Rehoboth Beach, Delaware, is famous for being a tax-free shopping destination. The state of Delaware does not impose a general state sales tax, which means the price you see on the tag is exactly what you pay at the register for clothes, electronics, and other retail goods. While the sales tax rate is 0%, it is important to note that other types of taxes may still apply to your visit. For instance, the City of Rehoboth Beach charges a 7% residential rental tax on short-term stays and a 3% city lodging tax on top of the state’s 8% hotel tax. Additionally, you will likely encounter parking fees, which are a major revenue source for the city. So, while your shopping spree at the Tanger Outlets will be tax-free, your overall vacation budget should still account for various "user fees" and accommodation-related taxes common in resort towns.