Commuter taxes 2026

Live in Maryland, work in Delaware

Delaware taxes Delaware-source wages earned by a Maryland resident. Maryland may give limited state and local credits; Wilmington tax and actual Maryland county rules need their own checks.

By Abu HasnatPage updated Nov 7, 2026Data: Maryland and Delaware revenue departments (methodology)

Choose your next step

Payroll starting point: Delaware DE-W4 and nonresident DE-W4NR worksheet (opens in new tab). Give the completed Delaware certificate to payroll and use its nonresident worksheet as directed. Maryland residence is not a Delaware wage-withholding exemption; identify any Wilmington city withholding separately.

Official tax guidance for both states

Check withholding, filing requirements and current forms with each state's tax agency.

Agency directory checked 2026-10-01 against the IRS state-government directory. This verifies the agency links, not an individual tax result. Use forms for the year you are filing.

Before you use this estimate

This model assumes a full-year resident of Maryland, ordinary employee wages and all workdays physically in Delaware. Check exemption eligibility before treating a work-state amount of $0 as your own result. Withholding is a prepayment, not final tax liability. Other income, a move during the year, remote work and separate local taxes or credits can change the result.

I live inI work inAnnual wages ($)Filing status

State income tax: $7,283 a year

Modeled annual state income tax for living in Maryland and working in Delaware: about $7,283 on $100,000 of wages.

Without wage reciprocity, the work state may tax wages earned there. Your home state generally offers a limited credit for eligible tax paid on the same income. Filing requirements, credit limits and local taxes need a separate check.

Maryland low-income limits: this schedule estimate does not apply Maryland's minimum-filing relief or poverty-level credit. A low-income worker may owe less or no Maryland tax. Check the official filing requirements (opens in new tab) and Form MW507 exemption instructions (opens in new tab) for your circumstances and filing year.

Tax guide and official sources: live in Maryland, work in Delaware

Official agency starting points: Maryland tax agency (opens in new tab) · Delaware tax agency (opens in new tab). These directory links identify the selected states' agencies, not your filing obligations. Check their individual-tax guidance and forms for the year you are filing.

Tax to Delaware

$5,259

nonresident

Tax to Maryland

$2,024

resident, after credit

Total state tax

$7,283

Typical state returns

This is the usual filing pattern, not a determination that you must file. Filing thresholds, age or dependent status, other income and withholding refunds can change which returns you need.

How this $100,000 estimate adds up

These steps follow the selected home, work state, salary and filing status. They reconcile the model's annual liability, not the amounts withheld from your paycheck.

Modeled state income tax for Maryland residence and Delaware work
Step	Delaware work state	Maryland home state
Tax before the modeled other-state credit	$5,259	$7,283
Modeled other-state credit subtracted	$0	$5,259
Tax after that credit	$5,259	$2,024

Total: $5,259 + $2,024 = $7,283 a year. Amounts are rounded for display. Work-state wage exemptions, when applicable, are already reflected in the first row; they are not an other-state credit.

The modeled credit is applied in Maryland, the home state. Actual eligibility and credit limits require the state instructions. Included county components stay in these amounts; excluded local taxes and credits stay excluded. Federal income tax, payroll programs and refund eligibility are outside this reconciliation.

State tax at different salaries

Wages	To DE	To MD	Modeled total	If you worked in MD
$50,000	$2,098	$1,260	$3,358	$3,358
$75,000	$3,609	$1,712	$5,321	$5,321
$100,000	$5,259	$2,024	$7,283	$7,283
$150,000	$8,559	$3,004	$11,563	$11,563
$250,000	$15,159	$5,063	$20,222	$20,222

Single filer, all wages earned in Delaware, 2026 state tax rules, standard deductions. State income tax includes Maryland's average county income tax. Other local income taxes are not included.

From paycheck withholding to your returns

Withholding: Give Delaware payroll DE-W4, using the nonresident computation in the linked certificate packet as appropriate. Its currently linked revision is March 4, 2022; it is not a new 2026 annual return. Check Maryland resident payments after the eligible credit. If payroll handles Maryland withholding, use the 2026 MW507 as directed; otherwise review Maryland estimated-payment requirements.
Returns: Prepare Delaware PIT-NON first, with the applicable federal-return copies, withholding statements and schedules required by its instructions. Then file Maryland Form 502 with Form 502CR Parts A, AA and BB. Maryland requires a completed, signed copy of the other-state return and any applicable local return supporting the credit. Use the filing-year packet: the annual Delaware and Maryland instructions checked here are 2025 editions.
Credit or refund: Form 502CR applies a combined credit ceiling, then allocates the allowed amount between Maryland state and local credits. Use eligible tax liability, not W-2 withholding, and do not count the same wages twice merely because Delaware and Wilmington both tax them. Maryland guidance permits a credit for eligible Wilmington earnings tax; retain its prescribed return or W-2 support. The calculator does not complete these state/local worksheets or calculate a Wilmington credit.

