How do I calculate the 2026 Delaware franchise tax using the Assumed Par Value Capital Method?

To calculate the 2026 tax using this method, you must divide your total gross assets (as reported on Form 1120, Schedule L) by the total number of issued shares to find the assumed par value. You then multiply this figure by the number of authorized shares. The tax rate for 2026 is 400 USD per 1,000,000 USD of assumed par value capital. This method often results in a lower tax liability for startups with high authorized share counts but low assets.

When is the specific March 2026 deadline for Delaware C-Corp franchise tax payments?

For all Delaware corporations, the 2026 franchise tax payment and the accompanying annual report are due no later than March 1, 2026. Because March 1, 2026, falls on a Sunday, the Division of Corporations requires filings to be completed by the following business day to avoid the 200 USD late penalty and the 1.5 percent monthly interest accrual.

Which specific 2026 asset figures are required for the Delaware Annual Report filing?

You must provide the 'Total Assets' figure exactly as it appears on your US Federal Income Tax Return (Form 1120) for the fiscal year ending in 2025. This figure is pulled from Schedule L. If your corporation does not file a federal return, you must use the total gross assets from your 2025 year end balance sheet prepared under generally accepted accounting principles.

What happens if a Delaware corporation fails to pay its 2026 franchise tax by the cutoff?

Failure to pay by the March 2026 deadline results in an immediate 200 USD penalty plus 1.5 percent interest charged per month on both the tax and the penalty. If the tax remains unpaid for two consecutive years, Delaware will administratively dissolve the entity, leading to a 'Void' status which requires a formal revivor process and payment of all back taxes to rectify.

2026 Delaware Franchise Tax: Calculation Guide and Deadline…

For the 2026 tax year, Delaware franchise tax is due by March 1, 2026, for corporations and June 1, 2026, for LLCs. The tax is calculated using either the Authorized Shares Method, which starts at a minimum of 175 USD, or the Assumed Par Value Capital Method, which starts at a minimum of 400 USD for corporations.

How is Delaware franchise tax calculated in 2026?

Delaware offers two distinct methods for calculating corporate franchise tax, and the state will default to the method that results in the highest tax unless you manually recalculate it during filing. Most startups and private companies use the Assumed Par Value Capital Method because it typically leads to a significantly lower tax bill than the Authorized Shares Method, especially when millions of shares have been authorized but the company has limited assets.

The Authorized Shares Method

This method is based strictly on the number of shares your company is authorized to issue, regardless of their value or the company's assets. For 2026, the rates are as follows:

5,000 shares or less: 175 USD (Minimum Tax)
5,001 to 10,000 shares: 250 USD
Each additional 10,000 shares: Add 85 USD
Maximum Tax: 200,000 USD

The Assumed Par Value Capital Method

This method considers both the company's total gross assets and the number of issued shares. To use this, you must report your total assets from your US tax accounting records (specifically Form 1120, Schedule L). The tax rate is 400 USD per 1,000,000 USD of assumed par value capital. If your calculation results in a figure lower than the Authorized Shares Method, you are legally permitted to pay the lesser amount.

When is the 2026 Delaware franchise tax due?

The 2026 deadline for Delaware corporations to file their annual report and pay franchise tax is March 1, 2026. For Limited Liability Companies (LLCs) and Limited Partnerships (LPs), the deadline is June 1, 2026. It is important to note that LLCs do not file an annual report; they only pay a flat 300 USD annual tax.

Entity Type	Filing Requirement	2026 Due Date
Corporation (C-Corp/S-Corp)	Annual Report + Tax	March 1, 2026
LLC / LP	Annual Tax Only	June 1, 2026
Exempt Non-Profit	Annual Report	March 1, 2026

What happens if you miss the Delaware filing deadline?

Missing the 2026 deadline triggers an immediate 200 USD late penalty for corporations and a 200 USD penalty for LLCs. Beyond the flat fee, Delaware assesses interest at a rate of 1.5 percent per month on the unpaid tax balance and the penalty. If your company fails to file for two years, the Secretary of State will change your status to 'Void,' which can complicate your ability to maintain a US registered agent or enter into legal contracts.

Who is required to file a Delaware annual report?

Every business incorporated in Delaware is required to file an annual report, even if the company did not conduct any business activity during the year. This includes foreign-owned corporations and holding companies. The report must list the names and addresses of all directors and the name of one officer. This information is vital for maintaining your entity in good standing with the Delaware Division of Corporations.

2026 Delaware Compliance Checklist

To ensure your 2026 filing is accurate, follow these steps before the March deadline:

Verify Share Count: Confirm the total number of authorized and issued shares in your corporate charter.
Gather Asset Data: Obtain your total gross assets from your 2025 year end balance sheet.
Appoint an Officer: Identify at least one officer and all directors to be listed on the public report.
Check Registered Agent: Ensure your Delaware registered agent is active to receive service of process.
Calculate Both Methods: Compare the Authorized Shares Method against the Assumed Par Value Capital Method to find the lowest tax obligation.

How Gullia Filing helps

Gullia Filing simplifies Delaware compliance by calculating your franchise tax using both state-approved methods to ensure you pay the minimum amount required by law. Our team handles the annual report filing and ensures your entity remains in good standing throughout 2026. If you are unsure which calculation method applies to your asset structure, talk to a filing analyst.

2026 Delaware Franchise Tax: Calculation Guide and Deadlines