Delaware Code Title 30 Sec. 1102 – Imposition and rate of tax; separate tax on lump-sum distributions

(a) (1) For taxable years beginning before January 1, 1985, the amount of tax shall be determined as follows:

1.4% of the amount of taxable income not in excess of $1,000;

2.0% of the amount of taxable income in excess of $1,000, but not in excess of $2,000;

3.0% of the amount of taxable income in excess of $2,000, but not in excess of $3,000;

4.2% of the amount of taxable income in excess of $3,000, but not in excess of $4,000;

5.2% of the amount of taxable income in excess of $4,000, but not in excess of $5,000;

6.2% of the amount of taxable income in excess of $5,000, but not in excess of $6,000;

7.2% of the amount of taxable income in excess of $6,000, but not in excess of $8,000;

8.0% of the amount of taxable income in excess of $8,000, but not in excess of $10,000;

8.2% of the amount of taxable income in excess of $10,000, but not in excess of $15,000;

8.4% of the amount of taxable income in excess of $15,000, but not in excess of $20,000;

8.8% of the amount of taxable income in excess of $20,000, but not in excess of $25,000;

9.4% of the amount of taxable income in excess of $25,000, but not in excess of $30,000;

11.0% of the amount of taxable income in excess of $30,000, but not in excess of $40,000;

12.2% of the amount of taxable income in excess of $40,000, but not in excess of $50,000;

13.5% of the amount of taxable income in excess of $50,000.

(2) For taxable years beginning after December 31, 1984, and before January 1, 1986, the amount of tax shall be determined as follows:

1.3% of the amount of taxable income not in excess of $1,000;

1.8% of the amount of taxable income in excess of $1,000, but not in excess of $2,000;

2.7% of the amount of taxable income in excess of $2,000, but not in excess of $3,000;

3.8% of the amount of taxable income in excess of $3,000, but not in excess of $4,000;

4.7% of the amount of taxable income in excess of $4,000, but not in excess of $5,000;

5.6% of the amount of taxable income in excess of $5,000, but not in excess of $6,000;

6.5% of the amount of taxable income in excess of $6,000, but not in excess of $8,000;

7.2% of the amount of taxable income in excess of $8,000, but not in excess of $10,000;

7.4% of the amount of taxable income in excess of $10,000, but not in excess of $15,000;

7.6% of the amount of taxable income in excess of $15,000, but not in excess of $20,000;

7.9% of the amount of taxable income in excess of $20,000, but not in excess of $25,000;

8.5% of the amount of taxable income in excess of $25,000, but not in excess of $30,000;

9.9% of the amount of taxable income in excess of $30,000, but not in excess of $40,000;

10.7% of the amount of taxable income in excess of $40,000.

(3) For taxable years beginning after December 31, 1985, and before January 1, 1987, the amount of tax shall be determined as follows:

1.2% of the amount of taxable income not in excess of $1,000;

1.6% of the amount of taxable income in excess of $1,000, but not in excess of $2,000;

2.5% of the amount of taxable income in excess of $2,000, but not in excess of $3,000;

3.5% of the amount of taxable income in excess of $3,000, but not in excess of $4,000;

4.3% of the amount of taxable income in excess of $4,000, but not in excess of $5,000;

5.1% of the amount of taxable income in excess of $5,000, but not in excess of $6,000;

5.9% of the amount of taxable income in excess of $6,000, but not in excess of $8,000;

6.6% of the amount of taxable income in excess of $8,000, but not in excess of $10,000;

6.7% of the amount of taxable income in excess of $10,000, but not in excess of $15,000;

6.9% of the amount of taxable income in excess of $15,000, but not in excess of $20,000;

7.2% of the amount of taxable income in excess of $20,000, but not in excess of $25,000;

7.7% of the amount of taxable income in excess of $25,000, but not in excess of $30,000;

9.0% of the amount of taxable income in excess of $30,000, but not in excess of $40,000;

9.7% of the amount of taxable income in excess of $40,000.

