Delaware City Wage Tax Nonresident Refund — Complete Guide for 2026

Which "Delaware City" Applies to You?

There are two different cities that could be the "Delaware City" in your search: Wilmington, Delaware and Delaware City, Ohio. They are entirely separate municipalities in different states with different tax rates, forms, and filing requirements. Getting this wrong means filing the wrong return and delaying your refund.

The keyword "Delaware City" creates confusion because people search for it meaning different places. Most search results show Wilmington, DE information, but some show Delaware City, OH content. This guide covers both so you can quickly identify which one applies.

Wilmington, Delaware has a 1.25% city wage tax on earned income. This is the only city in Delaware with a local wage tax. Nonresidents who work in Wilmington but live elsewhere may be subject to this tax on wages earned within city limits.

Delaware City, Ohio has a 1.85% municipal income tax. This is a separate jurisdiction entirely — a small city located about 20 miles north of Columbus, Ohio. Nonresidents who work in Delaware City, OH but live elsewhere may be subject to this tax on wages earned within city limits.

Here is a quick comparison to help you determine which city applies to your situation:

To determine which city applies to you, check your W-2 form. Look at Box 18 (Local wages, tips, etc.) and Box 19 (Local income tax). The city name or code listed there will tell you which jurisdiction withheld tax from your paycheck. If your W-2 shows "Wilmington" or a DE code, you need Wilmington guidance. If it shows "Delaware City, OH" or an Ohio code, you need Delaware City, OH guidance.

If you are still unsure, contact your employer's payroll department and ask which city wage tax was withheld from your wages. They can confirm the exact jurisdiction and the amount withheld.

Once you have identified the correct jurisdiction, you can proceed to the eligibility section below to determine if you qualify for a refund.

Am I Eligible for a Refund?

If you had city wage tax withheld but you didn't actually owe it — or you owe less than what was withheld — you are likely eligible for a refund. The specific rules differ depending on whether you are dealing with Wilmington, DE or Delaware City, OH.

For Wilmington, DE, you are eligible for a refund if you are a bona fide nonresident (you live outside Wilmington city limits), you had Wilmington wage tax withheld from your paycheck, and you worked fewer days in Wilmington than your employer assumed.

You also qualify if you worked zero days in Wilmington but tax was still withheld. If you worked partial days in the city, you qualify for apportionment — meaning you only owe tax on the days you actually worked inside city limits.

For Delaware City, OH, you are eligible for a refund if you are a nonresident (you live outside Delaware City limits), your employer incorrectly withheld the 1.85% municipal income tax, and you worked fewer days in Delaware City than was withheld for. If you worked zero days in Delaware City but tax was withheld, you can claim a full refund.

You do not qualify for a refund if you are a resident of the city in question. Residents owe the full city tax on all wages regardless of where they work. You also do not qualify if you worked all of your days in the city — the full tax was correctly withheld and no refund is due. Finally, if no tax was withheld from your paycheck, you cannot claim a refund because nothing was paid in the first place.

Quick check: If you live outside city limits, had city tax withheld, and worked fewer days in the city than your employer assumed — you are likely eligible for a refund. See the Eligibility Quick Check table above for the full breakdown.

Employer Withholding Errors

If your employer withheld the wrong city tax — for example, they withheld Wilmington tax but you never worked in Wilmington — your employer may have made an error. This happens more often than you might think, especially with remote workers and payroll systems that default to the employer's headquarters location.

If you believe your employer withheld tax in error, you should first contact your payroll department. They may be able to correct the withholding for future pay periods. However, for the current tax year, you will still need to file for a refund using the appropriate form (WCWT-5 for Wilmington or the Nonresident Claim for Refund for Delaware City, OH). Your employer's certification signature will be required on the refund form, so you will need their cooperation.

Employer Letter Template

If you need to request your employer's cooperation and signature on the refund form, use this template:

Dear [Payroll/HR Department],

I am writing to request your assistance in filing a nonresident city wage tax refund claim.

I had [Wilmington, DE / Delaware City, OH] city wage tax withheld from my wages during the [2026] tax year. As a nonresident who worked [X] days in the city and [Y] days outside the city, I am eligible for a refund under the apportionment formula.

To complete my refund filing, I need employer certification on form [WCWT-5 / Nonresident Claim for Refund] verifying my wages and the amount of tax withheld. Please let me know:

1. Who in your department can sign the employer certification?
2. What documentation do you need from me to verify my work location days?
3. What is your timeline for completing the certification?

