Navigating Gross Receipts Tax in Delaware

Q: Do businesses charge customers Delaware GRT?

No. GRT is not a sales tax and is never charged to customers. It is a tax paid directly by the business on its gross revenue from goods sold or services provided in Delaware.

Q: Are any expenses deductible when calculating GRT?

No. Delaware does not allow deductions for labor, materials, shipping, interest, discounts, or any other costs. GRT is calculated solely on total gross receipts.

Q: Does an out-of-state business owe GRT if it makes sales into Delaware?

Only if it has physical nexus in Delaware - such as employees, inventory, a warehouse, or an office. Purely remote sellers with no physical presence in the state are generally not required to pay GRT.

The Gross Receipts Tax (GRT) is a levy imposed by the Delaware Division of Revenue on businesses operating in Delaware, based on their total gross revenues (receipts) from sales of goods or services within the state.

Last Updated: May 2025

30%

of its budget is earned from a gross receipts tax on businesses.

Delaware at a glance.

State

Delaware

Tax Rate Range

N/A

Economic Nexus Threshold

No economic nexus threshold

Filling Deadlines

On or before the 20th day of the month following the reporting period.

Is SaaS Taxable?

No

Base Tax Rate:

No statewide sales tax

Why does Delaware use Gross Receipts Tax?

Delaware is one of the few U.S. states without a state-level consumer sales tax; instead, it raises revenue through the Gross Receipts Tax (GRT), which taxes businesses directly on the revenue they generate from selling goods or providing services within the state. As a result, the tax burden shifts upstream to the business rather than the consumer, making the GRT an important structural consideration for any company operating in or from Delaware.

How does Gross Receipts Tax work?

Tax Base:

Delaware’s Gross Receipts Tax applies to all revenue from goods sold or services provided within the state. No deductions are allowed for expenses such as cost of goods sold, labor, interest, delivery charges, or discounts.

Rates:

GRT rates vary by industry and business classification. Published guidance shows rates generally ranging from about 0.0945% to 1.9914%, depending on the type of business activity.

Exclusions / Thresholds:

Many business types receive monthly or quarterly exclusion amounts, meaning a portion of their receipts is exempt before the tax applies. These exclusion levels differ by both industry and filing frequency.

Filing Frequency & Deadlines:

Businesses file their GRT returns either monthly or quarterly, depending on their total gross receipts. New businesses typically begin on a quarterly filing schedule.

Who Pays / Nexus:

The tax applies to businesses conducting activities in Delaware, whether selling goods or providing services. Out-of-state businesses may also be liable if they have a physical presence in Delaware, such as employees, inventory, offices, or warehouses. Remote sellers without physical nexus are generally not subject to GRT.

Penalties for Non-Compliance:

Late filings or payments can lead to penalties, including a 5% penalty per month for late returns and 0.5% monthly interest, plus additional charges for failure to pay.

Delaware sales tax information:

To calculate Delaware’s Gross Receipts Tax, multiply your gross receipts for the filing period (monthly or quarterly) by the tax rate assigned to your business activity. Gross receipts include all revenue from goods sold or services provided in Delaware, with no deductions allowed for expenses.

Delaware’s GRT applies to all in-state revenue with no deductions for costs. Out-of-state businesses owe the tax only if they have a physical presence in Delaware, while purely remote sellers without nexus are generally exempt.

Obtain a Delaware Business License by registering through the Delaware One Stop Portal, selecting your business activities, and paying the required fee. Once licensed, the Division of Revenue assigns your filing frequency, with most new businesses starting as quarterly filers.

Businesses do not collect GRT from their customers.
This is an internal business tax, not a sales tax.

Sales Tax return due dates explained.

Delaware businesses file Gross Receipts Tax returns either quarterly or monthly, depending on their revenue level and tax liability. Quarterly returns are due on the last day of the month following each quarter. Monthly filers, typically higher-volume businesses, must submit their returns by the 20th of the month following the reporting month. New businesses usually begin on a quarterly filing schedule, and the Division of Revenue may adjust filing frequency as a business’s gross receipts grow.

Monthly filing: Tax liability that exceeds $5,000 per month.
Quarterly filing: Tax liability is less than $5,000 per month but exceeds $1,500 per quarter
Annual filing: Tax liability is less than $1,500 per quarter

FAQs

Do businesses charge customers Delaware GRT?

No. GRT is not a sales tax and is never charged to customers. It is a tax paid directly by the business on its gross revenue from goods sold or services provided in Delaware.

Are any expenses deductible when calculating GRT?

No. Delaware does not allow deductions for labor, materials, shipping, interest, discounts, or any other costs. GRT is calculated solely on total gross receipts.

Does an out-of-state business owe GRT if it makes sales into Delaware?

Only if it has physical nexus in Delaware - such as employees, inventory, a warehouse, or an office. Purely remote sellers with no physical presence in the state are generally not required to pay GRT.

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Navigating Gross Receipts Tax in Delaware

The Gross Receipts Tax (GRT) is a levy imposed by the Delaware Division of Revenue on businesses operating in Delaware, based on their total gross revenues (receipts) from sales of goods or services within the state.

Last Updated: May 2025

30%

of its budget is earned from a gross receipts tax on businesses.

Delaware at a glance.

State

Delaware

Tax Rate Range

N/A

Economic Nexus Threshold

No economic nexus threshold

Filling Deadlines

On or before the 20th day of the month following the reporting period.

Is SaaS Taxable?

No

Base Tax Rate:

No statewide sales tax

Why does Delaware use Gross Receipts Tax?

