CALCMONEY // CAPITAL GAINS // DE
Delaware adds 6.6% state tax on top of the 23.8% federal rate. On a $1M gain, total tax: $304,000.
Calculate Your Gain6.6%
30.4%
$152,000
$304,000
| Tax Component | Rate | On $500K Gain | On $1M Gain |
|---|---|---|---|
| Federal Long-Term Rate | 20.0% | $100,000 | $200,000 |
| Net Investment Income Tax (NIIT) | 3.8% | $19,000 | $38,000 |
| Delaware State Tax | 6.6% | $33,000 | $66,000 |
| Total Tax Owed | 30.4% | $152,000 | $304,000 |
| Net Proceeds (after tax) | $348,000 | $696,000 |
Federal rate assumes income in the 20% long-term bracket. NIIT applies to investors with MAGI above $200K (single) or $250K (married). State rate shown is the top applicable rate.
| Gain Amount | DE Total Tax | Zero-Tax State | DE Premium |
|---|---|---|---|
| $250,000 | $76,000 | $59,500 | +$16,500 |
| $500,000 | $152,000 | $119,000 | +$33,000 |
| $1,000,000 | $304,000 | $238,000 | +$66,000 |
| $2,500,000 | $760,000 | $595,000 | +$165,000 |
| $5,000,000 | $1,520,000 | $1,190,000 | +$330,000 |
Delaware taxes long-term capital gains at up to 6.6%. Combined with the 20% federal rate and 3.8% NIIT, a high-income DE investor faces 30.4% on a large capital event. On a $1M gain, that is $304,000 in total tax, leaving $696,000 after tax.
The difference between realizing a gain in Delaware versus a zero-tax state like Texas or Florida is $66,000 per $1M in gains. For a $5M exit, the gap is $330,000. Domicile planning is a key lever for HNW investors ahead of a major liquidity event.
The NIIT adds 3.8% on top of the federal rate for investors with Modified Adjusted Gross Income above $200,000 (single) or $250,000 (married filing jointly). This threshold is not indexed to inflation, so it captures most HNW capital gain transactions regardless of state.
| Alaska | None |
| Florida | None |
| Nevada | None |
| New Hampshire | None |
| South Dakota | None |
| California | 13.3% |
| New Jersey | 10.8% |
| District of Columbia | 10.8% |
| Oregon | 9.9% |
| Minnesota | 9.8% |
Illinois
5.0% state rate
OROregon
9.9% state rate
RIRhode Island
6.0% state rate
NYNew York
8.8% state rate