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Receivables and sales tax in Delaware

Delaware has no sales tax, so there is nothing to collect from Delaware customers. A company operating in Delaware instead pays a gross receipts tax on its own receipts, 0.3983% for services after a $100,000 monthly exclusion.

Jurisdiction
Delaware
Reading time
2 min
Checked
October 13, 2026
Point at another state to compare its receivables.

Key figures

Delaware receivables

2026, with sources

Sales tax
None
Gross receipts tax, general services
0.3983%On receipts from services rendered in Delaware; paid by the seller, not added to invoices.
Monthly exclusion
$100,000$300,000 a quarter; one exclusion per business activity.
Gross receipts tax range
0.0945% to 1.9914%By business activity; petroleum products can reach 2.4218%.
Filing frequency
Monthly or quarterlyNew licensees file quarterly through their first calendar year.
Economic nexus for sales tax
None (no sales tax)

No sales tax, a gross receipts tax instead

Delaware is one of the few states with no sales tax. Nothing is added to invoices, there is no SaaS taxability question, and there is no economic nexus threshold to track for Delaware.

What Delaware has instead is a gross receipts tax on businesses licensed in the state. It is levied on the seller’s gross receipts, at a rate that depends on the business activity: 0.3983% for general services, after excluding the first $100,000 a month ($300,000 a quarter). Receipts can’t be reduced for costs, and a company gets one exclusion per activity, not per location.

When it reaches a startup

The license and the gross receipts tax follow Delaware operations. A company with an office or staff in Delaware takes out a business license, generally $75 a year, and files gross receipts returns: quarterly through its first calendar year, then monthly or quarterly depending on the Division of Revenue’s lookback. Monthly returns are due on the 20th of the following month; quarterly ones on the last day of the month after the quarter.

Because the tax is on the seller, it is an operating expense, not a liability collected from customers. Revenue under ASC 606 is unaffected.

Two examples

A Pennsylvania SaaS company with 40 Delaware customers and no presence in Delaware has nothing to do for Delaware on the receivables side: no registration, no tax on invoices, no return. Its only Delaware exposure is through its Delaware incorporation, which is a compliance matter.

A consulting firm that opens an office in Wilmington and receives $150,000 for services rendered in Delaware in a month excludes the first $100,000 and owes 0.3983% on the remaining $50,000: $199, rounded to the nearest dollar as Delaware requires. It is booked as an operating expense, not netted against revenue.

Customer credits and overpayments that go unclaimed are reportable as unclaimed property. For a Delaware corporation, any of them without a known customer address are reported to Delaware, which is one reason to keep billing addresses clean in the billing system.

Common questions

Do we collect sales tax from Delaware customers?

No. Delaware has no sales tax, so there is no economic nexus threshold, no exemption certificates and nothing to collect from Delaware customers.

Does the gross receipts tax apply to our SaaS revenue?

Only if the company is doing business in Delaware and needs a Delaware business license. The gross receipts tax is a license fee on the seller’s receipts from goods sold and services rendered in Delaware, at a rate set by business activity, above a $100,000 monthly exclusion. It isn’t charged to the customer, and a company with no Delaware operations usually isn’t licensed there.

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Sources

Checked against each agency’s own page on . Rates and thresholds change, usually on January 1.

General information for US companies, not tax, legal or accounting advice for yours. Rules and thresholds change; confirm the specifics with a CPA or the agency before you act on them.

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