2026 · Delaware
Delaware severance pay tax
Federal 22% plus Delaware's regular withholding. But that's withholding, not your tax. This works out what you owe.
Delaware layoff at a glance
| State tax on severance | Regular withholding tables |
| State income tax | Graduated, up to 6.6% |
| Unemployment weekly max | $450 for up to 26 weeks |
| Unemployment taxed by Delaware? | Yes |
How Delaware withholds on severance
Delaware has no single flat supplemental rate, severance is withheld using the regular tables, so the amount tracks your bracket. On top of that, the federal government withholds a flat 22% (37% over $1 million) and FICA, 6.2% Social Security up to the $184,500 wage base plus 1.45% Medicare.
Delaware taxes income on a graduated scale topping out at 6.6%, so a large severance can be pushed into that top rate. If you also claim unemployment, Delaware pays up to $450 a week for up to 26 weeks, and taxes it on the state return. That's the Delaware layoff picture in one place, the severance tax here, the unemployment on its own Delaware page.
Worked example: $40,000 severance in Delaware
A single filer, $40,000 severance paid separately, with $60,000 of other 2026 income:
| Federal withholding (22%) | −$8,800 |
| FICA (Social Security + Medicare) | −$3,060 |
| Delaware withholding | −$2,640 |
| Net check | $25,500 |
| What it costs in tax | $13,850 |
Over-withheld by about $650, expect roughly that back as a refund at filing. The withholding is a fixed rate; your actual tax is your marginal rate on the severance stacked on your other income.
Stacking Delaware unemployment on top
Delaware sizes your weekly check off your recent wages, up to $450 a week, mid-pack nationally (34th of 51). There is no separate dependent add-on. Duration 24-26.
| Weekly benefit range | $20 - $450 |
| How the amount is set | Off your recent wages |
| Maximum duration | 26 weeks (24-26) |
| Waiting week | No waiting week |
| Dependent allowance | None |
| Taxed by Delaware | Yes |
Stacked together, that $40,000 severance nets about $25,500 and Delaware's unemployment can add up to $11,700 over 26 weeks, about 9 months of a $4,000 budget before you need a paycheck. File through Delaware Department of Labor, Division of Unemployment Insurance; nail down the exact figure in the runway calculator.
Questions about Delaware severance tax
Is severance taxed higher in Delaware?
No. It's withheld at a flat 22% federally and by Delaware's regular tables, but it's taxed as ordinary income at your normal rates. The worked example on this page shows the gap in dollars: on a $40,000 severance, $8,800 of federal tax is withheld up front while the severance actually costs about $13,850 in tax for that filer. Whichever direction the gap runs, it settles up at filing, a refund if too much was taken, a bill to plan for if too little.
Does Delaware tax my severance?
Yes, Delaware taxes severance as wages. Delaware has no single flat supplemental rate, severance is withheld using the regular tables, so the amount tracks your bracket.
Will I get a refund or owe more?
It depends on your bracket. The flat 22% over-withholds for lower earners (refund) and under-withholds for those in the 32 to 37% brackets (set aside the difference). The crossover sits where your marginal rate passes 22%: below it, every severance dollar was over-withheld and comes back; above it, the flat rate quietly under-collects and the difference lands on your return as a balance due. For the $40,000 example on this page with $60,000 of other income, the calculator's verdict is printed under the worked example. Enter your numbers above to see which way it goes for you.
Your Delaware layoff toolkit
- Delaware unemployment benefits weekly amount and duration
- Runway calculator how long your money lasts
- Delaware paycheck calculator take-home at your next job
- Delaware 1099 tax if you go freelance
An estimate for the 2026 tax year. State supplemental figures from the verified dataset, last verified 2026-07-24. Nothing you enter is stored. Not tax advice.