Selling a business in Delaware: what the state takes (2026)
Delaware’s top individual income tax rate is 6.6%. Here is what an owner selling company stock pays, with 2026 rules from official sources and worked examples at $10 million, $25 million and $50 million.
- 6.6%
- Top Delaware income tax rate (2026)
- $1,650,000
- State tax on a $25M long-term gain
- 30.4%
- Combined federal and state rate on $25M
- 14 of 51
- Rank by total tax on $25M (1 = highest)
How Delaware taxes a business sale
- Income tax
- Top rate 6.6%: Over $60,000 (all filers).
- Long-term capital gains
- Capital gains are taxed as ordinary income at up to 6.6%, with no preferential treatment.
- Local taxes
- Wilmington levies a 1.25% city earned income tax on wages and net business profits, which is generally understood not to reach capital gains on stock. Tax Foundation's table excludes local taxes.
Three worked examples
| Long-term gain | $10,000,000 | $25,000,000 | $50,000,000 |
|---|---|---|---|
| Federal capital gains tax (20%) | $2,000,000 | $5,000,000 | $10,000,000 |
| Net investment income tax (3.8%) | $380,000 | $950,000 | $1,900,000 |
| Delaware tax | $660,000 | $1,650,000 | $3,300,000 |
| Total tax | $3,040,000 | $7,600,000 | $15,200,000 |
| Effective combined rate | 30.40% | 30.40% | 30.40% |
| Net proceeds after tax | $6,960,000 | $17,400,000 | $34,800,000 |
| Extra tax versus Texas | $660,000 | $1,650,000 | $3,300,000 |
Seller’s tax calculator
Estimate federal and state tax on a stock sale and what is left before fees and debt.
- Long-term capital gain
- $25,000,000
- Federal capital gains tax (20%)
- $5,000,000
- Net investment income tax (3.8%)
- $950,000
- Delaware tax
- $1,650,000
- Taxable gain at 6.6%
- $1,650,000
- Total tax
- $7,600,000
- Effective rate on the gain
- 30.40%
- Net proceeds after tax
- $17,400,000
Illustration, not tax advice. Assumes a resident individual, the whole gain long-term, top marginal rates, no state credits, installment terms, QSBS exclusion or other planning, and no local taxes. Net proceeds are before transaction fees, debt repayment, escrows and earn-outs. Rates are for tax year 2026 where published; see the methodology.
Compare with other states
Neighboring states
- Maryland32.3% combined, $16.93M net
- New Jersey34.5% combined, $16.36M net
- Pennsylvania26.9% combined, $18.28M net
Common comparisons
- California37.1% combined, $15.72M net
- New York34.1% combined, $16.48M net
- Texas23.8% combined, $19.05M net
- Florida23.8% combined, $19.05M net
- Nevada23.8% combined, $19.05M net
- Washington33.5% combined, $16.63M net
- Tennessee23.8% combined, $19.05M net
Methodology and sources
Delaware figures are for tax year 2026. 30 Del. C. 1102(a)(14) brackets, unchanged since 2014 and not indexed. HB 13 (new brackets above $125k-$150k, up to 6.95%) was not enacted; a tracker lists it dead on June 30, 2026, and the DOR FAQ still shows a 6.6% top rate. The examples assume a resident individual selling privately held stock for a long-term gain equal to the sale price (zero basis), with every dollar taxed at the top marginal rates, the federal 20% capital gains rate and the 3.8% net investment income tax, and no planning, credits or local taxes. Full assumptions are in the report methodology.
All 50 states and DC with source URLs.
- 130 Del. C. 1102 (rates, Delaware Code Online)
- 2Delaware Division of Revenue personal income tax FAQs (top rate 6.60% at $60,000+)
- 3Delaware General Assembly HB 13 substitute bill detail
- 4BillTrack50 DE HB13 (status: dead 06/30/2026). Secondary source
- 5Tax Foundation, State Individual Income Tax Rates and Brackets, 2026. Secondary source
Data last updated October 26, 2026.
Cite this research
You may quote and republish figures from this page with attribution and a link to the source.
Citation
Laurent Capital Research, “The Seller’s Tax Map: What Selling a Business Costs in Every State (2026): Delaware,” 2026, https://laurent.capital/research/seller-tax-map/delawareLink (HTML)
<a href="https://laurent.capital/research/seller-tax-map/delaware">The Seller’s Tax Map: What Selling a Business Costs in Every State (2026): Delaware</a> (Laurent Capital)Planning a sale and weighing the tax cost?
We work alongside your tax advisors from the first valuation conversation, so structure and timing are settled before a buyer is at the table.