I have attached a draft of the completed form for your review. Please contact me at [your email] or [your phone] if you have any questions.

Thank you for your cooperation.

Sincerely,
[Your Name]
[Your Employee ID]

Customize this letter with your specific details and send it to your payroll or HR department. Give them at least 2 weeks to process your request before following up.

Part-Year Residents

If you moved into or out of the city during the tax year, different rules apply. Part-year residents are taxed on wages earned while living in the city and also on wages earned while working in the city as a nonresident. This can create complex apportionment scenarios. In most cases, you will need to file a part-year resident return and calculate the tax based on the number of days you lived in the city versus the number of days you worked in the city.

If you are a part-year resident, contact the tax office directly for guidance. Wilmington Revenue Division: 302-576-2100. Delaware City, OH Income Tax Department: 740-203-1225. They can advise on your specific filing requirements.

What If My Employer Did Not Withhold Tax?

If your employer did not withhold city wage tax from your paycheck, you generally cannot claim a refund because nothing was paid in. However, you may still have a filing obligation if you are required to file a city return. In Wilmington, DE, all individuals with Wilmington-source wages must file Form W-1, regardless of whether tax was withheld. In Delaware City, OH, nonresidents who worked in the city may need to file a return even if tax was not withheld.

If you did not have tax withheld but owe tax to the city, you will need to pay the tax directly. Use the apportionment calculator in this guide to determine your taxable wages and the tax due.

Scenario Examples

Here are some common scenarios to help you determine if you qualify:

You live in Pennsylvania and work remotely for a company based in Wilmington, DE. You never enter Delaware for work. You had Wilmington wage tax withheld from your paycheck. You are eligible for a full refund because you worked zero days in Wilmington.

You live in New Jersey and work in Wilmington, DE two days per week and remotely from home three days per week. You had Wilmington wage tax withheld on your full salary. You are eligible for a partial refund because you only owe tax on the two days you worked in Wilmington.

You live in Delaware City, OH and work in Delaware City, OH five days per week. You had 1.85% tax withheld from your paycheck. You are not eligible for a refund because you owe the full tax as a resident.

You live in Maryland and work remotely for a company headquartered in Wilmington, DE. Your employer withheld Wilmington wage tax on your full salary even though you never worked in Delaware. You are eligible for a full refund. Contact your employer to correct future withholding and file for a refund using WCWT-5.

You work in Wilmington, DE part-time and earn commissions based on sales. Your commission structure makes it difficult to determine how much income is attributable to Wilmington work. You may need to use the apportionment formula based on sales or work days. Consult the calculation section below for guidance.

If you are still unsure whether you qualify, use the calculator above to estimate your refund amount. If the calculator shows a positive refund amount, you are likely eligible and should proceed with filing.

The next section explains the tax rates in detail and how they apply to different types of income.

Understanding the Tax Rates

The Delaware City wage tax applies at different rates depending on which jurisdiction you are dealing with. Wilmington, Delaware charges a 1.25% city wage tax on earned income. Delaware City, Ohio charges a 1.85% municipal income tax. Delaware has no state-level wage tax, so you only need to worry about the city tax if you work in Wilmington.

The 1.25% Wilmington tax applies to wages, salaries, commissions, bonuses, and tips earned while working within the city. It does not apply to investment income, pensions, Social Security benefits, or retirement income. If you work in Wilmington, your employer is required to withhold this tax from your paycheck.

The 1.85% Delaware City, OH tax applies to wages earned within the city. It is a municipal income tax that applies to both residents and nonresidents. Nonresidents pay tax only on wages earned while working inside city limits. Residents pay tax on all wages regardless of where they work.

Rate reference: Wilmington 1.25% | Delaware City, OH 1.85% | Delaware State 0% | Federal varies by bracket. See the Tax Rate Comparison table in the Quick Answers section above for full details.

What Income Is Taxed?

Tax Rate History (Year-Over-Year)

The city wage tax applies to earned income. This includes wages, salaries, commissions, bonuses, and tips. It does not apply to unearned income such as interest, dividends, capital gains, rental income, or retirement income.

For Wilmington, DE, the tax applies to wages earned while working within the city. If you are a nonresident who works in Wilmington, you only pay tax on the wages you earn while physically present in the city. This is where apportionment becomes important.

For Delaware City, OH, the municipal tax applies to wages earned within the city limits. Nonresidents are taxed only on income sourced to the city. The same apportionment rules apply based on days worked inside versus outside the city.

What Income Is Not Taxed?

