Delaware Has No Sales Tax
Delaware is one of only five states that does not impose a sales tax, giving residents and visitors more purchasing power on every dollar spent.
How Delaware Funds Government Without Sales Tax
Without sales tax revenue, Delaware relies on other sources. The state collects income tax with a top rate of 6.6%. The average property tax rate is 0.53% on homes with a median value of $317,200.
Delaware charges no sales tax and is a top incorporation state.
Delaware Tax Overview
- Sales Tax
- None (0%)
- State Income Tax
- 6.6% top rate
- Avg Property Tax Rate
- 0.53%
- State Minimum Wage
- $13.25/hr
Related Delaware Calculators
Frequently Asked Questions
Does Delaware have a sales tax? + −
No. Delaware is one of only five states that does not charge a state sales tax. This means purchases are not subject to state or local sales tax, giving residents and visitors more purchasing power. Delaware charges no sales tax and is a top incorporation state.
How does Delaware fund state services without a sales tax? + −
Delaware relies on other revenue sources to fund state services. The state collects income tax with a top rate of 6.6%, and also generates revenue through property taxes (average rate: 0.53%), excise taxes, fees, and natural resource revenue.
Is Delaware a tax-friendly state? + −
Delaware's lack of sales tax makes it more tax-friendly for consumer purchases. However, the state does levy income tax up to 6.6%, so overall tax burden depends on your income level. The average property tax rate is 0.53% on a median home value of $317,200.
Do I need to pay use tax in Delaware? + −
Even without a sales tax, some states require a use tax on items purchased out-of-state for use within the state. Check Delaware's specific requirements — the rules vary. In practice, enforcement of use tax on individual consumer purchases is limited.
What is the property tax rate in Delaware? + −
The average effective property tax rate in Delaware is 0.53%. On the median home value of $317,200, this translates to approximately $1,681 per year. Rates vary significantly by county and municipality.