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File Delaware state taxes

Businesses that operate in Delaware must pay taxes to the state. (Businesses that are incorporated in Delaware but do not operate here have different tax obligations).

Which Delaware state taxes does my business have to pay?

  • Businesses that operate in Delaware must be licensed by the Division of Revenue and pay gross receipts tax.
  • Businesses that are incorporated in Delaware must pay an annual franchise tax to the Division of Corporations.
  • Businesses operating AND incorporated in Delaware must pay gross receipts, franchise and corporate income tax.
  • Businesses with employees who work in Delaware must pay withholding tax and unemployment insurance tax.
  • Delaware does not have a sales tax.

Are there any other taxes I should know about?

Delaware Division of Revenue business license holders

For businesses that operate in Delaware

  • Gross receipts tax (due either monthly or quarterly, depending on the business' total gross receipts)
  • Certain industries operating in Delaware also have other tax obligations to the Division of Revenue:
    • Alcoholic Beverages
    • Contractors
    • Manufactured Homes
    • Nursing Homes/Facilities
    • Petroleum Wholesale

Legal Entities that operate in Delaware

  • Domestic Corporations must file an annual report and pay Franchise Tax annually by March 1st.
    • For stock corporations, the amount due is based on authorized shares.
  • Foreign Corporations, file an annual report only, due June 30th each year.
  • Domestic and Foreign LLCs, pay an annual tax due on June 1st of each year. They currently do not file an annual report and the tax is a flat amount.
  • Delaware incorporated businesses who operate in Delaware pay the Division of Revenue Corporate Income Tax (due when filing annual taxes).

Delaware Employers

For businesses with one or more employees in Delaware

Federal Tax Information

City, County, and Town Tax Information

  • Businesses that operate in certain city or county limits may also have local tax requirements. Please check with the city, county, or town that you are operating in.

Tips

Businesses Operating in Delaware have the following State Taxes:

Delaware Division of Revenue Business License Holders Gross Receipts Tax, and other obligations dependent upon business activity.

Delaware Legal Entities (those incorporated and operating in Delaware) Franchise Tax and Annual Reports (paid to the Division of Corporations), and Corporate Income Tax (paid to the Division of Revenue).

Delaware Employers Withholding Tax, Unemployment Insurance Tax.

Federal Taxes and County/Local Taxes are separate.