• Investment income (interest, dividends, capital gains)
• Pension income and retirement distributions
• Social Security benefits
• Unemployment compensation
• Rental income from property outside the city
• Alimony and child support payments

If you have questions about whether a specific type of income is taxable, contact the tax office for guidance. Wilmington Revenue Division: 302-576-2100. Delaware City, OH Income Tax Department: 740-203-1225.

Bonuses and Commissions

Bonuses and commissions are considered earned income and are subject to city wage tax. However, the calculation can be more complex because the income may not be directly tied to days worked.

For Wilmington, DE, bonuses are taxed based on the allocation of work days during the period the bonus was earned. If you worked part of the year in Wilmington and part outside, the bonus should be allocated proportionally.

For Delaware City, OH, similar rules apply. If the bonus is tied to work performed in the city, it is taxable. If it is tied to work performed outside the city, it may not be taxable.

Use the apportionment formula in the next section to calculate the taxable portion of bonuses and commissions.

Calculating Your Refund (Apportionment)

If you worked part of your days in the city and part outside, you need to apportion your wages to determine how much tax you actually owe. This is the key calculation for your refund. The apportionment formula determines how much of your wages are taxable based on the number of days you worked in the city versus your total working days.

The Apportionment Formula

Taxable Wages = Total Wages × (Days Worked in City ÷ Total Working Days)
        Tax Due = Taxable Wages × Tax Rate (1.25% or 1.85%)
        Refund Amount = Tax Withheld − Tax Due

This formula works for both Wilmington, DE and Delaware City, OH. The only difference is the tax rate you use — 1.25% for Wilmington or 1.85% for Delaware City, OH.

Step-by-Step Calculation

• Step 1Determine your total wages for the tax year. This is your gross earned income from all sources.
• Step 2Count the number of days you worked in the city. Include only days you were physically present in the city performing work. Do not include weekends, holidays, vacation days, or sick days unless you worked those days.
• Step 3Count your total working days for the tax year. This includes all days you worked, regardless of location. A typical work year has about 260 working days (52 weeks × 5 days).
• Step 4Calculate the ratio of days worked in the city to total working days. Divide the city work days by total working days.
• Step 5Multiply your total wages by the ratio. This gives you your taxable wages.
• Step 6Multiply your taxable wages by the applicable tax rate. This gives you the tax you actually owe.
• Step 7Subtract the tax you owe from the tax that was withheld. The result is your refund amount.

Real-World Examples

Weekly salary: $1,000
        Days worked in Wilmington: 3 days/week
        Total working days: 5 days/week
        Taxable wages: $1,000 × (3/5) = $600
        Tax due: $600 × 1.25% = $7.50
        Tax withheld: $1,000 × 1.25% = $12.50
        Refund: $12.50 − $7.50 = $5.00/week

Annual salary: $75,000
        Days worked in Wilmington: 0
        Taxable wages: $75,000 × (0/260) = $0
        Tax due: $0
        Tax withheld: $75,000 × 1.25% = $937.50
        Refund: $937.50

Annual salary: $60,000
        Days worked in Delaware City, OH: 100 days
        Total working days: 260 days
        Taxable wages: $60,000 × (100/260) = $23,076.92
        Tax due: $23,076.92 × 1.85% = $426.92
        Tax withheld: $60,000 × 1.85% = $1,110.00
        Refund: $1,110.00 − $426.92 = $683.08

Total commissions: $10,000
        Wilmington sales: $60,000 of $100,000 total sales
        Taxable commissions: $10,000 × ($60,000/$100,000) = $6,000
        Tax due: $6,000 × 1.25% = $75.00

Special Compensation Types

Vacation and holiday pay are prorated based on your regular work allocation. If you take vacation days, they are treated as working days for allocation purposes because they represent income for work performed. The allocation of vacation pay follows the same ratio as your regular work days.

Severance pay is taxed based on the allocation in your last year of employment. If you worked in Wilmington for part of your final year, the severance may be allocated proportionally based on the work days in the city during that period.

Stock options are taxed at exercise based on your work location at the time of exercise. If you exercised options while working in Wilmington, the income is taxable. If you exercised options while working outside the city, the income may not be taxable.

Use the calculator above to run your specific numbers. Enter your total wages, days worked in the city, and total working days. The calculator will automatically compute your taxable wages, tax due, and refund amount.

If the calculator shows a positive refund amount, you are likely eligible for a refund and should proceed with filing. The next section explains the forms you need to complete.

