Live in Delaware, Work in New Hampshire: Which State Taxes Your Paycheck?
Answer
Your home state takes it and the work state does not. New Hampshire levies no tax on wages; Delaware taxes residents on all income regardless of where it was earned. The result is a single Delaware resident return covering the full amount, with no offsetting credit.
Last verified
Crossing into a state with no income tax does not lower your tax bill, because your home state is not taxing you on where you work — it is taxing you on where you live. Delaware reaches all of a resident's income, and New Hampshire adds nothing on top.
What you file
- 1Resident return · Delaware
File a Delaware resident return reporting all of your income.
The two states, side by side
| Delaware | New Hampshire | |
|---|---|---|
| Taxes wages | Yes — graduated | No |
| Reciprocity partners | None | None |
| Convenience rule | Yes — general rule | No |
| Nonresident return | Form PIT-NON | Not applicable |
| Credit for other-state tax | Schedule I (Form PIT-RES) | No income tax |
| Nonresident safe harbour | None published | Not applicable |
| Local income tax | Yes | No |
| Revenue department | Delaware Division of Revenue | New Hampshire Department of Revenue Administration |
| Last verified |
The other direction
Reversing the commute does not always reverse the answer. Living in New Hampshire and working in Delaware gives:Work state only.
Same two states, different situation
The withholding answer turns on how you are paid and where the work happens, not only on which two states are involved.
- Remote worker: Delaware → New HampshireHome state only
- 1099 contractor: Delaware → New HampshireHome state only — estimated payments
- Moved mid-year: Delaware → New HampshireOne part-year return — the state you left
Other Delaware pairs
Questions people actually ask
I live in Delaware and work in New Hampshire. Which state takes the tax out of my paycheck?
Your home state takes it and the work state does not. New Hampshire levies no tax on wages; Delaware taxes residents on all income regardless of where it was earned. The result is a single Delaware resident return covering the full amount, with no offsetting credit.
Which state should my employer be withholding for?
Delaware. Your employer should withhold Delaware tax rather than New Hampshire tax on these wages. If a New Hampshire line is showing on your pay stub, raise it with payroll now rather than at filing time.
How current is this?
The Delaware and New Hampshire rules on this page were last checked against Delaware Division of Revenue and New Hampshire Department of Revenue Administration on 2026-08-07. We re-check the full grid every December after state legislative sessions close, and re-check the convenience-of-the-employer states quarterly because that is where the rules move fastest.
Sources
Every fact above comes from the revenue department that publishes the rule. We do not cite secondary summaries, and we do not restate a figure we could not find at source.
- Delaware Division of Revenue — individual income taxaccessed 2026-08-07
- New Hampshire Department of Revenue Administration — individual income taxaccessed 2026-08-07