Delaware Mileage Deduction 2026

Delaware has progressive income tax up to 6.6% and no sales tax. Your mileage deduction saves at both the federal and state level. The lack of sales tax also lowers your actual vehicle costs, no tax on the car purchase, parts, tires, or repairs.

At 15,000 business miles and a 6% effective rate, you save roughly $685 in state taxes on top of about $4,252 federal. That is about $4,937 total.

New for 2026: Delaware added higher brackets for earners above $125,000. If your Schedule C income puts you in the 6.75% bracket, your mileage deduction becomes even more valuable per mile.

How to File

Deduct on federal Schedule C, Line 9 at 76¢/mile. Delaware uses your federal adjusted gross income as the starting point, so the deduction flows through to your state return. Keep a mileage log with the date, destination, purpose, and miles for each trip. Quarterly estimated payments are required if you expect to owe more than $400.

The state does not require employers to reimburse mileage.

FAQ

Does Delaware's no-sales-tax help with mileage costs?

Yes, indirectly. You pay no sales tax on vehicle purchases, parts, or maintenance, which lowers your out-of-pocket driving costs compared to states with 6-10% sales tax.

Does my mileage deduction reduce Delaware state taxes?

Yes. Delaware starts with your federal adjusted gross income. Your Schedule C mileage deduction reduces that number, which directly reduces your state tax.

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