Required Forms

The specific form you need depends on your jurisdiction and your filing situation. For Wilmington, DE, nonresidents claiming a refund must file Form WCWT-5, and all individuals with Wilmington-source wages must file Form W-1. For Delaware City, OH, nonresidents claiming a refund must file the Nonresident Claim for Refund form. You may also need to file state-level returns depending on your income.

Wilmington, DE — Form WCWT-5

Form WCWT-5 is the Application for Refund of Wilmington City Wage Tax. This form is specifically for bona fide nonresidents who had Wilmington wage tax withheld and are claiming a refund. The form requires you to:

• Provide your personal information (name, address, Social Security number)
• Enter your total wages earned from all sources
• Calculate your taxable wages using the apportionment formula
• Enter the amount of tax withheld
• Calculate your refund amount
• Have your employer certify the information with their signature

The employer certification section is critical. Your employer must sign the form to verify the wages and withholding amounts. Without this signature, your refund may be delayed or denied.

Wilmington, DE — Form W-1

Form W-1 is the City of Wilmington Annual Tax Return. This form is required for all individuals with Wilmington-source wages, regardless of whether tax was withheld. Even if you are claiming a refund using WCWT-5, you must still file Form W-1.

Form W-1 requires you to:

• Report your total income from all sources
• Calculate your taxable income
• Calculate the tax due
• Report tax withheld
• Calculate any balance due or overpayment

If you are a nonresident claiming a refund, you will file both Form WCWT-5 and Form W-1. The refund calculated on WCWT-5 will be reflected on your W-1 filing.

Delaware City, OH — Nonresident Claim for Refund

Delaware City, OH uses a Nonresident Claim for Refund form for nonresidents seeking a refund of the 1.85% municipal income tax. This form is used when the employer incorrectly withheld tax or when the nonresident worked fewer days in the city than was withheld for.

The form requires:

• Your personal information (name, address, Social Security number)
• Your total wages earned
• The amount of tax withheld
• An explanation of why you are entitled to a refund
• Employer certification or verification

As with Wilmington, employer certification is required. Your employer must sign the form to verify the wages and withholding.

Delaware State — PIT-NON (Nonresident Individual Income Tax Return)

If you are a nonresident with Delaware-source income, you may need to file a Delaware state return. This is separate from the city tax filing. Form PIT-NON is the Delaware Nonresident Individual Income Tax Return.

You must file Form PIT-NON if:

• You are a nonresident of Delaware
• You had Delaware-source income
• Your income exceeds the filing threshold of $9,400 for single filers or $18,800 for married filing jointly

Form PIT-NON requires you to report all income and then allocate the portion attributable to Delaware. You will calculate the tax on the Delaware-source income and report any tax paid to Delaware.

Delaware State — Form 200-02

Form 200-02 is an alternative nonresident tax return for Delaware. It is similar to Form PIT-NON but may be used in specific situations. In most cases, Form PIT-NON is the correct return for nonresidents.

If you are unsure which form to use, consult a tax professional or contact the Delaware Division of Revenue at 302-577-8200 or 800-292-7826.

Document Checklist

Before filing any forms, gather the following documents:

• Your W-2 forms showing city tax withheld (look for local tax information in Box 18 and Box 19)
• Your federal tax return (the first two pages)
• Records of days worked in and out of the city (calendar logs, timesheets, or pay stubs)
• Any correspondence with your employer regarding withholding
• Your Social Security number and personal identification

Having these documents ready before you start will make the filing process smoother and reduce the risk of errors.

Form Download Links

You can download the necessary forms from the official websites:

• Wilmington WCWT-5 and Form W-1 — Revenue Division (look under "Forms & Publications")
• Delaware PIT-NON and Form 200-02 — Division of Revenue
• Delaware City, OH Nonresident Claim for Refund — Income Tax Department

Note: If the direct PDF links above change, search for the form name on the respective agency's website. Always use the most current version of the form for your filing year.

Always use the most current version of the form. Tax forms are updated annually, and using an outdated form may cause processing delays.

Step-by-Step Refund Filing Process

The refund filing process involves multiple steps. Follow this step-by-step guide to ensure your filing is complete and accurate. The process is similar for both Wilmington, DE and Delaware City, OH, but there are some differences in forms and deadlines.

