Delaware Liquor License Cost
Fees, license types, and requirements from the Office of the Alcoholic Beverage Control Commissioner (OABCC)
How much does a liquor license cost in Delaware?
| Business Type | Scenario | Total Fee | Period | Permits Required |
|---|---|---|---|---|
| Restaurant | Restaurant with full liquor service | $2,000 | per 2-year license period ($1,000 application + $1,000 license) | REST |
| Bar / Nightclub | Beer and wine tavern | $1,500 | per 2-year license period ($1,000 application + $500 license) | BW_TAVERN |
| Bar / Nightclub | Nightclub/cabaret with entertainment | $3,000 | per 2-year license period ($1,000 application + $2,000 license) | CABARET |
| Convenience Store | Liquor store (off-premises) | $2,000 | per 2-year license period ($1,000 application + $1,000 license) | STORE |
| Brewery / Brewpub | Craft brewery with taproom | $3,500 | first year ($1,000 app + $1,500 brewery + $1,000 taproom) | BREWERY + TAPROOM |
| Winery | Winery with tasting room | $3,500 | first year ($1,000 app + $1,500 winery + $1,000 taproom) | WINERY + TAPROOM |
| Hotel / Resort | Hotel with bar and restaurant | $2,000 | per 2-year license period ($1,000 application + $1,000 license) | HOTEL |
Delaware's Commissioner-Controlled Licensing and County-Level Approval System
Delaware's alcohol regulation is administered by the Office of the Alcoholic Beverage Control Commissioner (OABCC), which sits within the Delaware Department of Safety and Homeland Security. The Commissioner has sole authority over license issuance, renewals, and enforcement — there is no separate board or commission. Delaware has approximately 2,500 active liquor licenses across its 3 counties (New Castle, Kent, Sussex). The state is compact with fewer than 1 million residents, making it one of the smallest licensing jurisdictions in the country.
Regulatory environment
Delaware has a moderately permissive licensing system. The state does not impose population-based quotas on most license types. However, the Commissioner exercises significant discretion in granting licenses, considering factors like community impact, proximity to schools and churches, and existing license saturation in an area. Delaware requires a 30-day public notice period and allows written protests from nearby residents and businesses. The state distinguishes between restaurant licenses (food must be the primary function), taproom/tavern licenses (bar-focused), and package store licenses.
License availability
Standard restaurant and taproom licenses are generally available without quota or lottery. Processing times run 60-90 days for uncontested applications. Package store (off-premise) licenses face more scrutiny, as the Commissioner considers market saturation and community impact more carefully for new off-premise locations. Delaware brewery and winery licenses are non-quota and have grown popular — the state's craft beer scene is anchored by Dogfish Head (Milton, DE), which helped pioneer Delaware's craft brewing laws. Farm winery and microbrewery licenses allow direct-to-consumer sales with tastings.
What drives costs
Delaware's licensing fees are moderate. A restaurant license costs approximately $840 per year, and a taproom/tavern license runs about $1,200 per year. Package store licenses cost roughly $1,000-$1,500 annually. These fees are lower than neighboring states Maryland ($2,000-$4,000), New Jersey ($2,500-$5,000+), and Pennsylvania (varies widely). The lack of a quota system means no secondary market premiums. Delaware's relatively low fees and straightforward process make it one of the more affordable Mid-Atlantic states for liquor licensing.
Application process
Applications are submitted to the OABCC with a $1,000 non-refundable processing fee for most license types — one of the higher application fees for a small state. The Commissioner reviews all applications personally and may require a public hearing, especially for new locations or license types that have drawn community concern. Background checks are run on all owners and managers, with a five-year felony lookback. Health department approval is required for food-service establishments. Licenses are issued on biennial (two-year) cycles, so the posted fees cover a full two-year period, effectively halving the annual cost.
Common pitfalls and denial reasons
The Commissioner's broad personal discretion is both Delaware's strength and its most unpredictable element — unlike states with boards or commissions, a single individual makes the final call, and the Commissioner's assessment of "community impact" and "market saturation" can be subjective. Written protests from nearby residents during the 30-day notice period carry real weight. Sunday sales require a separate $500 biennial permit, and applicants who assume Sunday service is included in the base license often discover the gap only after opening. Patio or outdoor alcohol service requires yet another $1,000 biennial permit.
Local quirks worth knowing
Delaware's three-county structure (New Castle, Kent, Sussex) makes it one of the simplest state-level licensing geographies in the country — the entire state has fewer counties than most metropolitan areas. Dogfish Head Brewery in Milton has been so influential in shaping Delaware's craft beverage laws that the company's expansion needs have directly driven legislative changes to taproom and direct-shipping rules. A new Direct Shipper License taking effect in August 2026, with a $3,600 fee for higher-volume shippers, signals Delaware's push to compete with neighboring states for wine and spirits e-commerce traffic.
Need help getting started? Read our step-by-step licensing guide, or compare Delaware fees with other states using our comparison tool.
Delaware License Types
REST Restaurant License $1,000
Sale of all alcoholic beverages for on-premises consumption at a restaurant where food is the primary business.
Biennial fee: $1,000 (effective $500/year). Must be primarily a food-service establishment.
