Doing business in Delaware comes with a unique advantage: the state doesn’t impose a traditional sales tax. But that doesn’t mean businesses are free from tax obligations. Instead, Delaware relies on the Gross Receipts Tax (GRT), a tax on your total revenue, not your profit. For retailers, restaurants, service providers, and grocery supermarkets, understanding how GRT works is essential for staying compliant.
This guide breaks down everything you need to know, from rates and exclusions to filing, payment rules, due dates, and penalties. Whether you’re opening a new business or expanding into Delaware, this resource will help you navigate the state’s tax structure with confidence.
Does Delaware have sales tax?
Delaware is one of the few states that does not impose a state or local sales tax. That means businesses do not collect traditional retail sales tax from customers, and shoppers will not see sales tax added at checkout.
However, Delaware does levy other types of business taxes and gross receipts taxes that function differently from sales tax. These taxes are paid by the business rather than charged directly to the customer, an important distinction for retailers, restaurants, and service providers operating in the state.
Even though there is no sales tax, businesses are still required to register with the state and understand which gross receipts rules apply to their industry.
What is the Delaware sales tax rate?
Although Delaware does not impose a traditional sales tax, it taxes most business revenue through the gross receipts tax. The tax applies to a business’s total gross revenue rather than profits, and the rate you pay depends on the type of business activity. GRT rates generally span from about 0.0945% to 1.9914%. For example, the GRT rate for general retailers is 0.7468% of taxable gross receipts, whereas for restaurants the GRT is 0.6472% (.006472).
Delaware sales tax on food
Delaware treats grocery supermarkets differently from general retailers when it comes to gross receipts tax. While most retailers pay around 0.7468% on taxable gross receipts, qualifying grocery supermarkets benefit from a reduced rate of 0.3267%. To receive this lower rate, a business must meet the state’s definition of a grocery supermarket. In general, that means the store:
- Occupies more than 6,000 square feet of retail space open to customers
- Earns at least 90% of its sales from food sold for home consumption
- Stocks a large variety of food items (at least 12,000 different SKUs)
- Sells the majority of food in forms not meant to be eaten immediately. For example, packaged groceries, fresh produce, refrigerated dairy, frozen foods, deli items sold by weight, shelf-stable snacks, and bottled beverages
If these requirements are met, the store can include incidental hot or prepared foods (like pizza slices, hot dogs, or salad bar items) under its grocery GRT classification.
To view the gross receipts tax rate for your specific business category, visit the Delaware Division of Revenue’s website on business tax tips.
What gross receipts tax exclusions does Delaware offer?
Delaware allows most businesses to reduce their taxable gross receipts by applying a monthly or quarterly exclusion amount before calculating the GRT. The size of this exclusion depends on the type of business activity you’re engaged in.
For many retailers and service providers, the exclusion begins at $100,000 per month (or $300,000 per quarter). Other industries with higher-volume revenue thresholds may qualify for much larger exclusions, some reaching up to $1,250,000 per month.
These exclusions are designed to reduce tax liability for smaller or lower-volume operations. Once your receipts exceed the exclusion amount for your category, the gross receipts tax applies only to the portion above that threshold.
How to calculate Delaware gross receipts tax
Calculating gross receipts tax in Delaware is easy once you know your business classification and rate. Unlike sales tax, GRT is based on your total revenue, not your profit, and it applies to all taxable receipts from goods or services delivered in Delaware.
To calculate your tax:
- Determine your business activity type.
Different business types have different rates, for example:- General retailers: 0.7468%
- Grocery supermarkets: 0.3267%
- Restaurants: 0.6472%
- Photographer: 0.3983%
- Total your Delaware gross receipts for the filing period.
This includes all forms of payment, cash, credit cards, checks, gift cards, and rebates for goods or services provided in Delaware. - Subtract your exemption.
$100,000 per month, or $300,000 per quarter. Anything above this amount is taxable. - Apply your tax rateto the taxable portion of your receipts.
Example for a general retailer:- Gross receipts: $450,000 in a quarter
- Exemption: $300,000
- Taxable amount: $150,000
- GRT due: $150,000 × 0.7468% = $1,120.20 (rounded to the nearest dollar)
- Round to the nearest dollar, as required by Delaware.
Because gross receipts can’t be reduced by costs such as labor, inventory, or production expenses, it’s important for businesses to plan for this tax as a direct operating expense.
Haga que sus impuestos sobre las ventas sean menos onerosos con DAVO.
How to register a business in Delaware?
Any business operating in Delaware, whether you’re selling goods, providing services, or running a grocery supermarket, must register with the Delaware Division of Revenue before generating taxable receipts. Registration is done by obtaining a Delaware business license, which also establishes your Gross Receipts Tax accounts.
The fastest and most common method is through the Delaware One Stop portal. This online system lets you:
- Apply for your business license
- Register for Gross Receipts Tax
- Add additional business locations
- Pay your license fees electronically
Once completed, your business license is issued, and your GRT accounts are automatically created based on your business activities.
