Delaware Sales Tax Guide 2025: What to Expect

Many wonder if Delaware has taxes, especially considering the often-touted fact that Delaware has no state income tax for certain scenarios. Delaware is often lauded for its tax advantages, including the attractive Delaware company tax rate, making it a unique state when it comes to taxes in the U.S. If you're planning to relocate, start a business, or conduct any financial activities in Delaware, it's crucial to understand the state's taxation framework, including the specifics of tax laws, how to file a state return, and how to pay Delaware taxes online.

Sales Tax Delaware

Delaware sales tax law is unique as the state does not impose a traditional sales tax, making it a tax-free shopping destination. Instead, businesses are subject to Delaware sales and use taxes, like the gross receipts tax, applied at varying rates depending on industry and revenue.

Delaware Sales Tax Rate

Delaware does not impose a state or local sales tax, making it one of the few states without a traditional sales tax system. Instead, the state imposes a gross receipts tax on the total gross revenue of a business.

Jurisdiction	Sales tax rate
State Tax	0.00%
County Tax	0.00%
City Tax	0.00%
Special Tax	0.00%
Combined Tax	0.00%

For more information on city-based tax rates in Delaware check out Kintsugi’s City Level Sales Tax Guides.

Delaware Sales Tax Calculator

Imagine you operate a retail business in Delaware, selling goods with total monthly gross receipts of $50,000. The gross receipts tax rate for retail businesses is 0.754% (or 0.00754 in decimal form). You want to determine the gross receipts tax owed for the month.

Step 1: Understand the Gross Receipts Tax Rate

Delaware’s gross receipts tax rate varies by industry.

For this example:

• Business Type: Retail
• Gross Receipts Tax Rate: 0.754%

Step 2: Calculate the Gross Receipts Tax Owed

The formula to calculate gross receipts tax is:

Gross Receipts Tax = Gross Receipts × Tax Rate

Plug in the values:

Gross Receipts Tax = 50,000 × 0.00754 = 377

The gross receipts tax owed for the month is $377.

Step 3: Reporting and Payment

Businesses in Delaware must file gross receipts tax returns regularly, typically monthly or quarterly, depending on the volume of revenue. Use the Delaware Division of Revenue’s online portal to file and pay the tax.

Additional Considerations:

1. Exclusions and Deductions: Certain revenues may be excluded from gross receipts calculations, such as interstate commerce or specific exemptions for nonprofits.
2. Thresholds: Some businesses with minimal gross receipts may qualify for exemptions or reduced filing requirements based on the total revenue.
3. Penalties for Noncompliance: Late filing or payment may result in penalties, so it’s essential to adhere to the filing schedule.

By following this method, businesses in Delaware can accurately calculate and remit the gross receipts tax, ensuring compliance with state regulations.

FAQ on Sales Tax in Delaware

What is the Delaware Tax Rate?

Delaware does not have a traditional sales tax; instead, businesses are subject to a gross receipts tax with rates that vary by industry.

What is the Sales Tax Rate for Wilmington Delaware?

The sales tax rate in Wilmington, Delaware, is 0%, as Delaware does not impose sales tax.

What is the Sales Tax Rate in Delaware?

Delaware’s sales tax rate is 0%, making it a tax-free shopping destination for consumers.

How to Calculate Sales Tax in Delaware?

Since Delaware does not impose a sales tax, there’s no calculation for sales tax. Businesses calculate gross receipts tax based on total revenue instead.

Sales Tax Nexus in Delaware

Delaware has a 0% sales tax, but businesses are subject to a gross receipts tax, which applies to the total revenue generated by a business without deductions for costs or expenses.

Effective Date	Threshold	Includable Sales (Gross, Retail, or Taxable)	When You Need to Register
Ongoing	No minimum threshold	Gross Receipts	Businesses must register for a sales tax permit before generating taxable gross receipts in Delaware.
Ongoing	Varies by industry	Gross Receipts	Registration is required as soon as the business begins operating in Delaware.

FAQ on Sales Tax Nexus in Delaware

Does Delaware have Nexus?

Yes, Delaware enforces nexus for businesses, but it applies to the gross receipts tax rather than traditional sales tax, as Delaware does not impose a sales tax.

What are the Nexus Rules for Sales Tax in Delaware?

Delaware’s nexus rules require businesses with a physical or economic presence to register for gross receipts tax, covering all revenue generated from in-state activities.

Delaware Sales Tax Exemptions​

Delaware does not impose a state or local sales tax, so there are no sales tax exemptions in the traditional sense. However, businesses in Delaware may benefit from the lack of sales tax and only need to comply with gross receipts tax regulations.

Category	Exemption Description
Retail Sales	No sales tax is applied to retail sales in Delaware, making all consumer purchases exempt.
Business-to-Business	Transactions between businesses are exempt from sales tax but subject to gross receipts tax.
Services	Services provided in Delaware are exempt from sales tax.
Nonprofits	Nonprofits are not subject to sales tax, as Delaware does not impose one, though they must comply with gross receipts tax when applicable.