Delaware is one of the few U.S. states without a state-level consumer sales tax; instead, it raises revenue through the Gross Receipts Tax (GRT), which taxes businesses directly on the revenue they generate from selling goods or providing services within the state. As a result, the tax burden shifts upstream to the business rather than the consumer, making the GRT an important structural consideration for any company operating in or from Delaware.

How does Gross Receipts Tax work?

Tax Base:

Delaware’s Gross Receipts Tax applies to all revenue from goods sold or services provided within the state. No deductions are allowed for expenses such as cost of goods sold, labor, interest, delivery charges, or discounts.

Rates:

GRT rates vary by industry and business classification. Published guidance shows rates generally ranging from about 0.0945% to 1.9914%, depending on the type of business activity.

Exclusions / Thresholds:

Many business types receive monthly or quarterly exclusion amounts, meaning a portion of their receipts is exempt before the tax applies. These exclusion levels differ by both industry and filing frequency.

Filing Frequency & Deadlines:

Businesses file their GRT returns either monthly or quarterly, depending on their total gross receipts. New businesses typically begin on a quarterly filing schedule.

Penalties for Non-Compliance:

Businesses file their GRT returns either monthly or quarterly, depending on their total gross receipts. New businesses typically begin on a quarterly filing schedule.

Delaware sales tax information:

To calculate Delaware’s Gross Receipts Tax, multiply your gross receipts for the filing period (monthly or quarterly) by the tax rate assigned to your business activity. Gross receipts include all revenue from goods sold or services provided in Delaware, with no deductions allowed for expenses.

Delaware’s GRT applies to all in-state revenue with no deductions for costs. Out-of-state businesses owe the tax only if they have a physical presence in Delaware, while purely remote sellers without nexus are generally exempt.

Obtain a Delaware Business License by registering through the Delaware One Stop Portal, selecting your business activities, and paying the required fee. Once licensed, the Division of Revenue assigns your filing frequency, with most new businesses starting as quarterly filers.

Businesses do not collect GRT from their customers.
This is an internal business tax, not a sales tax.

Sales Tax return due dates explained.

Delaware businesses file Gross Receipts Tax returns either quarterly or monthly, depending on their revenue level and tax liability. Quarterly returns are due on the last day of the month following each quarter. Monthly filers, typically higher-volume businesses, must submit their returns by the 20th of the month following the reporting month. New businesses usually begin on a quarterly filing schedule, and the Division of Revenue may adjust filing frequency as a business’s gross receipts grow.

Monthly filing: Tax liability that exceeds $5,000 per month.
Quarterly filing: Tax liability is less than $5,000 per month but exceeds $1,500 per quarter
Annual filing: Tax liability is less than $1,500 per quarter

FAQs

Do businesses charge customers Delaware GRT?

No. GRT is not a sales tax and is never charged to customers. It is a tax paid directly by the business on its gross revenue from goods sold or services provided in Delaware.

Are any expenses deductible when calculating GRT?

No. Delaware does not allow deductions for labor, materials, shipping, interest, discounts, or any other costs. GRT is calculated solely on total gross receipts.

Does an out-of-state business owe GRT if it makes sales into Delaware?

Only if it has physical nexus in Delaware - such as employees, inventory, a warehouse, or an office. Purely remote sellers with no physical presence in the state are generally not required to pay GRT.

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Navigating Gross Receipts Tax in Delaware

30%

State

Delaware

Tax Rate Range

N/A

Economic Nexus Threshold

No economic nexus threshold

Filling Deadlines

On or before the 20th day of the month following the reporting period.

Is SaaS Taxable?

No

Base Tax Rate:

No statewide sales tax

Why does Delaware use Gross Receipts Tax?

How does Gross Receipts Tax work?

Tax Base:

Rates:

Exclusions / Thresholds:

Filing Frequency & Deadlines:

Who Pays / Nexus:

Penalties for Non-Compliance:

To calculate Delaware’s Gross Receipts Tax, multiply your gross receipts for the filing period (monthly or quarterly) by the tax rate assigned to your business activity. Gross receipts include all revenue from goods sold or services provided in Delaware, with no deductions allowed for expenses.

Delaware’s GRT applies to all in-state revenue with no deductions for costs. Out-of-state businesses owe the tax only if they have a physical presence in Delaware, while purely remote sellers without nexus are generally exempt.

FAQs

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Navigating Gross Receipts Tax in Delaware

30%

State

Delaware

Tax Rate Range

N/A

Economic Nexus Threshold

No economic nexus threshold

Filling Deadlines

On or before the 20th day of the month following the reporting period.

Is SaaS Taxable?

No

Base Tax Rate:

No statewide sales tax

Why does Delaware use Gross Receipts Tax?

How does Gross Receipts Tax work?

Tax Base:

Rates:

Exclusions / Thresholds:

Filing Frequency & Deadlines:

Penalties for Non-Compliance:

To calculate Delaware’s Gross Receipts Tax, multiply your gross receipts for the filing period (monthly or quarterly) by the tax rate assigned to your business activity. Gross receipts include all revenue from goods sold or services provided in Delaware, with no deductions allowed for expenses.

Delaware’s GRT applies to all in-state revenue with no deductions for costs. Out-of-state businesses owe the tax only if they have a physical presence in Delaware, while purely remote sellers without nexus are generally exempt.

FAQs

Related content.

The Myth of Marketplace Protection: What Sellers Misunderstand

How the VAT IT and Brex Integration Streamlines VAT Reclaim

Continuous Transaction Controls (CTC): How Real-Time VAT Reporting Works in 2026

Economic Nexus Explained (2026 Update): What European & UK Companies Need to Know After Their First Years Selling in the U.S.

6 Best US Sales Tax Compliance Solutions in 2026: An Honest Comparison

What is Peppol and How Does It Affect Your Business When e-Invoicing

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