DeVito was born in Neptune Township, New Jersey, the son of Daniel DeVito, Sr., a small business owner, and Julia DeVito (nee Moccello). He grew up in a family of five, with his parents and two older sisters. He is of Italian descent; his family is originally from San Fele, Basilicata. He was raised in Asbury Park, New Jersey.

DeVito played Martini in the 1975 film One Flew Over the Cuckoo's Nest, reprising his role from the 1971 off-Broadway play of the same title. He gained fame in 1978 playing Louie De Palma, the short but domineering dispatcher for the fictional Sunshine Cab Company, on the hit TV show Taxi. After Taxi ended, DeVito began a successful film career, starting with roles in 1983's Terms of Endearment, as the comic rogue in the romantic adventure Romancing the Stone, starring Michael Douglas and Kathleen Turner, and its 1985 sequel, The Jewel of the Nile. In 1986, DeVito starred in Ruthless People with Bette Midler and Judge Reinhold, and in 1987, he made his feature-directing debut with the dark comedy Throw Momma from the Train, in which he starred with Billy Crystal and Anne Ramsey. Two years later, DeVito reunited with Douglas and Turner in The War of the Roses, which he directed and in which he co-starred.  DeVito's work during this time includes Other People's Money with Gregory Peck, director Barry Levinson's Tin Men as a competitive rival salesman to Richard Dreyfuss' character, two co-starring vehicles with Arnold Schwarzenegger (the comedies Twins and Junior), and playing The Penguin as a deformed sociopath in director Tim Burton's Batman Returns (1992) as well in the 1996 film adaptation Matilda in which he played the villainous car dealer and Matilda's father Harry Wormwood.  Although generally a comic actor, DeVito expanded into dramatic roles with The Rainmaker (1997), Hoffa (1992), which he directed and in which he co-starred with Jack Nicholson, Jack the Bear (1993), L.A. Confidential, The Big Kahuna, and Heist (2001), as a gangster nemesis of Joe Moore (Gene Hackman).  DeVito has an interest in documentaries: In 2006, he began a partnership with Morgan Freeman's company ClickStar, on which he hosts a documentary channel called Jersey Docs. He was also interviewed in the documentary Revenge of the Electric Car, about his interest in and ownership of electric vehicles.

What other ventures has he been involved in?
his interest in and ownership of electric vehicles.