The Delaware Sales Tax Calculator helps you quickly determine the sales tax on a purchase in any city or county in Connecticut. You can calculate sales tax by adding it to a pre-tax amount or removing it from a total amount.
Delaware Sales Tax Calculator
Calculate taxes for purchases in Delaware – The First State with no sales tax
Total Amount
Tax Amount
Pre-Tax Amount
Tax Rate
Removing Tax: Pre-Tax = Amount ÷ (1 + Tax Rate)
The Delaware Sales Tax Calculator helps you determine the tax on purchases in Delaware. Delaware is one of five states in the U.S. with no statewide sales tax, making it an attractive shopping destination.
When adding tax:
- Tax Amount = Pre-Tax Amount × Tax Rate
- Total Amount = Pre-Tax Amount + Tax Amount
When removing tax:
- Pre-Tax Amount = Total Amount ÷ (1 + Tax Rate)
- Tax Amount = Total Amount – Pre-Tax Amount
Delaware has no statewide sales tax, but there are specific taxes on certain goods and services, such as lodging (8%) and rental cars (2.25%). These are not technically sales taxes but are applied to specific transactions.
General Merchandise Example
Let’s say you want to calculate the tax on a $100 purchase of general merchandise in Delaware:
Pre-Tax Amount = $100
Tax Rate = 0% (no sales tax)
Calculate the tax amount:
Tax Amount = $100 × 0% = $0.00
Calculate the total amount:
Total Amount = $100 + $0.00 = $100.00
Lodging Example
Now, let’s say you’re staying at a hotel in Delaware for $200 per night. Lodging is subject to an 8% tax:
Pre-Tax Amount = $200
Tax Rate = 8% or 0.08
Calculate the tax amount:
Tax Amount = $200 × 0.08 = $16.00
Calculate the total amount:
Total Amount = $200 + $16.00 = $216.00
Rental Car Example
For a rental car costing $100 per day in Delaware, there is a 2.25% tax:
Pre-Tax Amount = $100
Tax Rate = 2.25% or 0.0225
Calculate the tax amount:
Tax Amount = $100 × 0.0225 = $2.25
Calculate the total amount:
Total Amount = $100 + $2.25 = $102.25
Delaware Tax Rates
Delaware has no statewide sales tax, which makes it unique among most U.S. states. However, there are specific taxes on certain goods and services. These are not technically sales taxes but are applied to specific transactions.
Sales Tax
Lodging Tax
Rental Car Tax
Gross Receipts Tax
Delaware Specific Taxes
| Tax Type | Tax Rate | Description |
|---|---|---|
| General Merchandise | 0% | No sales tax on retail goods |
| Food & Groceries | 0% | No tax on food for home consumption |
| Clothing & Footwear | 0% | No tax on clothing and shoes |
| Prescription Drugs | 0% | No tax on prescription medications |
| Over-the-Counter Drugs | 0% | No tax on non-prescription medicines |
| Lodging | 8% | Tax on hotel and motel rooms |
| Rental Cars | 2.25% | Tax on vehicle rentals |
| Alcoholic Beverages | Varies | Specific taxes on alcohol |
| Tobacco Products | Varies | Specific taxes on tobacco |
| Motor Fuel | Varies | Taxes on gasoline and diesel |
Delaware Tax Exemptions
Since Delaware has no statewide sales tax, most purchases are exempt from sales tax. However, there are specific taxes on certain goods and services. The following items are generally exempt from any form of sales or use tax in Delaware:
- General Merchandise: All retail goods are exempt from sales tax
- Food & Groceries: All food for home consumption is exempt
- Clothing & Footwear: All clothing and shoes are exempt regardless of price
- Prescription Drugs: All prescription medications are exempt
- Nonprescription Medicine: Over-the-counter drugs and medicines are exempt
- Medical Equipment: Prosthetics, wheelchairs, and other medical devices are exempt
- Farm Equipment: Machinery and equipment used in agricultural production
- Manufacturing Equipment: Equipment used directly in manufacturing
- Newspapers & Magazines: Print publications are exempt
- Textbooks: Educational textbooks are exempt
- Religious and Charitable Organizations: Purchases by qualifying organizations
- Government Agencies: Purchases by federal, state, and local governments
Delaware Gross Receipts Tax
While Delaware has no sales tax, it does have a gross receipts tax that applies to businesses. This is not a sales tax but a tax on the total gross revenues of a business. The rates vary by industry and range from 0.0946% to 2.0736%.
Key points about Delaware’s gross receipts tax:
- It is a tax on businesses, not consumers
- It is based on the total gross revenues of a business
- Rates vary by industry
- It is not added to the price of goods or services at the point of sale
- Businesses with gross receipts below a certain threshold may be exempt
The gross receipts tax is why some businesses in Delaware may still charge slightly higher prices compared to businesses in other states, even though there is no sales tax.
Understanding Delaware Taxes
No Sales Tax
Delaware is one of five U.S. states with no statewide sales tax. This makes it an attractive shopping destination for residents of neighboring states like Maryland, Pennsylvania, and New Jersey, who often cross state lines to make tax-free purchases.
Lodging Tax
Delaware imposes an 8% tax on lodging, including hotels, motels, and vacation rentals. This tax applies to the rental of rooms for less than 30 consecutive days and is collected by lodging providers.
Rental Car Tax
A 2.25% tax is applied to the rental of vehicles in Delaware. This tax is in addition to any other fees or charges associated with vehicle rentals and is collected by rental car companies.
Gross Receipts Tax
Delaware’s gross receipts tax is a business tax based on the total gross revenues of a business. Rates vary by industry and range from 0.0946% to 2.0736%. This tax is not passed on to consumers at the point of sale.
Alcohol & Tobacco Taxes
Delaware imposes specific taxes on alcoholic beverages and tobacco products. These are excise taxes that are typically included in the price of the product and are not added at the point of sale.
Motor Fuel Taxes
Delaware taxes gasoline and diesel fuel. These taxes are included in the price per gallon at the pump and are not added as a separate sales tax. The current tax rate is 23 cents per gallon for gasoline.
Delaware Taxes for Businesses
Business Registration
Businesses operating in Delaware must register with the Delaware Division of Revenue. While there is no sales tax to collect, businesses may be subject to the gross receipts tax and other business taxes depending on their industry and activities.
Gross Receipts Tax Rates
Gross receipts tax rates in Delaware vary by industry. For example, retail businesses pay 0.7436%, while manufacturing businesses pay 0.3756%. Some industries have higher rates, such as utilities (2.0736%) and telecommunications (1.8736%).
Filing Requirements
Businesses subject to the gross receipts tax must file returns monthly, quarterly, or annually, depending on their tax liability. Filing is done through the Delaware Division of Revenue’s online system, and payments are due by the 20th day of the month following the reporting period.
Penalties and Interest
Delaware imposes penalties for late filing and late payment of taxes. The penalty is 5% of the tax due, plus interest at the rate of 0.5% per month. Failure to file or pay can result in additional penalties and legal action.
Out-of-State Sales
Delaware businesses selling to customers in other states may be required to collect sales tax in those states if they have nexus there. This is particularly relevant for e-commerce businesses that ship products nationwide.
Tax Calculation Services
While Delaware has no sales tax, businesses operating in multiple states may still benefit from tax calculation services to handle sales tax collection in other states where they have nexus.