Delaware tax support (gross receipts)

What the tax is: Delaware’s Gross Receipts Tax (GRT) is a tax on total gross revenues of a business from goods sold and services rendered in Delaware; it is levied on the seller/provider (not the consumer).

There are generally no deductions for costs of goods sold, labor, interest, discounts, delivery, or other expenses—gross receipts are the tax base. Rates: Published rates vary by business activity.

Official references indicate rates range (by activity) and examples cited on Division of Revenue pages show ranges from 0.0945% up to as high as 1.9914% depending on classification; other Division statements cite rates from 0.0945% to 0.7468% (rate schedules and tax tips by industry should be consulted for exact current rates per activity).

Use official Division rate tables or the GRT portal for precise, current rates. Exclusions/Exemptions: Many business activities have monthly or quarterly exclusions that reduce taxable receipts (exclusions vary by business activity; examples range from $100,000 per month up to $1,250,000).

Some sales shipped out of state or exempt wholesale sales (Form 373 wholesale exemption certificate) can be excluded when properly documented. Who must file/pay: Sellers of goods or providers of services conducting business in Delaware.

New businesses are automatically set up as quarterly filers; the Division uses a “look-back period” to determine monthly vs. quarterly filing status. Filing frequency and due dates: Monthly filers: returns/payments due on or before the 20th day of each month for the preceding month.

Quarterly filers: returns/payments due on or before the last day of the first month following the close of the quarter. Electronic filing: Delaware mandates online filing for gross receipts taxes (effective Jan 1, 2021, TIM 2020-2).

The state’s Gross Receipts Tax online system (grossreceiptstax.delaware.gov) is the primary filing/payment channel; payments can be made by ACH/bank transfer or card as supported by the portal. Penalties & interest: Late-filed returns: 5% per month penalty plus interest at 0.5% per month from original due date until paid.

Additional penalty of 1% per month (up to 25%) for failure to pay tax shown due on a timely filed return (30 Del. C. §§ 533 & 534).

Corrections and amendments: Use the Amended Gross Receipts Return for single tax-period amendments; use the Claim for Revision form for multi-period corrections. Use the Request for Change form for name/address updates or to notify the Division if you have gone out of business.

Multi-activity & allocation: Taxpayers with multiple activities typically report separate GRT reporting by activity. For multi-state businesses and apportionment/allocation nuances, consult Division guidance or request technical advice—Delaware’s GRT is activity-based and nexus/where-sold rules (e.g., where customer takes possession, interstate shipment documentation) govern taxability.

LLCs & pass-throughs: The gross receipts tax is imposed on the seller/provider that conducts business in Delaware. An LLC that sells goods or provides services in Delaware will generally owe GRT on gross receipts sourced to Delaware; filing frequency, exclusions, and rates depend on the business activity, not entity form.

Franchise/annual taxes for Delaware-formed entities (e.g., LLC annual tax) are separate obligations.

What the tax is: Delaware’s Gross Receipts Tax (GRT) is a tax on total gross revenues of a business from goods sold and services rendered in Delaware; it is levied on the seller/provider (not the consumer).

There are generally no deductions for costs of goods sold, labor, interest, discounts, delivery, or other expenses—gross receipts are the tax base. Rates: Published rates vary by business activity.

Official references indicate rates range (by activity) and examples cited on Division of Revenue pages show ranges from 0.0945% up to as high as 1.9914% depending on classification; other Division statements cite rates from 0.0945% to 0.7468% (rate schedules and tax tips by industry should be consulted for exact current rates per activity).

Use official Division rate tables or the GRT portal for precise, current rates. Exclusions/Exemptions: Many business activities have monthly or quarterly exclusions that reduce taxable receipts (exclusions vary by business activity; examples range from $100,000 per month up to $1,250,000).

Some sales shipped out of state or exempt wholesale sales (Form 373 wholesale exemption certificate) can be excluded when properly documented. Who must file/pay: Sellers of goods or providers of services conducting business in Delaware.

New businesses are automatically set up as quarterly filers; the Division uses a “look-back period” to determine monthly vs. quarterly filing status. Filing frequency and due dates: Monthly filers: returns/payments due on or before the 20th day of each month for the preceding month.

Quarterly filers: returns/payments due on or before the last day of the first month following the close of the quarter. Electronic filing: Delaware mandates online filing for gross receipts taxes (effective Jan 1, 2021, TIM 2020-2).

The state’s Gross Receipts Tax online system (grossreceiptstax.delaware.gov) is the primary filing/payment channel; payments can be made by ACH/bank transfer or card as supported by the portal. Penalties & interest: Late-filed returns: 5% per month penalty plus interest at 0.5% per month from original due date until paid.

Additional penalty of 1% per month (up to 25%) for failure to pay tax shown due on a timely filed return (30 Del. C. §§ 533 & 534).

Corrections and amendments: Use the Amended Gross Receipts Return for single tax-period amendments; use the Claim for Revision form for multi-period corrections. Use the Request for Change form for name/address updates or to notify the Division if you have gone out of business.

Multi-activity & allocation: Taxpayers with multiple activities typically report separate GRT reporting by activity. For multi-state businesses and apportionment/allocation nuances, consult Division guidance or request technical advice—Delaware’s GRT is activity-based and nexus/where-sold rules (e.g., where customer takes possession, interstate shipment documentation) govern taxability.

LLCs & pass-throughs: The gross receipts tax is imposed on the seller/provider that conducts business in Delaware. An LLC that sells goods or provides services in Delaware will generally owe GRT on gross receipts sourced to Delaware; filing frequency, exclusions, and rates depend on the business activity, not entity form.

Franchise/annual taxes for Delaware-formed entities (e.g., LLC annual tax) are separate obligations.