FAQ on Sales Tax Exemptions in Delaware

How do you Apply for a Delaware State Sales Tax Exemption Certificate?

Delaware does not require a sales tax exemption certificate because the state does not impose a sales tax. Businesses are, however, subject to a gross receipts tax and should register through the Delaware Division of Revenue to remain compliant.

What items Qualify for Delaware Sales Tax Exemption​?

Delaware does not impose sales tax, so all goods and services are effectively exempt. Learn more about Delaware’s unique tax structure in this blog on Delaware tax exemptions.

What is the SaaS Sales Tax Delaware?

Delaware does not tax SaaS (Software as a Service) under sales tax laws, as the state does not have a sales tax. For more information, check this bog on SaaS sales tax in Delaware.

Is there a Delaware Sales​ Tax on Clothing

No, Delaware does not impose a sales tax on clothing or any other tangible goods. For details, visit this blog on Delaware clothing tax policies.

Is Delaware Exempt from Sales Tax?

Yes, Delaware is entirely exempt from sales tax, making it one of the few states where no tax is collected on retail goods or services.

 Is Clothing Taxed in Delaware?

Clothing is not taxed in Delaware as the state has no sales tax. This includes all types of clothing, regardless of price or purpose.

Is There Sales Tax in Delaware on Clothing?

No, Delaware does not have a sales tax on clothing or any other consumer goods, benefiting both residents and visitors.

Does Delaware have Sales Tax on SaaS?

No, SaaS products are not subject to sales tax in Delaware due to the absence of a state sales tax.

Delaware Sales Tax Filing

Delaware businesses file for gross receipts tax, not sales tax. Filing requirements vary based on industry and revenue and can be completed through the Delaware Division of Revenue.

What are the Delaware Sales Tax Filing Requirements?​ (Make this question and answer this)

Delaware businesses must file gross receipts tax returns based on their industry and revenue frequency, typically monthly or quarterly. Use the Delaware Division of Revenue portal for online filing.

Do I need to Register for Sales Tax in Delaware?

No, Delaware does not impose sales tax, so registration for sales tax is not required. Businesses must register for gross receipts tax instead.

How can You Apply for Delaware Sales Tax Registration?

Delaware does not impose a sales tax, but businesses must register for the gross receipts tax through the Delaware Division of Revenue. The registration process ensures compliance with state tax laws and proper reporting of revenue.

1. Visit the Delaware Division of Revenue Website: Go to the Delaware Division of Revenue and locate the section for "Business Tax Forms" or "Business Registration."
2. Create an Account on the Taxpayer Portal: If you’re a new user, click on the "Register" or "Create an Account" option. Provide your name, email address, and set a secure password.
3. Log In to Your Account: Once your account is activated, log in to access the taxpayer portal. This is where you’ll manage registrations, filings, and payments.
4. Select Business Registration: From the dashboard, choose the option to "Register a Business." Select the applicable tax types, including gross receipts tax.
5. Fill Out the Registration Form:
   • Business name and type (e.g., sole proprietorship, LLC, corporation)
   • Federal Employer Identification Number (FEIN) or Social Security Number (for sole proprietors)
   • Business address and contact information
   • Date business activities began in Delaware
   • Description of business activities and expected revenue.
6. Review and Submit Your Application: Carefully review your application to ensure all details are accurate. Submit the form electronically through the portal.
7. Receive Your Gross Receipts Tax Account Number: After submission, you’ll receive confirmation with your Delaware gross receipts tax account number. This account number is necessary for filing returns and making payments.
8. Begin Filing and Paying Gross Receipts Tax: Once registered, start filing and paying gross receipts tax based on your assigned frequency (monthly or quarterly). Use the taxpayer portal for easy access to forms and payment options.

Delaware Sales Tax Due Date​

Gross receipts tax returns are typically due monthly or quarterly, depending on a businesses activity. Deadlines are set for the 20th of the month following the reporting period.

Filing Frequency	Due Date
Monthly	20th of the following month
Quarterly	20th of the month following the quarter's end

What is the Deadline to File Taxes in Delaware?

The deadline for gross receipts tax in Delaware is usually the 20th of the month after the reporting period ends.

What is the Penalty for Filing Sales Tax Late in Delaware?

While there is no sales tax in Delaware, late filing of gross receipts tax may result in penalties and interest charges. Contact the Delaware Division of Revenue for details on late payment consequences.

What is the Due Date of the Delaware Annual Report?

The Delaware Annual Report is due by March 1st each year for corporations. Filing can be completed through the Division of Corporations.

For More Information

For more information on how to file your sales tax, visit the Delware Sales Tax Revenue Service website.