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On November 13, 2025, the Delaware Legislature passed a comprehensive tax reform bill aimed at increasing state revenue and addressing budgetary challenges facing the state. The bill, which was supported by both Democrats and Republicans, is expected to generate an additional $100 million in revenue annually.One of the key provisions of the bill is an increase in the state's personal income tax rates for high-income earners. Under the new law, individuals making over $250,000 a year will see their tax rate increase from 6.6% to 7.2%, while those making over $500,000 will see their tax rate rise to 7.8%. The legislation also includes a new tax bracket for individuals earning over $1 million, who will now be subject to a 9% tax rate.In addition to the changes in personal income tax rates, the bill also includes provisions to close corporate tax loopholes and increase the state's corporate income tax rate. Corporations with profits over $100,000 will see their tax rate increase from 8.7% to 9.3%, while those with profits over $500,000 will face a 10% tax rate. The bill also eliminates several corporate tax credits and deductions in an effort to level the playing field for small businesses.Delaware Governor, John Smith, praised the passage of the bill, stating that it was a necessary step to ensure the financial stability of the state. "With these reforms, we are taking a balanced approach to tax policy that asks all Delawareans to contribute their fair share to support vital state services and investments," said Governor Smith.The tax reform bill is expected to go into effect on January 1, 2026. State officials are hopeful that the additional revenue generated by the legislation will help address budget shortfalls and fund critical programs such as education, healthcare, and infrastructure projects.