This blog was last updated on October 15, 2026
Delaware does not impose a state or local sales tax. Businesses operating in the state may instead be subject to gross receipts tax, annual business-license requirements, and certain industry-specific fees or surcharges.
Delaware Sales Tax Quick Facts
| State sales tax rate | 0% |
| Local sales tax | None |
| Primary transaction-based tax | Gross receipts tax imposed on sellers and service providers |
| General gross receipts tax range | 0.0945% to 1.9914%, depending on business activity |
| Petroleum products rate | Variable; may be as high as 2.4218% |
| General sales tax permit | Not applicable; other registrations and licenses may be required |
Does Delaware have sales tax?
No. Delaware does not impose a state or local sales tax. This means businesses do not collect a conventional Delaware sales tax from customers. However, businesses may have other Delaware tax, licensing, and filing obligations.
How Delaware gross receipts tax works
Delaware imposes gross receipts tax on sellers of goods and providers of services in the state. Unless otherwise specified by statute, gross receipts generally include total receipts from goods sold and services rendered in Delaware. Deductions generally are not allowed for costs such as goods or property sold, labor, interest, discounts, delivery, or state and federal taxes.
The tax is imposed on the seller or service provider rather than on the consumer. A business that earns income from more than one type of activity may need to report those activities separately.
Delaware Gross Receipts Tax Rates
Business and occupational gross receipts tax rates currently range from 0.0945% to 1.9914%, depending on the business activity. A variable rate applies to petroleum products and may be as high as 2.4218%. Because rates and tax treatment vary by activity, businesses should use the classification and current guidance that apply to their operations.
When does a business have Delaware tax and licensing obligations?
Because Delaware does not impose state or local sales tax, it does not apply a conventional sales-tax economic-nexus threshold. A business operating or engaging in taxable activity in Delaware may nevertheless have gross receipts tax, business-license, income-tax, withholding, or industry-specific obligations.
Delaware generally requires businesses operating in the state to obtain an annual business license. Additional licenses may apply based on the business activity.
Business Registration, Filing, and Payment
Delaware does not issue a general sales-tax permit. Businesses may instead need to register through Delaware One Stop, obtain an annual business license, establish applicable tax accounts, and obtain any activity-specific licenses.
Gross receipts tax may be remitted monthly or quarterly, depending on the business activity. Delaware provides the Taxpayer Portal for business return filing and payment services.
Business registration: Delaware One Stop
Business filing and payment: Delaware Taxpayer Portal
Product-specific fees and surcharges
Although Delaware has no general sales tax, certain transactions are subject to specific fees or surcharges. Applicability, exemptions, filing frequency, and licensing requirements vary by fee.
E911 Prepaid Wireless Surcharge
Effective October 1, 2026, Delaware increased the E911 fee from $0.60 to $0.90. Retailers of prepaid wireless service may also have licensing and filing obligations for qualifying retail transactions in Delaware.
988 Telecommunications Surcharge
Delaware imposes a $0.60 surcharge per applicable wireless telephone number or qualifying prepaid wireless retail transaction. The state requires applicable providers and retailers to remit the surcharge electronically through the Delaware Taxpayer Portal.
Retail Tire License and Scrap-Tire Fee
A business selling tires at retail in Delaware generally must obtain a no-cost Retail Tire Business License for each retail location and remit a $2 scrap-tire fee for each qualifying tire sold at retail. The state identifies exceptions, including certain tires for farm tractors and off-highway vehicles, tires sold as part of a vehicle sale, and wholesale tire sales. The fee is remitted monthly, on or before the 20th day of the following month.
Frequently Asked Questions
Is Delaware a member of the Streamlined Sales Tax initiative?
No. Delaware is not a Streamlined Sales Tax member state and does not impose a state or local sales and use tax.
Does Delaware have a sales-tax holiday?
No. Delaware does not have a sales-tax holiday because it does not impose a state or local sales tax.
Does Delaware apply sales tax to shipping charges?
Delaware does not impose sales tax on shipping charges because it has no state or local sales tax. However, businesses subject to Delaware gross receipts tax generally may not deduct delivery costs when calculating taxable gross receipts.
Do businesses need a Delaware sales-tax license?
No general Delaware sales-tax license exists. Businesses may instead need a Delaware business license, gross receipts tax registration, and licenses or accounts related to their activities.
Additional Resources
- Doing Business in Delaware
- Gross Receipts Tax Overview
- Business Taxpayer Services
- Streamlined Sales Tax Governing Board
This information is provided for general informational purposes and does not constitute legal or tax advice. Tax requirements may change. Consult official Delaware guidance for current requirements applicable to your business.