Delaware is one of only five US states with no state sales tax. The others are Alaska, Delaware, Montana, and New Hampshire. For large purchases, this can represent meaningful savings.
A $55,000 vehicle purchase in Delaware costs $55,000 in pre-tax price and zero in state sales tax. In California (7.25% state rate), the same vehicle would cost $3,987.50 more in state tax alone.
Delaware does not have a sales tax, but it does have an income tax (2.2%–6.6%). Residents who itemize deductions can deduct either income taxes or sales taxes on federal returns, up to the $10,000 SALT cap.