Delaware Capital Gains Tax Rate (2026)
Delaware capital gains tax overview
Six brackets from 2.2% to 6.6%. No preferential rate for capital gains.
Federal + Delaware combined rates
Your total capital gains tax bill includes both layers — federal and state. Here is what a Delaware investor pays in 2026 for long-term gains:
| Federal Long-Term Rate | Delaware State Rate | Combined Rate | Plus NIIT (if applicable) |
|---|---|---|---|
| 0% | 6.60% | 6.60% | 10.4% |
| 15% | 6.60% | 21.6% | 25.4% |
| 20% | 6.60% | 26.6% | 30.4% |
The NIIT (Net Investment Income Tax) adds an extra 3.8% for taxpayers whose MAGI exceeds $200,000 (single) or $250,000 (married filing jointly). It is a federal tax only — Delaware does not have an equivalent.
How Delaware compares to other states
Delaware's top rate of 6.60% places it in the upper-middle tier of state capital gains taxation. For comparison:
- Zero-tax states (FL, TX, NV, etc.): 0% — total with 15% federal = 15%
- Low-rate states (AZ, IN, PA): 2.5–3.1% — total with 15% federal = 17.5–18.1%
- Delaware: 6.60% — total with 15% federal = 21.6%
- High-rate states (NY, NJ): 10.75–10.9% — total with 15% federal = ~26%
- California: 13.3% — total with 15% federal = 28.3%
Tax-reduction strategies for Delaware residents
With a top state rate of 6.60%, minimizing capital gains tax is particularly important in Delaware. Key strategies:
- Hold over 1 year for long-term federal rates (0/15/20%). Delaware does not offer a preferential state rate, but federal savings alone are often 7–17%.
- Tax-loss harvesting: Offset your gains with losses realized in the same year. A $20,000 loss offsets $20,000 of gains dollar-for-dollar, saving up to 27% ($5,320) on that $20,000 at top rates.
- 0% bracket planning: In lower-income years (retirement, sabbatical, between jobs), realize gains at the federal 0% rate. You still owe Delaware state tax, but eliminating the federal component is significant.
- Donate appreciated stock directly to charity or a donor-advised fund to avoid capital gains tax entirely while generating a charitable deduction for the full fair market value.
- Installment sales: If selling a business or real estate, structuring as an installment sale spreads the gain over multiple years, potentially keeping each year's gain in a lower bracket.
Detailed Delaware capital gains tax rules
Tax history and legal basis
Delaware has taxed capital gains as ordinary income since its personal income tax was established. The state uses a progressive rate structure with a top rate of 6.6%.
Exemptions and special treatment
Delaware offers a $250 exclusion on capital gains for taxpayers under 60, and a more generous exclusion for those 60 and older. Taxpayers 60+ can exclude up to $12,500 of investment income (including capital gains) from Delaware taxable income.
Filing requirements
File Form 200-01 (resident). Delaware starts with federal AGI. The state has no sales tax, making it attractive for retirees despite the income tax. Filing deadline is April 30 (later than most states).
Recent changes and legislative updates
Delaware's rates have remained stable. The state is notable for having no sales tax and relatively low property taxes, making the income tax its primary revenue source. The 60+ exclusion for investment income makes it favorable for retirees with capital gains.
Worked example: $50,000 capital gain in Delaware
Here's exactly what a Delaware resident would owe on a $50,000 long-term capital gain with $80,000 in other income (single filer, 2026):
| Component | Amount | Notes |
|---|---|---|
| Capital gain | $50,000 | Long-term (held over 1 year) |
| Federal tax (15%) | −$7,500 | Based on $80,000 ordinary income + gain |
| Delaware state tax (6.6%) | −$3,300 | Applied to the full gain amount |
| Total tax owed | −$10,800 | Federal + state combined |
| You keep | $39,200 | 78.4% of your gain |
After both federal and Delaware state tax, you keep $39,200 of your original $50,000 gain. The effective combined rate is 21.6%.
Frequently asked questions — Delaware
Does Delaware tax short-term and long-term gains differently?
No — Delaware taxes both short-term and long-term capital gains as ordinary income at the same rates as wages. There is no state-level preferential rate for patience. The federal system, however, taxes long-term gains at 0/15/20% vs. up to 37% for short-term — a significant difference that applies regardless of state.
Do I need to file a Delaware tax return if I only have capital gains?
If you have capital gains income and meet Delaware's filing threshold, you are required to file a Delaware state income tax return. The threshold is typically similar to the standard deduction amount — check the DE Department of Revenue for the current year's filing requirements.
What if I moved to Delaware mid-year?
If you moved to Delaware during the year, you are a part-year resident. Delaware generally taxes capital gains realized while you were a Delaware resident. Gains realized before you moved may be taxable by your prior state. Keep detailed records of when each sale occurred relative to your move date.