2026 tax year · Delaware
Marketplace seller taxes in Delaware
Etsy, eBay, Shopify and the rest report your gross and withhold nothing. The gap between that and what you are taxed on is your costs, in Delaware that gap is worth $7,270 in tax.
Take a driver who grossed $45,000 over 18,000 business miles. After mileage at 74.3 cents and the rest of the stack, worked through on the marketplace seller page $26,775 comes off and $18,225 is left as taxable profit. That profit is what Delaware and the IRS charge against.
What that leaves you owing in Delaware
Delaware uses graduated 2026 income tax brackets topping out at 6.6%, across 7 brackets, on top of federal income tax and self-employment tax.
| Self-employment tax | $2,575 |
| Federal income tax | $67 |
| Delaware income tax | $594 |
| Total tax | $3,236 |
| Effective rate on gross | 7.2% |
Earning more in Delaware
A single filer taking the standard deduction, this work as the only income, the calculator above handles the other filing statuses. Miles rise with earnings, so the deduction rises too, and the effective rate on gross climbs more slowly than it would for someone whose income grew without expenses attached:
| Volume | Gross | Mileage off | Taxable profit | Delaware tax | Total tax | Rate on gross |
|---|---|---|---|---|---|---|
| Part-time | $15,000 | $0 | $15,000 | $450 | $2,570 | 17.1% |
| Steady side income | $45,000 | $0 | $45,000 | $1,926 | $10,506 | 23.3% |
| Full-time | $72,000 | $0 | $72,000 | $3,382 | $18,186 | 25.3% |
Delaware specifics that change the number
Delaware is also one of five states with no general sales tax, so the total tax picture is lighter than the income tax line alone suggests.
Selling into and out of Delaware
Income tax follows you: Delaware taxes your profit wherever the buyer was. Sales tax does not. Marketplace facilitator laws make the platform collect and remit sales tax on your behalf in most states, which is why a seller can have customers in all fifty and still file only one income tax return. Selling off-platform is where that stops being true.
On $18,225 of profit, what the states around Delaware would charge:
| State | Its tax | vs Delaware |
|---|---|---|
| New Jersey | $255 | −$401 |
| Pennsylvania | $560 | −$96 |
| Maryland | $813 | +$157 |
- New Jersey would take $401 less, $255 against Delaware's $656.
- Pennsylvania would take $96 less, $560 against Delaware's $656.
- Maryland would take $157 more, $813 against Delaware's $656.
Marketplace seller tax questions in Delaware
How much should a Delaware seller set aside?
About 7.2% of gross on the $45,000 example, $3,236 across self-employment tax, federal income tax and $594 to Delaware. In practice that means moving about $72 of every $1,000 payout into a separate account the day it lands, and sending roughly $809 to the IRS each quarter, no platform withholds any of this for you. Set aside from each payout rather than finding it in April.
Does the $45,000 on my 1099-NEC match what Delaware taxes?
No. Delaware taxes profit, not gross. After $26,775 of deductions the taxable figure is $18,225, so the Delaware bill is $594 rather than what gross alone would suggest. The form reports what the platform paid out, it knows nothing about your costs, and no one subtracts them for you. On this example 60% of the gross never becomes taxable income, but only for the seller who kept the records to prove it.