Delaware is one of five states with absolutely no state or local sales tax, making it a premier shopping destination — especially for residents of neighboring high-tax states Pennsylvania and Maryland. Delaware's revenue system relies instead on income taxes, a Gross Receipts Tax on businesses, and franchise taxes from the nation's largest corporate filing state.
Delaware sales tax overview
| Component | 2026 Rate |
|---|---|
| State sales tax | 0.000% |
| Avg local add-on | 0.000% |
| Avg combined | 0.000% |
| Maximum combined | 0.000% |
Note: Delaware has no state or local sales tax — one of only 5 states. Funded primarily by income tax + Gross Receipts Tax on businesses.
Delaware sales tax by city
Combined state + local sales tax rates for major cities in Delaware:
| City | Combined Rate |
|---|---|
| Wilmington | 0.000% |
| Dover | 0.000% |
| Newark | 0.000% |
What's exempt in Delaware
Groceries
Exempt from Delaware state sales tax. Local jurisdictions may still tax.
Clothing & footwear
Exempt from Delaware sales tax.
Prescription drugs
Exempt from sales tax (typical across most states).
How Delaware sales tax is calculated
Sales tax in Delaware is calculated by multiplying the pre-tax purchase price by the applicable combined rate. The formula is simple:
Sales Tax = Purchase Price × 0.000% (avg combined)
Total = Purchase Price + Sales Tax
The exact rate depends on where the purchase occurs — the state base rate (0.000%) plus any local city or county add-ons. Delaware does not allow local sales taxes — the rate is uniform statewide at 0.000%.
Quick calculation examples at average rate 0.000%:
$100 item
$0.00 tax
$100.00 total
$250 item
$0.00 tax
$250.00 total
$500 item
$0.00 tax
$500.00 total
$1,000 item
$0.00 tax
$1000.00 total
Additional tax-free items in Delaware
Beyond the standard exemptions, Delaware also provides sales tax relief on these categories:
Exemptions may have conditions. Always verify with the Delaware Department of Revenue for complete rules.
Delaware sales tax in context: rates, history, and neighbors
Delaware is one of only five US states with absolutely zero state and local sales tax — the others are Alaska (technically 0% state, some local), Montana, New Hampshire, and Oregon. Delaware's tax-free shopping has made it a regional retail destination, particularly for residents of Maryland (6%), Pennsylvania (6%), and New Jersey (6.625%) who drive in for big-ticket purchases. Christiana Mall and Tanger Outlets in Rehoboth Beach are major destination shopping centers built around the no-tax appeal. Delaware funds its government primarily through corporate taxes (~70% of all US Fortune 500 companies are incorporated in Delaware due to favorable corporate law), franchise taxes, personal income tax (top 6.6%), and the Gross Receipts Tax on businesses (passed to consumers indirectly through prices). Delaware has never had a sales tax in its history.
Online shopping & Delaware sales tax
Delaware has no sales tax to collect on any purchases, online or in-store. Delaware residents shopping online from retailers in other states may technically owe 'use tax' to those states, but Delaware itself will never charge you sales tax. This makes Delaware-based online purchases completely tax-free from the Delaware side.
Use Tax reminder: If you purchase taxable goods online from a seller who does NOT collect Delaware sales tax, you technically owe Use Tax — the same rate as sales tax, reportable on your Delaware state tax return. Use Tax enforcement on consumers is rare but the obligation exists for significant purchases.
How much Delaware sales tax on common purchases?
Using Delaware's average combined rate of 0.000%:
| Purchase | Price | Sales Tax | Total |
|---|---|---|---|
| Grocery cart | $150 | Exempt | $150.00 |
| Clothing / shoes | $120 | Exempt | $120.00 |
| Prescription drug | $80 | Exempt | $80.00 |
| Smartphone | $999 | $0.00 | $999.00 |
| Laptop / tablet | $1,299 | $0.00 | $1299.00 |
| New car ($35,000) | $35,000 | $0.00 | $35000.00 |
| Home appliance | $1,500 | $0.00 | $1500.00 |
| Restaurant meal | $60 | $0.00 | $60.00 |
Based on Delaware's average combined rate of 0.000%. Exact tax depends on city/county. Use our calculator above for specific locations and amounts.
Collecting sales tax in Delaware: business guide
If you sell goods or taxable services to Delaware customers, here's what you need to know:
- Registration: Register for a Delaware sales tax permit/license through the Delaware Department of Revenue before making your first taxable sale. Most states process registrations online within a few days.
- Economic nexus (online sellers): If you have $100,000+ in Delaware annual sales or 200+ transactions, you must collect Delaware sales tax even without a physical presence in the state — per South Dakota v. Wayfair (2018). The rate is uniform at 0.000% statewide.
- Destination vs origin sourcing: Delaware uses destination-based sourcing for most sales — the tax rate where the buyer receives the goods applies. Always use the customer's delivery address to determine the rate.
- Filing frequency: Frequency depends on your Delaware sales volume — monthly for high-volume sellers, quarterly or annually for low-volume sellers. Check with the Delaware Department of Revenue for your specific filing schedule.
- Marketplace sales: If you sell through Amazon, Etsy, eBay, or similar platforms, the marketplace is required to collect and remit Delaware sales tax on your behalf — you don't need to collect it separately on marketplace transactions.
- Resale certificates: Businesses purchasing goods for resale can provide a Delaware resale certificate to suppliers to avoid paying sales tax on wholesale purchases. Keep copies of all resale certificates for audits.
Streamlined Sales Tax (SST): Delaware is not currently a member of the Streamlined Sales Tax (SST) Agreement — check Delaware Department of Revenue for filing specifics.
Delaware-specific business compliance details
Delaware has no sales tax registration or filing requirements — the Delaware Division of Revenue does not collect sales tax. Delaware businesses do owe a Gross Receipts Tax (GRT) on their gross revenue (rates vary by industry, typically 0.0945% to 0.7468%). The GRT is on businesses, not visible to consumers, but factored into pricing. Out-of-state retailers selling to Delaware customers have no Delaware sales tax obligations (there's nothing to collect). However, Delaware businesses selling to other states must comply with those states' economic nexus rules. Delaware-based online retailers (no sales tax to collect) often have a competitive advantage selling to non-Delaware customers since they don't need to factor sales tax into shipping/pricing.
Delaware sales tax frequently asked questions
Does Delaware really have no sales tax on anything?
Correct — Delaware has zero state and zero local sales tax on all purchases. No exceptions, no minimums, no luxury rates. Every purchase — from groceries to cars to jewelry to electronics — is completely exempt from sales tax. Delaware funds its government through income taxes, a Gross Receipts Tax on businesses (passed on in prices rather than as a visible line item), and franchise taxes from the ~70% of Fortune 500 companies incorporated in Delaware.
Is it worth driving to Delaware for big purchases?
For large purchases, yes — the savings can be substantial. A $1,500 laptop purchased by a Pennsylvanian in Delaware saves $90 (6% PA tax). A $40,000 car saves $2,400 (6% PA tax). Delaware has no luxury surcharges. The savings formula: purchase price × your home state's tax rate = money saved. Popular shopping destinations include Christiana Mall (Newark) and the Premium Outlets in Rehoboth Beach.
Do I owe use tax on Delaware purchases when I return home?
Technically yes — most states require residents to report and pay 'use tax' on items purchased out-of-state tax-free and brought home for use. Use tax equals the sales tax you would have paid at home. Enforcement is very low for consumer purchases, and no state can audit your shopping bags at the border. Large items like cars and boats that require title/registration are typically taxed when you register them in your home state.