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 $668 in state taxes on top of about $4,154 federal. That is about $4,822 total.

Delaware's 6.6% top rate starts at $60,000 of taxable income, a threshold most full-time self-employed drivers clear, so miles come off income taxed at the ceiling rate rather than a middle bracket. Bills to add 6.75% and 6.95% brackets above $125,000 have been introduced repeatedly (most recently HS 2 for HB 13) but none has passed, so 6.6% remains the top rate for 2026.

How to File

Deduct on federal Schedule C, Line 9 at 76¢/mile from 1 July 2026 (72.5¢ for trips before that). 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 $1,000 or more in federal tax for the year.

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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