Delaware taxes federal AGI on one schedule regardless of filing status, from 2.2% up to 6.6% above $60,000, with the first $2,000 untaxed. The standard deduction is small — $3,250, or $6,500 filing jointly — but every filer takes $110 per exemption straight off the tax. Neither federal deduction reduces Delaware tax.
What it means on a real paycheck
Take a single filer earning $50,000 a year, $8,000 of it in tips. Against the same person with no tips to declare, the federal deduction is worth $960.
In Delaware it is worth nothing extra. The state bill is identical either way, so $960 is the whole of it.
How Delaware works out the tax
Delaware charges nothing at all on the first $2,000, then 2.2% rising to 6.6%, after a standard deduction of $3,250 single or $6,500 filing jointly. It begins from your federal adjusted gross income and applies its own reliefs from there.