Business license fees
Licensing fees in Delaware vary based on the type of business you operate. While many businesses pay the standard $75 for the first location and $25 for additional locations, other industries have their own fee structures. For example, a general retailer pays $90 for the first location and $40 for each additional site, while restaurants fall under the standard $75/$25 structure. Certain specialty businesses, such as travel agencies, have higher fees, $225 for the first location and $25 for each additional location.
Because Delaware licenses businesses by activity type, it’s important to confirm the correct fee for your specific classification before applying. Every location must hold its own license, and all licenses must be renewed annually by December 31. Depending on where you operate, local municipalities may also require their own licenses, so be sure to check with county or city offices for additional requirements.
Once your business license is active, you’re responsible for filing Gross Receipts Tax returns on the schedule assigned by the Division of Revenue. The Delaware Taxpayer portal provides the latest gross receipts licenses and tax rates.
How to file Delaware gross receipts tax?
Delaware requires nearly all businesses to file gross receipts tax returns online through the Delaware Taxpayer Portal. Electronic filing is the standard for GRT and is expected for every filing period, even when no tax is due. Only in rare cases, typically involving specific technical or accessibility issues, will the state allow a paper return, and those exceptions must be approved by the Division of Revenue.
When completing a return through the portal, you will:
- Report your total Delaware gross receipts for the period
- Apply the appropriate monthly or quarterly exclusion
- Use your activity-specific GRT rate to calculate the tax due
- Round the final amount to the nearest dollar, as required
Once submitted, the portal provides a confirmation number, which should be saved with your records.
Keep detailed documentation of all receipts included in your return, cash, credit, checks, gift cards, rebates, and any other forms of payment, since Delaware requires businesses to maintain books that support the amounts reported.
How to pay Delaware gross receipt tax?
Delaware requires gross receipts tax payments to be made electronically through the Delaware Taxpayer Portal. Businesses can submit payments using one of two methods:
- Bank transfer (ACH) directly from a checking or savings account
- Credit or debit card, processed through the state’s secure payment system (processing fees may apply)
Paper checks and mailed payments are generally not accepted for GRT. Because filing and payment are tied together through the portal, the online process ensures faster processing, immediate confirmation, and fewer errors.
Once your payment is submitted, the system provides a confirmation number and digital receipt. Be sure to keep these records for your files in case of audit or reconciliation later.
When is Delaware gross receipt tax due?
Delaware Gross Receipts Tax returns are filed either monthly or quarterly, depending on your total gross receipts. The state reviews your revenue during a designated look-back period to determine which filing frequency applies.
All new businesses automatically begin as quarterly filers for their first calendar year. After that, the Division of Revenue evaluates your receipts and may move you to monthly filing if your revenue exceeds the threshold.
Declarantes mensuales
If you are assigned monthly filing, your Gross Receipts Tax return and payment are due on or before the 20th of each month, covering the previous month’s receipts.
Declarantes trimestrales
If you are a quarterly filer, your return and payment are due on the last day of the first month after the quarter ends. For example:
- Q1 (Jan–Mar): due April 30
- Q2 (Apr–Jun): due July 31
- Q3 (Jul–Sep): due October 31
- Q4 (Oct–Dec): due January 31
Delaware requires businesses to file a return for each period assigned, even if no tax is owed for that period. For the latest gross receipt due dates, visit the Delaware Division of Revenue website’s page on business tax forms.
Since Delaware does not impose sales tax, the state does not offer a vendor discount for timely filing. However, Delaware businesses do benefit from the gross receipts tax exclusions, which reduce the taxable portion of their revenue before calculating GRT.
If you operate in multiple states, you may still qualify for vendor discounts elsewhere. Check out our Guía de descuentos del impuesto sobre las ventas to see where you can save on timely sales tax filing and payments. With DAVO by Avalara, this collection allowance is returned to the business in full, sometimes covering the full subscription cost to DAVO.
Penalties and interest for Delaware gross receipts tax
Delaware imposes penalties and interest when gross receipts tax returns or payments are not submitted on time. If a return is filed late, the state charges a 5% penalty for each month the return is overdue, along with 0.5% monthly interest on the outstanding tax balance. These charges continue to accrue from the original due date until the tax is fully paid.
In addition to late-filing penalties, Delaware also assesses a separate late-payment penalty when the tax shown on a timely filed return is not paid in full. This penalty is 1% per month, up to a maximum of 25% of the unpaid amount.
Because Delaware applies multiple layers of penalties and interest, filing and paying through the Taxpayer Portal by the required deadline is the best way to avoid unnecessary charges.
How DAVO can help manage sales tax
Managing taxes in Delaware can feel deceptively simple since there’s no traditional sales tax, but the gross receipts tax introduces its own set of rules, exclusions, rates, and deadlines that businesses must stay on top of. DAVO helps streamline the sales tax process by automatically setting aside the funds you collect through your POS and remitting sales tax in states where it applies, giving businesses one less thing to worry about.
Even though Delaware doesn’t charge sales tax, many businesses operate across state lines. With DAVO supporting your sales tax compliance in other states, you can stay focused on running your business instead of managing tax deadlines and filings.
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Delaware Division of Revenue Information:
(302) 577-8780
