What is the sales tax rate in Delaware?

Delaware has NO sales tax. The sales tax rate is 0%. Delaware is one of only five states (along with Alaska, Montana, New Hampshire, and Oregon) that do not collect sales tax on consumer purchases.

Why doesn't Delaware have sales tax?

Delaware has consistently rejected sales tax proposals throughout its history, choosing instead to rely on other revenue sources including corporate franchise taxes, gross receipts taxes on businesses, and personal income taxes. This policy makes Delaware attractive to both consumers and businesses.

Are groceries taxed in Delaware?

No. Since Delaware has no sales tax, groceries and all other consumer purchases are not subject to sales tax. The price you see on the shelf is the price you pay at checkout.

Is clothing taxed in Delaware?

No. Delaware has no sales tax on clothing, footwear, or any other consumer goods. This makes Delaware a popular shopping destination for residents of nearby states with sales taxes.

Do I pay sales tax on cars in Delaware?

No. Delaware does not charge sales tax on motor vehicle purchases. However, Delaware does charge a document fee and a 4.25% registration fee on the purchase price of vehicles. These fees are collected when you title and register the vehicle.

Has Delaware ever had sales tax?

No. Delaware has never enacted a sales tax. Multiple legislative proposals to introduce a sales tax have been rejected over the years. The state's "no sales tax" policy is a point of pride and a significant economic advantage.

Do I pay Delaware sales tax on online purchases?

No. Since Delaware has no sales tax, online purchases delivered to Delaware addresses are not subject to Delaware sales tax. You simply pay the listed price without any tax added.

No Sales Tax State

Delaware Sales Tax
Calculator

Q: What is Delaware's gross receipts tax?

While consumers don't pay sales tax, Delaware does impose a gross receipts tax on businesses. This tax ranges from 0.0945% to 2.0736% depending on the type of business activity. Unlike sales tax, the gross receipts tax is paid by the business, not added to the consumer's purchase price.

Good news! Delaware has NO general sales tax. Shop tax-free in the First State!

Sales Tax Rate

One of 5 states with no sales tax

Tax-Free Shopping in Delaware

Delaware does not have a general sales tax, so you don't need a calculator for most purchases. The price you see is the price you pay! Delaware is one of only five states in the U.S. without a statewide sales tax.

Select City

Amount before tax

About Delaware Sales Tax

State rate: 0.000%

No local or county sales tax

Combined rate in Wilmington: 0.000%

State Tax

Local Tax

None

Franchise Tax

Kent/New Castle County

0.000%

Standard Rate

13,326

City	County	Standard Rate	Special District	Population
Wilmington	New Castle	0.000%	Standard Rate	73,176
Dover	Kent	0.000%	Standard Rate	40,191
Newark	New Castle	0.000%	Standard Rate	30,506
Middletown	New Castle	0.000%	Standard Rate	25,686
Bear	New Castle	0.000%	Standard Rate	22,604
Glasgow	New Castle	0.000%	Standard Rate	16,095
Brookside	New Castle	0.000%	Standard Rate	15,262
Milford	Sussex/Kent	0.000%	Standard Rate	14,079
Hockessin	New Castle	0.000%	Standard Rate	13,608
Smyrna	Kent/New Castle	0.000%	Standard Rate	13,326
Pike Creek Valley	New Castle	0.000%	Standard Rate	11,992
Claymont	New Castle	0.000%	Standard Rate	9,543
Seaford	Sussex	0.000%	Standard Rate	8,952
North Star	New Castle	0.000%	Standard Rate	8,178
Georgetown	Sussex	0.000%	Standard Rate	8,098
Millsboro	Sussex	0.000%	Standard Rate	7,864
Pike Creek	New Castle	0.000%	Standard Rate	7,185
Edgemoor	New Castle	0.000%	Standard Rate	6,671
Elsmere	New Castle	0.000%	Standard Rate	6,234
New Castle (city)	New Castle	0.000%	Standard Rate	5,715
Clayton	Kent/New Castle	0.000%	Standard Rate	4,511
Laurel	Sussex	0.000%	Standard Rate	4,395
Rising Sun-Lebanon	Kent	0.000%	Standard Rate	4,195
Camden	Kent	0.000%	Standard Rate	4,191
Harrington	Kent	0.000%	Standard Rate	3,934
Milton	Sussex	0.000%	Standard Rate	3,773
Lewes	Sussex	0.000%	Standard Rate	3,702
Highland Acres	Kent	0.000%	Standard Rate	3,661
Selbyville	Sussex	0.000%	Standard Rate	3,285
Wilmington Manor	New Castle	0.000%	Standard Rate	803

Note: All Delaware cities have 0% sales tax. Delaware is one of only five states with no sales tax.

Shopping in Delaware

Tax-Free Purchase

Delaware

Example: Television Purchase

Check the price tag

Item price $500.00

No tax calculation needed!

Sales tax: $0.00 (Delaware has no sales tax)

Tax amount $0.00

Pay the price shown

The price tag is your final price!

