typically file Form UC-1 to initiate this determination process and receive their SUI Employer Account Number.

Calculating SUI Contributions for 2025

The amount of SUI tax an employer owes depends on their assigned tax rate and the amount of taxable wages paid to employees.

2025 Taxable Wage Base: For the calendar year 2025, Delaware employers are required to pay SUI taxes on the first $12,500 paid to each employee during the year. Once an employee’s cumulative earnings reach this threshold, no further SUI tax is due on that employee’s wages for the remainder of the year.
Wage Base Stability (Recent Change): Historically, Delaware’s SUI taxable wage base fluctuated based on the UI trust fund balance. However, legislation enacted via House Bill 433 established a fixed, incrementally increasing wage base for 2025 ($12,500), 2026 ($14,500), and 2027 ($16,500), aiming to provide greater predictability for employers. Despite this legislative stability, it remains crucial for employers to verify the official wage base each year through communications from the Department of Labor, as discrepancies can exist between different sources or older guidance.
2025 SUI Tax Rate Determination: An employer’s specific SUI tax rate is determined annually by the Department of Labor based on several factors:
- New Employers: Businesses without sufficient employment history in Delaware are assigned a standard new employer rate. For 2025, the basic new employer rate (non-construction) is 1.0%.
- Experienced Employers: Businesses with an established history of payroll and unemployment claims in Delaware receive an “experience rating.” Their basic tax rate for 2025 ranges from 0.4% to 5.4%. This rate depends on the employer’s individual claims history (more claims generally lead to higher rates) and the overall health of the state’s UI Trust Fund. For 2025, the fund’s status triggered the use of “Schedule B” rates under HB 433. Note: Delaware is scheduled to change its experience rating calculation method from the Benefit Ratio method to the Benefit-Wage Ratio method effective January 1, 2027.
- Delinquent Rate: Employers who fail to file reports or pay SUI taxes on time are assigned a higher penalty rate. For 2025, the basic delinquent rate is 6.3%.
- Supplemental Operations and Technology Assessment: A significant change for 2025 under HB 433 is the addition of a mandatory 0.2% assessment applied to all employers (new, experienced, and delinquent) on top of their basic SUI rate. This assessment appears as the “Supplemental Rate” on the official 2025 rate notice.
- Annual Notification: Each employer receives an official “Notice of Unemployment Insurance Assessment Rate” from the Department of Labor, usually in January, specifying their exact rate for the upcoming calendar year. Notices for 2025 were mailed the week of January 20, 2025.

Reporting and Paying SUI Tax (Forms UC-8/UC-8A)

Compliance with SUI obligations involves regular reporting and payment.

Frequency: SUI taxes are reported and paid on a quarterly basis.
Forms: Employers must file quarterly contribution and wage reports using Delaware Forms UC-8 (Employer’s Quarterly Contribution Report) and UC-8A (Employer’s Quarterly Wage Report). These forms detail total gross wages paid and calculate the taxable wages (up to the $12,500 base per employee for 2025) subject to SUI tax.
Due Dates: The quarterly reports (UC-8/UC-8A) and the corresponding tax payments are due by the last day of the month immediately following the end of each calendar quarter. The deadlines are:
- Quarter 1 (Jan-Mar): April 30
- Quarter 2 (Apr-Jun): July 31
- Quarter 3 (Jul-Sep): October 31
- Quarter 4 (Oct-Dec): January 31
Filing and Payment Methods: Employers can file reports and submit payments electronically through the Department of Labor’s Online Employer Services Portal (accessible via links on oes.delawareworks.com or potentially my.delaware.gov). Alternatively, completed paper forms (UC-8/UC-8A) and checks can be mailed to a designated lockbox processing center.
Lockbox Address: The correct mailing address for paper forms and payments is: DOL UI Tax Lockbox (UC8 & UC8A), PO Box 5515, Binghamton, NY 13902.

Delaware Paid Family and Medical Leave (PFML) - Effective 2025/2026

The Delaware Paid Leave program, enacted by the Healthy Delaware Families Act, represents the most significant recent development in state payroll compliance. It establishes a mandatory state insurance program providing partial wage replacement for eligible employees needing time off for specific family or medical reasons.

Program Overview: PFML provides job-protected leave with income-replacement benefits (up to 80% of average weekly wages, capped at $900/week in 2026) for qualifying events: bonding with a new child, caring for a family member with a serious health condition, addressing the employee’s own serious health condition, or handling qualifying exigencies related to a family member’s military deployment. Benefits become available to employees starting January 1, 2026.
Employer Coverage Thresholds: Participation is mandatory based on the number of employees working primarily in Delaware :
- 1-9 Employees: Exempt from mandatory participation but may voluntarily opt-in to provide coverage.
- 10-24 Employees: Required to provide Parental Leave coverage only. May opt-in to provide Medical and/or Family Caregiver/Exigency leave.
- 25+ Employees: Required to provide Full Coverage, encompassing all leave types (Parental, Medical, Family Caregiver, Qualified Exigency).
- Federal government employers and certain seasonal businesses are exempt.
Contribution Details: The program is funded through payroll contributions beginning January 1, 2025.
- Total Contribution Rate: The combined rate for full coverage is 0.80% of an employee’s wages. This rate is composed of: Medical Leave (0.40%), Parental Leave (0.32%), and Family Caregiver/Exigency Leave (0.08%).
- 2025 Wage Base Limit: Contributions apply to wages up to $176,100 per employee for the 2025 calendar year.
- Employer/Employee Share: The employer is responsible for remitting the entire contribution amount (based on their required coverage level). However, employers may choose to withhold up to 50% of the total required contribution cost from employee wages. For example, an employer required to provide full coverage (0.80%) could withhold up to 0.40% from employees and pay the remaining 0.40% themselves. The decision on cost-sharing rests with the employer.
- Remittance: Contributions are remitted quarterly, starting with the first quarter of 2025 (due April 30, 2025).

Disclaimer: The content provided on this webpage is for informational purposes only and is not intended to be a substitute for professional advice. While we strive to ensure the accuracy and timeliness of the information presented here, the details may change over time or vary in different jurisdictions. Therefore, we do not guarantee the completeness, reliability, or absolute accuracy of this information. The information on this page should not be used as a basis for making legal, financial, or any other key decisions. We strongly advise consulting with a qualified professional or expert in the relevant field for specific advice, guidance, or services. By using this webpage, you acknowledge that the information is offered “as is” and that we are not liable for any errors, omissions, or inaccuracies in the content, nor for any actions taken based on the information provided. We shall not be held liable for any direct, indirect, incidental, consequential, or punitive damages arising out of your access to, use of, or reliance on any content on this page.

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