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Delaware car sales tax at a glance
| Delaware | |
|---|---|
| Tax | motor vehicle document fee (no sales tax) |
| State rate | 5.25% |
| Counties and cities add tax | No |
| Trade-in lowers the tax | Yes, tax is on the price minus the trade |
| Leases | Tax on each monthly payment |
Checked on the state's official sources on 2026-11-02. Rates change; the state's revenue department has the last word.
How to work out Delaware sales tax on a car
Multiply the taxable price by the rate. In Delaware the trade-in comes off first.
A $30,000 car with a $5,000 trade: $25,000 x 5.25% = $1,312.50 at the state rate.
No sales tax. One-time document fee at titling: $8 under $400, $13.75 for $400-$500, then $5.25 per additional $100 or fraction (effectively 5.25%), on the price or NADA trade-in value, whichever is higher (30 Del. C. 3002).
Trade-ins
For the document fee, purchase price is the gross price less any trade-in or allowance given by the seller; a private sale of the old vehicle within 60 days can give a similar credit (30 Del. C. 3001(5)).
Leasing a car in Delaware
Tax on each monthly payment. Delaware: the lessee owes a 1.9914% use tax on the rent, collected by the lessor with each lease payment (30 Del. C. 4302-4303). The lease calculator uses Delaware's method when you pick the state.
Dealer doc fees
No cap found on dealer documentary/processing fees (not to be confused with the state 'document fee', which is the tax).