Delaware Payroll Compliance
Every rate, wage base, and threshold Delaware employers need for 2026 — sourced from the Delaware Division of Revenue and Dept. of Labor — including the brand-new Healthy Delaware Families Act, which began paying benefits this January.
Minimum Wage & Hours
Delaware’s minimum wage reached $15.00/hour on January 1, 2025 — the final step of SB 15 — and holds flat for 2026 with no further automatic increases currently legislated. Delaware eliminated its youth sub-minimum wage entirely.
| Item | 2026 Value | Notes |
|---|---|---|
| Minimum wage | $15.00/hr | Final step of SB 15; no further increase currently scheduled |
| Tipped cash wage | $2.23/hr | Frozen; tips must bring total to $15.00 |
| Youth sub-minimum | Eliminated | Minors under 18 earn the full $15.00 rate |
| Overtime rule | 40 hrs/week | Federal FLSA; no separate Delaware statute |
| Meal break | 30 min unpaid | Required for shifts of 7.5+ hours |
State Income Tax Withholding
Delaware uses a graduated system from 2.2% to 6.6%. Notably, Delaware has no sales tax at all — a fact often mistaken for broader tax simplicity, when in reality Delaware relies more heavily on income tax as a result.
| Item | 2026 Value | Notes |
|---|---|---|
| Bracket range | 2.2% – 6.6% | Graduated; top rate on income above $60,000 |
| Local income tax | Wilmington only | 1.25% city wage tax; no other DE municipality imposes one |
| Sales tax | None | Delaware has no state or local sales tax anywhere |
Delaware Paid Leave (Healthy Delaware Families Act)
Delaware Paid Leave is the newest active PFML program in the country as of this writing — contributions began in 2025, and eligible employees started filing real claims on January 1, 2026. Coverage depth depends on employer size: 25+ employees get full coverage, 10–24 get parental leave only.
| Item | 2026 Value | Notes |
|---|---|---|
| Combined contribution rate | 0.8% | 0.32% parental + 0.40% medical + 0.08% caregiving |
| Split | 50/50 default | Employer may elect to pay more than half; cannot deduct more than 50% from employee |
| Wage cap | Social Security wage base | $184,500 for 2026 |
| Coverage: 25+ employees | Full program | Parental, medical, and family caregiving leave |
| Coverage: 10–24 employees | Parental leave only | Smaller employers exempt from medical/caregiving coverage |
| Max weekly benefit | $900 | Fixed for 2026 and 2027; 80% of average weekly wage |
| Eligibility | 1 yr tenure + 1,250 hrs | Same thresholds as federal FMLA |
Unemployment Insurance (SUI)
Delaware’s SUI wage base jumped from $12,500 to $14,500 for 2026 under HB 433’s multi-year reform — and is scheduled to rise again to $16,500 in 2027.
| Item | 2026 Value | Notes |
|---|---|---|
| SUI taxable wage base | $14,500 | Up from $12,500 in 2025, per HB 433 |
| 2027 scheduled wage base | $16,500 | Third and final step of the HB 433 multi-year increase |
| New employer rate | ~1.2% – 1.8% | Confirm exact current-year figure via DE Dept. of Labor |
| Experienced range | 0.6% – 6.5% | Based on claims history |