Tax Planning for Physicians in Wilmington, Delaware (2026)
Wilmington is the only Delaware city with a wage tax. It applies to everything residents earn and to the in-city earnings of people who commute in, including physicians at Wilmington hospitals.
2026 at a glance
| Wilmington earned income tax | 1.25% |
|---|---|
| Applies to | Residents' wages and net profits; nonresidents' earnings for work in the city |
| Delaware top rate | 6.6% over $60,000 |
| Delaware PTET | Not enacted |
Planning priorities
- The city tax is a flat percentage of gross earned income, so retirement deferrals do not reduce it.
- Delaware has no pass-through entity tax, so practice owners there cannot use the SALT workaround.
- Pennsylvania and New Jersey residents who work in Wilmington pay Delaware nonresident tax and the city tax, then claim home-state credits where allowed.
See the full Delaware physician tax guide.
More physician tax guides
- Other Delaware cities: Dover, Newark.
- State rules: Delaware physician tax guide and all 50 state guides.
- By specialty: Hospitalists, Radiologists, Dermatologists, Neurosurgeons and every specialty.
- Core strategy: tax planning for physicians, tax planning for medical practice owners, advanced strategies for high-income physicians and S corporation tax planning for physicians, plus the physician tax glossary.
Frequently asked questions
Does the Wilmington wage tax apply to self-employed physicians?
Yes. It applies to net profits of businesses and professions conducted in the city.
Get a tax plan built for your situation
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Sources
This article is for general educational purposes and is not tax, legal or investment advice. Tax law changes often and its application depends on your facts. Figures reflect 2026 rules as published by the sources listed above. Consult a qualified professional before acting. See our editorial policy.