Delaware Contractors and Taxes (2026): No Sales Tax, 0.6472% Gross Receipts
Why a Delaware contractor charges no state sales tax on a remodel, what still applies, and three jobs worked.
Not tax advice. General information from each state's revenue department, checked Oct 29, 2026. Rates shown are the state rate; city and county tax is extra where it applies. The facts of your job and contract can change the answer; for a specific job, ask a tax professional in your state.
The rule in Delaware
No state sales tax
Charge no sales tax. The contractor owes 0.6472% gross receipts tax on construction receipts over $100,000 a month.
None
No sales tax; contractors owe 0.6472% gross receipts tax
Itemizing or time and materials
None; the tax is on gross receipts.
Gross receipts license
Source: DE Division of Revenue gross receipts rates (Current rate list, undated)
“must pay a gross receipts tax at the rate of .6472%”
Three jobs, worked
| Job | Customer | You pay |
|---|---|---|
| Bathroom $12,000 job, $5,000 materials | $0 | $0 |
| Kitchen $40,000 job, $15,000 materials | $0 | $0 |
| Addition $90,000 job, $35,000 materials | $0 | $0 |
On the kitchen: No state sales tax on the job or the materials. You owe 0.6472% gross receipts tax on construction receipts over $100,000 a month.
Also check
- The gross receipts tax is on you, not a sales tax on the customer. Price it into the job.
- Nonresident contractors post a bond with the Division of Revenue.
Delaware sales tax questions
Do contractors charge sales tax in Delaware?
No. Delaware has no general state sales tax.
Is there any tax on remodeling in Delaware?
Delaware's contractors owe 0.6472% gross receipts tax on construction receipts over $100,000 a month.
Compare other states
How we checked
We read each state's sales tax rule for construction contractors on the revenue department or legislature site, and its 2026 state rate. Two independent research passes covered all 50 states and DC, and a third reviewer checked the result. Where a state's own page would not load, the row names the copy we read. Last checked .
This guide explains the general rule for remodeling an owner-occupied home. It is not tax advice.