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Kiddie Tax Planning in Delaware 2026

Calculate your kiddie tax planning 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
$1,430
Est. Total Savings
No Limit
Max Deduction
Strategy
Deduction Type
28.6%
Combined Tax Rate

Kiddie Tax Planning Savings Calculator for Delaware

$
$

Federal Savings

$1,100

22% bracket

Delaware State

$330

6.6% rate

Total Savings

$1,430

28.6% combined

At a 28.6% combined tax rate in Delaware, every $1,000 in deductions saves you $286 in taxes.

Savings by Tax Bracket in Delaware

10%
$830
12%
$930
22%
$1,430
24%
$1,530
32%
$1,930
35%
$2,080
37%
$2,180

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

Eligibility Requirements

Parents with children who have investment income

  • 1Child under 19 (24 if student)
  • 2Unearned income over $2,500
  • 3Parent's rate applies

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

  • !Not planning around $2,500 threshold
  • !Forgetting to file for child
  • !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 8615

File these forms with your federal tax return to claim the kiddie tax planning. Delaware may require additional state-specific forms.

Other Tax Deductions in Delaware

Child Tax Credit

Family

~$2,000
est. savings

Child & Dependent Care Credit

Family

~$1,200
est. savings

Dependent Care FSA

Family

~$1,430
est. savings

Earned Income Tax Credit (EITC)

Family

~$3,500
est. savings

Adoption Tax Credit

Family

~$10,000
est. savings

Alimony Deduction (Pre-2019)

Family

~$6,500
est. savings

Head of Household Filing Status

Family

~$2,600
est. savings

Qualifying Surviving Spouse

Family

~$3,900
est. savings

Kiddie Tax Planning in Neighboring States

Maryland

5.75% top rate (progressive)

~$3,153
+1,723 vs Delaware

Pennsylvania

3.07% top rate (flat)

~$2,849
+1,419 vs Delaware

New Jersey

10.75% top rate (progressive)

~$3,722
+2,292 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 Kiddie Tax Planning Guide

Frequently Asked Questions

How much can I save with the Kiddie Tax Planning in Delaware?

In Delaware, the kiddie tax planning can save you an estimated $1,430 per year on a $5,000 deduction. This includes $1,100 in federal tax savings and $330 in Delaware state tax savings at the 6.6% marginal rate. The national average savings is $2,500/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 Kiddie Tax Planning in Delaware?

Parents with children who have investment income. The eligibility requirements are the same whether you live in Delaware or another state, as this is a federal tax deduction. 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 Kiddie Tax Planning in Delaware?

To claim the kiddie tax planning, you need to file Form 8615 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 Kiddie Tax Planning 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

Child Tax Credit in Delaware

Avg savings: $2,000/year

Child & Dependent Care Credit in Delaware

Avg savings: $1,200/year

Dependent Care FSA in Delaware

Avg savings: $1,100/year

Earned Income Tax Credit (EITC) in Delaware

Avg savings: $3,500/year

Adoption Tax Credit in Delaware

Avg savings: $10,000/year

Alimony Deduction (Pre-2019) in Delaware

Avg savings: $5,000/year