Delaware Nonresident Contractor Income Withholding Bond
This bond is required for construction contractors who don't live in Delaware but perform work in the state. Delaware requires it to ensure these out-of-state contractors properly withhold and pay income taxes from their employees' wages. If a contractor fails to withhold or pay the required taxes, the bond provides f…
Overview
What it is.
This bond is required for construction contractors who don't live in Delaware but perform work in the state. Delaware requires it to ensure these out-of-state contractors properly withhold and pay income taxes from their employees' wages. If a contractor fails to withhold or pay the required taxes, the bond provides f…
Who usually needs it
Nonresident contractors and subcontractors without a permanent business presence in Delaware who undertake construction, alteration, repair, or improvement of real property on contracts valued at $20,000 or more (or aggregated to that amount in a calendar year) must obtain this bond to guarantee payment of state income taxes, withheld employee wage taxes, u…
Pricing & timing
What to expect.
Generic pricing
Tax bonds guarantee payment of taxes or compliance with tax regulations. Typical Pricing:. • Standard tax bonds: Commonly around 1–5% of the bond amount annually. • Credit impact: Good credit: starting around 1–2% · Average credit: typically 2–4% · Credit challenges: often 4–5% or higher. • Credit check: Required for most tax bonds. Common types include sales tax bonds, fuel tax bonds, and cigarette/tobacco tax bonds. Quick approval is typical for applicants with good credit. Some tax bonds…
Typical timeframe
Credit-based approval — typically 1–2 business days
Application
What to do next.
Tell us the bond name, state, and amount on your form.
Share business and applicant info so the team can quote it.
Sign and pay; we issue the bond and send you the documents.
Keep your effective date and renewal date on file with us.
Start the application.
You are on the exact bond page. The next step is to start the quick application.
StateDEBond amountVaries by license type or projectObligeeState of DelawareBond classTax BondCategoryConstructionBondDelaware Nonresident Contractor Income Withholding BondJurisdictionStatePlain descriptionThis bond is required for construction contractors who don't live in Delaware but perform work in the state. Delaware requires it to ensure these out-of-state contractors properly withhold and pay income taxes from thei…Who needs this bondNonresident contractors and subcontractors without a permanent business presence in Delaware who undertake construction, alteration, repair, or improvement of real property on contracts valued at $20,000 or more (or agg…
