Delaware Reverse Sales Tax Calculator.

Delaware is one of five US states with absolutely no sales tax — not at the state level, not at the county level, and not at the city level. Delaware law prohibits local governments from imposing a general sales tax. This makes Delaware one of the most consumer-friendly jurisdictions in the US for retail purchases.

Delaware's no-sales-tax status has made it a shopping destination for residents of neighboring states. People regularly drive from New Jersey, Pennsylvania, Maryland, and Delaware's Delaware Valley neighbors to shop at the Christiana Mall, the Tanger Outlets in Rehoboth Beach, and other shopping centers specifically to avoid sales tax. For large purchases like electronics, appliances, or furniture, the savings can be hundreds of dollars.

So how does Delaware fund its government without a sales tax? Delaware relies heavily on corporate franchise fees and taxes — it's the incorporation capital of the US, with over 60% of Fortune 500 companies incorporated there. Delaware also has personal income tax, an inheritance tax, a realty transfer tax, and various license fees. The revenue from corporate incorporation fees alone provides a substantial share of the state budget.

Delaware also taxes certain specific transactions and services that aren't classified as general sales tax: there's a gross receipts tax on manufacturers and wholesalers, an insurance premium tax, and a public accommodation tax on hotels. But for regular retail purchases of goods, Delaware is genuinely, completely tax-free.

For visitors, Delaware's shopping areas near state borders — particularly in areas near the I-95 corridor — are specifically designed to attract out-of-state shoppers. The Christiana area near Wilmington has become a major shopping hub partly because of its proximity to Philadelphia and the promise of tax-free retail.