1. Step 1Gather your documents. Collect all your W-2 forms, pay stubs, and records of days worked. Your W-2 form will show the city tax withheld in Box 19. If you worked in multiple locations, keep detailed records of where you worked each day. This will be essential for the apportionment calculation. Your federal tax return (first two pages) may also be required as supporting documentation.
2. Step 2Determine your jurisdiction. Confirm whether you need to file for Wilmington, DE or Delaware City, OH. Check your W-2 form for the city name or code. If you are still unsure, contact your employer's payroll department to confirm which city wage tax was withheld. This step is critical. Filing with the wrong jurisdiction will delay your refund and may result in the return being rejected.
3. Step 3Calculate your refund. Use the apportionment calculator above to determine your taxable wages, tax due, and refund amount. The calculator uses the formula: Taxable Wages = Total Wages × (Days Worked in City ÷ Total Working Days); Tax Due = Taxable Wages × Tax Rate; Refund Amount = Tax Withheld − Tax Due. If you prefer to calculate manually, use the formula and examples provided in the "Calculating Your Refund" section above.
4. Step 4Complete the refund form. For Wilmington, DE, complete Form WCWT-5. Fill in your personal information, wages, days worked, and the calculated refund amount. Make sure you sign and date the form. For Delaware City, OH, complete the Nonresident Claim for Refund form. The form will ask for similar information — your personal details, wages, tax withheld, and the reason you are claiming a refund.
5. Step 5Have your employer certify. Both the Wilmington WCWT-5 form and the Delaware City, OH Nonresident Claim for Refund require employer certification. Your employer must sign the form to verify the wages and withholding amounts. Without this signature, your refund will be delayed. If your employer refuses to sign, contact the tax office directly for guidance. Wilmington Revenue Division: 302-576-2100. Delaware City, OH Income Tax Department: 740-203-1225.
6. Step 6File Form W-1 (Wilmington only). If you are filing in Wilmington, DE, you must also file Form W-1 (City of Wilmington Annual Tax Return) in addition to Form WCWT-5. This is a separate filing and is required for all individuals with Wilmington-source wages. Complete Form W-1 with your income information and tax calculations. The refund from WCWT-5 will be reflected on your W-1 filing.
7. Step 7File your state return (if required). If you are a nonresident with Delaware-source income, you may need to file Form PIT-NON or Form 200-02 with the Delaware Division of Revenue. The filing threshold is $9,400 for single filers and $18,800 for married filing jointly. This is a separate filing from the city tax returns. Do not combine city and state filings — they must be submitted to different offices.
8. Step 8Submit your forms. Nonresident refunds for both Wilmington, DE and Delaware City, OH must be filed by mail. You cannot e-file these refund claims. Submit your completed forms and supporting documentation to the appropriate tax office. Make copies of all documents before mailing. Use certified mail or a trackable delivery service to confirm receipt.
9. Step 9Track your refund. After filing, you can track the status of your refund. For Wilmington, DE refunds, contact the Revenue Division directly. For Delaware City, OH refunds, contact the Income Tax Department. Expect processing to take up to 90 days for paper filings. If you have not received your refund after 90 days, contact the tax office to check on the status.
10. Step 10What to do if your refund is delayed or denied. If your refund is delayed beyond the expected processing time, contact the tax office with your filing information. Be prepared to provide the date you filed and any tracking information. If your refund is denied, you will receive a notice explaining why. Common reasons for denial include: missing employer signature, incomplete or incorrect documentation, eligibility issues, or mathematical errors. You can appeal a denial by filing an amended return with corrected information. Contact the tax office for guidance on the appeals process.

Deadlines

For Wilmington, DE, the filing deadline is April 30, 2026. For Delaware City, OH, the filing deadline is April 15, 2026. Extensions are available by contacting the respective tax office.

Missing the Deadline

If you miss the filing deadline, your refund may still be processed, but late filing penalties could reduce your refund amount. If you owe tax, penalties and interest will apply. File as soon as possible to minimize penalties. If you are due a refund, there is no penalty for late filing, but the refund may be delayed. However, there is a statute of limitations on refund claims — generally three years from the original filing deadline.

Penalty & Interest Rates

Mailing Addresses for Submissions

Always verify the current mailing address on the official website before submitting. Use certified mail with return receipt requested for proof of filing.

Contact Information

• Wilmington Revenue Division: 302-576-2100, wilmingtonde.gov/revenue-division
• Delaware Division of Revenue: 302-577-8200 or 800-292-7826, revenue.delaware.gov
• Delaware City, OH Income Tax: 740-203-1225, delawareohio.net/income-tax

Keep a copy of all submitted documents for your records. This will be helpful if there are any questions or if you need to reference your filing in the future.

