Capital Gains Tax in Delaware (2026)
Delaware has no special capital gains rate — the state taxes your gain as ordinary income at 2.2% to 6.6%, stacked on top of the federal 0/15/20% tax and the 3.8% NIIT. Run the combined number below.
Reviewed & updated · 2026 tax-year figures · Federal + Delaware state
Delaware does not have a preferential long-term capital gains rate. Under 30 Del. C. §1102, both short- and long-term gains are taxed as ordinary income at 2.2%–6.6%, with the top 6.6% rate beginning at $60,000 of taxable income (the same brackets apply to every filing status). That state tax is added on top of the federal capital gains tax (0/15/20% long-term under IRC §1(h)) and the 3.8% NIIT (§1411). A top-bracket Delawarean can face a combined rate near 30.4% on a long-term gain.
Net proceeds $174,800$26,200
Show our work federal + DE, step by step
Estimates only, for the 2026 tax year. Not tax advice. Delaware's bracket thresholds are fixed by statute (30 Del. C. §1102) and are not inflation-indexed. The 2026 standard deduction is $3,250 single / $6,500 joint; figures are owner-verifiable against the Delaware Division of Revenue.
How does Delaware tax capital gains?
Delaware gives capital gains no break at all. Under 30 Del. C. §1102, a capital gain is simply part of your Delaware taxable income and is taxed at the same graduated rates as wages — 2.2% at the bottom to 6.6% at the top. There is no equivalent of the federal 0/15/20% long-term schedule and no distinction between short-term and long-term at the state level. Whether you held the asset a week or a decade, Delaware taxes the whole gain as ordinary income.
Delaware applies the same bracket schedule to every filing status — single, married, and head of household alike — with the top 6.6% rate starting at $60,000 of taxable income. The thresholds are set by statute and are not indexed to inflation, so a meaningful gain stacked on ordinary income almost always reaches the 6.6% top rate. Delaware levies no sales tax and no county income tax; the only local income tax — the City of Wilmington 1.25% wage tax — applies to earnings, not to capital gains. So 6.6% is effectively the whole state story on a large gain.
How does Delaware stack on top of federal?
The two systems run in parallel and the amounts are added — Delaware does not replace or absorb the federal tax. For a long-term gain, you owe:
- Federal: 0%, 15%, or 20% depending on where the gain stacks on your taxable income, under IRC §1(h);
- Federal NIIT: an extra 3.8% on net investment income once MAGI passes $200,000 (single) / $250,000 (joint), under IRC §1411; and
- Delaware: your marginal state rate, 2.2%–6.6% (6.6% on the portion of a gain once taxable income tops $60,000), on the full gain under 30 Del. C. §1102.
Add those together and a top-bracket Delawarean with a long-term gain can pay roughly 20% + 3.8% + 6.6% ≈ 30.4%. A short-term gain is worse, because the federal side jumps to ordinary rates (up to 37%) instead of 20% — while Delaware stays at 6.6%. The calculator above computes each layer separately and shows you the exact bands.
What are the 2026 Delaware income-tax brackets?
Delaware applies the same bracket thresholds to every filing status — single, married, and head of household alike (only the standard deduction differs). These thresholds are fixed by statute and owner-verifiable against the Delaware Division of Revenue.
| Delaware taxable income (all filers) | Marginal rate |
|---|---|
| $0 – $2,000 | 0% |
| $2,000 – $5,000 | 2.2% |
| $5,000 – $10,000 | 3.9% |
| $10,000 – $20,000 | 4.8% |
| $20,000 – $25,000 | 5.2% |
| $25,000 – $60,000 | 5.55% |
| Over $60,000 | 6.6% |
| County income tax on gains | None |
How this calculator works & where the numbers come from
No black box. The federal side uses the same unit-tested engine as our main calculator: net gain = proceeds − basis; classify by holding period; for long-term gains, subtract the standard deduction and stack the gain across the 0/15/20% bands per IRC §1(h); add 3.8% NIIT where modified AGI crosses the §1411 threshold; short-term gains are computed as the true marginal difference in ordinary tax. The Delaware side takes the same taxable gain (after any §121 exclusion, since Delaware begins from federal AGI), subtracts the Delaware standard deduction from your ordinary income, and stacks the gain across the Delaware marginal brackets (2.2% through 6.6%) under 30 Del. C. §1102. Because the top bracket starts at $60,000, a large gain lands mostly at 6.6%. The two results are summed.
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Primary sources (linked, not just named)
- 30 Del. C. §1102 — imposition & rates of tax
- Delaware Division of Revenue
- Delaware Revenue — individual income tax
- 26 U.S.C. §1(h) — federal capital gains rates
- 26 U.S.C. §1411 — 3.8% NIIT
- 26 U.S.C. §121 — home-sale exclusion
- IRS Topic No. 409 — Capital Gains and Losses
- IRS Publication 550 — Investment Income
Delaware capital gains tax, answered
Does Delaware have a separate capital gains tax rate?
No. Delaware has no preferential capital gains rate. Under 30 Del. C. §1102, a capital gain — short-term or long-term — is taxed as ordinary income at the state's graduated rates of 2.2% to 6.6%, with the top rate beginning at $60,000 of taxable income. The federal short/long distinction does not exist at the Delaware level.
How much is capital gains tax in Delaware for 2026?
Your Delaware tax equals the gain taxed at your marginal state rate (up to 6.6%), added to the federal capital gains tax. Federally, a long-term gain is taxed at 0/15/20% (IRC §1(h)) plus 3.8% NIIT for high earners. Because Delaware's top rate starts at $60,000, most sizeable gains are taxed at 6.6%; a top earner can pay near 20% + 3.8% + 6.6% ≈ 30.4% combined. Use the calculator above for your exact figure.
How does Delaware capital gains tax stack on top of federal?
They are computed separately and summed. The federal side taxes long-term gains at 0/15/20% and adds 3.8% NIIT for high earners; short-term gains are ordinary income. Delaware ignores the holding period and taxes the entire gain as ordinary income at 2.2%–6.6%. Your total tax is federal + NIIT + Delaware.
Does Delaware have local income tax on capital gains?
Effectively no. Delaware has no county or municipal income tax on investment income. The only local income tax is the City of Wilmington 1.25% wage tax, and it applies to salaries and net business profits earned in the city — not to capital gains, dividends, or interest. A Wilmington resident selling stock owes the state 2.2%–6.6% and no city tax on the gain.
Does the 3.8% federal NIIT apply to Delawareans?
Yes — the NIIT is federal and applies in every state. Once modified AGI exceeds $200,000 (single) or $250,000 (married filing jointly), the 3.8% surtax under IRC §1411 hits the lesser of your net investment income or the amount over the threshold. It is added to your federal capital gains tax and is entirely separate from Delaware state tax.
Does Delaware conform to the $250k/$500k home-sale exclusion?
Yes. Delaware begins from federal adjusted gross income, so the IRC §121 exclusion of up to $250,000 ($500,000 married filing jointly) on a primary residence is already removed before Delaware applies its rate. Only gain above the exclusion is taxed, as ordinary income. See our home-sale hub for the mechanics.
Compare Delaware with other state hubs
Delaware's effective 6.6% on capital gains is moderate — heavier than flat-tax Pennsylvania (3.07%) and Ohio (3.5%), lighter than New York (over 10%) and California (up to 13.3%), and far above the no-income-tax states like Texas and Florida. Every state page combines the same unit-tested federal engine with that state's own rules, so you always see the full combined number. The main Capital Gains Tax Calculator lets you fold any state's rate into your federal receipt.