Delaware Gross Receipts Tax

As a business operating in Delaware, you are required to file, and pay in some circumstances, Delaware Gross Receipts Tax.

Any individual, LLC, corporation, or partnership that operates in Delaware is subject to Delaware Gross Receipts Tax. Out-of-state businesses without a physical location but have nexus in Delaware (sufficient economic connection) are also subject to Delaware Gross Receipts Tax.

Gross Receipts

Delaware Gross Receipts Tax is a tax imposed on total revenue a business earns from sales or services rendered. Delaware Gross Receipts Tax is based on the businesses total revenue before deducting expenses.

Tax Rates

Delaware Gross Receipts Tax rate varies depending on your business activity. The tax ranges from .0945% to 1.9914%.

Since the rates vary, if you have different business activities then these should be tracked and reported separately to ensure you don't overpay.

Exclusion

The good news is that Delaware allows for an exclusion of income when you file. Exclusions range based on business activity the same way the tax rate does.

The most common exclusion is $300,000 quarterly, or $100,000 monthly. So, if your quarterly gross receipts are not more than $300,000, you will not owe Delaware Gross Receipts Tax. You are still required to file the return though.

Filing Frequency

You are automatically set up to file gross receipts quarterly but depending on the amount of revenue you earn you may be required to file monthly.

Quarterly Filers must file by the last day of the first month following the close of the quarter. For example, December gross receipts are due January 31.

Monthly filers must file by the 20th day of each month to report the gross receipts for the month before. For example, January gross receipts are due February 20th.

Contact Wissinger CPA for questions regarding Delaware Gross Receipts Tax and filing assistance.