DE · Payroll tax 2026
The true cost of hiring in Delaware
Estimate what a W-2 employee costs in Delaware and compare it with a 1099 contract using sourced 2026 payroll-tax defaults that you can adjust to your assigned rate.
Estimate a Delaware hire
Pre-filled with a 1% base new-employer rate. Adjust SUI, salary, benefits, and the 1099 rate to fit your hire.
Results update instantly. Your values stay in this browser.
A W-2 hire in Delaware costs more than salary. Employers pay federal FICA and FUTA plus state unemployment insurance. For 2026, HiringMath uses a 1% base new-employer rate on the first $14,500 of wages, producing up to about $145 of state UI tax per worker before experience-rating or account-specific adjustments. Delaware taxes wage income, which creates a withholding obligation but is not an employer-paid tax. 0.2% Operations & Technology supplemental tax on SUI wages. The calculator below combines those statutory items with editable benefits, workers' compensation, and overhead, then compares the result with a 1099 contract.
Delaware employer tax facts
| Item | DE |
|---|---|
| Base new-employer SUI rate | 1% |
| SUI taxable wage base | $14,500 |
| Federal FICA (employer) | 7.65% |
| FUTA | 0.6% |
| State income tax on wages | Yes |
| Worker classification test | ABC test |
Extra employer taxes: 0.2% Operations & Technology supplemental tax on SUI wages.
Example: a $75,000 hire in Delaware
At a $75,000 base salary with typical benefits, a W-2 employee in Delaware costs an employer $99,225 per year — $24,225 above base pay. An equivalent 1099 contract at $75,000 would cost $24,225 less; the breakeven contract rate is $99,225.
Misclassification risk in Delaware
Test: ABC test
ABC test; back UI taxes, interest, civil penalties.
Penalties by stateCompare nearby rates
Delaware's 1% new-employer SUI rate sits near Alaska (1%), Idaho (1%), Iowa (1%), Minnesota (1%). See the full 51-state comparison or the 2026 employer payroll tax reference.
Common questions
Delaware hiring-cost FAQ
What SUI rate does HiringMath use for Delaware?
The calculator starts with a 1% base new-employer rate, applied to the first $14,500 of each employee's 2026 wages. Your assigned rate can differ because of industry, surcharges, and claims history, so replace the default with the rate on your state notice when available.
Does Delaware have a state income tax?
Yes. Delaware taxes wage income. Employers withhold it from employee pay, but it does not directly increase the employer's payroll-tax cost.
What should employers know about worker classification in Delaware?
ABC test; back UI taxes, interest, civil penalties. This is a planning summary, not legal advice; confirm classification decisions with the relevant agency or counsel.