Delaware pay stubs: state tax, Paid Leave and Wilmington wage tax
Delaware paychecks include graduated state income tax, Delaware Paid Leave contributions and, in Wilmington, a city wage tax. Here is how it all fits.
Last reviewed
Rates on this page are for the 2026 tax year and are reviewed every January.
State income tax
Delaware has a graduated income tax, with several brackets that rise as taxable income grows. Employers use the Division of Revenue's withholding tables or formula to figure the amount for each paycheck, based on the employee's filing status and allowances.
Other state payroll deductions
Delaware Paid Leave is the state's paid family and medical leave program. Payroll contributions began on January 1, 2025, and benefits became available in 2026. For 2026 the total contribution is 0.8% of covered wages. Employers can pass up to half of that cost to employees through payroll deduction and must pay the rest. Coverage depends on employer size: smaller employers may only be required to provide parental leave, which carries a lower contribution. Some employers use an approved private plan instead of the state plan.
Delaware unemployment insurance is paid by employers only.
Local taxes
The City of Wilmington is the only Delaware municipality that levies an earned income tax on wages. It applies to Wilmington residents wherever they work and to nonresidents for work done inside the city. Employers with staff in Wilmington withhold it and send it to the city separately from state tax. No other Delaware city or county taxes wages.
Federal withholding still applies
Whatever Delaware requires, the federal deductions are the same as in every other state. Federal income tax is figured from the employee's Form W-4. Social Security takes 6.2% of wages until the employee reaches the annual Social Security wage base. Medicare takes 1.45% of every dollar, and once an employee's wages for the year pass $200,000, the employer also withholds the 0.9% Additional Medicare Tax.
Creating a Delaware pay stub with PayStubNest
Enter the hours worked and hourly rate, or an annual salary, and choose Delaware as the work state. The exact figures on each stub depend on the employee's pay, pay frequency, W-4 choices, deductions and year-to-date totals, so no two paychecks are quite alike. PayStubNest calculates all of it automatically, applying federal and Delaware withholding and carrying year-to-date totals forward from one stub to the next. You can preview a stub for free and only pay when you download it.
Record-keeping tip
For anyone who works partly inside Wilmington, record days or hours worked in the city each pay period, since the city tax follows the work location for nonresidents. Keep Paid Leave deductions and the employer share in separate columns. Current details are at the Division of Revenue and the Delaware Department of Labor.