Delaware

Delaware estate tax statutes repealed effective Jan 1, 2018

“Sec. 1502. Tax on transfers of resident estates [For application of this section, see 81 Del. Laws, c. 52, sec. 2] [Repealed] ... repealed by 81 Del. Laws, c. 52, sec. 1, effective Jan. 1, 2018.”

Note: Official Delaware Code site shows every section of Title 30 ch. 15 with the same repeal note; the repealed text itself is not reproduced.

Delaware top income tax rate is 6.6% on income above $60,000 (same schedule all filing statuses)

“The tax imposed by §1101 of this title shall be computed in accordance with the following schedule: 0% on income up to $2,000; 2.2% on income from $2,001 to $5,000; 3.9% from $5,001 to $10,000; 4.8% from $10,001 to $20,000; 5.2% from $20,001 to $25,000; 5.55% from $25,001 to $60,000; and 6.6% on income above $60,000.”

Note: Delaware uses one schedule for all filing statuses; no reference to joint or separate returns in §1102. Maximum marriage penalty on a joint return vs. two singles. Spouses may file separate DE returns, which largely neutralizes the penalty for two-income couples. Age 60+ retiree exclusion covers capital gains up to $12,500/person. Standard deduction $3,250 single / $6,500 MFJ.

IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback

“In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.”

Note: IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.

DE exempts DE-issued bonds; out-of-state muni bond interest is taxable per 30 Del. C. §1106(a)(1)

“Interest qualifying under Section 103 of the Internal Revenue Code other than interest on obligations of a state other than this state or of a political subdivision of any state other than this state.”

Note: 30 Del. C. §1106(a)(1) defines subtraction items. IRC §103 interest is subtractable EXCEPT for out-of-state bonds, which are taxable.

DE exempts DE-issued bonds; out-of-state muni bond interest is taxable per 30 Del. C. §1106(a)(1)

“Interest qualifying under Section 103 of the Internal Revenue Code other than interest on obligations of a state other than this state or of a political subdivision of any state other than this state.”

Note: 30 Del. C. §1106(a)(1) defines subtraction items. IRC §103 interest is subtractable EXCEPT for out-of-state bonds, which are taxable.

Delaware conforms to IRC §1400Z-2 QOZ gain deferral and exclusion

“There shall be subtracted from Federal adjusted gross income or Federal taxable income, as the case may be, the following items of income to the extent included in the computation of Federal adjusted gross income or Federal taxable income: Items of income which are exempt from state income taxes pursuant to the laws of the United States.”

Note: The quoted §1106(a)(1) subtraction provision covers items federally exempt from state tax under U.S. law; it does not cite §1400Z-2 directly. Delaware's specific QOZ conformity provision needs separate identification in Title 30. URL resolves to Title 30, Chapter 11 index. Verify specific section: §1105 vs §1106(a)(1).

Delaware conforms to IRC §1202 QSBS gain exclusion via rolling IRC conformity

“There shall be subtracted from Federal adjusted gross income or Federal taxable income, as the case may be, the following items of income to the extent included in the computation of Federal adjusted gross income or Federal taxable income: Items of income which are exempt from state income taxes pursuant to the laws of the United States.”

Note: The quoted §1106(a)(1) subtraction provision covers items federally exempt from state tax; it does not cite §1202 directly. Delaware's specific QSBS treatment needs separate identification in Title 30. URL resolves to Title 30, Chapter 11 index. Verify specific section: §1105 vs §1106(a)(1).

Delaware subtraction for income 'exempt from state income taxes pursuant to the laws of the United States' does not cover FNMA and FHLMC bond interest; no federal bondholder exemption exists

“Items of income which are exempt from state income taxes pursuant to the laws of the United States.”

Note: 30 Del. C. §1106(a)(1) provides a subtraction only for income 'exempt from state income taxes pursuant to the laws of the United States.' FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) have no bondholder exemption statute; their bondholder interest income is not 'exempt from state income taxes pursuant to the laws of the United States.'

Delaware top income tax rate is 6.6% on income above $60,000 (same schedule all filing statuses)

“The tax imposed by §1101 of this title shall be computed in accordance with the following schedule: 0% on income up to $2,000; 2.2% on income from $2,001 to $5,000; 3.9% from $5,001 to $10,000; 4.8% from $10,001 to $20,000; 5.2% from $20,001 to $25,000; 5.55% from $25,001 to $60,000; and 6.6% on income above $60,000.”

Note: Delaware uses one schedule for all filing statuses; no reference to joint or separate returns in §1102. Maximum marriage penalty on a joint return vs. two singles. Spouses may file separate DE returns, which largely neutralizes the penalty for two-income couples. Age 60+ retiree exclusion covers capital gains up to $12,500/person. Standard deduction $3,250 single / $6,500 MFJ.

U.S. Treasury interest exempt from Delaware income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations

“Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.”

Note: 31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption.

FHLB and FFCB bond interest exempt from Delaware income tax: federal enabling statutes mandate state tax exemption

“Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.”

Note: 12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states.

Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation

“The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).”

Note: 12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.

IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback

“In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.”

Note: IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.

Delaware top income tax rate is 6.6% on income above $60,000 (same schedule all filing statuses)

“The tax imposed by §1101 of this title shall be computed in accordance with the following schedule: 0% on income up to $2,000; 2.2% on income from $2,001 to $5,000; 3.9% from $5,001 to $10,000; 4.8% from $10,001 to $20,000; 5.2% from $20,001 to $25,000; 5.55% from $25,001 to $60,000; and 6.6% on income above $60,000.”

Note: Delaware uses one schedule for all filing statuses; no reference to joint or separate returns in §1102. Maximum marriage penalty on a joint return vs. two singles. Spouses may file separate DE returns, which largely neutralizes the penalty for two-income couples. Age 60+ retiree exclusion covers capital gains up to $12,500/person. Standard deduction $3,250 single / $6,500 MFJ.

Delaware top income tax rate is 6.6% on income above $60,000 (same schedule all filing statuses)

“The tax imposed by §1101 of this title shall be computed in accordance with the following schedule: 0% on income up to $2,000; 2.2% on income from $2,001 to $5,000; 3.9% from $5,001 to $10,000; 4.8% from $10,001 to $20,000; 5.2% from $20,001 to $25,000; 5.55% from $25,001 to $60,000; and 6.6% on income above $60,000.”

Note: Delaware uses one schedule for all filing statuses; no reference to joint or separate returns in §1102. Maximum marriage penalty on a joint return vs. two singles. Spouses may file separate DE returns, which largely neutralizes the penalty for two-income couples. Age 60+ retiree exclusion covers capital gains up to $12,500/person. Standard deduction $3,250 single / $6,500 MFJ.

Delaware conforms to the federal capital-loss base; treatment of an imported pre-residency section 1212 carryforward is a structural inference

“Any term used in this chapter shall have the same meaning as when used in a comparable context in the laws of the United States referring to federal income taxes, unless a different meaning is clearly required.”

Note: 30 Del. C. §1101 (the definitional companion to the §1102 imposition, both on the cited subchapter page) ties Delaware terms to the federal income tax laws, so Delaware taxable income tracks the federal base and the section 1212 capital-loss carryover flows through. Quote verbatim from the live delcode.delaware.gov page. No published guidance addresses the imported pre-residency carryforward, so that application remains a structural inference.