$LevyIO

Home Energy Tax Credit in Delaware 2026

Calculate your home energy tax credit tax savings in Delaware. With Delaware's 6.6% top state tax rate, your combined savings are higher.

Delaware Tax Overview

State Income Tax
6.6%
progressive
Sales Tax
None
avg combined: 0%
Property Tax Rate
0.53%
Median Income
$72,724

No sales tax. Moderate income tax. Low property taxes (0.53%).

Delaware Income Tax Brackets (Single)

0%
$0 - $2,000
2.2%
$2,000 - $5,000
3.9%
$5,000 - $10,000
4.8%
$10,000 - $20,000
5.2%
$20,000 - $25,000
5.55%
$25,000 - $60,000
6.6%
$60,000 +
Your bracket
$3,200
Est. Total Savings
$3,200
Max Deduction
Tax Credit
Deduction Type
28.6%
Combined Tax Rate

Home Energy Tax Credit Savings Calculator for Delaware

$
$

Federal Savings

$3,200

22% bracket

Delaware State

$0

6.6% rate

Total Savings

$3,200

28.6% combined

Tax credits reduce your tax bill dollar-for-dollar, regardless of your tax bracket.

Savings by Tax Bracket in Delaware

10%
$5,000
12%
$5,000
22%
$5,000
24%
$5,000
32%
$5,000
35%
$5,000
37%
$5,000

Includes 6.6% Delaware state tax on top of federal savings.

Eligibility Requirements

Homeowners who install energy-efficient improvements

  • 1Must be primary residence
  • 2Qualifying improvements only
  • 3Keep receipts

Delaware residents should verify that this deduction is also recognized on their state tax return for additional savings of up to 6.6%.

Common Mistakes to Avoid

  • !Claiming for rental properties
  • !Missing manufacturer certifications
  • !Forgetting to claim the deduction on your Delaware state return (missing up to 6.6% additional savings)

Delaware Filing Tips

Take advantage of zero sales tax for major purchases. The state standard deduction is low ($3,250), so itemizing may help. Check reciprocity agreements with neighboring states.

Required Tax Forms

Form 5695

File these forms with your federal tax return to claim the home energy tax credit. Delaware may require additional state-specific forms.

Other Tax Deductions in Delaware

Mortgage Interest Deduction

Housing

~$4,550
est. savings

Property Tax Deduction

Housing

~$2,860
est. savings

Home Office Deduction

Housing

~$1,560
est. savings

Residential Solar Tax Credit

Housing

~$7,500
est. savings

Military Moving Expenses

Housing

~$5,200
est. savings

PMI Premium Deduction

Housing

~$1,430
est. savings

Mortgage Points Deduction

Housing

~$2,600
est. savings

Casualty & Theft Loss Deduction

Housing

~$6,500
est. savings

Home Energy Tax Credit in Neighboring States

Maryland

5.75% top rate (progressive)

~$1,800
-1,400 vs Delaware

Pennsylvania

3.07% top rate (flat)

~$1,800
-1,400 vs Delaware

New Jersey

10.75% top rate (progressive)

~$1,800
-1,400 vs Delaware

Tax Calculators for Delaware Cities

Wilmington

Calculate Your Full Tax Savings in Delaware

Use our free tax calculators to optimize your entire tax return for Delaware.

Income Tax CalculatorDelaware Income TaxFull Home Energy Tax Credit Guide

Frequently Asked Questions

How much can I save with the Home Energy Tax Credit in Delaware?

In Delaware, the home energy tax credit can save you an estimated $3,200 per year on a $5,000 deduction. This includes $3,200 in federal tax savings and $0 in Delaware state tax savings at the 6.6% marginal rate. The national average savings is $1,800/year.

What is the Delaware state income tax rate?

Delaware has a progressive income tax system with a top rate of 6.6%. No sales tax. Moderate income tax. Low property taxes (0.53%).

Who qualifies for the Home Energy Tax Credit in Delaware?

Homeowners who install energy-efficient improvements. The eligibility requirements are the same whether you live in Delaware or another state, as this is a federal tax credit. However, your total savings will vary based on Delaware's 6.6% top state tax rate.

What tax forms do I need to claim the Home Energy Tax Credit in Delaware?

To claim the home energy tax credit, you need to file Form 5695 with your federal return. Delaware residents should also check if the state allows this deduction on their state return for additional savings of up to 6.6%. Filing status affects your deduction limits and tax bracket.

Is the Home Energy Tax Credit better in Delaware than in states without income tax?

Yes, Delaware residents benefit more because the state's 6.6% top income tax rate means the deduction reduces both your federal AND state tax liability. In states with no income tax (like Texas, Florida, or Nevada), this deduction only reduces federal taxes. Your combined rate of 28.6% means more savings per dollar deducted.

What is the standard deduction in Delaware for 2026?

Delaware's standard deduction is $3,250 for single filers and $6,500 for married filing jointly. Take advantage of zero sales tax for major purchases. The state standard deduction is low ($3,250), so itemizing may help. Check reciprocity agreements with neighboring states.

Related Calculators

Mortgage Interest Deduction in Delaware

Avg savings: $3,500/year

Property Tax Deduction in Delaware

Avg savings: $2,200/year

Home Office Deduction in Delaware

Avg savings: $1,200/year

Residential Solar Tax Credit in Delaware

Avg savings: $7,500/year

Military Moving Expenses in Delaware

Avg savings: $4,000/year

PMI Premium Deduction in Delaware

Avg savings: $1,100/year