The charge is a flat state fee, not a price range. Your real compliance budget also includes registered-agent fees, formation or cancellation costs, income-tax filings and any late penalties.
This guide covers the 2026 amount, how HB 400 timing works, how the tax is calculated, the June 1 deadline, payment steps, penalties, and how franchise tax differs from income tax. Amounts are in US dollars, since Delaware charges in USD. Australian owners should convert at current rates when budgeting.
Key Takeaways
- Delaware LLC franchise tax is $400 for tax year 2026, up from $300.
- It is a flat per-entity charge, not based on revenue, profit or activity.
- The 2026 tax is ordinarily due June 1, 2027; the 2025 tax ($300) is due June 1, 2026.
- LLCs pay tax but file no annual report, unlike corporations.
- Late payment costs $200 plus 1.5% monthly interest.
What Is the Delaware LLC Franchise Tax Amount for 2026?
The standard amount is $400 per LLC for tax year 2026. HB 400, enacted as 85 Delaware Laws, Chapter 273, raised it from $300 for domestic LLCs and for foreign LLCs registered to do business in Delaware.
Tax Year Versus Payment Year
Delaware assesses tax by calendar year and collects it the following June. That distinction resolves most of the confusion:
- Due June 1, 2026: $300, for tax year 2025.
- Due June 1, 2027: $400, for tax year 2026.
- January 1, 2026: the date the annual-tax increase takes effect.
- August 1, 2026: the date most other HB 400 changes begin, including filing-fee changes. It is not the LLC annual-tax date.
Cancelling an LLC can accelerate payment, because the full tax for the cancellation year must be paid first. Some third-party summaries and the Division's own FAQ mix up the $300 and $400 figures, so rely on the dedicated LLC instructions and the enacted law.
Flat Per Entity, Not Per Dollar Earned
The tax is not calculated from gross receipts, net income, member count or Delaware activity. The Division applies no proration. If your LLC is active in Delaware's records at any point in the calendar year, you owe the full amount.
What Is and Isn't Included
The $400 covers only the state franchise tax. It excludes:
- Registered-agent fees
- Formation and cancellation fees
- Federal and state income taxes
- Foreign-qualification fees
- Professional fees and penalties
Other Entity Types
Don't apply the LLC figure to everything:
| Entity | Published amount |
|---|---|
| Standard LLC | $400 annual tax |
| Registered series of an LLC | $100 per series, separate from the parent |
| Domestic or registered foreign LP | $400 annual tax |
| LLP annual-report filing fee | $300 per partner, capped at $180,000 |
| Domestic corporation | Different regime; report and tax due March 1 |
How Is the Delaware LLC Franchise Tax Calculated?
The formula is simple: $400 × the number of separate Delaware LLCs you own, plus $100 for each registered series.
Illustrative Examples
These are hypothetical and are not legal or tax advice.
- One active LLC: $400 for 2026 tax, due June 1, 2027.
- Three LLCs (an operating company and two holding entities): 3 × $400 = $1,200. Each entity is assessed separately.
- A dormant LLC with no revenue: still $400. Registry status, not trading, triggers the charge.
First Payment and Cancellation
A newly formed LLC owes tax for the calendar year of formation, payable the following June 1. There is no proration, so forming in December costs the same as forming in January.
When cancelling, the full tax for the year of effective cancellation, plus all earlier taxes, must be paid before the certificate of cancellation can be filed.
Franchise Tax Versus Income Tax
Franchise tax is the price of keeping the Delaware entity alive. It is not income tax, and the two are assessed on entirely different bases.
For US federal tax purposes, the IRS generally treats LLCs as follows:
- A single-member LLC is disregarded unless it elects corporate treatment.
- A multi-member LLC is a partnership and files Form 1065.
- An LLC can elect corporate treatment using Form 8832.
- A foreign-owned disregarded LLC generally files Form 5472 with a pro forma Form 1120 for reportable related-party transactions. That filing is a reporting duty, not proof that corporate tax is owed.
Owners may also face income-tax obligations in Australia or in any US states where they operate. Australian owners should confirm their own tax treatment; Delaware and IRS rules do not settle it. Paying Delaware franchise tax does not discharge US federal, state, local, or foreign-qualification duties.
