Free calculator
Delaware franchise tax calculator both methods, side by side
Your Delaware notice uses the Authorized Shares Method, which can put a startup’s tax above $85,000. Enter your issued shares and gross assets to see the Assumed Par Value Capital Method, which is often $400.
Your corporation
Classes of authorized stock
From your certificate of incorporation. 0 means no par value.
Include treasury shares. Not the authorized number.
Form 1120 Schedule L, line 15, column (d): total assets.
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Franchise tax you owe
$800
Assumed Par Value Capital Method. Add the $50 annual report fee: $850 due by March 1.
Authorized Shares Method
$85,165
10,000,000 authorized shares. This is the number on the state’s notice.
Assumed Par Value Capital Method
Lower$800
Assumed par $0.150000; assumed par value capital $1,500,000.
- Annual report fee
- $50
- Total due by March 1
- $850
- Saved against the notice
- $84,365
- $400 minimum applies
- No
Why your notice says $85,165
Delaware assesses the tax on authorized shares. It uses the Assumed Par Value Capital Method only when your annual report gives your issued shares and total gross assets. To pay the lower tax:
- Open your annual report on the Division of Corporations’ online filing system.
- Enter issued shares (8,000,000) and total gross assets ($1,200,000), with the date of those assets.
- Recalculate the tax on the form, check it matches the amount above, then file and pay by March 1.
- Rates and fees verified against the Delaware Division of Corporations on October 27, 2026. Not tax advice.
Quick answer
How do you calculate Delaware franchise tax?
Delaware charges the lower of two methods. Authorized Shares: $175 up to 5,000 shares, $250 up to 10,000, plus $85 per extra 10,000. Assumed Par Value Capital: gross assets ÷ issued shares × authorized shares, then $400 per $1,000,000, minimum $400. With 10,000,000 authorized shares the first gives $85,165; with $1.2M of assets and 8,000,000 issued shares the second gives $800.
How to use the Delaware franchise tax calculator
- Enter your authorized shares and par value
Both are in your certificate of incorporation. Add a class for preferred stock if its par value differs.
- Enter issued shares and gross assets
Issued shares include treasury shares. Gross assets are the total assets on your Form 1120 Schedule L.
- Read both methods
The calculator shows the tax under each method, marks the lower one and adds the $50 annual report fee.
- File with the lower method
Give your issued shares and gross assets in the annual report, recalculate, and pay by March 1.
How the calculator works
Authorized Shares Method: up to 5,000 authorized shares the tax is $175; from 5,001 to 10,000 it is $250; each further 10,000 shares, or part of 10,000, adds $85. This is how the state computes the amount on your notice.
Assumed Par Value Capital Method: divide total gross assets by all issued shares, to six decimals. That is the assumed par. Each class of par-value shares counts at its par value or the assumed par, whichever is higher; the total is the assumed par value capital. Above $1,000,000 it is rounded up to the next million and taxed at $400 per million. The minimum is $400. Shares without par value count at $100 each on their own scale (8 Del. C. § 503(a)(2)).
You pay the lower of the two, never more than $200,000, except that a large corporate filer pays $250,000. Every corporation also pays the $50 annual report fee. The calculator assumes a full tax year: a corporation formed during the year pays a prorated tax.
Authorized Shares tax = $175 (≤ 5,000 shares) | $250 (≤ 10,000) | $250 + $85 × ⌈(shares − 10,000) ÷ 10,000⌉
Assumed par = total gross assets ÷ issued shares
APVC = Σ authorized shares × max(par value, assumed par)
APVC tax = $400 × ⌈APVC ÷ $1,000,000⌉, minimum $400
Tax = lower of the two, maximum $200,000; total due = tax + $50Worked example
- Authorized Shares Method, 10,000,000 shares: $250 + 999 × $85 = $85,165.
- Assumed par: $1,200,000 of gross assets ÷ 8,000,000 issued shares = $0.150000.
- The $0.00001 par value is below the assumed par, so APVC = 10,000,000 × $0.15 = $1,500,000.
- $1,500,000 rounds up to $2,000,000: 2 × $400 = $800.
- You owe the lower tax, $800, plus the $50 annual report fee: $850 by March 1.
