Delaware franchise tax calculator

Compare the authorized shares method with the assumed par value capital method, and see the lower tax that your company pays.

Learn the idea behind this tool

Calculator

Delaware franchise tax: two methods, one bill

Set the company's shares and assets. Delaware lets you pay the lower of the two taxes.

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Authorized shares10,000,000

Issued shares8,000,000

Gross assets$50K

Total assets on the company's federal tax return.

Par value of a share

Method 1: $85,165; Authorized shares, the default notice
Method 2: $400; Assumed par value capital
You pay: $450; $400 + $50 report fee
Saved: $84,765; Against the notice

The calculation

Method 1: authorized shares
Over 10,000 = 9,990,000 shares
Blocks      = 9,990,000 ÷ 10,000
            = 999
Tax         = $250 + $85 × 999
            = $85,165

Method 2: assumed par value capital
Assumed par = $50,000 ÷ 8,000,000
            = $0.00625
Capital     = 10,000,000 × $0.00625
            = $62,500
Tax         = $400, the minimum
            (capital under $1M)

Delaware’s default notice uses the authorized shares method and asks for $85,165. Report the issued shares and the gross assets, and the assumed par value capital method gives $400. With the $50 report fee, the company pays $450.

The capital is $62,500, not more than $1M, so the assumed par value capital method gives its $400 minimum.