de-gross-receipts-tax

Delaware Gross Receipts Tax Skill — Self-Employed / Sole Proprietor

Scope. This skill covers the Delaware Gross Receipts Tax (GRT) for self-employed individuals and sole proprietors doing business in Delaware. Delaware has no general sales tax; the GRT serves as the state's primary transaction-level tax, levied on the seller rather than the buyer. Quality tier. Q3 — AI-drafted with citations. Must be reviewed by a qualified professional before use.

Section 1: Metadata

Metadata table

Field	Value
Jurisdiction	US-DE (Delaware)
Tax authority	Delaware Division of Revenue — Gross Receipts Tax Section
Filing portal	Delaware One Stop
Legislation citation	30 Del. C. Chapter 23 (Occupational and Business License Tax)
Primary form	Gross Receipts Tax coupon (issued by Division of Revenue based on business type)
Filing frequency	Monthly, quarterly, or annually depending on liability
Contact	(302) 577-8780 or grt@delaware.gov
Version	0.1
Generated date	May 22, 2026
Validation status	AI-drafted — Q3

Sources consulted

• Delaware Division of Revenue — Gross Receipts Tax FAQ: https://revenue.delaware.gov/gross-receipts-tax/
• Delaware Division of Revenue — Step 4: Learn About Gross Receipts Taxes: https://revenue.delaware.gov/business-tax-forms/doing-business-in-delaware/step-4-gross-receipts-taxes/
• Delaware Finance Department — Business and Occupational License and Gross Receipts Tax: https://financefiles.delaware.gov/docs/bus_occup_lic.pdf
• HandsOff Sales Tax — Delaware Gross Receipts Tax Guide: https://handsoffsalestax.com/de-gross-receipts-tax/

Section 2: Quick reference — rates and exclusions by business category

Placeholder for parent heading — content in subsection

Common GRT rates (effective for periods beginning after 12/31/2013)

Common GRT rates (Source: Delaware Division of Revenue official Tax Tips; 30 Del. C. Chapter 23.)

Business category	Tax rate	Monthly exclusion
Retailers (tangible goods)	0.7543%	$100,000
Wholesalers	0.3983%	$100,000
Manufacturers	0.1260%	$1,250,000
General services (professional, occupational)	0.3983%	$100,000
Contractors	0.6472%	$100,000
Food processors	0.2291%	$100,000
Commercial feed dealers	0.0945%	$100,000
Lessors of real property	0.3983%	$100,000
Motor vehicle lessors	1.9914%	$100,000
Restaurants	0.7543%	$100,000
Petroleum products	Variable (up to 2.4218%)	Varies

Important: Rates and exclusions vary by specific business activity. The above are the most common categories. Sole proprietors must identify their primary business activity and register for the correct category. If a business conducts multiple activities, separate licenses and filings are required for each.

How the exclusion works

• The monthly exclusion reduces the taxable base before applying the rate
• Example: A general services sole proprietor with $150,000 gross receipts in a month pays tax on $50,000 ($150,000 − $100,000 exclusion) × 0.3983% = $199.15
• Quarterly filers get 3× the monthly exclusion ($300,000 for most categories)

Section 3: Who must register and file

Registration requirement

• Registration requirement — Any person or entity engaged in business in Delaware must obtain a business license from the Delaware Division of Revenue before commencing operations. This includes: Sole proprietors, Corporations, Partnerships, LLCs, Independent contractors providing services in Delaware

What constitutes "gross receipts"

• Gross receipts definition — Total receipts from goods sold and services rendered in Delaware. No deductions allowed for: Cost of goods sold, Labor costs, Interest expense, Discounts paid, Delivery costs, State or federal taxes paid, Any other business expenses

Exemptions

• GRT exemptions — The following are NOT subject to GRT: Casual sales (isolated transactions not in the ordinary course of business), Sales to the U.S. government, Sales to the State of Delaware, Insurance premiums (taxed separately), Certain agricultural products sold by the producer

Section 4: Filing frequency and due dates

Filing frequency and due dates

Filing frequency	Threshold	Due date
Monthly	Tax liability > $5,000/month	20th of the following month
Quarterly	Tax liability $1,500–$5,000/quarter	Last day of month following quarter end
Annually	Tax liability < $1,500/quarter	January 31 of following year

New businesses typically start on a quarterly filing schedule. The Division of Revenue uses a "look-back period" to determine frequency changes.