Worked example: $100,000 of wages

Single filer, full-year resident of Maryland, all work performed in Delaware, no other income, standard deductions and modeled personal exemptions. Before credit, Maryland tax is $7,283. Modeled Maryland credit: $5,259. Pay $5,259 to Delaware and $2,024 to Maryland, modeled total $7,283.

Maryland’s displayed tax includes an illustrative average resident-county component, not the actual residence-county rate. The Maryland state/local credit allocation and Wilmington tax or credits are not calculated. The linked annual forms are 2025 editions supporting the workflow; use the correct filing-year rates, county and credit instructions for a personal result.

Annual liability, not paycheck withholding or a refund estimate. Federal tax, payroll programs, other local taxes, special credits and part-year residency are excluded. State income tax includes Maryland's average county income tax. Other local income taxes are not included.

Remote-work and local exceptions

The estimate assumes a full-year Maryland resident, ordinary W-2 wages and all workdays physically in Delaware. Delaware Schedule W (Form PIT-SCW) permits outside-state allocation for employer necessity rather than the employee’s convenience; a voluntary Maryland home-working day is not automatically excluded. Keep employer requirements and workday records. Wilmington has separate city refund rules and records; a Delaware state allocation does not itself establish a city refund.

Cecil County home, work inside Wilmington city limits

For a Maryland resident living in Cecil County and working inside Wilmington, identify the actual home county and the city work address before using local figures. Collect the Delaware return and Wilmington tax records for the Maryland credit check. If both jurisdictions taxed the same wages, use Maryland’s prescribed combined-credit calculation without adding those wages twice. An otherwise similar workplace outside Wilmington requires a separate city-boundary check; no city amount is estimated here.

Official forms and instructions

Source audit 2026-11-02. Use the return and instructions for the year you are filing; a current-forms link may still show a prior-year return. Official sources checked; not independently reviewed.

Check your payslip and keep these records

Compare the payroll certificate you supplied with the state withholding on your next payslip. Check city, county and school-district entries separately; a state exemption does not settle local tax.
Keep your W-2 and other withholding statements, copies of payroll certificates, filed state and local returns, and proof of tax paid. A refund depends on actual withholding and the completed return, not this annual estimate.
Keep an actual work-location log, including home-working days. This calculator assumes ordinary employee wages, full-year residence in Maryland and every workday physically in Delaware.
If you moved during the year, have nonwage income or do not meet that scope, follow the pair's remote and local exceptions and the moving-year tax guide before using the amount as your own result. This tool does not calculate hybrid allocation, local credits or a personal refund.

What to do

Keep a record of the days you work in each state, especially if you sometimes work from home.

Working from home for a Delaware employer

Delaware has a "convenience of the employer" rule. Full rule: days worked at home for convenience by nonresidents of DE-based employers count as DE workdays.

Local income taxes

Maryland: All 23 counties and Baltimore City levy resident local income tax (about 2.25%–3.3%, on the state return). Nonreciprocal nonresidents generally pay the 2.25% special nonresident tax instead of resident county tax; some home jurisdictions require Form 515. Pennsylvania reciprocal wages are exempt from Maryland state tax, but Maryland local tax may still apply. MW507 line 5 covers the Pennsylvania state exemption; lines 6 and 7 cover separate local exemptions. Form 515 may be required, depending on the Pennsylvania home jurisdiction and Maryland work county. Reciprocity is not a blanket local-tax exemption.
Delaware: Wilmington levies a 1.25% earned income tax on residents and on nonresidents working in the city - relevant for PA, NJ, MD commuters.

Frequently asked questions

Do I pay Delaware income tax if I live in Maryland?

Yes. Delaware taxes wages earned there by nonresidents. On $100,000 that's about $5,259.

Do I have to file taxes in both Maryland and Delaware?

Prepare Delaware PIT-NON first, with the applicable federal-return copies, withholding statements and schedules required by its instructions. Then file Maryland Form 502 with Form 502CR Parts A, AA and BB. Maryland requires a completed, signed copy of the other-state return and any applicable local return supporting the credit. Use the filing-year packet: the annual Delaware and Maryland instructions checked here are 2025 editions.

Will I be taxed twice?

The modeled state credit reduces overlap on eligible wages; separate local taxes or sourcing differences can still leave additional tax. Maryland credits the tax you pay Delaware, so your total is about $7,283 on $100,000, compared with $7,283 if you also worked in Maryland. Local city or county taxes may still apply.

Rules reviewed 2026-09-24 from state revenue departments and the Tax Foundation. Estimates only; confirm with each state's revenue department.