Taxes in Delaware

Delaware is a state that is located in the North-Eastern United States. It is boundaried by Maryland, New Jersey and Pennsylvania. Just as with all states in the U.S., it requires taxation alongside other forms of revenue for efficient, proper and fair equality among it’s citizens and businesses.
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For that reason, the State of Delaware does impose four different forms of taxes to the individuals and businesses that are either resident or are operational within the state. These are: Income Tax, Sales Tax, Property Tax and Estate Tax.

Income Tax refers to the form of government revenue that is compulsorily obtained by levying specific charges directly on individual’s incomes. The state of Delaware has seven income blocks for the purposes of taxation. These are: $2,000 and below; between $2,001 and $5,000; between $5,001 and $10,000; between $10,001 and $20,000; between 20,001 and $25,000; between $25,001 and $60,000 and above $60,000 respectively.Taxes in Delaware 2015

For those earning below $2,000, no income tax is levied. For those earning between $2,001 and $5,000, a tax of 2.2% is levied on the income. For those earning between $5,001 and $10,000, a tax of 3.9% is levied on income; for those earning between $10,001 and $20,000, a tax of 4.8% is levied on income; for those earning between 20,001 and $25,000, a tax of 5.2% is levied; for those earning between $25,001 and $60,000, a tax of 5.55% is levied and finally, for those earning above $60,000, a tax of 6.75% is levied.

In order to file their tax returns, the residents of Delaware are required to fill out the Individual resident Tax Returns Form 200-01 on or before April 30th each year. An electronic version is also available. Tax credits of up to $400 are available for active fire-fighters, rescue squads and the members of fire companies for the purchase of specialized clothing, motor fuel, equipment and other items that are expedient for their services.

Sales taxes are those that are levied that are surrendered to the government as the consequence of the sale of certain commodities and services. This tax is not levied directly on consumers in the State of Delaware. It is instead imposed on the gross income of most businesses. It is two-fold; occupational and business license tax. The rates range from 0.1037% to 2.0736% depending on the nature of the business.

Property Tax in the State of Delaware is assessed by the respective counties, school districts, vocational school districts and the municipalities where the property is located and not by the state government. All property owners are required to file a declaration and submit the same to an assessor on or before November 1st, each year.

The rates vary from region to region and as such, an inquiry has to be made to the relevant property tax office located in either New Castle County, Kent County or Sussex County for more information. Property tax relief programs are available for those aged 65 and above, as well as for those living with various disabilities. All the necessary paperwork must be made by September 1st each year.

Estate Tax or Inheritance Tax is tax that is charged on a gift or an inheritance. It is not levied by the State of Delaware. Instead, decedent tax which is the tax debt owed by those that are already deceased enforced to those who passed on from July 1, 2009 and thereafter. In order to foster tax payments, the state maintains an online list of delinquent taxpayers together with their arrears.