TOTAL AMOUNT DUE $500.00

Shop Tax-Free in the First State!

No Calculation Needed

Delaware has no sales tax, so the price on the tag is exactly what you pay. No math required!

What's Taxed?

Tax-Free: All retail goods (clothing, electronics, furniture)

Business Only: Gross receipts tax (not on consumers)

What Delaware Has Instead of Sales Tax

Gross Receipts Tax (For Businesses)

While consumers don't pay sales tax, Delaware does collect a gross receipts tax from businesses. This tax is levied on the business's total revenue, not on individual consumer purchases.

Tax Rates: The gross receipts tax ranges from 0.0945% to 2.0736% depending on the type of business activity.

Important: This tax is paid by businesses, not added to your purchase price. As a consumer, you won't see it on your receipt.

Learn more: Visit Delaware Division of Revenue for business tax information.

How Delaware Funds Government

Without sales tax, Delaware relies on alternative revenue sources

•
Personal Income Tax: Progressive rates from 0% to 6.6%
•
Corporate Franchise Tax: Significant revenue from businesses incorporated in Delaware (over 1 million companies)
•
Gross Receipts Tax: Levied on business revenues
•
Property Taxes: Collected at the county level
•
Vehicle Registration Fees: 4.25% fee on vehicle purchases (not sales tax, but similar effect)

Delaware's History of Rejecting Sales Tax

Delaware has never had a general sales tax, and the state has consistently rejected proposals to implement one:

1776-Present

Never Enacted

Delaware has never imposed a statewide sales tax throughout its entire history as a state. Multiple legislative proposals have been introduced over the decades but all have failed to gain traction.

Result: No sales tax ever enacted

Alternative

Corporate Franchise Tax Model

Instead of sales tax, Delaware developed a highly successful corporate franchise tax system. Over 1 million companies are incorporated in Delaware, including 66% of Fortune 500 companies, generating substantial revenue without burdening consumers.

Result: Sustainable revenue without sales tax

Ongoing

Economic Advantage Maintained

Delaware's location between Maryland, Pennsylvania, and New Jersey makes it a popular tax-free shopping destination. The no-sales-tax policy remains popular with residents and supports the retail sector.

Result: Competitive advantage preserved

Why Delaware doesn't need sales tax: The state's unique position as the incorporation capital of America, combined with personal income taxes, corporate income taxes, gross receipts taxes on businesses, and property taxes, provides sufficient revenue without imposing sales tax on consumers.

How Delaware Compares to Neighboring States

See how much you save by shopping in Delaware

0.000%

Pennsylvania

6.00%

+ up to 2%
local tax

Maryland

6.00%

No local tax

Delaware

No sales tax

Tax-Free Shopping!

New Jersey

6.625%

No local tax

Delaware is a shopping destination for nearby states — a $1,000 purchase costs $1,066.25 in New Jersey, $1,060 in Pennsylvania, and $1,060 in Maryland, but only $1,000 in Delaware.

Got Questions?

Frequently Asked Questions

Delaware Sales Tax History

Delaware has never had a sales tax. The state has consistently rejected proposals to implement a sales tax, maintaining its competitive advantage as a tax-free shopping destination.

Why Delaware Doesn't Have Sales Tax

Historical tradition: Delaware has maintained a no-sales-tax policy throughout its history, relying instead on other revenue sources including corporate franchise taxes and personal income taxes.

Economic advantage: The absence of sales tax makes Delaware attractive to consumers from neighboring states and supports the state's retail sector. Delaware's location between Maryland, Pennsylvania, and New Jersey makes it a popular shopping destination.

Business incorporation revenue: Delaware is the incorporation state of choice for over 1 million companies, including more than 66% of Fortune 500 companies. The corporate franchise tax provides substantial revenue without burdening consumers.

Legislative proposals: While sales tax proposals have been introduced in the Delaware legislature over the years, they have consistently failed to gain traction. The no-sales-tax policy remains popular with Delaware residents and businesses.

Fun fact: Delaware, along with Alaska, Montana, New Hampshire, and Oregon, are the only five states without a general sales tax. However, Alaska does allow local sales taxes.

Related Calculators & Resources

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New Jersey

Calculate NJ sales tax (6.625%)

State Calculator

Pennsylvania

Calculate PA sales tax (6%)

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Resources

Official DE Tax Info

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Disclaimer: This page confirms that Delaware has no sales tax as of January 2025. While Delaware does not charge sales tax, businesses do pay gross receipts taxes. For business tax information, please consult the Delaware Division of Revenue or a qualified tax professional.

Vehicle Registration: While Delaware has no sales tax, the state does charge a 4.25% registration fee on vehicle purchases, plus document fees. This is not classified as sales tax but has a similar effect.

Sources: Delaware Division of Revenue, Delaware Code Title 30 (State Taxes), Delaware Economic Development Office

Last updated: October 10, 2025