Delaware has no state sales tax. Delaware imposes a Gross Receipts Tax on businesses with physical presence in the state. Get a free nexus study. All 50 states covered.
N/A — Delaware has no state sales tax and no economic nexus threshold.
N/A — Delaware has no state sales tax.
Affiliate nexus rules do not apply in Delaware. Delaware has no state sales tax, so the standard affiliate nexus framework, which concerns the obligation to collect and remit sales tax, has no application here. A business with operations in Delaware may have Gross Receipts Tax obligations based on physical presence in the state, but those obligations arise under the GRT framework rather than any affiliate nexus statute.
Delaware has no state sales tax, so physical nexus in the traditional sales tax sense does not apply. Instead, physical presence in Delaware may subject a business to the Delaware Gross Receipts Tax, which is imposed on total revenues from business conducted in the state. The GRT applies to any business "engaging in business in the State of Delaware," a standard grounded in physical presence rather than economic activity.
Delaware has not adopted Wayfair-style economic nexus for the GRT, meaning remote sellers with no Delaware physical presence are generally not subject to the tax. GRT rates vary by business category, ranging from 0.0945% to 1.9914%, with a retail rate of 0.7468% and a wholesale rate of 0.3983%. Most businesses qualify for monthly revenue exclusions, which are often up to $100,000 per month. Unlike sales tax, sales for resale are not exempt from the GRT.
Any business conducting a trade or business in Delaware must obtain a Delaware Business License, which carries an annual fee of $75. The Delaware Division of Revenue provides a formal Nexus Questionnaire for businesses seeking to determine whether their activities constitute doing business in the state.
Trailing nexus does not apply in Delaware. The state has no sales tax, so the trailing nexus concept, which addresses the continuation of sales tax collection obligations after a seller's nexus-creating presence ends, has no application. GRT obligations under the physical presence standard cease when a business no longer engages in business in Delaware.
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