Delaware franchise tax calculator
Startups with millions of authorized shares often get a bill for tens of thousands of dollars. The other official method is usually a few hundred.
Filing with the assumed par value capital method saves $84,765 compared with the default bill Delaware sends.
Due March 1. Late filing adds a $200 penalty plus 1.5% interest a month. Estimate only; amendments during the year change the calculation.
How Delaware calculates the tax
Authorized shares method
5,000 shares or fewer: $175. 5,001 to 10,000 shares: $250. Each further 10,000 shares or part of it adds $85, up to $200,000.
Assumed par value capital method
Divide total gross assets by issued shares to get the assumed par. Multiply it by authorized shares whose par is below it, add the par value of the rest, then pay $400 per million (rounded up), with a $400 minimum. You may use whichever method gives the lower tax.
Deadlines and fees
Corporations file the annual report and pay by March 1, with a $50 filing fee. Missing it costs $200 plus 1.5% interest a month. Delaware LLCs pay a flat $400 by June 1 instead.
Source: Delaware Division of Corporations, corp.delaware.gov/frtaxcalc and corp.delaware.gov/frtax, checked 28 Sep 2026. Estimate only.