Does DelawareTax Tips & Overtime After the OBBBA?
Delaware has not conformed to the federal deductionfor the federal OBBBA tip and overtime deductions. Here's what that means for your paycheck.
Compiled by Sharon Ben-Moshe · Conformity data verified August 1, 2026
Quick answer
Delaware has a state income tax (about 6.6% used for estimates) and currently has not conformed to the federal deduction. That means you may still owe state income tax on your tips and overtime even though your federal tax is reduced.
Tips deduction
Not conformed
Overtime deduction
Not conformed
Details for Delaware
Delaware starts from federal AGI, which the OBBBA tips/overtime deductions don't reduce, so both remain fully taxable. A bill for an independent state tips deduction (HB 386) has cleared committee but was not enacted.
Last verified August 1, 2026.
How OBBBA tips & overtime work in Delaware
The OBBBA is a federal deduction: eligible workers can deduct up to $25,000 of tips and $12,500 of overtime premium ($25,000 if married filing jointly) from federal taxable income through 2028. Whether Delaware follows suit depends on state conformity. FICA (Social Security and Medicare) applies everywhere. Learn more about the tip deduction and the overtime deduction.
How this is sourced: Delaware's conformity status is tracked against state legislation and primary IRS guidance, and re-verified as the law changes. See our methodology and sources.