Delaware is one of only a handful of states with no state or local sales tax. This means remote sellers do not have a traditional sales tax economic nexus threshold to monitor when selling to Delaware customers.
However, businesses operating in the state may still have business licensing and Gross Receipts Tax (GRT) obligations.
Delaware Economic Nexus at a Glance
| Rule | Delaware Rule |
| State sales tax | None |
| Local sales tax | None |
| Sales tax economic nexus threshold | None |
| Transaction threshold | None |
| Marketplace facilitator rules | Not applicable |
| Gross Receipts Tax | Yes |
| Tax authority | Delaware Division of Revenue |
Does Delaware Have Economic Nexus for Sales Tax?
No, because Delaware does not impose state or local sales tax, there is no sales tax economic nexus threshold for remote sellers.
An ecommerce business can therefore exceed $100,000 or $500,000 in sales to Delaware customers without triggering a sales tax collection requirement based solely on those sales. However, businesses should still consider whether their activities in Delaware create other tax or licensing obligations.
What Is Delaware Gross Receipts Tax?
Instead of sales tax, Delaware imposes Gross Receipts Tax (GRT) on many businesses conducting business in the state. Unlike sales tax, GRT is imposed on the seller rather than the customer. Rates vary depending on the type of business activity, and exclusions may apply before GRT becomes payable. Importantly, GRT should not be treated as Delaware sales tax charged to the customer.
Do Remote Ecommerce Sellers Pay Delaware Gross Receipts Tax?
Simply shipping products from another state to customers in Delaware does not automatically create a Delaware sales tax obligation. However, businesses with activities in Delaware should determine whether they have Gross Receipts Tax or business licensing requirements.
Relevant activities can include:
- Maintaining an office or business location
- Having employees in Delaware
- Storing inventory in the state
- Operating a warehouse or fulfilment location
Businesses conducting a trade or business in Delaware may also need to obtain a Delaware business license.
Do Amazon Sellers Need to Collect Sales Tax in Delaware?
No, Amazon sellers do not collect Delaware sales tax because Delaware does not have a state or local sales tax. This also means Delaware does not need a traditional marketplace facilitator sales tax system like states that impose sales tax.
For example, if you make $500,000 of Amazon sales to Delaware customers, those sales alone do not create a Delaware sales tax collection obligation.
However, an Amazon or ecommerce seller with inventory, employees or other business activities physically located in Delaware should separately review whether it has business licensing, Gross Receipts Tax or other Delaware obligations.
What Should Remote Sellers Do When Selling Into Delaware?
If you sell to Delaware customers:
- Remember that there is no Delaware sales tax to collect.
- Check whether you have physical presence or business activities in Delaware.
- Determine whether a Delaware business license is required.
- Review whether Gross Receipts Tax applies to your business.
For most remote sellers, the key distinction is between simply shipping to Delaware customers and actually conducting business within the state.
Delaware Nexus Examples
Shopify seller:
A remote ecommerce business ships products from another state to Delaware customers and has no physical presence there. There is no Delaware sales tax to collect.
Amazon seller:
A business makes $300,000 of Amazon sales to Delaware customers. There is no sales tax economic nexus threshold, so its sales volume doesn’t create a Delaware sales tax collection requirement.
Business with Delaware operations:
A business has employees or inventory in Delaware. There is still no sales tax to collect, but the business should review whether Gross Receipts Tax and business licensing requirements apply.
FAQs
Does Delaware have sales tax?
No, Delaware has no state or local sales tax.
What is Delaware’s economic nexus threshold?
Delaware does not have a traditional sales tax economic nexus threshold because it doesn’t impose sales tax.
Do I need to collect sales tax on Shopify orders shipped to Delaware?
No, Delaware sales tax isn’t due simply because an order is delivered to a Delaware customer.
Does Delaware have Gross Receipts Tax?
Yes, Delaware imposes Gross Receipts Tax on many businesses conducting business in the state. The applicable rate depends on the type of business activity.
Can I have Delaware tax obligations even though there is no sales tax?
Yes, businesses operating in Delaware may have Gross Receipts Tax, business licensing or other state obligations.
Final Thoughts
Delaware is unusual because it has no state or local sales tax and no traditional sales tax economic nexus threshold. Remote sellers don’t need to collect Delaware sales tax simply because their sales reach a certain level. However, businesses with employees, inventory or other activities in Delaware should still consider whether Gross Receipts Tax and business licensing requirements apply.
RJM Tax Exemption can help you review your Delaware activities and determine whether your business has any state registration or tax obligations.
Last updated: August 2026. Tax and licensing rules can change. Always check current Delaware Division of Revenue guidance when determining your obligations.
