Delaware's budget bottom line sees a modest bump in the latest estimate by the Delaware Economic and Financial Advisory Council.
Slight revenue gain in 2026
The Council added more than $39 million to the state’s coffers in current fiscal year projections compared to its December estimate.
The slight boost to revenue comes from gains in some FY 2026 numbers. DEFAC sees personal income tax collection for 2026 up about $20 million dollars from its December meeting.
DEFAC also projects a $17 million bump in the state’s gross receipts in the current fiscal year, along with a $12 million increase in corporate income tax revenue, and a $9 million increase in lottery revenue.
Revenue dip in 2027
Projected revenue for fiscal year 2027 is slightly down from December by about $5 million.
That drop off comes from corporate income tax, tax on company shareholder profits and interest, tax on business income, and bank franchise tax.
Joint Finance Committee chair: needle not moved
Sen. Trey Paradee (D-Dover) said between the bumped projection this year and slight decline for 2027, the state picks up $35 million.
Paradee chairs the Joint Finance Committee, which heard budget proposals for state operations and services last month.
He considers about $16 million of the gain reported by DEFAC already spent, as the state's contribution to its group health plan is set to increase.
"The reality is $35 million doesn't really move the needle much at all," he said.
Delaware's corporate franchise tax accounts for nearly third of the state's general fund revenue. According to its Department of State, the number of incorporated entities in Delaware grew from 2.1 million in 2024 to 2.2 million in 2025.
Paradee said some of the larger, global corporations in Delaware pay six figure fees to the state annually.
But the increase over the last year comes mostly from LLCs which don't make the state as much money, he said.
Smaller entities pay a $300 annual fee to the state.
Paradee said Delaware is still a leading location for large companies and businesses to incorporate. But economic factors like the war in Ukraine, a war in Iran, tariffs, and interest rates all affect significant economic development.
"When the economy is really booming and there's a lot of merger and acquisition activity going on Wall Street, we generally do really well with that," he said. "...The economy is really flat right now. On a global level, you just don't have as many large entities being formed. But when the economy gets clicking again, that'll pick up."
Looking forward
DEFAC's new estimates leave the state with $7.13 billion available to send in its 2027 budget - up approximately $34 million from the December estimate Gov. Matt Meyer used to develop his budget proposal.
DEFAC meets again in May ahead of the Joint Finance Committee’s May and June budget markup.
