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Contractor License in Delaware

State license

Every contractor and subcontractor doing business in Delaware, resident or non-resident, must obtain a contractor BUSINESS LICENSE from the Division of Revenue. Delaware has no statewide general-contractor competency exam, but skilled trades such as electricians and plumbers are separately licensed by the Division of Professional Regulation (DPR). Contractors also pay a gross receipts tax on construction services.

Quick facts

When a license is neededA business license is required for any contractor doing business in the state. For non-resident contractors, a bond requirement is triggered on any single contract/subcontract exceeding $20,000, or when two or more contracts in a calendar year total $20,000 or more.
ExperienceNone for the Division of Revenue business license. Trade licenses through DPR (e.g., electrician, plumber) require documented apprenticeship/work experience.
ExamNo exam for the contractor business license. Trade licenses through DPR require passing the applicable trade examination.
BondResident contractors: no bond. Non-resident contractors: a surety or cash bond equal to six percent (6%) of the total of all contracts exceeding $20,000, filed with the Division of Revenue before construction begins.
Fees$75 per year for the contractor business license (prorated the first year). Contractors also owe a gross receipts tax of 0.6537% on construction-service receipts, with the first $100,000 of gross receipts per month ($300,000 quarterly) exempt.
RenewalBusiness license renews annually, on or before December 31 each year. No continuing-education requirement for the business license.
Main agencyDelaware Division of Revenue
Official sitehttps://onestop.delaware.gov/
Requirements, thresholds, and fees change, and local rules can be stricter than the state. Always confirm directly with the board and your local building department before you bid or pull a permit. This page is a starting point, not legal advice.
Apply / official Delaware board →

License classifications

How to get licensed in Delaware

  1. Register the business and apply for the contractor business license through the Delaware One Stop system (or file the Division of Revenue Resident/Non-Resident Contractors package).
  2. Pay the $75 annual license fee (prorated in the first year).
  3. If you are a non-resident contractor, obtain and file a surety or cash bond equal to 6% of contracts exceeding $20,000 with the Division of Revenue before starting work (submit the under-$20,000 exemption letter where applicable).
  4. Register to file and pay gross receipts tax on construction services (online at grossreceiptsfiling.delaware.gov).
  5. If performing a licensed trade (electrical, plumbing, HVAC), apply separately for that occupational license through the Division of Professional Regulation, and renew the business license by December 31 each year.

Frequently asked questions

Do all contractors need a license in Delaware?

Yes. Any person doing business as a contractor or subcontractor, whether resident or non-resident, must obtain a business license from the Division of Revenue, which costs $75 per year.

Is there a general contractor exam in Delaware?

No. The state does not require a general-contractor competency exam for the business license. However, specific trades such as electricians and plumbers are separately licensed and tested by the Division of Professional Regulation.

When do non-resident contractors need a bond?

A non-resident contractor must post a surety or cash bond equal to 6% of the total of all contracts exceeding $20,000 (single contract or aggregate in a calendar year), filed with the Division of Revenue before construction begins.

What taxes do Delaware contractors pay?

In addition to the $75 license fee, contractors pay a gross receipts tax of 0.6537% on construction-service receipts, with the first $100,000 per month ($300,000 quarterly) exempt.

When does the business license renew?

The contractor business license must be renewed annually, on or before December 31 each year.

Sources

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Guide compiled from official Delaware licensing-board sources. Verify current details with the board before acting; licensing rules change.