Self-employed taxes and LLC costs in Delaware, 2026
Delaware is famous for incorporations, but a freelancer who actually lives and works there meets a higher LLC tax in 2026 and a tax on gross receipts.
Total tax on this income in 2026
$21,673
Put aside 25% of each payment · $5,418 per quarter
| Self-employment tax (15.3%) | $12,010 |
| Federal income tax | $5,790 |
| Delaware income tax | $3,873 |
| QBI deduction used | $12,579 |
| Effective rate on all income | 25.5% |
With an S corp election and a $34,000 salary, about $3,657 less tax (check it).
Computed by Radif Partners from IRS and Delaware agency documents read on October 15, 2026 · How we calculate
A Delaware LLC costs $110 to form and then owes an annual LLC tax that House Bill 400 raised to $400 starting with tax year 2026; the first payment at the new amount is due June 1, 2027, and it is not prorated for a partial year. There is no annual report for an LLC, so the tax is the whole yearly cost, $2,110 over five years. A resident owner also pays Delaware income tax on the profit, at rates rising to 6.6 % above $60,000: about $3,259 on $75,000 of profit for a single filer, $18,754 with federal tax. Delaware has no sales tax but taxes gross receipts of every business form, sole proprietors included, above an exclusion that generally starts at $100,000 a month. The state follows the S election, and with $120,000 of profit and a $50,000 salary it saves about $5,090 a year.
Delaware at a glance, 2026
| LLC filing fee | $110 |
| None for LLCs (annual LLC tax only) | none |
| Annual LLC tax (HB 400, from 2026) | $400 a year |
| Income tax | 0 % to 6.6 % |
| S corporation election | followed by the state |
| Tax on $75,000 of profit (single) | $18,754 in all, $3,259 to Delaware |
For years the Delaware LLC tax was $300. House Bill 400, signed on May 21, 2026, lifted it to $400 with effect from January 1, 2026, so the payment due on June 1, 2027 for tax year 2026 is the first one at the new amount (Delaware Division of Corporations, LLC tax instructions). The same law raised expedite fees from August 1, 2026 (HB 400 text). The tax is flat: it does not depend on income or members, it is not prorated, and it is owed even by a company formed in December. Delaware LLCs file no annual report, so missing the June 1 date is the only way to fall out of good standing.
A Delaware LLC is not a Delaware tax resident
The $400 is what an owner in another state pays to keep a Delaware company. Someone living in Wilmington or Dover owes much more than that, because Delaware taxes its residents' income at rates from 2.2 % to 6.6 %, after a $3,250 standard deduction and a $110 personal credit for a single filer. An LLC formed in Delaware by an owner living elsewhere usually also registers as a foreign LLC in the home state and pays that state's fees. The LLC cost by state page compares both sides.
Gross receipts tax: Delaware's substitute for a sales tax
Delaware charges no sales tax and taxes sellers instead. The gross receipts tax applies to sole proprietors and LLCs as well as corporations, at rates from 0.0945% to 1.9914% depending on the activity, after an exclusion that generally starts at $100,000 of receipts a month (Division of Revenue, gross receipts tax FAQ). A consultant billing well under that amount owes little or nothing. A business near the threshold watches its monthly receipts, since the tax is on revenue rather than profit.
April 30 for the first installment
Estimated payments are required when tax beyond withholding can reasonably be expected to exceed $800. The first one is due April 30, two weeks after the federal date, because Delaware's return is due then; the others follow the federal calendar. Underpayment costs 1.5% a month, and paying 100% of last year's tax, or 110% above $150,000 of federal AGI, avoids it (Division of Revenue, 2026 estimated tax instructions). See the quarterly estimated tax guide for the federal rules.
Wilmington's own tax
Wilmington levies a wage tax on people working in the city and a net profits tax on sole proprietors and partnerships doing business within city limits, filed on Form WCWT-6. Its current rate could not be read on the city's site, so the calculator does not include it; the City of Wilmington tax page has the details. The LLC vs S corp calculator handles the payroll side with Delaware selected.
Delaware income tax brackets
| Taxable income, single | Rate | Taxable income, joint | Rate |
|---|---|---|---|
| $0 to $2,000 | 0 % | $0 to $2,000 | 0 % |
| $2,000 to $5,000 | 2.2 % | $2,000 to $5,000 | 2.2 % |
| $5,000 to $10,000 | 3.9 % | $5,000 to $10,000 | 3.9 % |
| $10,000 to $20,000 | 4.8 % | $10,000 to $20,000 | 4.8 % |
| $20,000 to $25,000 | 5.2 % | $20,000 to $25,000 | 5.2 % |
| $25,000 to $60,000 | 5.55 % | $25,000 to $60,000 | 5.55 % |
| over $60,000 | 6.6 % | over $60,000 | 6.6 % |
City and county taxes on business income in Delaware
| Place | Tax | Rate | Who pays |
|---|---|---|---|
| Wilmington | City wage (earned income) tax and net profits tax | varies | Not verified |