(4) For taxable years beginning after December 31, 1986, and before January 1, 1988, the amount of tax shall be determined as follows:

1.0% of the amount of taxable income not in excess of $1,000;

1.4% of the amount of taxable income in excess of $1,000, but not in excess of $2,000;

2.3% of the amount of taxable income in excess of $2,000, but not in excess of $3,000;

3.2% of the amount of taxable income in excess of $3,000, but not in excess of $4,000;

3.9% of the amount of taxable income in excess of $4,000, but not in excess of $5,000;

4.6% of the amount of taxable income in excess of $5,000, but not in excess of $6,000;

5.4% of the amount of taxable income in excess of $6,000, but not in excess of $8,000;

6.0% of the amount of taxable income in excess of $8,000, but not in excess of $10,000;

6.1% of the amount of taxable income in excess of $10,000, but not in excess of $15,000;

6.3% of the amount of taxable income in excess of $15,000, but not in excess of $20,000;

6.5% of the amount of taxable income in excess of $20,000, but not in excess of $25,000;

7.0% of the amount of taxable income in excess of $25,000, but not in excess of $30,000;

8.2% of the amount of taxable income in excess of $30,000, but not in excess of $40,000;

8.8% of the amount of taxable income in excess of $40,000.

(5) For taxable years beginning after December 31, 1987, and before January 1, 1996, the amount of tax shall be determined as follows:

3.2% of taxable income in excess of $2,000, but not in excess of $5,000;

5.0% of taxable income in excess of $5,000, but not in excess of $10,000;

6.0% of taxable income in excess of $10,000, but not in excess of $20,000;

6.6% of taxable income in excess of $20,000, but not in excess of $25,000;

7.0% of taxable income in excess of $25,000, but not in excess of $30,000;

7.6% of taxable income in excess of $30,000, but not in excess of $40,000;

7.7% of taxable income in excess of $40,000.

(6) For taxable years beginning after December 31, 1995, and before January 1, 1997, the amount of tax shall be determined as follows:

3.2% of taxable income in excess of $2,000 but not in excess of $5,000;

5.0% of taxable income in excess of $5,000 but not in excess of $10,000;

6.0% of taxable income in excess of $10,000 but not in excess of $20,000;

6.35% of taxable income in excess of $20,000 but not in excess of $25,000;

6.65% of taxable income in excess of $25,000 but not in excess of $30,000;

7.1% of taxable income in excess of $30,000.

(7) For taxable years beginning after December 31, 1996, and before January 1, 1999, the amount of tax shall be determined as follows:

3.1% of taxable income in excess of $2,000 but not in excess of $5,000;

4.85% of taxable income in excess of $5,000 but not in excess of $10,000;

5.8% of taxable income in excess of $10,000 but not in excess of $20,000;

6.15% of taxable income in excess of $20,000 but not in excess of $25,000;

6.45% of taxable income in excess of $25,000 but not in excess of $30,000;

6.9% of taxable income in excess of $30,000.

(8) For taxable years beginning after December 31, 1998, and before January 1, 2000, the amount of tax shall be determined as follows:

2.60% of taxable income in excess of $2,000 but not in excess of $5,000;

4.30% of taxable income in excess of $5,000 but not in excess of $10,000;

5.20% of taxable income in excess of $10,000 but not in excess of $20,000; and

5.60% of taxable income in excess of $20,000 but not in excess of $25,000.

(9) For taxable years beginning after December 31, 1998, and before January 1, 2000, the amount of tax shall be determined by reference to paragraph (a)(8) of this section and 5.95% of taxable income in excess of $25,000 but not in excess of $60,000; and 6.40% of taxable income in excess of $60,000.

(10) For taxable years beginning after December 31, 1999, and before January 1, 2010, the amount of tax shall be determined as follows:

2.2% of taxable income in excess of $2,000 but not in excess of $5,000;

3.9% of taxable income in excess of $5,000 but not in excess of $10,000;

4.8% of taxable income in excess of $10,000 but not in excess of $20,000;

5.2% of taxable income in excess of $20,000 but not in excess of $25,000; and

5.55% of taxable income in excess of $25,000 but not in excess of $60,000.

(11) For taxable years beginning after December 31, 1999, and before January 1, 2010, the amount of tax shall be determined by reference to paragraph (a)(10) of this section and 5.95% of taxable income in excess of $60,000.

(12) For taxable years beginning after December 31, 2009, and before January 1, 2012, the amount of tax shall be determined as follows:

2.2% of taxable income in excess of $2,000 but not in excess of $5,000;

3.9% of taxable income in excess of $5,000 but not in excess of $10,000;

4.8% of taxable income in excess of $10,000 but not in excess of $20,000;

5.2% of taxable income in excess of $20,000 but not in excess of $25,000;

5.55% of taxable income in excess of $25,000 but not in excess of $60,000; and

6.95% of taxable income in excess of $60,000.

