Does Delaware have an estate tax?

No. Delaware repealed its estate tax effective January 1, 2018. Estates of people who die on or after that date owe no Delaware state estate tax regardless of size. Only the federal estate tax can apply to a Delaware estate today.

What is the federal estate tax exemption?

The federal estate tax exemption is very high — over 13 million dollars per person in recent years and indexed for inflation. Only the portion of a taxable estate above that exemption is taxed, at federal rates that climb to 40 percent.

Did Delaware ever have an estate tax?

Yes. Delaware reinstated an estate tax in 2009 tied to the federal exemption, but the legislature let it sunset and then formally repealed it effective 2018. So estates of decedents dying before 2018 may have had Delaware exposure, but current estates do not.

Is estate tax different from inheritance tax?

Yes. Estate tax is paid by the estate before assets are distributed, based on the total value. Inheritance tax is paid by individual heirs based on what they receive and their relationship to the deceased. Delaware has neither tax today.

Should I still plan my estate in Delaware?

Yes. Even with no state estate tax, large estates can owe federal estate tax, and probate, trusts, and beneficiary planning still matter. This calculator estimates federal exposure, but consult an estate attorney for documents and strategy.

Delaware Estate Tax Calculator

Email me this result

Get this tool's output sent to your inbox, plus one useful tool a week. No spam, unsubscribe any time.

Good news for Delaware estates: the state repealed its estate tax effective 2018, so there is no Delaware death tax to pay. The only estate tax that can still apply is the federal one, and only on very large estates. This tool confirms the state result and estimates federal exposure.

How it works

Delaware’s piece is zero; the federal piece applies only above the exemption:

taxable estate = gross estate − debts − charitable − marital deduction
delaware tax   = $0   (repealed effective 2018)
federal tax    = 40% × max(0, taxable estate − federal exemption)

Because the federal exemption is in the multi-million-dollar range and indexed for inflation, the overwhelming majority of estates owe nothing at either level.

Example and tips

A 5 million dollar taxable estate owes no Delaware estate tax and, sitting below the roughly 13.6 million dollar federal exemption, owes no federal estate tax either — zero total. An estate of 20 million dollars would owe federal tax of about 40 percent on the roughly 6.4 million dollars above the exemption. Even without a Delaware estate tax, large estates should use trusts and lifetime gifting to manage the federal exposure.