Delaware Sales Tax and Use Tax
What is the Delaware sales tax?
Taxes in Delaware are not applicable, meaning the Delaware sales tax rate is based, or determined from, the lack of sales taxes in this state
To see a full breakout of Delaware sales tax rates by state, county, city and special district, use our easy Delaware sales tax calculator. After putting in any ZIP code, you can enter a retail price to calculate Delaware sales tax totals.
What is the Delaware use tax?
The Delaware state use tax rate is zero.
If you reside in DE, use tax is due to the state on any and all transactions where sales tax has not been paid, even out-of-state internet sales.
Who has to pay Delaware sales tax or use tax?
In general, a business must collect and remit all applicable Delaware sales taxes if that business has nexus, a physical presence such as a brick-and-mortar location, within a given state. The presence of an employee or salesperson, delivery by the seller's vehicle, and storage of materials usually establishes nexus as well.
Delaware says that an out-of-state seller is required to collect tax if they can be defined as having a physical presence in the state. Delaware does not currently have additional laws establishing nexus for other reasons such as out-of-state businesses using in-state affiliates, advertisers or vendors, or businesses that make internet sales or mail catalogs.
If you are not sure if you have established nexus in Delaware, you can usually get free help by contacting the Delaware Department of Finance. Click here for an updated listing of direct phone numbers. You could also contact a qualified certified public accountant or lawyer who specializes in tax law in Delaware. Click here for listing of recommended resources.
Special rules applying to Delaware sales tax and use taxes
- Shipping is not taxable.
- Finance charges are exempt from sales tax, when stated separately.
- Clothing is tax exempt.
- Delaware Sales tax holidays are not planned for this state .
Since Delaware legislators can vote to change the Delaware sales tax and use tax rates at any time, it is very difficult for individuals to keep track of the changes. The population of DE state is also rapidly changing, which can cause frequent updates to the ZIP codes and local municipality names and complicates the job of keeping track of Delaware sales tax jurisdictions.