Delaware Taxes & Fees Law: Statewide Short-Term Rentals Rules (2026)

Key Facts

State lodging tax: 8% of rent
Rental threshold: Under 120 days
County add-on cap: Up to 3%
Filing frequency: Monthly returns
Registration: Required statewide

Full Breakdown

Under House Bill 168 (2024), Delaware created a uniform statewide lodging tax framework for short-term rentals. The state imposes an 8% public accommodations tax on rentals of dwellings for fewer than 120 consecutive days. Hosts must register with the Delaware Division of Revenue and obtain a business license. Hosting platforms like Airbnb and Vrbo can register as marketplace facilitators to collect and remit on behalf of hosts. Counties may add up to 3% local lodging tax on top. Tax returns are due monthly. The state preempts local taxation structure but allows local registration and zoning regulation.

Violations & Penalties

Failure to register, collect, or remit the 8% lodging tax can result in penalties, interest, and revocation of the state business license issued by the Division of Revenue.

Frequently Asked Questions

Do hosts need to register if Airbnb collects the tax?

Yes. Hosts must still obtain a Delaware business license and register the rental, even when a marketplace facilitator like Airbnb collects and remits the 8% public accommodations tax.

Does the state tax apply to long-term rentals?

No. The 8% public accommodations tax applies only to dwellings rented for fewer than 120 consecutive days. Leases of 120 days or longer are exempt from this state lodging tax.

Delaware Short-Term Rental Lodging Tax Requirements