Delaware Business Blog

Delaware’s State and Local Tax Burden over two decades

For nearly two decades the Tax Foundation has published an estimate of the combined state-local tax burden shouldered by the residents of each of the 50 states. For each state, they calcu­late the total amount paid by the residents in taxes, then divide those taxes by the state’s total income to compute a “tax burden.” They make this calculation not only for the most recent year but also for earlier years because tax and income data are revised periodically by govern­ment agencies.

The goal is to answer this question: What percentage of their income are the residents of this state paying in state and local taxes? We are not trying to answer the question: How much money have state and local governments collected?

How does Delaware stack up against other States?

Better buckle your seat belts!

Over the last two decades Delaware has been ranked annually as low as #43 and as high as #19.
In this scale being ranked # is deemed the highest tax rates.

  • Delaware’s State and Local Tax Burden Compared to US Average, 1977-2009 (PDF)
  • The last year on the report is 2009, where Delaware landed at #23 with a 9.6% rate.

    Overall, State-Local Tax Burdens fell in 2009 as Tax Revenues shrank faster than income did.
    Here’s the report on that specific issue: State and Local Tax Burdens report for 2009 Special Report No. 189 (PDF)

    The big losers and winners in 2009? New Jersey’s Citizens Pay the Most, Alaska’s Least.

    One thought on “Delaware’s State and Local Tax Burden over two decades

    1. spktruth200

      Interesting. Now that chip flowers is the treasurer we can expect even more decline. While Velda Potter was Treasurer our State was in much better position financially.

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