Remote Workers — Special Rules

Remote work has become increasingly common, and the rules for city wage tax can be confusing. If you work remotely for an employer based in Wilmington, DE or Delaware City, OH, you may not owe city tax on your wages — or you may owe less than what was withheld. Understanding the rules is essential to claiming your refund. If you're a self-employed remote worker, you may also need to understand how self-employment tax and totalization agreements apply to your situation.

The key principle for Wilmington, DE is the physical presence rule. Tax is based on where you actually perform the work. If you work remotely from your home in another state and never enter Wilmington, you owe no Wilmington wage tax. You only owe tax on the days you are physically present in the city performing work.

The physical presence rule means that remote workers are generally not subject to Wilmington wage tax. If your employer has withheld Wilmington tax from your paycheck, you can claim a refund for all wages earned while working remotely outside the city.

The Convenience of Employer Rule

Delaware has what is known as the "convenience of employer" rule. This rule applies when an employee works remotely because it is convenient for the employer, not because the employer requires it. If the employer requires remote work, the rule does not apply. If the employee chooses to work remotely for their own convenience, the convenience rule may apply.

Under the convenience rule, income is sourced to the employer's Delaware location even if the employee works remotely. This means that if you choose to work remotely from outside Delaware for your own convenience, your income may still be taxed by Delaware. However, this rule primarily applies to Delaware state tax, not city wage tax.

For Wilmington city wage tax, the physical presence rule is the controlling standard. The convenience rule is less likely to apply at the city level. If you work remotely and are not physically present in Wilmington, you do not owe Wilmington wage tax.

Remote Worker Scenarios

You live in Pennsylvania and work remotely for a company based in Wilmington, DE. You never enter Delaware for work. Your employer withheld Wilmington wage tax. You owe no Wilmington tax and can claim a full refund. File WCWT-5 to claim your refund.

You live in New Jersey and work two days per week in the Wilmington office and three days per week from home. You had Wilmington wage tax withheld on your full salary. You only owe tax on the two days you worked in Wilmington. Use the apportionment calculator to determine your refund. File WCWT-5 to claim the refund on the three days of remote work.

You live in Wilmington and work remotely from home for a company outside Wilmington. You owe Wilmington tax on all wages because you are a resident. No refund is available. File Form W-1 as a resident and pay the tax owed.

You live in Columbus, Ohio and work remotely for a company based in Delaware City, OH. You never enter Delaware City for work. Your employer withheld 1.85% municipal tax. You owe no Delaware City tax and can claim a full refund. File the Nonresident Claim for Refund.

You live in Columbus, Ohio and work two days per week in Delaware City, OH and three days per week from home. You had 1.85% tax withheld on your full salary. You only owe tax on the two days you worked in Delaware City. File the Nonresident Claim for Refund to claim the refund on the three days of remote work.

What Remote Workers Need to Document

If you are claiming a refund as a remote worker, you need to document your work location. Keep records of:

• The days you worked from home versus the days you worked in the city
• Your home address and work address
• Any communication from your employer regarding remote work arrangements
• Pay stubs showing tax withheld by city

These records will be essential if your refund is audited or questioned by the tax office. The more documentation you have, the stronger your claim will be.

Employer Withholding for Remote Workers

Employers often withhold city tax based on the employer's location, not the employee's work location. This can result in incorrect withholding for remote workers. If you are a remote worker and your employer has withheld city tax incorrectly, you should first contact your payroll department to correct future withholding. For the current tax year, you will need to file for a refund using the appropriate form.

If your employer refuses to correct the withholding, you can still claim a refund by filing the refund form. The employer certification may be required, so you will need your employer's cooperation. If the employer refuses to sign, contact the tax office for guidance.

Recent Changes for Remote Workers

The rise of remote work has led to changes in how some states and cities apply their tax rules. For Wilmington, DE, the physical presence rule has been consistently applied. However, other jurisdictions have proposed or implemented new rules in response to remote work.

Delaware has considered legislation that would apply the convenience of employer rule more broadly, but as of the 2026 tax year, the physical presence rule remains the standard for Wilmington wage tax. Always check for updates if you are a remote worker, as tax laws can change.

If you are a remote worker and are unsure whether you owe city wage tax, use the apportionment calculator above. Enter your total wages, the number of days you worked in the city, and your total working days. If the result shows a refund amount, you are eligible for a refund and should file the appropriate forms.

Multi-State Tax Credits

If you work in one state but live in another, you may be subject to tax in multiple jurisdictions. This is known as multi-state taxation. Fortunately, most states allow a credit for taxes paid to another jurisdiction, which can help avoid double taxation. Understanding how these credits work is important if you work in Wilmington, DE but live in Pennsylvania, New Jersey, Maryland, or another state.

