2025 Tax Year

Delaware Side Hustle Tax Calculator

Calculate your Delaware state tax (6.60%), federal tax, and self-employment tax on 1099 income.

DE6.60%

1 million residents

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2025 rates

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Last updated: January 2026 · Data from IRS Rev Proc 2024-40

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State

W-2 Income (from your day job)

Side Hustle Income *

Business Expenses (optional)

Delaware side hustlers face a progressive income tax with rates from 2.2% to 6.6%. The First State has no sales tax, which can benefit side hustlers who sell physical products. Wilmington residents should be aware of the additional city wage tax that applies to earned income.

Delaware Tax Guide

How Side Hustle Taxes Work in Delaware

Delaware uses a progressive income tax system with six brackets:

**Delaware state tax rates (2025):** - 2.2% on income $2,000-$5,000 - 3.9% on income $5,000-$10,000 - 4.8% on income $10,000-$20,000 - 5.2% on income $20,000-$25,000 - 5.55% on income $25,000-$60,000 - 6.6% on income over $60,000

**Wilmington wage tax:** - Wilmington City: 1.25% on earned income - This applies to self-employment income for Wilmington residents

Example

What Delaware Side Hustlers Owe

Let's say you're a single filer in Wilmington with a $55,000 W-2 job and $14,000 in side hustle income from freelance writing, with $2,000 in business expenses.

**Your estimated taxes on the side hustle:** - Net self-employment income: $12,000 - Federal SE tax (15.3% of 92.35%): ~$1,697 - Federal income tax on side income: ~$2,640 (22% bracket) - Delaware state tax (6.6%): ~$792 - Wilmington wage tax (1.25%): ~$150 - **Total additional tax: ~$5,279**

Important Dates

Delaware Tax Deadlines 2025

Delaware estimated tax deadlines: - **Q1**: April 30, 2025 - **Q2**: June 30, 2025 - **Q3**: September 30, 2025 - **Q4**: January 31, 2026

Use Delaware Form 200-ES for state estimated tax payments.

Save Money

Common Deductions for Delaware Freelancers

Delaware freelancers can reduce their tax burden through maximizing deductions. **Home office expenses**: Claim dedicated business space using simplified ($5/sq ft) or actual expense method. **Business mileage**: 67 cents/mile for 2025; important for those serving clients in Wilmington, Dover, or across the state. **Equipment and supplies**: Computers, cameras, tools, and office supplies are deductible. **Professional services**: Accounting, legal, and tax preparation fees are fully deductible. **Health insurance premiums**: Self-employed individuals can deduct 100% of health insurance costs. **Retirement contributions**: SEP-IRAs and Solo 401(k)s reduce federal AGI, which Delaware uses as its starting point—saving you at federal rate plus up to 6.6%. **Marketing expenses**: Website costs, business cards, and promotional materials are deductible. Delaware starts with federal AGI, so all Schedule C deductions reduce DE taxes. **No sales tax**: Delaware has no state sales tax, which benefits product-based side hustles—you don't need to collect sales tax on Delaware sales, giving you a pricing advantage.

Common Questions

Delaware Side Hustle Tax FAQ

What is Delaware's top tax rate?

Delaware's top income tax rate is 6.6% on income over $60,000. Most side hustlers with W-2 jobs will fall into this bracket.

Does Wilmington have an income tax?

Yes, Wilmington has a 1.25% wage tax on earned income including self-employment earnings for city residents.

Does Delaware have sales tax?

No, Delaware has no state sales tax, which benefits side hustlers who sell products—no need to collect or remit sales tax on Delaware sales.

Do I need to register my side hustle in Delaware?

Sole proprietors using their legal name don't need state registration. If using a trade name (DBA), file with the Delaware Division of Corporations. LLCs must register with the Division of Corporations (Delaware is known for business-friendly LLC laws).

When are Delaware quarterly estimated taxes due?

Delaware has unique deadlines: April 30, June 30, September 30, and January 31 (end of month rather than 15th). Use Form 200-ES for payments.

How does Wilmington wage tax affect side hustlers?

Wilmington residents pay an additional 1.25% wage tax on self-employment income. This is in addition to the state tax (up to 6.6%), for a potential combined rate of 7.85% for Wilmington freelancers.

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