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On November 30, 2025, the state of Delaware announced new tax legislation aimed at increasing revenue and addressing budgetary concerns. The measures introduced by Governor John Smith are expected to generate an additional $100 million in tax revenue for the state.One of the key provisions of the new legislation is an increase in the state's personal income tax rate for high-income earners. Individuals earning over $250,000 per year will see their tax rate rise from 6.6% to 7.2%, while those earning over $500,000 will see a further increase to 8%. The governor's office estimates that this change will generate an additional $50 million in revenue over the next fiscal year.Another significant change introduced by the legislation is the implementation of a new tax on digital advertising services. Companies that generate over $100 million in annual revenue from digital advertising will be subject to a tax rate of 2.5% on their advertising sales in Delaware. This is expected to bring in an additional $30 million in revenue.In addition, the legislation includes a gradual increase in the state's corporate income tax rate over the next five years. The rate will rise from 8.7% to 9.5% by 2030, with the aim of generating an extra $20 million in revenue annually.Governor Smith stated that these measures were necessary to ensure that the state could continue to provide essential services to its residents and address long-standing budget deficits. He emphasized that the tax increases were targeted at those who could afford to pay more, while still ensuring that Delaware remains a competitive place to do business.The new tax legislation has faced some opposition from business groups, who argue that the increases could deter investment and harm economic growth. However, supporters of the measures point out that the additional revenue will help fund important initiatives such as infrastructure improvements, education, and social services.Overall, the introduction of the new tax legislation marks an important step towards addressing Delaware's budgetary challenges and ensuring the state's long-term financial stability. The measures are set to go into effect at the beginning of the next fiscal year on January 1, 2026.