Are you self-employed?
This includes freelancers and business owners
Estimated Tax Breakup
For $ Annual income
Monthly
Annual
Brackets
Rates
Income
$
Deductions
$
Federal income tax
$
Delaware state income tax
$
FICA tax
$
Self Employment tax
$
Total tax
$
Net pay
$
Marginal and average tax rate
Average tax rate is the effective tax rate that you incur on your income. If your income is $100 with 20% average tax rate and 30% marginal tax rate, you pay $20 in taxes.
Average tax rate is the effective tax rate that you incur on your income. If your income marginal tax rate is the tax rate on the last dollar that you earned. If your income is $100 with 20% average tax rate and 30% marginal tax rate and if you get 1 dollar bonus, you pay 30% tax on that bonus.
Average tax rates measure tax burden, while marginal tax rates measure the impact of taxes on incentives to earn, save, invest, or spend.
W2 employees
Freelancers
W2 employees
Freelancers
How will your net pay increase with increase in your income?
Increment percentage
Increased income
Increased net pay
10%
$
$
25%
$
$
50%
$
$
2X
$
$
3X
$
$
4X
$
$
Summary section
- If you make $ a year living in the region of Delaware, USA, you will be taxed $. That means that your net pay will be $ per year, or $0 per month. Your average tax rate is undefined% and your marginal tax rate is undefined%.
- This marginal tax rate means that your immediate additional income will be taxed at this rate. For instance, an increase of $100 in your salary will be taxed $36.13, hence, your net pay will only increase by $63.87.
Taxes for freelancers vs W-2 employee
The tax system in the US works on a pay-as-you-go basis, so the IRS collects income taxes throughout the year via payroll. Ideally, if you are a W-2 employee, you automatically get your taxes withheld by your employer. However, as a freelancer, taxes aren’t a cakewalk. They have to pay a bit extra in “self-employment tax” to contribute to Social Security and Medicare.
CPA advice for freelancers
If you’re a W-2 employee then most likely, your taxes are already being withheld for you by your employer and you typically get a tax refund. Freelancers, self-employed individuals, and business owners have to handle their own taxes including the quarterly estimated tax payments.
Sounds complicated?
FlyFin can help ease your burden.
With FlyFin you can stay on top of your taxes by paying your quarterly estimated obligations and tracking your business expenses. The A.I. calculates your taxes based on several inputs (your profession & income) and detects all possible deductions which ensures an accurate tax amount.
Tax burden for freelancers vs w2 employees
W2 employees
Freelancers
Freelancers using FlyFin
W2 employees
Freelancers
Freelancers using FlyFin
Income Taxes in Delaware
Taxes vary greatly by state, and each state has its own tax rules and regulations. Taxes are an important factor in determining how much money you get to pocket on the income you earn. The state of Delaware does not charge state taxes to individual taxpayers. You still pay federal income taxes in Delaware.
Tax Facts
Different Types of State Taxes
Tax Rates for Delaware
State income tax
0%
Sales Tax
2.2-6.6%
Property tax
$0.47 (0.0047) per $100 of assessed value
Estate Tax
0%
Tobacco tax
$2.10 per pack
Gasoline tax
$0.23 per gallon
Diesel tax
$0.22 per gallon
Who files income taxes in Delaware?
In Delaware, you only pay federal income taxes. Here are the different categories of taxpayers that file federal income taxes: Full-time resident: You’re a legal resident and spent the year as a resident, even if you left for a short period of time Part-time resident: A part of the tax year was spent as a resident. Non-resident: You don’t live in the state but earn Delaware-source income, or you won a lottery from the state. Corporate entities: Any company that is based in Delaware or makes a significant income from the state.
Taxes in Delaware
Delaware income tax rates vary from 2.2 percent to 6.6 percent.
Tax brackets for Delaware
Delaware only has the usual federal tax brackets. Since there are no state taxes, you only pay federal income taxes.
Property taxes in Delaware
Owning a property comes with the responsibility of paying property taxes. Property taxes cover costs related to local school districts, police, fire department, parks, sewage systems and the upkeep of roads. In Delaware there’s no flat property tax rate. Instead, the counties impose their own property taxes based on individual cases. The tax rate depends on where your property lies in the state. A county tax assessor is a government appointed individual that survey’s your property and calculates the property tax in Delaware. The rate is a percentage of the total value of the property and varies depending on the county or municipality of the property. In Delaware, it is $0.47 (0.0047) per $100 of assessed value. Delaware also has several exemptions in place for senior citizens homeowners, property tax credits for taxpayers with disabilities and other homestead exemptions.
Sales taxes in Delaware
Delaware has no state sales taxes and this makes the state a tax haven for brands that are selling items in the state. People from nearby states come to the state to shop high-value items like cars to save some money on sales taxes. These items can include bulk buying of home appliances, clothes and furniture.
Other taxes in Delaware
There are a number of other taxes that a state can charge and Delaware is no different. The state charges taxes on inheritance, tobacco, gasoline and alcohol. The taxes and tax rates vary by state.
Estate taxes in Delaware
The state of Delaware is one of the few states that have no estate or inheritance taxes. The state does charge tax on certain non-lineale inheritance. For example, when the property goes to a nephew.
Tobacco taxes in Delaware
The tobacco tax is levied in most states to discourage the number of people buying cigarettes. In Delaware, the tax rate is $2.10 per pack of 20 cigarettes. Cigars are taxed at 30% on wholesalers’ cost. The tax rates for chewing tobacco and smoking tobacco are 30% on the whole seller's cost.
Gasoline taxes in Delaware
Delaware’s gasoline and diesel taxes are $0.23 per gallon for gasoline and $0.22 per gallon for diesel.
Alcohol taxes in Delaware
There are taxes levied on alcohol in an effort for states to raise capital and encourage individuals to lower their overall consumption. In Delaware, alcohol tax for beer is at $4.85 per gallon, tax for wine is $0.97 per gallon and distilled spirits are taxed at $3.75 per gallon.
