Delaware Vacation Rental Tax Calculator

Estimate your property tax, lodging tax, federal & state income tax, and depreciation deductions for your Delaware vacation rental property.

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Tax Types

What Taxes Apply to Delaware Short-Term Rentals?

Delaware STR hosts are subject to several types of taxes. Understanding which ones apply — and who collects them — is the first step toward compliance.

Sales Tax

Delaware has no sales tax. An 8% state accommodations tax applies to short-term rentals.

Occupancy / Transient Lodging Tax

Delaware's lodging/occupancy tax is the primary STR-specific tax. Combined rates reach 8% in Rehoboth Beach and 8% in Dewey Beach. This includes state, county, and city-level components.

Tourism / Convention Center Tax

While Delaware doesn't have a prominent statewide tourism tax, some cities and resort areas may levy additional tourism development or marketing district assessments of 1–3%.

Federal & State Income Tax

Net rental profit is subject to both federal income tax (10–37% in 2026) and Delaware's state income tax at 5.5%. Reported on Schedule E (Form 1040). Deduct expenses like mortgage interest, repairs, and depreciation.

Property Tax

Delaware's average effective property tax rate is 0.57%. Assessed annually on market value. STRs may face higher assessments in some jurisdictions.

Important

Does Airbnb Collect and Remit Taxes in Delaware?

Airbnb has agreements to collect and remit taxes in Delaware — but coverage is not always complete.

Airbnb collects the full Delaware state lodging tax on your behalf.
Since Delaware has a uniform statewide rate with no additional local taxes, Airbnb typically handles 100% of lodging tax.
You're still responsible for filing annual income tax returns for your rental profit.
Always verify with the Delaware Department of Revenue that all taxes are current.

Bottom line: Verify your Airbnb tax report matches your local requirements — don't assume everything is covered.

Compliance

Do You Need a Tax Permit in Delaware?

In most Delaware jurisdictions, yes. Common permits and registrations required:

State sales tax permit / seller's permit
City or county business license
Short-term rental operating permit
Lodging tax registration certificate

Consequences of non-compliance

5–25% penalties on unpaid taxes in Delaware

Revocation of rental permit

Liens on your property

Tax Overview

Short-Term Rental Taxes in Delaware

Key tax facts every vacation rental host in Delaware should know.

State accommodations tax: 8%

No state sales tax

State income tax: ~5.5%

Property tax rate: ~0.57%

City Breakdown

Lodging Tax Rates by City in Delaware

Combined lodging/occupancy tax rates for major vacation rental markets in Delaware.

CityCombined Rate

Rehoboth Beach

8% state accommodations tax

Dewey Beach

8% state accommodations tax

Lewes

8% state accommodations tax

Rates are estimates based on 2024-2025 data. Always verify with your local tax authority.

FAQs About Delaware Vacation Rental Taxes

Common questions about short-term rental taxes, permits, and compliance in Delaware.

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