A Magnet for Retail

MESSAGE FROM THE PRESIDENT

November 17, 2025

The next eight weeks will be very important for our Delaware Retail Council members and retailers across the state as people from around our region prepare for the holidays or make end-of-year purchases. Delaware is a magnet for retail shopping since we do not impose a general retail sales tax. A total of five states in the U.S. have no general sales tax: Delaware, Alaska, Montana, New Hampshire, and Oregon. Pennsylvania and Maryland impose a 6% sales tax on goods and services, while New Jersey charges a 6.625% sales tax. The City of Philadelphia tacks on an additional 2%, making any purchase there subject to an overall 8% rate.

This may not sound like a big expense when you are purchasing one thing here or there throughout the year. However, taken together, these taxes take a bite out of a holiday budget — especially when people are buying several items all at once. In large part, it’s our annual franchise tax paid by companies incorporated here that enables Delaware to forgo a general sales tax. And among the other states with no sales tax, our geography sets us apart, as we can capture sales from a densely populated area where residents from surrounding states can easily jump across state boundaries and take full advantage of our tax-free status. As a result, we are fortunate to attract a wide array of retailers and shoppers to our state.

News You Can Use

August construction spending leads off the week of important economic data points. On Tuesday we’ll see factory orders and business inventory data from August, and October industrial production figures. The Philadelphia Fed manufacturing survey is made public on Wednesday, and we’ll also see October housing starts and building permit numbers. Thursday brings us the September unemployment rate, existing home sales for October, and U.S. leading economic indicators for October too. Philadelphia Fed President Anna Paulson also speaks Thursday evening (and will speak to the State Chamber Board of Governors on December 12^th).

Aramark and LifeMD kick off the week today for companies with scheduled earnings calls. Home Depot, Medtronic, and Dolby Labs are among the group with calls on Tuesday, followed on Wednesday by Lowe’s, Target, TJX, Nvidia, Jack in the Box, NANO Nuclear Energy, and others. Walmart, Intuit, Ross Stores, and others are scheduled for Thursday, while BJ’s Wholesale, Buckle, and Moog are scheduled for Friday.

Michael J. Quaranta

President

Delaware State Chamber of Commerce

Uniquely Delaware

Retail's Impact in Delaware

Retail is the nation’s largest private-sector employer, driving the U.S. economy and creating jobs in communities across the country. Here in the First State, retail supports 26% of all jobs. Across 13,900 retail establishments, the industry directly employs 102,400 people and generates $3.9 billion in labor income. Altogether, retail supports 166,100 jobs and contributes $15.3 billion to Delaware’s GDP, including $5.8 billion in direct economic impact. Read more >

The Delaware Center for Justice (DCJ) believes it is our individual and collective responsibility to co-create a community that values equity, transparency, safety, and healing. Compelled by the stories of those impacted by structural injustice, DCJ is re-committing to a vision of justice for all Delawareans like we’ve never known before.

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