How Multi-State Tax Credits Work

When you pay tax to a state or city where you do not live, you may be able to claim a credit on your home state return. The credit is generally for taxes paid to another state, not for local city taxes. However, some states allow a credit for city taxes as well.

The credit is designed to prevent double taxation. If you pay tax to Delaware and also owe tax to your home state, the credit reduces your home state tax liability by the amount of tax paid to Delaware, up to the amount of tax that would be due to your home state on the same income. For expats with foreign income, similar double taxation relief is available through the Foreign Tax Credit and FEIE.

It is important to understand that the credit is often not dollar-for-dollar. If your home state has a higher tax rate than Delaware, you may still owe additional tax to your home state. If your home state has a lower tax rate, the credit may fully offset your home state tax liability, and you may not owe any additional tax.

State-Specific Credit Rules

Pennsylvania: Pennsylvania residents who work in Delaware can claim a credit on their PA return for taxes paid to Delaware. The credit is for state tax paid, not city tax. The credit is calculated on PA Schedule G-L. If you paid Wilmington city wage tax, you may not be able to claim a credit for that tax on your PA return unless PA has a specific provision for local taxes.

New Jersey: New Jersey residents who work in Delaware can claim a credit on their NJ return for taxes paid to Delaware. The credit is for state tax paid, not city tax. The credit is calculated on NJ Form 1040, Schedule A. You will need a copy of your Delaware return to claim the credit.

Maryland: Maryland residents who work in Delaware can claim a credit on their MD return for taxes paid to Delaware. The credit is for state tax paid, not city tax. The credit is calculated on MD Form 502CR. You will need a copy of your Delaware return to claim the credit.

Other States: If you live in a state other than PA, NJ, or MD, check with your state tax agency to determine whether you can claim a credit for taxes paid to Delaware. Most states allow a credit for taxes paid to other states, but the rules and forms vary.

Claiming a Credit for City Tax

Most states do not allow a credit for city taxes paid to another jurisdiction. The credit is typically limited to state taxes. However, some states have reciprocal agreements that may allow a credit for local taxes as well.

If you paid Wilmington city wage tax or Delaware City, OH municipal tax, check with your home state tax agency to determine if you can claim a credit for that tax. In most cases, you will not be able to claim a credit for city tax on your state return, but it is worth checking.

If you cannot claim a credit for the city tax, your only option to recover the tax is to file for a refund from the city itself. This is why it is important to file a refund claim if you did not owe the city tax.

Filing Requirements for Multi-State Taxpayers

If you work in Delaware but live in another state, you may need to file returns in multiple states:

• Delaware: You must file a Delaware state return (PIT-NON or Form 200-02) if your Delaware-source income exceeds the filing threshold ($9,400 single / $18,800 married filing jointly)
• Wilmington, DE: You must file Form W-1 and, if applicable, Form WCWT-5
• Delaware City, OH: You must file the Nonresident Claim for Refund
• Your Home State: You must file your home state return and may be able to claim a credit for taxes paid to Delaware

When to Consult a Tax Professional

Multi-state taxation can be complex. If you work in multiple states or have a complex tax situation, consider consulting a tax professional. A certified public accountant (CPA) or tax attorney can help you navigate the rules and ensure you are compliant with all filing requirements.

If you are unsure whether you owe tax to a particular jurisdiction or whether you are eligible for a credit, contact the tax office directly. Wilmington Revenue Division: 302-576-2100. Delaware Division of Revenue: 302-577-8200 or 800-292-7826.

Avoiding Double Taxation

To avoid double taxation, always claim any available credits on your home state return. Keep copies of all returns filed and all tax payments made. If you receive a refund from a city or state, adjust your tax returns accordingly.

If you have paid tax to Delaware and your home state, and the credit does not fully offset your home state tax liability, you may need to pay additional tax to your home state. This is normal in multi-state tax situations. The goal is to ensure you pay the correct amount of tax overall — not more than you owe, but not less either.

Common Mistakes to Avoid

Filing for a refund can be straightforward, but small errors can cause significant delays or even denials. Understanding the most common mistakes helps you avoid them and ensures your refund is processed as quickly as possible.

