Delaware Nonresident Contractor Tax Bond
What it is & who requires it
A nonresident (out-of-state) contractor or subcontractor performing construction in Delaware must file security with the Division of Revenue before beginning work on any contract whose price (or aggregate of contracts in a calendar year) meets the statutory threshold, to guarantee Delaware taxes tied to the work. As co-equal alternatives the contractor may post a cash bond or a qualifying bank letter of credit instead of a surety bond; the requirement may be waived in whole or part where the Secretary of Finance concludes no bond is needed to protect the revenue.
Obligee: Delaware Department of Finance, Division of Revenue. Citation: 30 Del. C. § 375 (Nonresident contractors — bond requirement); Division of Revenue Contractor (Non-Resident) provisions.
Bond amount
Set by the obligee — the exact amount is confirmed automatically when you start your bond in our portal, or call 317-942-0549.
How to get it
This bond issues online — get bonded through our portal, usually in a single sitting once you confirm the bond, amount, and obligee.
Term & renewal
Term: Posted before construction begins on a Delaware contract; runs to the State to secure state income taxes, occupational/business license taxes, unemployment compensation contributions, and income taxes withheld from wages, until the covered contract’s Delaware taxes are satisfied.
Renewal: Filed per qualifying contract (or aggregate of contracts in a calendar year); a nonresident contractor furnishes security for each covered contract rather than renewing a standing bond. A bank letter of credit or a cash bond deposited with the Division of Revenue is a co-equal alternative.
Filing
Filed with the Delaware Department of Finance, Division of Revenue, and posted before construction begins on a Delaware contract to secure the state taxes tied to the work. Security is furnished per qualifying contract (or the aggregate of contracts in a calendar year) rather than as a standing annual bond. A cash bond or a qualifying bank letter of credit is a co-equal alternative under 30 Del. C. §375, and the requirement may be waived where the Secretary of Finance finds no bond is needed to protect the revenue. Because the penal sum is a percentage of the contract price, the bond is listed and the exact amount is confirmed when you apply.
Source
Verified against the obligee source.
Related Delaware bonds
Frequently asked questions
- Who requires the Delaware Nonresident Contractor Tax Bond?
- It’s required by Delaware Department of Finance, Division of Revenue (30 Del. C. § 375 (Nonresident contractors — bond requirement); Division of Revenue Contractor (Non-Resident) provisions). A nonresident (out-of-state) contractor or subcontractor performing construction in Delaware must file security with the Division of Revenue before beginning work on any contract whose price (or aggregate of contracts in a calendar year) meets the statutory threshold, to guarantee Delaware taxes tied to the work. As co-equal alternatives the contractor may post a cash bond or a qualifying bank letter of credit instead of a surety bond; the requirement may be waived in whole or part where the Secretary of Finance concludes no bond is needed to protect the revenue.
- How much is the Delaware Nonresident Contractor Tax Bond?
- Set by the obligee — the exact amount is confirmed automatically when you start your bond in our portal, or call 317-942-0549.
- How do I get the Delaware Nonresident Contractor Tax Bond?
- This bond issues online — get bonded through our portal, usually in a single sitting once you confirm the bond, amount, and obligee.
- What is the term?
- Posted before construction begins on a Delaware contract; runs to the State to secure state income taxes, occupational/business license taxes, unemployment compensation contributions, and income taxes withheld from wages, until the covered contract’s Delaware taxes are satisfied. Renewal: Filed per qualifying contract (or aggregate of contracts in a calendar year); a nonresident contractor furnishes security for each covered contract rather than renewing a standing bond. A bank letter of credit or a cash bond deposited with the Division of Revenue is a co-equal alternative.
- Is this bond insurance for me?
- No. It protects the obligee and the public — not you. If a valid claim is paid, you repay the surety.
- How is this requirement verified?
- This bond requirement is corroborated by multiple public sources. The obligee sets the exact amount, which we confirm automatically when you start your bond in the portal or with a producer.
