Free tool

Delaware Franchise Tax Calculator

Delaware corporations can compute franchise tax two ways and pay the lower amount. Enter your shares and gross assets to see both — and what you actually owe.

Company Inputs

From your charter & balance sheet

Both Methods

Delaware bills the lower one

Authorized Shares Method
Tax$85,165
Assumed Par Value Capital Method
Assumed par / share$0.066667
Assumed par value capital$666,667
Tax$400

What You Owe

Lower of the two + report fee

Method usedAssumed Par Value Capital
Franchise tax$400
Annual report fee$50
Total due$450
Delaware mails most VC-backed startups a scary bill using the Authorized Shares method (often $75K+). You can almost always recompute under the Assumed Par Value method and pay far less — frequently the $400 minimum + $50 report fee. Due March 1 each year.

How Delaware franchise tax works

Every Delaware C-corp owes an annual franchise tax plus a $50 report fee, due March 1. Delaware computes tax under the Authorized Shares method by default, but you may instead use the Assumed Par Value Capital method and pay the lower of the two.

Authorized Shares Method

  • 5,000 shares or fewer: $175
  • 5,001 – 10,000 shares: $250
  • Each additional 10,000 shares (or portion): + $85
  • Maximum: $200,000

Assumed Par Value Capital Method

  1. Divide total gross assets by issued shares = assumed par.
  2. If assumed par ≥ stated par, capital = assumed par × authorized shares. Otherwise capital = stated par × authorized shares.
  3. Tax = $400 per $1,000,000 of capital (rounded up). Minimum $400.