Delaware is one of only five US states with no state sales tax — alongside Oregon, Montana, New Hampshire, and Alaska. This makes it uniquely attractive for e-commerce businesses and Amazon sellers looking to reduce costs.
Delaware's Tax History
Delaware has never had a state sales tax since it adopted its current tax structure. Instead, Delaware funds its government primarily through income taxes, corporate franchise taxes, and fees. The state is home to over 60% of Fortune 500 companies — largely because of its business-friendly legal and tax environment.
How the Tax-Free Advantage Works for Amazon Sellers
When you purchase inventory and have it shipped to a Delaware warehouse, the purchase is legally made in a state with 0% sales tax. This applies to:
- Product purchases from domestic US suppliers
- Inventory flowing through a Delaware prep center or 3PL
- Any goods purchased and delivered to a Delaware address
⚠ Delaware's tax code has not changed and no "loophole" is being exploited — you're simply purchasing in a state that doesn't collect sales tax.
How Much Can You Save?
Sales tax rates in other states range from 5% to 10.25% (California). If you're purchasing $200,000 in inventory annually through a Delaware warehouse instead of, say, California or New York, you're saving $10,000–$20,000 per year — automatically, legally, every year.
Who Benefits Most?
- Amazon FBA sellers purchasing inventory to resell
- International sellers (Turkey, UK, UAE, etc.) importing to the US
- Multi-channel sellers with high inventory volume
- Businesses purchasing supplies, equipment, or raw materials
What Delaware Charges Instead — the Part Most Articles Omit
Delaware has no state or local sales tax. It does have a gross receipts tax, levied on the seller of goods or the provider of services in the state, and it works very differently from a sales tax.
- It falls on the seller, not the buyer. Nothing is added at checkout; the business pays on its own receipts.
- There are no deductions. Delaware's Division of Revenue is explicit that gross receipts means total receipts, with no deduction for cost of goods, labour, interest, discounts, delivery or other taxes.
- Rates are small and vary by activity — the published schedule runs from roughly 0.0945% to 1.9914%, with petroleum products higher.
For a seller whose goods pass through a Delaware warehouse and ship out of state, this is a different question from the one that matters at purchase. It is worth understanding rather than glossing over, because "Delaware has no tax" is not quite what the state says about itself.
Why There Are No Resale Certificates in Delaware
This surprises sellers arriving from states where a resale certificate is routine paperwork. Delaware's Division of Revenue states plainly that because there are no state or local sales taxes, sales tax exemption certificates and reseller certificates are not applicable in Delaware.
There is nothing to be exempt from. Sellers sometimes ask us for a Delaware resale certificate; there is no such document, and a supplier asking for one has misunderstood the state rather than your paperwork.
What This Actually Changes for an Ecommerce Seller
Be precise about which purchases are affected, because the benefit is often overstated:
| Purchase type | Delaware effect |
|---|---|
| Imported inventory from overseas | No US sales tax applied anywhere — Delaware changes nothing here. Federal import duty still applies. |
| Domestic inventory bought for resale | Often already exempt elsewhere via a resale certificate — check your own position |
| Packaging, supplies, equipment, samples | This is where Delaware bites. A resale certificate usually does not cover these |
| Anything consumed by the business itself | Same — no exemption elsewhere, none needed in Delaware |
So the honest version is narrower than the marketing version: Delaware removes sales tax from the purchases a resale certificate does not cover, and removes the need to hold fulfilment inventory in a taxing state. Whether that adds to a meaningful number depends on your business structure — confirm it with your accountant.
Nexus — the Part That Costs People Money
Holding inventory in a state can create sales tax nexus there, which means an obligation to register and collect on sales into that state. This is why the location of your fulfilment inventory is a tax question and not only a logistics one.
Delaware imposes no sales tax, so inventory held here does not create a Delaware sales tax collection obligation. It does not, however, undo obligations you have elsewhere — economic nexus thresholds in other states are based on your sales into those states, not on where your warehouse sits. Amazon FBA in particular can place your inventory in multiple states without you choosing it.
The Other Four States
Delaware is one of five US states with no state sales tax. The others are Oregon, Montana, New Hampshire and Alaska, where some localities do levy their own. For an ecommerce seller shipping nationally, the distinction between them is not tax — it is freight.
Delaware sits on the I-95 corridor with two-to-three day ground transit to most of the US population and short inbound legs to fulfilment centres in Pennsylvania, New Jersey, Maryland and Virginia. Oregon and Montana are tax-free too, and three days further from the eastern half of the country.
Where This Fits in Your Setup
The tax question only pays off if the stock actually lands here. Three pages cover the practical side:
- Inside our Delaware 3PL warehouse — receiving, put-away and dispatch, step by step.
- How pallet storage is billed — the tiered day rate, with worked examples.
- FBA prep from Delaware — what the per-unit price covers.
Frequently Asked Questions
Why does Delaware have no sales tax?
The state raises revenue differently — principally through corporate franchise fees and a gross receipts tax on businesses operating in the state, rather than a tax added at the point of sale.
What is Delaware's gross receipts tax?
A tax on the seller's total receipts from goods sold or services rendered in Delaware, with no deductions for cost of goods, labour or other expenses. Published rates run from roughly 0.0945% to 1.9914% depending on business activity.
Do I need a Delaware resale certificate?
No such document exists. Delaware's Division of Revenue states that because there is no sales tax, resale and exemption certificates are not applicable in the state.
Does storing inventory in Delaware remove my sales tax obligations elsewhere?
No. Economic nexus in other states is based on your sales into those states. Delaware removes the Delaware obligation, not obligations created by selling into other states.
Which other states have no sales tax?
Oregon, Montana, New Hampshire and Alaska, where some localities levy their own. Delaware is the one on the East Coast freight corridor, which is why it dominates for ecommerce fulfilment.
Need a Delaware prep and 3PL partner?
QuickShipment receives, inspects, labels and ships your inventory from Claymont, Delaware — a state with no sales tax. No minimums, no setup fee.
- 1See our Delaware warehouse storage service
- 2Check the price list
- 3Calculate your own cost
- 4Get a free quote