(13) For taxable years beginning after December 31, 2011, and before January 1, 2014, the amount of tax shall be determined as follows:

2.2% of taxable income in excess of $2,000 but not in excess of $5,000;

3.9% of taxable income in excess of $5,000 but not in excess of $10,000;

4.8% of taxable income in excess of $10,000 but not in excess of $20,000;

5.2% of taxable income in excess of $20,000 but not in excess of $25,000;

5.55% of taxable income in excess of $25,000 but not in excess of $60,000; and

6.75% of taxable income in excess of $60,000.

(14) For taxable years beginning after December 31, 2013, the amount of tax shall be determined as follows:

2.2% of taxable income in excess of $2,000 but not in excess of $5,000;

3.9% of taxable income in excess of $5,000 but not in excess of $10,000;

4.8% of taxable income in excess of $10,000 but not in excess of $20,000;

5.2% of taxable income in excess of $20,000 but not in excess of $25,000;

5.55% of taxable income in excess of $25,000 but not in excess of $60,000; and

6.6% of taxable income in excess of $60,000.

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Terms Used In Delaware Code Title 30 Sec. 1102

Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
Department: means the Department of Finance. See Delaware Code Title 30 Sec. 101
Director: means the Director of the Division of Revenue or the Secretary of Finance of the State. See Delaware Code Title 30 Sec. 502
President pro tempore: A constitutionally recognized officer of the Senate who presides over the chamber in the absence of the Vice President. The President Pro Tempore (or, "president for a time") is elected by the Senate and is, by custom, the Senator of the majority party with the longest record of continuous service.
State: means a state of the United States, the District of Columbia, Puerto Rico, The United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States. See Delaware Code Title 30 Sec. 502
Tax: shall be deemed also to refer to license fees imposed under Part III of this title. See Delaware Code Title 30 Sec. 502
Taxable: means any person, fiduciary, association of persons, syndicate, joint venture or copartnership subject to making return or to payment of tax imposed by this title. See Delaware Code Title 30 Sec. 101
Year: means a calendar year, and is equivalent to the words "year of our Lord. See Delaware Code Title 1 Sec. 302

(b) (1) In addition to the tax imposed under subsection (a) of this section, there is hereby imposed a separate tax in the amount determined in paragraph (b)(2) of this section, on the ordinary income portion of a lump sum distribution received by every resident individual, estate or trust.

(2) The amount of the tax imposed by this subsection for any taxable year shall be an amount equal to the amount of the initial separate tax for such year, multiplied by a fraction, the numerator of which is the ordinary income portion of a lump sum distribution for the taxable year, and the denominator of which is the total taxable amount of such distribution for such year.

(3) The initial separate tax for any taxable year is an amount equal to 10 times the tax which would be imposed by subsection (a) of this section if the taxable income referred to were equal to one tenth of the total taxable amount of the lump sum distributed for the taxable year.

(4) The recipient of a lump-sum distribution shall be liable for the tax imposed by this subsection.

(5) For purposes of this subsection, the rules concerning multiple distributions and distributions of annuity contracts as specified in § 402(e)(2) of the Internal Revenue Code [26 U.S.C. § 402(e)(2)] shall be applicable.

(6) For purposes of this subsection, the definition and special rules applying to the tax on lump-sum distributions as specified in § 402(e)(4) of the Internal Revenue Code [26 U.S.C. § 402(e)(4)] shall be applicable.

(7) For purposes of this subsection, the rules relating to rollover as specified in § 402(c) and (e)(1)(B) of the Internal Revenue Code [26 U.S.C. § 402(c) and (e)(1)(B)] shall be applicable.

(c) The tax rates established by paragraph (a)(4) of this section shall be revoked effective January 1, 1988, unless the Secretary of Labor has, on or before June 10, 1987, made a written determination, submitted to the Governor, Speaker of the House and President Pro Tempore of the Senate, that the total full-time equivalent employment in the State, as regularly reported by the State Department of Labor, has averaged an annual increase of 6,000 full-time equivalent jobs in nonagricultural wage and salary employment as reported by the Delaware Department of Labor during the period from June 1, 1984, through May 31, 1987. Once the condition of this subsection has been satisfied, there shall be no revocation of the paragraph (a)(4) of this section rates by reason of this subsection. In the event of any revocation of the tax rates established by paragraph (a)(4) of this section, the following rates shall become effective: