Question 1

What is Delaware franchise tax?

Accepted Answer

Delaware franchise tax is an annual fee paid by all corporations incorporated in Delaware, regardless of where they operate. It is not based on income — it is based on authorized shares or assumed par value. The minimum tax is $400 and the maximum is $200,000.

Question 2

How is Delaware franchise tax calculated?

Accepted Answer

Delaware offers two calculation methods: the Authorized Shares method (based on number of authorized shares) and the Assumed Par Value method (based on shares, par value, and total gross assets). Corporations can pay whichever amount is lower.

Question 3

When is Delaware franchise tax due?

Accepted Answer

Delaware franchise tax for C-Corps is due annually on March 1st. The annual report and payment must be filed together through the Delaware Division of Corporations. Late payments incur a $200 penalty plus 1.5% monthly interest.

Delaware Franchise Tax Calculator