Synopsis
This Act adjusts the existing personal income tax brackets and applicable tax rates. Like under House Bill No. 13, under House Substitute No. 1 for HB 13, 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 at higher rates. The result of the changes under this Act will be that those with a taxable income of $134,667 or less will see no increase in personal income taxes, with 92% of Delaware taxpayers receiving an overall tax decrease. House Substitute No. 1 for House Bill No. 13 differs from HB 13 as follows: • Creates additional tax brackets for taxable income not in excess of $60,000. • Decreases the tax rate for all tax brackets for taxable income not in excess of $60,000. • Creates 3 additional tax brackets for taxable income above $60,000 instead of 2. In addition, HS 1 for HB 13 is named the “The John Kowalko, Jr., Fairness in Taxation Act”.