Delaware · Retirement Savings Credit (Saver's Credit)
Retirement Savings Credit (Saver's Credit) in Delaware (2026)
Tax credit of 10-50% of retirement contributions for low-to-moderate income savers. Delaware has a progressive income tax with a top rate of 6.6%, so a Delaware filer's combined marginal rate on the next dollar at $72,724 of income is about 28.6% (22% federal + 6.6% DE).
2026 savings example for Delaware
Planning estimate for a single filer earning $72,724 (Delaware median household income in LevyIO's state dataset) who claims a $2,000 credit. Federal tax uses the 2026 IRS brackets after the $16,100 standard deduction; DE tax uses the state brackets in LevyIO's dataset and assumes the state follows the federal treatment.
Estimated total savings
$2,000
Federal savings
$2,000
$7,169 → $5,169 · 22% bracket
DE state savings
$0
Federal credit only; check for a state credit
Combined marginal rate
28.6%
Credits do not depend on the bracket
Statutory maximum for this item in LevyIO's dataset: $2,000.
Federal × Delaware marginal rates (2026, single)
Gross-income ranges include the federal standard deduction. The DE column is the state marginal rate at the midpoint of each range. A credit saves its face value regardless of bracket.
| Federal bracket | Gross income (single) | DE marginal | Combined | Per $1,000 |
|---|---|---|---|---|
| 10% | $16,100 - $28,500 | 4.8% | 14.8% | $1,000 |
| 12% | $28,500 - $66,500 | 5.55% | 17.55% | $1,000 |
| 22% | $66,500 - $121,800 | 6.6% | 28.6% | $1,000 |
| 24% | $121,800 - $217,875 | 6.6% | 30.6% | $1,000 |
| 32% | $217,875 - $272,325 | 6.6% | 38.6% | $1,000 |
| 35% | $272,325 - $656,700 | 6.6% | 41.6% | $1,000 |
| 37% | Over $656,700 | 6.6% | 43.6% | $1,000 |
Eligibility & forms
Low-to-moderate income retirement savers
- AGI under $36,500 single/$73,000 married
- Not a student or dependent
- Age 18+
Federal forms: Form 8880
Delaware filing notes
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.
Common mistakes: Exceeding income limits; Being claimed as dependent.
Frequently asked questions
How much can the Retirement Savings Credit (Saver's Credit) save a Delaware taxpayer in 2026?
Credits reduce tax dollar-for-dollar. In LevyIO's example, a single filer with $72,724 of income (the Delaware median household income in our state dataset) and a $2,000 credit would cut 2026 federal tax from $7,169 to $5,169, a $2,000 saving. Whether Delaware offers a matching state credit depends on the DE return, so the estimate counts federal savings only.
What is the Delaware income tax rate for 2026?
Delaware has a progressive income tax with a top rate of 6.6%. The DE standard deduction in LevyIO's dataset is $3,250 single / $6,500 married. No sales tax. Moderate income tax. Low property taxes (0.53%).
Who qualifies for the Retirement Savings Credit (Saver's Credit) in Delaware?
Low-to-moderate income retirement savers. The federal rules are the same in every state; the requirements are: AGI under $36,500 single/$73,000 married; Not a student or dependent; Age 18+. Delaware filers should confirm on the DE return whether the state follows the federal treatment.
Which forms do I file to claim the Retirement Savings Credit (Saver's Credit)?
Federal: Form 8880. Delaware: check the Delaware Division of Revenue instructions for the matching state schedule. Common mistakes: Exceeding income limits; Being claimed as dependent.
Retirement Savings Credit (Saver's Credit) in other states
Sources
Reviewed 2026-09-17. Estimates are educational planning figures computed from the IRS 2026 inflation adjustments and LevyIO's state bracket dataset; they are not tax advice.