Calculator
Delaware franchise tax calculator
A Delaware corporation pays the lower of two franchise taxes, the Authorized Shares Method (from $175) or the Assumed Par Value Capital Method (from $400), plus a $50 annual report fee ($25 if exempt), all due March 1. Enter your authorized shares, par value, issued shares and gross assets to see both methods and the lower amount.
An estimate for planning, checked against corp.delaware.gov on the date below. It assumes one class of stock at one par value. Not tax or legal advice.
Generally the figure on the corporation's federal return for the period.
| Method | Franchise tax |
|---|---|
| Authorized Shares Method | $85,165 |
| Assumed Par Value Capital MethodLower | $800 |
| Annual report fee (non-exempt) | $50 |
| Total due March 1 | $850 |
File and pay under whichever method is lower. Delaware's default notice uses the Authorized Shares Method; recalculating under the Assumed Par Value Capital Method (assumed par value per share $0, assumed par value capital $1,500,000, rounded up to $2,000,000, before the $400-per-million multiplier) is what usually produces the lower number for a startup with a large authorized pool and modest assets. Both the annual report and the franchise tax are due March 1 each year, filed together.
Estimated payments start at $5,000 owed; below that the whole amount is due March 1. Missing March 1 brings a $200 penalty, and unpaid tax bears 1.5% interest for each month or part of a month.
Estimate for planning only, not tax or legal advice. Total gross assets and issued shares assume a single class of stock at one par value; a corporation with several par-value classes should use Delaware's own calculator, which accepts a per-class breakdown, or confirm the figure with a preparer before filing.
Official Delaware sources
- Delaware Division of Corporations: Franchise Tax Calculation Methods (checked 2026-10-24)
- Delaware Division of Corporations: Pay Taxes, Annual Report and Franchise Tax (checked 2026-10-24)
- Delaware Division of Corporations: Franchise Tax FAQs (Large Corporate Filer definition) (checked 2026-10-24)
Worked example
A startup has 10,000,000 authorized shares at $0.00001 par, 8,000,000 issued shares and $250,000 of total gross assets. The Authorized Shares Method gives $85,165. The Assumed Par Value Capital Method divides $250,000 by 8,000,000 issued shares for an assumed par of $0.03125, which is above the stated par, so the assumed par applies to all 10,000,000 authorized shares: $312,500 of assumed par value capital, which at $400 a million is $125, so the $400 minimum applies.
The lower is $400. Adding the $50 annual report fee, the total due by March 1 is $450.
Questions
Frequently asked questions
How do I calculate Delaware franchise tax?
Work out both methods and pay the lower. The Authorized Shares Method charges $175 for 5,000 shares or fewer, $250 for 5,001 to 10,000, and $85 more for each additional 10,000 shares or part of 10,000. The Assumed Par Value Capital Method divides total gross assets by issued shares, applies that to the authorized shares and charges $400 per million, counting any part of a million as a full million once the total is $1,000,000 or more, with a $400 minimum.
Why is my Delaware franchise tax bill so high?
The assessment on the notice is based on authorized shares, which gets expensive when a company authorizes millions of them. A startup with a large authorized pool and small assets usually pays far less under the Assumed Par Value Capital Method. Recalculate it and file with that figure. The tax is never below $175 or above $200,000, except for a Large Corporate Filer.
When is Delaware franchise tax due?
March 1 each year, together with the annual report, for the prior year. A corporation owing $5,000 or more makes estimated payments: 40% by June 1, 20% by September 1, 20% by December 1, and the remainder by March 1.
What is the Delaware annual report fee?
$50 for a non-exempt domestic corporation and $25 for an exempt one, effective September 1, 2019. It is paid with the franchise tax when the annual report is filed online. This calculator adds it to the total due March 1.
What happens if I miss the March 1 Delaware deadline?
Delaware charges a $200 penalty for failing to file the report and pay the tax, plus 1.5% interest for each month or part of a month on the unpaid tax.
Does this calculator work for a Delaware LLC?
No. It covers corporations only. Delaware LLCs, limited partnerships and general partnerships pay a separate annual tax that this calculator does not compute. Check the Delaware Division of Corporations for the current LLC amount and date.
Franchise tax preparation support and state annual report filing support calculate the figure, track the March 1 date and request good-standing certificates. The report is submitted by the entity's owner, registered agent or an authorized filer.
Sources
- [1]Delaware Division of Corporations, How to Calculate Franchise Taxes, checked October 24, 2026
- [2]Delaware Division of Corporations, Annual Report and Tax Instructions, checked October 24, 2026
- [3]Delaware Division of Corporations, Franchise Tax FAQs (penalty, interest, Large Corporate Filer), checked October 24, 2026
Where to go next
- Tax prep supportFranchise and annual report preparation supportPreparation support for the annual franchise tax and report that most states require to keep a company in good standing, built from your entity and financial records.
- Setup and complianceState annual report and franchise tax filing supportTracking and preparation support for the annual reports and franchise tax filings that keep an entity in good standing in every state it is formed or registered in, so a missed deadline never triggers an administrative dissolution.
- ComplianceDelaware C-Corp Annual Compliance: Franchise Tax, Report, and FilingsHow Delaware C-corp annual compliance works in 2026: franchise tax methods, the March 1 annual report, registered agent duties, and federal filings.
- PricingPublished monthly bookkeeping plans for US businesses, from solo LLCs to multi-entity operators and accounting firms buying extra capacity.
- Books, reconciled every weekBookkeepingMonthly bookkeeping in QuickBooks Online, Xero or the platform you already run: every transaction sorted into categories, every bank and card account reconciled, and a clean set of reports each month.
Next step
Talk to the team that would run your books
A short call covers your setup, your software and what a first month would look like. You get a written scope and price after it.