Delaware 153rd General Assembly (2025-2026) Status: In Committee Bipartisan · 4 R · 1 D cosponsors

HB 126 — AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO PERSONAL INCOME TAX.

Last action — Not Worked in Committee

Track this bill free

No card. One bill, free forever — alerts when it moves.

  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed House
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill is in committee in the House. Introduced April 17, 2025. It must pass committee before a floor vote.

Next likely step: a committee vote, then a floor vote in the House.

Prognosis

Advancing 42% · moderate confidence

Where this bill stands today.

Odds of enactment

Low

How often bills like it became law.

  • In Committee

    Current position in the legislative process.

  • 6 sponsors

    6 primary, 0 co-sponsors signed on.

  • Bipartisan support

    Sponsored across 2 parties (4 R · 1 D) — cross-party backing.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Summary

This Act exempts from State income tax any income received by a full-time hourly wage-paid employee for overtime work performed in excess of 40 hours in a week. This exemption applies for taxable years beginning on January 1, 2026, and ending before January 1, 2028. This Act also requires each employer to provide information to the Division of Revenue about the total amount of overtime provided to full-time hourly wage-paid employees and the number of employees to whom overtime was paid in taxable years beginning January 1, 2025.

Bill Text

How this bill changes current law

3 changes Share ↗

AI-generated reading aid from the bill's amendatory text — verify against the official bill.

This bill exempts overtime compensation for full-time hourly wage-paid employees from state income tax for certain taxable years and imposes reporting requirements on employers.

  • § 1106

    (13) For taxable years beginning January 1, 2026, and ending before January 1, 2028, amounts received by a full-time hourly wage-paid employee as compensation for work performed in excess of 40 hours in a week.

    This change introduces a tax exemption for overtime pay for specific years.

  • § 1106

    Each employer making payment of any wages or remuneration taxable under this chapter to a resident or nonresident individual whose wage or remuneration is subject to withholding under the Internal Revenue Code shall submit to the Division of Revenue (“Division”), on forms prescribed by the Division, all of the following: 1. For the tax year beginning January 1, 2025, the total amount received by full-time hourly wage-paid employees as compensation for work performed in excess of 40 hours in a week and the total number of employees for which it was paid. This data is due not later than January 31, 2026. 2. For taxable years beginning January 1, 2026, and ending before January 1, 2028, the total amount received by full-time hourly wage-paid employees as compensation for work performed in excess of 40 hours in a week and the total number of employees for which it was paid. This data is due at the same time as the employer’s withholding return under § 1154 of this title.

    This adds a requirement for employers to report overtime compensation and employee counts to the Division of Revenue.

  • § 1106

    The Division may adopt regulations to administer and enforce this paragraph (b)(13).

    This allows the Division of Revenue to create regulations for enforcement of the new rules on overtime compensation.

Action History

  1. Not Worked in Committee

  2. Introduced and Assigned to Revenue & Finance Committee in House

Sponsors

Sponsorship breakdown

Export CSV (upgrade) →

6 sponsors · 0 co-sponsors · 56 not signed on

Sponsors (6)

Co-sponsors (0)

None.

Not signed on (56)

56 members have not signed on to this bill.

Show all 56 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Subjects

taxation labor
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

What does HB 126 do?
This Act exempts from State income tax any income received by a full-time hourly wage-paid employee for overtime work performed in excess of 40 hours in a week. This exemption applies for taxable years beginning on January 1, 2026, and ending before January 1, 2028. This Act also requires each employer to provide information to the Division of Revenue about the total amount of overtime provided to full-time hourly wage-paid employees and the number of employees to whom overtime was paid in taxable years beginning January 1, 2025.
Who sponsors HB 126?
HB 126 is sponsored by Stell Parker Selby, David L. Wilson (Republican), Lyndon D. Yearick (Republican), Shannon Morris (Republican), Franklin D. Cooke (Democratic), and Bryan W. Shupe (Republican).
What is the current status of HB 126?
This bill is in committee in the House. Introduced April 17, 2025. It must pass committee before a floor vote.
Where can I track HB 126?
Track HB 126 free on One Click Politics — get push/email alerts when it moves.

Make your voice heard on HB 126

Find the representatives who decide this bill and tell them where you stand — for yourself, or mobilize your whole list in one click with One Click Politics advocacy software.

Find my representatives → Run a campaign

Stay ahead of HB 126

Last checked for changes about 2 months ago · updated continuously

One Click Politics tracks every bill in Congress and all 50 states.

Track this bill →