HB 13 Would Adjust DE Tax Brackets – and Create 2 New Brackets

Legislation introduced in the State House Thursday would adjust the state’s existing tax brackets and create two new brackets. The new brackets are taxed at the highest rates – but by combining some existing brackets this Act also slightly increases or decreases the tax rate for some incomes. House Bill 13 is sponsored by Representative Sean Lynn (D-31) and is awaiting action in the House Revenue and Finance Committee.

Additional information on House Bill 13:

Under current law, taxable income in excess of $60,000 is taxed at a rate of 6.6%. Under this Act, 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 as follows: 1. In excess of $125,000 but not in excess of $250,000, at 6.75%. 2. In excess of $250,000, at 6.95%.