Delaware payroll taxes and calculator for employers (2026)

By the HRPricing editorial teamReviewed October 17, 2026How we research and score

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New Delaware employers pay 1.0% unemployment tax in 2026, charged on the first $14,500 a worker earns, according to the Delaware Department of Labor's Division of Unemployment Insurance, and Delaware taxes wages (checked October 16, 2026). The newer cost is Delaware Paid Leave: 0.8% of wages for employers with 25 or more Delaware employees, less for smaller ones, with benefits paid out since January 1, 2026.

SUTA wage base
$14,500
New employer SUTA rate
1.0%
State income tax
Yes
Minimum wage
$15.00
See Gusto pricing on Gusto’s site
On this page
  1. Delaware Paid Leave and the other Delaware rules
  2. Delaware employer payroll facts at a glance
  3. How to register a Delaware payroll
  4. What a $50,000 Delaware employee costs
  5. Payroll services for Delaware employers

Delaware Paid Leave and the other Delaware rules

Delaware Paid Leave contributions started January 1, 2025, and benefits started January 1, 2026, at 80% of wages up to $900 a week. Your share depends on how many people you employ in Delaware:

Delaware Paid Leave contributions by employer size, 2026
Delaware employeesLeave types coveredTotal rateMost you can deduct from the worker
Under 10Exempt0%n/a
10 to 24Parental only0.32%0.16%
25 or moreMedical 0.4%, parental 0.32%, family caregiving 0.08%0.8%0.4%

Source: Delaware Department of Labor, Delaware Paid Leave employer pages and small business FAQ, checked Oct 2026. Rates are guaranteed during implementation; no 2027 rate announced.

Other Delaware points for your payroll setup:

  • UI method changes in 2027. HB 433 moves Delaware to a benefit-ratio method for setting rates starting in 2027, per Bloomberg Tax (secondary). No 2027 rates are out yet.
  • Rate range. The state lists 0.3% to 5.4%; the US Department of Labor's July 2026 summary shows a 0.40% minimum. Other states are in the 2026 SUTA rate list.
  • Pay at least monthly. Paydays are set in advance, and wages are due within 7 days after the pay period closes (19 Del. C. 1102).
  • Final pay. After a quit, discharge, suspension or layoff, pay by the later of the next regular payday or 3 business days after the last day worked (19 Del. C. 1103). Our notes cite the statute without a saved official page, so read 19 Del. C. 1103 yourself before relying on it.
  • Wilmington. The City of Wilmington has a wage tax that we have not verified; check with the city if staff work there.
  • Tipped wage. Minimum wage is $15.00, but the tipped cash wage is only $2.23 (see the minimum wage by state).

Delaware employer payroll facts at a glance

Delaware employer payroll facts, 2026
ItemDelaware rule or rateOfficial source
SUTA taxable wage base (2026)$14,500source; source
New employer SUTA rate1.0%source; source
SUTA rate range0.3% to 5.4%
2027 rates published?no rates; HB 433 moves rate calculation to the benefit-ratio method starting 2027 (secondary: Bloomberg Tax)
Unemployment agencyDelaware Department of Labor, Division of Unemployment Insurancesource
Paid leave or disability programsDelaware Paid Leave: 0.8% total (0.4% medical, 0.32% parental, 0.08% family caregiving); employers may require employees to pay up to half; under 10 Delaware employees exempt; 10 to 24 employees parental leave only; 25+ all three. Contributions began Jan 1, 2025; benefits began Jan 1, 2026; benefit 80% of wages up to $900/week. Rates guaranteed during implementation; no 2027 rate announcedsource; source
Minimum wage 2026$15.00source; source
Tipped cash wage 2026$2.23
Minimum wage 2027none announced
New hire reportingWithin 20 days of start datesource
Pay frequency ruleAt least once each calendar month on regular paydays set in advance; wages due within 7 days after the pay period closes (19 Del. C. 1102)
Final paycheck ruleQuit, discharge, suspension or layoff: due on the later of the next regular payday covering the last day worked or 3 business days after the last day worked (19 Del. C. 1103)
Workers comp required1+ employees; certain independent contractors and agricultural workers may be exempt (19 Del. C. 2307, 2308). Not monopolisticsource

Checked October 16, 2026 against the official sources linked in each row.

How to register a Delaware payroll

  1. Get a federal EIN.
  2. Register for withholding with the Delaware Division of Revenue. We could not confirm the 2026 rate schedule on the page we read, so load the tables from the Division of Revenue or your provider.
  3. Open a UI account with the Division of Unemployment Insurance at oes.delawareworks.com.
  4. If you have 10 or more Delaware employees, set up Delaware Paid Leave contributions with the Department of Labor.
  5. Report new hires within 20 days of their start date to the Division of Child Support Services.
  6. Insure for workers comp from the first employee. Certain independent contractors and agricultural workers may be exempt (19 Del. C. 2307, 2308).