• Mistake 1 — Confusing Jurisdictions: This is the most common and most costly mistake. Users often confuse Wilmington, DE with Delaware City, OH or with the State of Delaware. Filing with the wrong jurisdiction means your refund will be rejected or sent to the wrong office, causing delays of weeks or months. Always check your W-2 form to confirm which city withheld tax. Look at Box 18 (Local wages) and Box 19 (Local income tax). The city name or code will tell you the correct jurisdiction.
• Mistake 2 — Missing Employer Certification: Both the Wilmington WCWT-5 form and the Delaware City, OH Nonresident Claim for Refund require employer certification. Your employer must sign the form to verify your wages and the amount of tax withheld. Many refunds are delayed or denied because the employer signature is missing. Make sure you get your employer's signature before submitting. If your employer refuses to sign, contact the tax office for guidance.
• Mistake 3 — Using the Wrong Form: Using the wrong form is another common error. For Wilmington, DE, you must use Form WCWT-5 for the refund and Form W-1 for the annual return. For Delaware City, OH, you must use the Nonresident Claim for Refund. Some users mistakenly use state forms (PIT-NON or Form 200-02) for city refunds. These are separate filings and cannot be used for city refunds.
• Mistake 4 — Incorrect Apportionment Calculation: The apportionment formula determines how much tax you owe. Errors in calculating the ratio of days worked in the city can result in an incorrect refund amount. Use the apportionment calculator on this page to avoid calculation errors. Enter your total wages, days worked in the city, and total working days. The calculator will compute the correct refund amount for you.
• Mistake 5 — Missing the Deadline: Filing after the deadline can result in penalties and interest. For Wilmington, DE, the deadline is April 30, 2026. For Delaware City, OH, the deadline is April 15, 2026. If you miss the deadline, file as soon as possible. If you are due a refund, there is no penalty for late filing, but the refund may be delayed. However, there is a statute of limitations on refund claims — generally three years from the original filing deadline.
• Mistake 6 — Incomplete Documentation: Your refund claim requires supporting documentation. At a minimum, you need your W-2 forms showing the city tax withheld. You may also need records of days worked in and out of the city. If you do not include the required documentation, your refund will be delayed. Make a checklist of required documents before you file and double-check that everything is included.
• Mistake 7 — Not Filing Both City and State Returns: Nonresidents with Delaware-source income must file both city and state returns. The city return is for the city wage tax. The state return is for Delaware state income tax. Filing only the city return and not the state return can result in penalties and interest on the state tax owed. Conversely, filing only the state return will not get your city refund processed.
• Mistake 8 — Attempting to E-file: Nonresident refunds for both Wilmington, DE and Delaware City, OH must be filed by mail. You cannot e-file these refund claims. Submitting an e-file will result in rejection. Always file paper forms for nonresident city wage tax refunds.
• Mistake 9 — Incorrect Personal Information: Errors in your name, address, or Social Security number can cause processing delays or misdirect your refund. Double-check all personal information before submitting. If you have moved, update your address with the tax office. This ensures your refund check is sent to the correct address.
• Mistake 10 — Not Keeping Copies: Always keep copies of everything you file. This includes the refund form, your W-2, and any supporting documentation. Having copies will be essential if there are questions about your filing or if you need to reference your filing in the future. Use certified mail or a trackable delivery service when submitting your forms. This provides proof of filing date and helps you track your submission.
• Mistake 11 — Missing Supporting Documentation for Remote Work: Remote workers claiming refunds must document their work location. If you do not provide records showing you worked outside the city, your refund may be questioned or denied. Keep a calendar or log of your work location for each day. This documentation will support your refund claim if audited.
• Mistake 12 — Not Following Up on Your Refund: Many users file and forget about their refund. If you have not received your refund after 90 days (the standard processing time for paper filings), contact the tax office to check on the status. Don't assume the refund will automatically arrive. Some refunds are delayed due to missing information or other issues that you can resolve by following up.

A Quick Checklist

Before submitting your refund claim, run through this checklist:

• Confirmed the correct jurisdiction (Wilmington, DE or Delaware City, OH)
• Used the correct form (WCWT-5 or Nonresident Claim for Refund)
• Obtained employer certification and signature
• Calculated the refund amount correctly (use the calculator)
• Included all required documentation (W-2, records of days worked)
• Filed before the deadline (April 30 for Wilmington, April 15 for Delaware City, OH)
• Filed on paper (not e-filed)
• Verified all personal information is correct
• Made copies of all documents
• Sent forms by certified mail or trackable service
• Planned to follow up after 90 days if no refund received

Taking the time to double-check your filing will save you time and frustration. A complete and accurate filing is processed faster and reduces the chance of delays or denials.