State of Delaware Sales Tax The 2016 Delaware State Sales Tax

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What is the 2016 Delaware Sales Tax Rate?

Delaware Sales Tax Rate

0.00%

2016 Delaware state sales tax
Exact tax amount may vary for different items

The Delaware state sales tax rate is 0%, and the average DE sales tax after local surtaxes is 0%.

Delaware has no sales tax, and does not allow cities or counties to assess any type of sales tax. Businesses are, taxed on their gross receipts as an alternative to sales tax, but this tax cannot be passed on to consumers. A 3.75% "document fee" is collected on all automobile sales, and occupational license taxes of up to 1.92% are also collected on certain business activity.

If you are a Delaware business owner, you can learn more about how to collect and file your Delaware sales tax return at the 2016 Delaware Sales Tax Handbook .

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Delaware Sales Tax Exemptions

Delaware does not exempt any types of purchase from the state sales tax. In most states, necessities such as groceries, clothes, and drugs are exempted from the sales tax or charged at a lower sales tax rate.

Some items may not be eligible for these reduced sales tax rates, such as expensive clothing, unhealthy food or drinks like soda, and certain non-essential pharmaceuticals. Other items including gasoline, alcohol, and cigarettes are subject to various Delaware excise taxes in addition to the sales tax.

In some states, items like alcohol and prepared food (including restaurant meals and some premade supermarket items) are charged at a higher sales tax rate. The DE sales tax applicable to the sale of cars, boats, and real estate sales may also vary by jurisdiction. Delaware's sales tax rates for commonly exempted items are as follows:

Groceries: 0% Clothing: 0% Prepared Food: 0% Prescription Drugs: 0% Non-Prescription Drugs: 0%
Delaware sales tax for a restaurant meal
$100 Restaurant Dinner
Delaware sales tax for groceries
$100 of groceries
Delaware sales tax for clothing
$100 in clothes
Delaware sales tax for general consumer products
$100 of consumer products
$0.00 sales tax
$100.00 total
$0.00 sales tax
$100.00 total
$0.00 sales tax
$100.00 total
$0.00 sales tax
$100.00 total

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Delaware Sales Tax Exemption Certificate

Unlike a Value Added Tax (VAT), the Delaware sales tax only applies to end consumers of the product. Individuals and companies who are purchasing goods for resale, improvement, or as raw materials can use a Delaware Sales Tax Exemption Form to buy these goods tax-free.

Companies or individuals who wish to make a qualifying purchase tax-free must have a Delaware state sales tax exemption certificate, which can be obtained from the Delaware Division of Revenue . On making an exempt purchase, Exemption Certificate holders may submit a completed Delaware Sales Tax Exemption Form to the vendor instead of paying sales tax.

Sales tax exemption forms (as well as business sales tax id applications, sales tax returns, and the full Delaware sales tax code) can be downloaded from the Delaware Division of Revenue here .

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Delaware Sales Tax Calculator

 Sales Tax Calculator
Purchase Details:
$ in zip code Enter the zip code where the purchase was made for local sales tax

Whenever you make a purchase at a licensed Delaware retailer, your sales tax will be automatically calculated and added to your bill. To lookup the sales tax due on any purchase, use our Delaware sales tax calculator.

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Delaware Use Tax [View Main Article]

If you buy goods and are not charged the Delaware Sales Tax by the retailer, such as with online and out-of-state purchases, you are supposed to pay the 0% sales tax (less any foreign sales tax paid) for these items yourself as the Delaware Use Tax.

Your are expected to voluntarily list your liable purchases on a Delaware Use Tax Return, which should be attached with payment to your Delaware Income Tax Return. Historically, compliance rates with with the Delaware Use Tax have been low.

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Delaware Local Sales Taxes

Delaware does not allow local jurisdictions like cities or counties to collect a local sales tax. The Delaware state sales tax of 0% is applicable statewide. You can view the sales tax rates for various cities in Delaware here.


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