TAPROOM Taproom License $1,000
Sale of alcoholic beverages produced on premises for on-premises consumption at a brewery, winery, or distillery taproom.
Biennial fee: $1,000. Requires an active manufacturer license. For on-site consumption at production facility.
BW_TAVERN Beer/Wine Tavern License $500
Sale of beer and wine for on-premises consumption at a tavern or bar.
Biennial fee: $500 (effective $250/year). Beer and wine only.
CABARET Cabaret License $2,000
Sale of all alcoholic beverages for on-premises consumption at a cabaret or nightclub with entertainment.
Biennial fee: $2,000 (effective $1,000/year). Allows live entertainment.
HOTEL Hotel License $1,000
Sale of all alcoholic beverages for on-premises consumption at a hotel, including bar, restaurant, and room service.
Biennial fee: $1,000 (effective $500/year). Covers all on-premises service areas.
STORE Off-Premises Store License $1,000
Sale of all alcoholic beverages in sealed containers for off-premises consumption (liquor store).
Biennial fee: $1,000 (effective $500/year). Off-premises only. In-store tasting endorsement available ($150).
BREWPUB Brew Pub License $2,000
Brew and sell beer on premises at a restaurant/pub. Includes on-premises consumption and limited retail.
Biennial fee: $2,000 (effective $1,000/year). Must operate food service on premises.
BREWERY Brewery Manufacturer License $1,500/yr
Manufacture of beer and malt beverages. Fee tiered by production volume.
Annual fee (not biennial): $1,500 (under 25K bbls), $3,000 (25K-50K), $6,000 (50K-100K), $9,000 (100K+). Federal TTB permit required.
WINERY Winery Manufacturer License $1,500/yr
Manufacture of wine. Includes production and wholesale distribution.
Annual fee: $1,500. Federal TTB permit required. Separate taproom license needed for on-site retail.
CRAFT_DISTILLERY Craft Distillery License $1,500/yr
Manufacture of distilled spirits at a small craft distillery.
Annual fee: $1,500. Federal TTB permit required. Separate taproom license needed for on-site sales.
CATERER Caterer License $1,000
Sale of alcoholic beverages at catered events off the licensed premises.
Biennial fee: $1,000 (effective $500/year). Off-premises catering permit also available at $500.
CONCERT_HALL Concert Hall License $1,500
Sale of alcoholic beverages for on-premises consumption at a concert hall or performing arts venue.
Biennial fee: $1,500 (effective $750/year). For entertainment venues.
Requirements
General Requirements
- Must be at least 21 years old
- Background check required for all owners and managers
- No felony convictions within the past 5 years
- $1,000 non-refundable application processing fee for most license types
- Public hearing may be required for new licenses
- Premises must comply with local zoning regulations
- Health department approval required for food-service establishments
- Must post license conspicuously on premises
Notable Restrictions
- License fees are biennial (2-year periods) — fees shown are for the full 2-year term
- Sunday sales allowed with a separate $500 Sunday Sales permit (biennial)
- Patio permit required for outdoor alcohol service ($1,000 biennial)
- Delaware has no dry counties — alcohol sales legal statewide
- Taproom licenses require brewery or distillery manufacturer license
- Beer garden permits are separate from standard on-premises licenses
- Direct Shipper License effective August 2026 ($3,600 for higher volume)
Frequently Asked Questions
Can I transfer a liquor license in Delaware?
Yes, OABCC licenses are transferable with commissioner approval. Delaware has no quota system, so transfers carry no secondary market premium. The $1,000 non-refundable processing fee applies to the transfer application, and the new owner must meet all standard qualifications. A public hearing may be required depending on the license type and location. The full biennial license fee is also due at renewal regardless of when a transfer occurred during the cycle.
Are there dry counties in Delaware?
No. Delaware has no dry counties. Alcohol sales are legal throughout the state, subject to standard licensing requirements and local zoning. There are no local option dry areas or municipal prohibitions on alcohol sales.
Can I sell alcohol on Sundays in Delaware?
Yes, but Sunday sales require a separate Sunday Sales permit that costs $500 biennial (approximately $250/year). This permit is not included automatically with your base license — you must apply for it specifically. Without the Sunday Sales permit, your premises cannot legally serve or sell alcohol on Sundays. Budget for this add-on if Sunday is part of your business plan.
How does Delaware's biennial license period work?
Delaware issues most licenses on a two-year (biennial) cycle rather than annually. The fees shown are for the full 2-year term. For example, a Restaurant License costs $1,000 biennial — effectively $500/year. The $1,000 application processing fee is paid once upfront and is non-refundable regardless of outcome. Manufacturer licenses (brewery, winery, distillery) are an exception and renew annually. Keep the biennial cycle in mind when comparing Delaware's fees to other states that quote annual figures.
Do I need a separate permit for outdoor seating in Delaware?
Yes. Delaware requires a separate Patio Permit ($1,000 biennial) for outdoor alcohol service. If your business plan includes a beer garden, rooftop bar, sidewalk seating, or any outdoor space where alcohol will be served or consumed, the patio permit is mandatory in addition to your primary license. Apply for both at the same time to avoid delays — getting the patio permit added later requires a separate application and approval process.
Sources
Data sourced from the Office of the Alcoholic Beverage Control Commissioner (OABCC). Last verified 2026-03-26.