A bill that would add a new and slightly higher personal state income tax bracket for those making more than $100,000 a year has been introduced.
The bill would add a top bracket of 6.9% for six-figure taxpayers. The top bracket is currently 6.6% for incomes of $60,000.
Sponsor is state Rep. Paul Baumbach, D-Newark.
The legislation would require a supermajority vote by the General Assembly.
Delaware levies a high personal income tax rate among the 50 states, but has no sales tax. It also has among the region’s lowest property taxes.
The 6.6% top rate, which starts at $60,000, affects a large percentage of households in the state.
Another bill introduced by Baumbach that has passed the House boosts the standard deduction, a measure that would provide a slight break for taxpayers at a cost to tax revenues of $25 million in the first year. The bill would also boost the earned income tax credit for low-income taxpayers.
The measures come after the retirement of state Rep. John Kowalko, D-Newark, who pushed for additional tax brackets, with a top bracket of 8.6% for those making more than $250,000 a year.
Kowalko, who clashed with House leadership and governors in his party during his time in Legislative Hall, was unable to generate much enthusiasm for the higher brackets.
