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Rhode Islandworking inDelaware
COE Risk — may owe tax even if fully remote

Delaware

Work State Tax Rate
2.2%-6.6%
Withholding Starts
Day 1 — COE overrides any threshold
Law Last Updated
Jan 1, 2026

Employee Obligations (Which Returns YOU Must File)

Delaware has a Convenience of Employer rule that affects Rhode Island residents. If your employer is in Delaware and you work remotely from Rhode Island, Delaware may still tax your paycheck. File a nonresident Delaware return plus your Rhode Island return and claim the RI Schedule II credit. Consider consulting a CPA.

Employer Obligations (What Your Employer Must Withhold & Remit)

Delaware's Convenience of Employer rule may require withholding Delaware tax even if the Rhode Island employee works 100% remotely. Register from day 1. The COE rule means employers must withhold Delaware tax even for remote Minnesota employees. Unemployment applies to the first $10,500 of wages. Paid Leave employer contribution is up to 0.4% for employers with 25 or more employees.

City & Local Income Taxes (Extra Filings Beyond the State Return)

Wilmington charges a 1.25% wage tax on nonresidents. It is the only Delaware city with this tax.

Other Paycheck Deductions (Disability, Paid Leave, Unemployment)

Up to 0.4% for Paid Leave (contributions began 2025; benefit payments to workers began January 1, 2026).

Remote Work Tax Risk — Convenience of Employer (COE) Rule

Delaware has a full Convenience of Employer rule that affects Rhode Island residents. If your employer is based in Delaware and you work remotely from Rhode Island, Delaware may tax your entire paycheck as if you worked there.

Row last reviewed: May 8, 2026Home state credit form: RI Schedule II

This is general information, not tax or legal advice. Laws change frequently. Always consult a licensed CPA or tax attorney for your specific situation. All information researched as of March 21, 2026.