Quarterly due dates (calendar year)

Quarterly due dates (calendar year)

Quarter	Period	Due date
Q1	January – March	April 30
Q2	April – June	July 31
Q3	July – September	October 31
Q4	October – December	January 31

Section 5: Self-employed specific considerations

Multiple business activities

• Multiple business activities — If a sole proprietor performs both retail sales and professional services, separate GRT licenses and filings are required for each activity at the respective rate.

Online/remote sellers

• Online/remote sellers — If you sell tangible goods to Delaware customers from outside Delaware, you may be subject to GRT based on nexus rules. Physical presence in Delaware triggers GRT; economic nexus rules may also apply.

Interaction with income tax

• Interaction with income tax — GRT paid is a deductible business expense on federal Schedule C (and therefore reduces Delaware taxable income). It is NOT a pass-through tax to the customer (unlike sales tax), though some businesses choose to include it in pricing.

Record-keeping

• Record-keeping — Maintain monthly gross receipts records by business activity category. The Division of Revenue may audit and reclassify business activity if the registered category does not match actual operations.

Section 6: Tier 1 rules — deterministic

• DE-GRT-1.01 — GRT is levied on the seller/provider, not the buyer/customer
• DE-GRT-1.02 — Tax base = total gross receipts minus monthly/quarterly exclusion
• DE-GRT-1.03 — No deductions from gross receipts for COGS, expenses, or other costs
• DE-GRT-1.04 — If gross receipts for the period ≤ exclusion amount, no tax is due but return must still be filed
• DE-GRT-1.05 — Separate licenses required for each distinct business activity
• DE-GRT-1.06 — GRT paid is deductible as a business expense on federal Schedule C
• DE-GRT-1.07 — New businesses must register before commencing operations
• DE-GRT-1.08 — Late filing penalty: 5% per month on unpaid tax (up to 50%) plus 1% per month interest

Section 7: Tier 2 rules — requires judgment

• DE-GRT-2.01 — Correct business category classification (Some businesses straddle categories; reviewer must determine primary activity)
• DE-GRT-2.02 — Nexus determination for remote sellers (Whether out-of-state activity creates sufficient nexus for GRT)
• DE-GRT-2.03 — Mixed-use transactions (How to allocate receipts between taxable and exempt activities)
• DE-GRT-2.04 — Pass-through vs. absorption of GRT (Whether to add GRT to customer pricing or absorb as business cost)

Section 8: Supplier pattern library

Supplier pattern library

Pattern on bank statement	Likely meaning
DE DIV REVENUE GRT	Delaware Gross Receipts Tax payment
STATE OF DE BUS TAX	Delaware business tax payment
DELAWARE GRT PMT	Gross Receipts Tax quarterly/monthly payment

Section 9: Refusal catalogue

Refusal catalogue

Refusal ID	Topic	Reason
R-DE-GRT-01	Petroleum products variable rate	Complex formula; requires Division of Revenue lookup
R-DE-GRT-02	Insurance premium tax	Separate tax regime
R-DE-GRT-03	Nexus analysis for complex multi-state operations	Requires legal analysis
R-DE-GRT-04	Audit defense / reclassification disputes	Requires professional representation
R-DE-GRT-05	Wilmington city net profits tax	Separate municipal tax

Disclaimer

This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional (such as a CPA, EA, tax attorney, or equivalent licensed practitioner in your jurisdiction) before filing or acting upon.

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