There is no sales tax in Delaware, so any goods or services you purchase in the state for your business will not be subject to taxation. For business owners who reside outside of Delaware, there is no state income tax. As well, there are no property taxes or value-added taxes (VATs).

Delaware is frequently labeled an "onshore tax haven" because of its extremely business-friendly legal environment and its unique tax code, often referred to as the "Delaware Loophole." While the state does have a corporate income tax, it does not tax intangible assets—such as trademarks, patents, or copyrights—if they are held by a "Delaware Holding Company." This allows large corporations to set up a subsidiary in Delaware, transfer their intellectual property to it, and then have the parent company pay "royalties" to the Delaware branch. This reduces the parent company's taxable income in other states while the income remains untaxed in Delaware. Additionally, Delaware does not have a state sales tax and offers high levels of corporate anonymity, making it easy to set up "shell companies" where the true owners are difficult to trace. The state is also home to the Court of Chancery, a specialized court with a vast body of corporate case law that provides businesses with a level of legal predictability and speed not found elsewhere. As a result, in 2026, more than 60% of Fortune 500 companies are incorporated in Delaware, even if they have no physical operations there.