Founder tax calculator
Delaware franchise tax calculator
Every Delaware corporation files an annual report and pays franchise tax by March 1. The state's notice usually uses the Authorized Shares method, which can show a five-figure bill for a startup with 10 million authorized shares. The Assumed Par Value Capital method is often a few hundred dollars. You may pay the lower of the two.
Your inputs
Result
$450 due by March 1
$400 franchise tax by the Assumed Par Value Capital method plus the $50 annual report fee. The Authorized Shares method would be $85,165.
- Authorized Shares method
- $85,16510,000,000 authorized shares
- Assumed par value
- $0.062500gross assets / issued shares
- Assumed par value capital
- $625,000
- Assumed Par Value Capital method
- $400
- Franchise tax (lower method)
- $400
- Annual report fee
- $50
- Late penalty and interest
- $0none if filed by March 1
- Total due
- $450
Worked examples
Each row is the calculator run on the inputs shown, with every other input at its default.
| Company | Authorized | Gross assets | Authorized Shares method | Assumed Par method |
|---|---|---|---|---|
| Newly formed, 10M shares | 10,000,000 | $10,000 | $85,165 | $400 |
| Pre-seed, $500k raised | 10,000,000 | $500,000 | $85,165 | $400 |
| Seed, $3M in the bank | 10,000,000 | $3,000,000 | $85,165 | $1,600 |
| Series A, 20M shares, $15M assets | 20,000,000 | $15,000,000 | $170,165 | $7,600 |
| Series B, 50M shares, $60M assets | 50,000,000 | $60,000,000 | $200,000 | $30,000 |
| Small company, 5,000 shares | 5,000 | $100,000 | $175 | $400 |
How it is calculated
Delaware lets a corporation pay the lower of two calculations. The minimum tax is $175 under the Authorized Shares method and $400 under the Assumed Par Value Capital method; the maximum is $200,000 ($250,000 for Large Corporate Filers).
A typical startup with 10,000,000 authorized shares owes $85,165 under the Authorized Shares method ($250 plus 999 steps of $85), which is the figure on many first notices. With 8,000,000 issued shares and $500,000 of gross assets, the assumed par value is $0.0625, the capital is $625,000 and the tax is the $400 minimum. To get that figure you must report issued shares and gross assets on the annual report.
The annual report fee is $50. Tax and report are due by March 1. Missing the deadline adds a $200 penalty and 1.5% interest a month on unpaid tax. Corporations owing $5,000 or more pay quarterly estimates: 40% by June 1, 20% by September 1, 20% by December 1 and the rest by March 1. This calculator covers one class of stock with one par value and no mid-year amendments; it is an estimate, not tax advice.
Questions
Why is my Delaware franchise tax bill so high?
The state's notice usually calculates tax by the Authorized Shares method, which charges $85 per 10,000 shares above 10,000. For 10 million authorized shares that is $85,165. Recalculating with the Assumed Par Value Capital method, using your issued shares and gross assets, is often the $400 minimum.
When is Delaware franchise tax due?
March 1 each year, together with the annual report. The penalty for filing late is $200 plus 1.5% interest a month on unpaid tax.
What is the minimum Delaware franchise tax?
$175 under the Authorized Shares method and $400 under the Assumed Par Value Capital method. The annual report fee of $50 is on top.
What counts as total gross assets?
The total assets reported on Form 1120, Schedule L, for the fiscal year ending in the calendar year of the report.
Do LLCs pay this tax?
No. Delaware LLCs, LPs and general partnerships pay a flat $400 annual tax due June 1 and do not file an annual report.
Sources
- Delaware Division of Corporations: Annual Report and Tax Information, checked 2026-10-29
- Delaware Division of Corporations: How to calculate franchise taxes, checked 2026-10-29
Prices and plans change. This page was last checked on 2026-10-29.