Navigating sales tax compliance and sales tax registration in Newark, Delaware, and Alameda County can be challenging for businesses of all sizes. Understanding the local regulations, Delaware sales tax rates, and filing requirements is critical to staying compliant and avoiding penalties. At Kintsugi, we simplify sales tax compliance for businesses, helping you focus on growth without the headache of managing complex tax rules. In this guide, we’ll break down everything you need to know about sales tax in Newark for 2025.

Newark Delaware Sales Tax Rate

Delaware, including Newark, does not impose a state or local sales tax. Instead, businesses are subject to a gross receipts tax, with rates varying from 0.0945% to 1.9914% based on the business activity. This tax has been in place since the state's early tax legislation.

(Note: Sales tax rates are subject to change. Check the Delaware Division of Revenue’s website for the latest updates.)

Newark Sales Tax Calculator (Delaware)

Imagine you own a furniture store in Newark, and a customer buys a dining table for $1,200. In most states, you would charge sales tax, but in Delaware, you do not. Instead, you must pay gross receipts tax on your total revenue.

Step 1: Determine Your Gross Receipts Tax Rate

• In Delaware, the gross receipts tax rate depends on your business type.

• Retailers typically pay 0.7468% on gross receipts.

You can find the official rate for your business type on the Delaware Division of Revenue website.

Step 2: Calculate the Gross Receipts Tax

Since your furniture store falls under the retail category, the gross receipts tax rate is 0.7468%.

Now, calculate how much you owe for the $1,200 sale:

1,200 × 0.007468 = 8.96

So, you owe $8.96 in gross receipts tax for this sale.

Step 3: Report and Pay the Tax

Unlike a sales tax (which is collected from the customer), this tax comes out of your revenue and is paid directly to the state.

• Filing Frequency: Depending on your revenue, you may need to file monthly or quarterly.

• Payment Portal: You can pay the tax through the Delaware Division of Revenue.

What If You Sell Multiple Items?

If you sell five dining tables at $1,200 each, follow the same process:

1. 1,200 × 5 = 6,000

2. 6,000 × 0.007468 = 44.81

You would owe $44.81 in gross receipts tax on the $6,000 revenue.

Final Tips for Compliance

• Keep track of all sales—you must report total revenue, not just taxable sales.

• Understand your tax rate—different industries have different rates.

• File on time—Delaware requires timely reporting to avoid penalties.

• Use accounting software—automate gross receipts tax calculations for accuracy.

Since Newark sales and use tax does not exist, understanding Delaware's gross receipts tax is essential to staying compliant and managing your finances effectively!

FAQ on Sales Tax in Newark DE

What is Newark Sales Tax?

Newark, DE, has no sales tax, as Delaware does not impose state or local sales taxes. Instead, businesses pay a gross receipts tax on total revenue.

How Much is Sales Tax in Newark?

Sales tax in Newark, DE, is 0%. However, businesses must pay a gross receipts tax, which ranges from 0.0945% to 1.9914%, depending on business type.

Newark Sales tax Filing Steps