Delaware franchise tax rates and fees
The rules this calculator uses, from the Delaware Division of Corporations and the Delaware Code.
| Rule | Amount | Source |
|---|---|---|
| Authorized Shares Method: up to 5,000 shares | $175 (the minimum) | Division of Corporations: How to Calculate Franchise Taxes |
| Authorized Shares Method: 5,001 to 10,000 shares | $250 | Division of Corporations: How to Calculate Franchise Taxes |
| Authorized Shares Method: each further 10,000 shares or part | +$85 | Division of Corporations: How to Calculate Franchise Taxes |
| Assumed Par Value Capital Method: rate | $400 per $1,000,000 or part | Division of Corporations: How to Calculate Franchise Taxes |
| Assumed Par Value Capital Method: minimum | $400 | Division of Corporations: How to Calculate Franchise Taxes |
| Shares without par value (second method) | Counted at $100 a share | 8 Del. C. § 503 |
| Maximum tax, either method | $200,000 | Division of Corporations: How to Calculate Franchise Taxes |
| Large corporate filer (listed, $750M+ revenue or assets) | $250,000 | Division of Corporations: Large Corporate Filer |
| Annual report filing fee (non-exempt domestic corporation) | $50 | Division of Corporations: Annual Report and Tax Instructions |
| Due date for the annual report and tax | March 1 | Division of Corporations: Annual Report and Tax Instructions |
| Late filing penalty | $200 | Division of Corporations: Annual Report and Tax Instructions |
| Interest on unpaid tax | 1.5% a month | Division of Corporations: Annual Report and Tax Instructions |
| Tax of $5,000 or more | 40% June 1, 20% Sept 1, 20% Dec 1, rest March 1 | Division of Corporations: Annual Report and Tax Information |
Last verified 27 October 2026 against corp.delaware.gov and 8 Del. C. § 503. The rates last changed for the 2018 tax year. Links are in the sources below.
Why the Delaware franchise tax notice is so high
The notice the state sends each year is computed with the Authorized Shares Method, and a corporation set up for venture funding often authorizes 10,000,000 shares or more. Under the Delaware Code, the state uses that method unless your annual report states your issued shares and total gross assets. Add those two figures and most early-stage startups drop to the $400 minimum or a few hundred dollars above it.
When the Authorized Shares Method is cheaper
With few authorized shares, the first method wins: 5,000 shares or fewer pay $175, which is below the second method’s $400 minimum. It also wins for corporations with only no-par stock. Once a company holds large assets against few issued shares, the assumed par rises and the second method can pass the first, so check both every year.
Deadlines, penalties and estimated payments
The annual report and tax are due by March 1 and must be filed online. Missing the deadline costs a $200 penalty plus 1.5% interest a month on the unpaid tax. A corporation owing $5,000 or more pays estimated tax: 40% by June 1, 20% by September 1, 20% by December 1 and the rest by March 1.
Delaware franchise tax questions
- What is the minimum Delaware franchise tax?
- $175 under the Authorized Shares Method and $400 under the Assumed Par Value Capital Method. Every non-exempt domestic corporation also pays the $50 annual report fee.
- Why is my Delaware franchise tax bill so high?
- The state computes it with the Authorized Shares Method. With 10,000,000 authorized shares that is $85,165. Give your issued shares and gross assets in the annual report and the Assumed Par Value Capital Method usually brings it down to a few hundred dollars.
- How do I use the Assumed Par Value Capital Method?
- Enter your issued shares, including treasury shares, and your total gross assets in the annual report, then recalculate the tax before paying. Without both figures, Delaware uses the Authorized Shares Method.
- Where do I find total gross assets?
- On your federal return: Form 1120, Schedule L, line 15, column (d), total assets at the end of the fiscal year that ends in the tax year of the report.
- When is Delaware franchise tax due?
- March 1 each year, for the year before. Late filing costs a $200 penalty plus 1.5% interest a month on unpaid tax.
- What is the maximum Delaware franchise tax?
- $200,000 under either method. Large corporate filers, listed companies with $750 million or more in revenue or assets, pay a fixed $250,000.
- How much is the Delaware annual report fee?
- $50 for a non-exempt domestic corporation and $25 for an exempt one, which pays no franchise tax.
- Do LLCs pay Delaware franchise tax this way?
- No. These methods are for corporations. Delaware LLCs, limited partnerships and general partnerships pay a separate annual tax due June 1.
Cite this tool
Free to link and quote. Use this reference:
SaaSCity, "Delaware Franchise Tax Calculator", October 27, 2026. https://saascity.io/free-tools/delaware-franchise-tax-calculator
Sources
- Delaware Division of Corporations, “How to Calculate Franchise Taxes”
- Delaware Division of Corporations, “Annual Report and Tax Instructions”
- Delaware Division of Corporations, “Annual Report and Tax Information”
- Delaware Code, Title 8, § 503: rates and computation of franchise tax
- Delaware Division of Corporations, “Large Corporate Filer (Tier Two)”
- IRS, Instructions for Form 1120 (2025)