Delaware General Assembly

House Revenue & Finance 6/17/25

Committee Hearing takes place within twelve legislative days.

HB 13

6/17/25

Lynn

Sen. Hoffner

Rep. Morrison

AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO PERSONAL INCOME TAX.

Like under House Bill No. 13 (HB 13) and House Substitute No. 1 for HB 13 (HS 1 for HB 13), this Act adjusts the existing personal income tax brackets and applicable tax rates. Under this Act, for taxable years beginning after December 31, 2025, taxable income between $60,000 and $150,000 will continue to be taxed at a rate of 6.6%, but taxable income above $150,000 will be taxed at higher rates. The result of the changes under this Act will be that those with a taxable income of $188,500 or less will see no increase in personal income taxes, with 94% of Delaware taxpayers receiving an overall tax decrease. Like HS 1 for HB 13, House Substitute No. 2 for HB 13 differs from HB 13 as follows: • Creates additional tax brackets for taxable income not in excess of $60,000. • Decreases the tax rate for all tax brackets for taxable income not in excess of $60,000. • Creates 3 additional tax brackets for taxable income above $60,000 instead of 2. • Names this Act the “The John Kowalko, Jr., Fairness in Taxation Act”. In addition, House Substitute No. 2 for HB 13 differs from HS 1 for HB 13 as follows: • Further decreases the tax rate for all tax brackets for taxable income not in excess of $60,000. • Revises the tax brackets so that tax rates increase for taxable income above $150,000 instead of $125,000. • Adjusts the personal income tax filing threshold to align with the revised tax brackets. • Makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual.

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Takes effect upon being signed into law

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