What a $50,000 Delaware employee costs

The example is a new employer with 25 or more Delaware workers that passes half of Paid Leave to employees, which the law allows.

Delaware employer taxes on one $50,000 employee, 2026 (new employer, 25+ Delaware employees)
ItemWorked out asPer employee per year
Social Security (employer half)6.2% x $50,000$3,100
Medicare (employer half)1.45% x $50,000$725
Federal unemployment (FUTA)0.6% x $7,000$42
Delaware UI1.0% x $14,500 wage base$145
Delaware Paid Leave, employer half0.4% x $50,000 (half of 0.8%)$200
Total cost to the employerFederal, UI and Paid Leave$4,212

Source: Delaware Department of Labor employer services and Delaware Paid Leave pages, IRS and SSA 2026 figures, checked Oct 2026. Assumes you pass the maximum half of Paid Leave to the employee.

That is $4,212, or 8.42% above salary. Change the size of the company and the total moves:

  • Under 10 Delaware employees: no Paid Leave, total $4,012.
  • 10 to 24 employees, passing half: $80 employer share, total $4,092.
  • 25 or more, paying all 0.8% yourself: $400, total $4,412.

The calculator below shows the federal lines and Delaware UI for any salary.

Estimated yearly cost to employ this person
$0

For how this compares with nearby states, see Maryland, Pennsylvania and New Jersey.

Payroll services for Delaware employers

Incorporating in Delaware does not by itself create Delaware payroll; what matters is where your staff work. If you do employ people in Delaware, the provider needs to know your Delaware headcount to apply the right Paid Leave tier, and it should let you choose how much of the premium to pass on. For payroll in one state, Gusto Simple runs $49 monthly and $6 for each person paid (pricing checked October 16, 2026). Our payroll software rankings compare published prices and multi-state fees.

Delaware has no PEO license requirement in Harbor Compliance's 50-state summary (a private source). If you want a PEO to handle Paid Leave and benefits, start with our PEO rankings.

Frequently asked questions

What is the Delaware unemployment tax rate for new employers?
New Delaware accounts pay 1.0%, applied to wages up to $14,500, so $145 a worker in 2026, per the Division of Unemployment Insurance at the Delaware Department of Labor. Experienced rates run from 0.3% to 5.4%.
How much is Delaware Paid Leave?
Employers with 25 or more Delaware employees owe 0.8% of wages (0.4% medical, 0.32% parental, 0.08% family caregiving) and may deduct up to half from employees. Employers with 10 to 24 owe only the 0.32% parental rate, and those under 10 are exempt, according to the Delaware Department of Labor.
When did Delaware Paid Leave benefits start?
Benefits began January 1, 2026, after contributions started January 1, 2025. Benefits are 80% of wages up to $900 a week, according to the Delaware Department of Labor.
How often must Delaware employers pay wages?
At least once each calendar month on regular paydays set in advance, with wages due within 7 days after the pay period closes (19 Del. C. 1102).
When is a final paycheck due in Delaware?
On the later of the next regular payday covering the last day worked or 3 business days after the last day worked, whether the employee quit, was discharged, suspended or laid off (19 Del. C. 1103). That citation comes without a saved copy of the official text, so confirm it.
Sources (11)
  1. Delaware Department of Labor: Unemployment insurance employer services (checked Oct 16, 2026)
  2. Delaware Department of Labor: Online employer services (checked Oct 16, 2026)
  3. Delaware Department of Labor: Delaware Paid Leave (checked Oct 16, 2026)
  4. Delaware Department of Labor: Delaware Paid Leave small business FAQs (checked Oct 16, 2026)
  5. Delaware Division of Revenue: Withholding tax (checked Oct 16, 2026)
  6. Delaware Division of Child Support Services: Employers (checked Oct 16, 2026)
  7. Delaware Division of Industrial Affairs: Workers comp FAQs (checked Oct 16, 2026)
  8. US Department of Labor: Significant Provisions of State UI Laws, July 2026 (checked Oct 16, 2026)
  9. Social Security Administration: Contribution and benefit base (checked Oct 16, 2026)
  10. Gusto: Gusto pricing page (checked Oct 16, 2026)
  11. dol.gov/agencies/whd/minimum-wage/state (checked October 2026)

This page is general information, not tax, legal or accounting advice. Rules and rates change, so check the official source linked above before you file or sign a contract. Read our disclaimer.