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Tax year 2026 · due March 1, 2027

Delaware franchise tax calculator

Delaware’s bill usually comes from the method that gives the bigger number. A startup with 10 million authorized shares is billed $85,165; worked out the other way, the same company often owes $400. Put in your figures to see both.

Delaware franchise taxTax year 2026, due March 1, 2027
From your certificate of incorporation. Add all classes together.
Startups often use $0.00001 or $0.0001.
Shares actually issued at year end, including treasury shares.
"Total assets" from Form 1120, Schedule L, at year end.
You pay$0tax + $50 report fee
Authorized shares method$0
Assumed par value method$0

    From Delaware's Division of Corporations and 8 Del. C. §503 for tax year 2026. Delaware bills by the authorized shares method; file with your gross assets and issued shares to be charged the lower figure. Not legal or tax advice.

    Why the bill looks so high

    Delaware has two ways to work out a corporation’s franchise tax and you pay the lower. Its notice uses the authorized shares method, because that only needs the number in your certificate of incorporation. For a company with millions of cheap shares that gives a five-figure sum.

    The assumed par value capital method needs two figures only you have: your total gross assets and the number of shares actually issued. File your annual report with both and Delaware recalculates. For most early-stage companies the result is the $400 minimum.

    How the assumed par value method works

    1. Divide total gross assets (from Form 1120, Schedule L) by issued shares, including treasury shares. That is the assumed par.
    2. For each class of shares with a par value below the assumed par, multiply its authorized shares by the assumed par. For classes with a higher par, use their own par.
    3. Add the classes together. That is your assumed par value capital.
    4. Charge $400 for each $1 million or part of it, with $400 as the minimum and $200,000 as the maximum.

    Delaware’s own example: $1,000,000 of assets and 485,000 issued shares give an assumed par of $2.061856 and a tax of $1,600.

    Dates, fees and penalties

    March 1

    The tax and the $50 annual report fee are due by March 1 for the year before. Paying late adds a $200 penalty and 1.5% interest a month.

    Instalments

    A tax of $5,000 or more is paid in four parts: 40% by June 1, 20% by September 1, 20% by December 1 and the rest by March 1.

    The largest companies

    Listed corporations that meet the Large Corporate Filer tests pay a flat $250,000 instead of the $200,000 cap.

    An LLC is simpler: Delaware charges every LLC a flat $400 a year, due June 1, with no report. See the Delaware LLC guide for the rest of the costs, or compare every state in the LLC cost calculator.