Delaware Self-Employment Tax Guide (2026)

Delaware has no sales tax, but its income tax climbs to 6.6% above $60,000 of taxable income, and its standard deduction is small. That combination puts it near the bottom of our ranking for freelancers. Add a state business license, a gross receipts tax most solo freelancers never actually pay, and a city tax in Wilmington. Here is what a Delaware freelancer owes.

How Delaware compares: in our 50-state take-home pay ranking, a single freelancer with $75,000 of profit keeps $56,246 in Delaware after federal and state income tax, 46th of 51 (state income tax: $3,259). The ranking leaves out local taxes such as Wilmington’s.

Estimate for information only — not tax, legal or financial advice. Federal figures for tax year 2026; state and local taxes are not included unless you enter them. Check your situation with a CPA or enrolled agent.

What you pay on freelance profit

Delaware’s brackets and small standard deduction

Delaware’s 2026 rate schedule is unchanged from recent years. For every filing status:

• 0% on taxable income up to $2,000
• 2.2% from $2,000 to $5,000
• 3.9% from $5,000 to $10,000
• 4.8% from $10,000 to $20,000
• 5.2% from $20,000 to $25,000
• 5.55% from $25,000 to $60,000
• 6.6% above $60,000

Delaware starts from your federal adjusted gross income, so Schedule C expenses and the deduction for half of your self-employment tax reduce your Delaware income too. After that, Delaware uses its own $3,250 standard deduction for single filers ($6,500 married filing jointly), much smaller than the federal one. You also get a $110 personal credit per exemption, which comes straight off the tax. The federal QBI deduction does not carry over.

Estimated payments: April 30, not April 15

You must make estimated payments with Form PIT-EST if your Delaware tax, after withholding, is expected to be more than $800. For 2026 the four installments are due April 30, June 15 and September 15, 2026, and January 15, 2027. Note the first date: Delaware’s is two weeks after the federal one.

The penalty for underpaying is 1.5% per month on the short installment. You avoid it if each installment is on time and you pay in at least 90% of this year’s tax or 100% of last year’s (110% if last year’s federal AGI was over $150,000). Size the federal part with the quarterly estimated tax calculator and add a quarter of your expected Delaware tax to each date.

Business license and gross receipts tax

• Business license: anyone providing services to the public in Delaware for a fee needs a Division of Revenue business license. For a service business it costs $75 a year, plus $25 for each extra location, and must be renewed by December 31.
• Gross receipts tax: Delaware taxes gross receipts instead of sales. For most services the rate is 0.3983%, with no deduction for expenses, but the first $100,000 a month ($300,000 a quarter for quarterly filers) is excluded. Most solo freelancers stay under that and owe nothing. Delaware has no state or local sales tax.

Wilmington’s 1.25% city tax and LLC fees

• Wilmington net profits tax: Wilmington taxes the net profits of businesses run by city residents, and of nonresidents to the extent the business is conducted in the city, at 1.25%. The return (Form WCWT-6) is due April 15. A separate 1.25% earned income tax covers wages, so it matters only if you also have a paycheck.
• LLC annual tax: Delaware LLCs pay a flat $400 annual tax, up from $300 under House Bill 400, effective for 2026. It’s due June 1, and paying late costs a $200 penalty plus 1.5% interest per month. There is no annual report. Weighing an S corp election? It can lower your federal self-employment tax, but it doesn’t change Delaware’s rates or the LLC tax.

How much to set aside

Enter 6.6 in the state field of the tax set-aside calculator if your Delaware taxable income is over $60,000, or 5.55 between $25,000 and $60,000. If you live or work in Wilmington, add 1.25 for the city tax.