SPONSOR: Rep. Lynn & Rep. Wilson-Anton & Sen. Hoffner Rep. Morrison HOUSE OF REPRESENTATIVES 153rd GENERAL ASSEMBLY HOUSE SUBSTITUTE NO. 1 FOR HOUSE BILL NO. 13 AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO PERSONAL INCOME TAX.
SPONSOR: Rep. Lynn & Rep. Wilson-Anton & Sen. Hoffner Rep. Morrison
SPONSOR: Rep. Lynn & Rep. Wilson-Anton & Sen. Hoffner
Rep. Morrison
SPONSOR:
Rep. Lynn & Rep. Wilson-Anton & Sen. Hoffner
Rep. Morrison
HOUSE OF REPRESENTATIVES
153rd GENERAL ASSEMBLY
HOUSE SUBSTITUTE NO. 1
FOR
HOUSE BILL NO. 13
AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO PERSONAL INCOME TAX.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE: Section 1. Amend 1102, Title 30 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows: 1102. Imposition and rate of tax; separate tax on lump-sum distributions. (a)(14) For taxable years beginning after December 31, 2013, and before January 1, 2026, the amount of tax shall be determined as follows: 2.2% of taxable income in excess of $2,000 but not in excess of $5,000; 3.9% of taxable income in excess of $5,000 but not in excess of $10,000; 4.8% of taxable income in excess of $10,000 but not in excess of $20,000; 5.2% of taxable income in excess of $20,000 but not in excess of $25,000; 5.55% of taxable income in excess of $25,000 but not in excess of $60,000; and 6.6% of taxable income in excess of $60,000. (15) For taxable years beginning after December 31, 2025, the amount of tax shall be determined as follows: 2.175% of taxable income in excess of $2,000 but not in excess of $5,000; 3.875% of taxable income in excess of $5,000 but not in excess of $10,000; 4.775% of taxable income in excess of $10,000 but not in excess of $20,000; 5.175% of taxable income in excess of $20,000 but not in excess of $25,000; 5.525% of taxable income in excess of $25,000 but not in excess of $60,000; 6.6% of taxable income in excess of $60,000 but not in excess of $125,000; 6.75% of taxable income in excess of $125,000 but not in excess of $250,000; 6.85% of taxable income in excess of $250,000 but not in excess of $500,000; and 6.95% of taxable income in excess of $500,000. Section 2. This Act is known as The John Kowalko, Jr., Fairness in Taxation Act.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
Section 1. Amend 1102, Title 30 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
1102. Imposition and rate of tax; separate tax on lump-sum distributions.
(a)(14) For taxable years beginning after December 31, 2013, and before January 1, 2026, the amount of tax shall be determined as follows:
2.2% of taxable income in excess of $2,000 but not in excess of $5,000;
3.9% of taxable income in excess of $5,000 but not in excess of $10,000;
4.8% of taxable income in excess of $10,000 but not in excess of $20,000;
5.2% of taxable income in excess of $20,000 but not in excess of $25,000;
5.55% of taxable income in excess of $25,000 but not in excess of $60,000; and
6.6% of taxable income in excess of $60,000.
(15) For taxable years beginning after December 31, 2025, the amount of tax shall be determined as follows:
2.175% of taxable income in excess of $2,000 but not in excess of $5,000;
3.875% of taxable income in excess of $5,000 but not in excess of $10,000;
4.775% of taxable income in excess of $10,000 but not in excess of $20,000;
5.175% of taxable income in excess of $20,000 but not in excess of $25,000;
5.525% of taxable income in excess of $25,000 but not in excess of $60,000;
6.6% of taxable income in excess of $60,000 but not in excess of $125,000;
6.75% of taxable income in excess of $125,000 but not in excess of $250,000;
6.85% of taxable income in excess of $250,000 but not in excess of $500,000; and
6.95% of taxable income in excess of $500,000.
Section 2. This Act is known as The John Kowalko, Jr., Fairness in Taxation Act.
SYNOPSIS This Act adjusts the existing personal income tax brackets and applicable tax rates. Like under House Bill No. 13, under House Substitute No. 1 for HB 13, for taxable years beginning after December 31, 2025, income between $60,000 and $125,000 will continue to be taxed at a rate of 6.6%, but income above $125,000 will be taxed at higher rates. The result of the changes under this Act will be that those with a taxable income of $134,667 or less will see no increase in personal income taxes, with 92% of Delaware taxpayers receiving an overall tax decrease. House Substitute No. 1 for House Bill No. 13 differs from HB 13 as follows: Creates additional tax brackets for taxable income not in excess of $60,000. Decreases the tax rate for all tax brackets for taxable income not in excess of $60,000. Creates 3 additional tax brackets for taxable income above $60,000 instead of 2. In addition, HS 1 for HB 13 is named the The John Kowalko, Jr., Fairness in Taxation Act.
SYNOPSIS
This Act adjusts the existing personal income tax brackets and applicable tax rates. Like under House Bill No. 13, under House Substitute No. 1 for HB 13, for taxable years beginning after December 31, 2025, income between $60,000 and $125,000 will continue to be taxed at a rate of 6.6%, but income above $125,000 will be taxed at higher rates. The result of the changes under this Act will be that those with a taxable income of $134,667 or less will see no increase in personal income taxes, with 92% of Delaware taxpayers receiving an overall tax decrease.
House Substitute No. 1 for House Bill No. 13 differs from HB 13 as follows:
Creates additional tax brackets for taxable income not in excess of $60,000.
Decreases the tax rate for all tax brackets for taxable income not in excess of $60,000.
Creates 3 additional tax brackets for taxable income above $60,000 instead of 2.
In addition, HS 1 for HB 13 is named the The John Kowalko, Jr., Fairness in Taxation Act.