Tax Season Updates

Delaware Division of Revenue will open filing for 2025 personal income tax returns on January 26, 2026.

Personal income tax refunds will be issued beginning on February 16, 2026.

Delaware has decoupled from several elements of the One Big Beautiful Bill Act (OBBBA)

• With the enactment of HB 255, Delaware has decoupled from the OBBBA's for the following:
  • Retroactive treatment of unused capitalized qualified R&D expenditures for tax years 2022 to 2024.
  • 100% bonus depreciation.
  • 100% special depreciation allowance for Qualified Production Property.
  • For more details, refer to TIM 2025-02

Other elements of OBBBA that impact Delaware income tax returns:

• Delaware conforms with Federal Adjusted Gross Income (AGI) and with federal definition of Itemized Deductions.
  • For Tax Year 2025, Delaware’s Personal Income Tax calculation will pick up OBBBA changes that increased the cap on state and local tax (SALT) deductions to $40,000.
  • OBBBA deductions for no tax on tips, overtime, and car loan interest are not defined federally as itemized deductions and will not flow through to the Delaware Personal Income Tax
• For the Corporate Income Tax, Delaware conforms at Federal Taxable Income (FTI) and, except for the decoupled provisions above, Delaware returns should reflect OBBBA changes to the definition of FTI.

Recent Administrative Changes:

• New feature on our portal beginning October 6, 2025. Estimated taxes for corporate, fiduciary, and composite estimated taxes are now available. You do not need to register to make an estimated payment. Visit our portal at tax.delaware.gov for more information.
• Registration of “Doing Business As” (DBA) names will move to an online process through OneStop and administered by the Division of Revenue on February 2nd, 2026. On October 22nd, 2025 information on process changes were communicated by letter to existing DBA holders at the address associated with that DBA in the existing Courts database (https://courts.delaware.gov/tradenames/).
• Revenue’s Trade Name FAQ page (https://revenue.delaware.gov/trade-names-faqs/) has been updated with to outline the registration process and requirements as will be implemented on February 2nd, 2026. At this time, existing DBA holders are not required to re-register with DOR. Existing DBA holders may re-register with DOR, starting February 2nd, at no additional cost, but must hold a valid Delaware business license to complete re-registration.