# 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.

Source: https://www.paystubnest.com/states/delaware
State: Delaware (DE)
Published: 2026-09-25
Last reviewed: 2026-10-12
Publisher: PayStubNest.com

## Short answer

Delaware employers withhold graduated state income tax. Delaware Paid Leave contributions started in 2025; for 2026 the total cost is 0.8% of wages, and employers may deduct up to half from employee pay. People who live or work in Wilmington also pay the city's earned income tax. Federal income tax, Social Security (6.2%) and Medicare (1.45%) come out as well.

## 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](https://www.paystubnest.com/app/new) 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](https://revenue.delaware.gov/) and the [Delaware Department of Labor](https://labor.delaware.gov/).