Delaware Corporate Income Tax rate is a flat 8.7% levied on taxable income, making it one of the most business-friendly states. This is combined with no additional state or local taxes, and a low personal income tax (between 2.2% and 6.6%), allowing businesses to keep more of their profits. In addition, there is no statewide sales tax and the state doesn’t charge a property or excise tax on business inventories.
Delaware’s franchise tax, corporation income tax, and tax on LLCs, limited partnerships, and general partnerships are among the taxes that Delaware businesses must pay. Most of these are based on your company’s legal form and its annual gross receipts. In addition, some businesses must file personal state tax returns if their income passes through to them.
In addition to these taxes, the state also imposes a gross receipts tax on all sales of goods and services in the state. This tax is based on your company’s total gross receipts, and you can’t deduct your cost of goods sold or other expenses. It’s important to understand what counts as taxable gross receipts because failure to pay the correct amount could lead to penalties. You can file your return and payments online through the Delaware taxpayer portal.
How to Pay Delaware Corporate Income Tax?
You can pay Delaware corporate income tax through several methods:
Online Payment: The Delaware Division of Revenue’s online portal allows you to file and pay your taxes electronically. This is a convenient and secure method to ensure timely payment.
Electronic Funds Transfer (EFT): Enroll in Delaware’s EFT program via the online portal to make direct payments from your bank account.
Mail Payment: If you prefer to send a check, mail it along with your completed Form 1100 to the Delaware Division of Revenue at P.O. Box 8750, Wilmington, DE 19899-8750.
The annual corporate income tax return is due on or before the 15th day of the 4th month following the end of your corporation’s fiscal year. If additional time is needed to file, request an extension using Form 1100-T-EXT. Note that an extension to file does not extend the time to pay any taxes due. Ensure that your payments are timely to avoid penalties and interest. Late payments can result in additional charges, so it is crucial to meet all deadlines.
For more detailed instructions and resources, visit the Delaware Division of Revenue. If you have any questions or need assistance, contact the Division of Revenue at (302) 577-8200 or email them through their contact page on the website.