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Wilmington, DE Local Taxes & Fees: Business Tax Classification (2026)

Some Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified September 2026

Key Facts

License required
before starting any business activity
Fee basis
classification by nature of business
Fee range
$50 to $5,000 annually
Administering agency
Dept. of Finance & Licenses/Inspections
Unlicensed operation penalty
up to $2,500/day fine

Summary

Every business operating in Wilmington must obtain an annual license, with the fee set by which trade classification the business falls into under the city's Title 5 schedule.

The license shall be prepared and issued by the department of finance in conjunction with the department of licenses and inspections and the license fee shall be based upon the information set forth in the application. The application shall set forth each classification of license fee liability of the applicant, based upon the nature of the various business activities in which the applicant is engaged.(c)Each license so issued shall state upon the face thereof the following:(1)The person to whom the license is issued;(2)The kind of business, profession, pursuit or calling licensed thereby;(3)The location of such business, profession, pursuit or calling; and(4)The date of expiration of such license. The following language shall be set forth on the back of each license issued hereunder, as follows:

Source: Wilmington City CodeView official code

Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 72).

Full Breakdown

City Code § 5-34 requires a license before engaging in any business, profession, pursuit or calling within Wilmington. Under § 5-36(b), each applicant's license application must set forth every classification of license-fee liability based on the nature of the business activities conducted. The § 5-101 schedule then sorts businesses into groups -- Construction, Financial/Real Estate Service, Nonprofessional Service, Professional Service, Retailers, Travel/Lodging/Automotive, Utilities/Public Service, Wholesaler/Manufacturer, and a catch-all Miscellaneous class -- each carrying its own flat annual fee, jointly administered by the departments of finance and licenses and inspections.

Violations & Fines

Operating without the required license exposes a business to the Code's general penalty under § 1-5(c) -- up to $2,500 per day for an individual or $5,750 per day for a corporation -- plus a civil suit under § 5-49 to recover unpaid license fees and collection costs.

Frequently Asked Questions

What classification determines my Wilmington business license fee?
The § 5-101 schedule sorts businesses into categories like Construction, Retailers, Professional Service, and Utilities; if none fits, you pay the flat $300 Miscellaneous business rate under § 5-40.
Do nonprofits need a Wilmington business license?
Yes -- religious, fraternal, and other nonprofit organizations are exempt from the license fee itself but must still obtain a license in the appropriate classification, per § 5-31.

Sources & Official References

Other rules in Wilmington

All Wilmington rules

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