Delaware State Income Tax Withholding

Reference Number: NFC-20-1605647748
Published: November 17, 2020
Effective: Pay Period 21, 2020

Summary

The State of Delaware has introduced a State W-4, Employee's Withholding Allowance Certificate form, to claim marital status and exemptions for State withholding purposes effective January 1, 2020. Employees who submit a new W-4 form after 2019 must use the Delaware State W-4 form instead of the Federal Form W-4.

Tax Formula

State Abbreviation:

DE

State Tax Withholding State Code:

10

Acceptable Exemption Form:

DE W-4 or W-4 (see the Additional Information section)

Basis for Withholding:

State or Federal Exemptions (see the Additional Information section)

Acceptable Exemption Data:

S, MJ, MS, Number of Exemptions

TSP Deferred:

Yes

Special Coding:

None

Additional Information:

Employees who have not previously submitted a DE W-4 and have submitted a new 2020 Federal Form W-4 will default to Single and (00) allowances. Employees who have not previously submitted a DE W-4 and have not submitted a new 2020 Federal Form W-4 will default to the prior to 2020 Federal Form W-4 submission.

Withholding Formula (Effective Pay Period 21, 2020)

  1. Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
  2. Subtract the nontaxable biweekly Federal Employees Health Benefits Plan payment(s) (includes dental and vision insurance program and Flexible Spending Account — health care and dependent care deductions) from the amount computed in step 1.
  3. Add the taxable biweekly fringe benefits (i.e., taxable life insurance) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
  4. Multiply the adjusted gross biweekly wages by the number of pay dates in the tax year to obtain the gross annual wages.
  5. Determine the standard deduction allowance by applying the following guideline and subtract this amount from the annual wages:

    Single

    Married Filing a Joint Return

    Married Filing a Separate Return

    $3,250

    $6,500

    $3,250

     

  6. Apply the taxable income computed in step 5 to the following table to determine the annual Delaware tax withholding:

    If the Amount of Taxable Income Is:

    The Amount of Tax Withholding Should Be:

    Over $0 but not over $2,000

    $0.00

    Over $2,000 but not over $5,000

    2.20% of excess over $2,000

    Over $5,000 but not over $10,000

    $66.00 plus 3.90% of excess over $5,000

    Over $10,000 but not over $20,000

    $261.00 plus 4.80% of excess over $10,000

    Over $20,000 but not over $25,000

    $741.00 plus 5.20% of excess over $20,000

    Over $25,000 but not over $60,000

    $1,001.00 plus 5.55% of excess over $25,000

    Over $60,000

    $2,943.50 plus 6.60% of excess over $60,000

  7. Determine the exemption allowance by applying the following guideline and subtract this amount from the result of step 6 to compute the annual Delaware tax withholding:

    Exemption Allowance = $110 x Number of Exemptions

  8. Divide the annual Delaware tax withholding by the number of pay dates in the tax year to obtain the biweekly Delaware tax withholding.

Resources

To view the updated tax formula, go to the HR and Payroll Clients page from the MyNFC drop-down menu on the National Finance Center (NFC) Home page. Select the Publications tab and select U.S. Income Tax Formulas from the Publications menu to launch the tax map. Select the desired State from the map provided for the formula.

Previous Tax Bulletin

Inquiries

For questions about NFC processing, authorized Servicing Personnel Office representatives should contact the NFC Contact Center at 1-855-NFC-4GOV (1-855-632-4468) or via the customer service portal.