DelawareDelaware residents could claim income tax credit for overtime
Delaware residents paid federally covered overtime for work beyond 40 hours in a week could claim a state income tax credit that shrinks at higher incomes.
What it does
Delaware residents could claim a $15,000 credit against state income tax for federally covered overtime paid for work beyond 40 hours in a week. The credit shrinks and then ends at higher incomes.
Argument forResidents paid for covered overtime could owe less Delaware income tax, leaving them with more money after taxes.
Argument againstWorkers with higher incomes could receive a smaller credit or none, even if they work the same overtime hours as lower earners.
More detail
The proposal would provide a $15,000 credit against Delaware income tax for covered overtime pay. It covers Delaware residents paid overtime under federal wage law for hours worked beyond 40 in one week. The credit shrinks when modified adjusted gross income, a tax measure of income, exceeds $125,000 for single filers or $250,000 for joint filers. It reaches zero at $150,000 for single filers or $300,000 for joint filers.
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Where it stands
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- May 5Introduced and Assigned to Elections & Government Affairs Committee in SenateIntroduced
Taxes & BudgetEconomy & Jobs