When Is Delaware LLC Franchise Tax Due and How Do You Pay It?
The deadline is June 1 each year for the prior calendar year's tax.
LLCs Versus Corporations
LLCs, LPs and general partnerships pay franchise tax but file no annual franchise-tax report. Delaware corporations file an annual report and pay franchise tax by March 1. If you hold both, expect different deadlines, forms and fees.
How to Pay
- Start at the Division of Corporations' LLC/LP/GP tax instructions page (corp.delaware.gov) and use the "Pay LLC/LP/GP Taxes" link.
- Enter the entity's Business Entity File Number (up to 9 digits).
- Review the amount due and any outstanding balances.
- Pay by ACH debit or by Visa, MasterCard, American Express or Discover. ACH debit is required for payments over $5,000.
- Save the confirmation.
Keep the legal entity name, file number, registered-agent details and payment authorisation to hand. Official instructions do not require LLCs to pay online only, but online payment is the standard method.
Late Payment Consequences
Miss June 1 and you pay $200 plus 1.5% monthly interest on the tax and penalty, charged for each month or part of a month. Current official instructions retain these figures despite HB 400.
Beyond the money:
- A domestic LLC loses good standing and cannot obtain a good-standing certificate.
- A registered foreign LLC ceases to be registered.
- After three unpaid years, a domestic LLC's formation certificate is cancelled.
- Banking, financing and transactions can stall until standing is restored.
Extensions
Delaware does not offer an automatic payment extension for LLC franchise tax, and there is no LLC annual report to extend. Corporations can seek discretionary relief for good cause, but it is not automatic. An IRS extension for Form 5472 does not extend Delaware's deadline.
What Other Delaware LLC Costs and Compliance Issues Should You Budget For?
The $400 is only one line. Under the Division's fee schedule (revised August 1, 2026), typical event-based fees are:
| Item | Fee |
|---|---|
| Certificate of formation | $110 |
| Certificate of amendment | $220 |
| Certificate of cancellation | $220 (plus taxes owed) |
| Certificate of revival | $220 (plus taxes, penalties, interest) |
| Short-form good standing | $50 |
| Long-form good standing | $175 |
Also budget for recurring and avoidable costs:
- Delaware registered agent with a physical Delaware street address
- Accounting or tax support where needed
- Late fees, interest and revival charges if you miss deadlines
Commonly Missed Issues
- A dormant LLC keeps accruing $400 a year until formally cancelled.
- Franchise tax does not satisfy income-tax, licensing or home-state obligations.
- A foreign LLC must register before doing business in Delaware, and that registration is separate from the annual tax.
- A Delaware LLC owned by a non-US resident is still a domestic LLC. Owner nationality doesn't change its status.
- Each entity needs separate tracking; one payment never covers a group.
VJM Global supports foreign investors and multinational businesses with cross-border accounting, international tax planning and US entity-formation compliance, including EIN, registered agent, annual franchise tax and BOI reporting. Ask us whether a Delaware filing service fits your situation.
Conclusion
Confirm the amount against current Delaware guidance: $400 applies to 2026 tax, with the 2025 tax of $300 due June 1, 2026.
Good budgeting goes beyond the flat charge. Build a simple checklist around the filing:
- Track the June 1 deadline each year
- Keep payment confirmations on file
- Monitor each entity’s status
- Plan for related costs and income-tax obligations
If you own multiple entities, hold them from outside the US, are cancelling an LLC, or are unsure of your tax classification, get professional advice before assuming a payment is enough.
Frequently Asked Questions
What is the Delaware LLC franchise tax amount for 2026 and how is it calculated?
It is a flat $400 per LLC for tax year 2026, up from $300, and is not based on income or revenue. The increase took effect January 1, 2026 under HB 400, with the first $400 payment ordinarily due June 1, 2027.
What is the deadline for filing Delaware franchise tax and the annual report?
LLC franchise tax is due June 1 for the prior year, and LLCs file no annual report. Corporations file their annual report and pay tax by March 1.
How do I pay Delaware LLC franchise tax?
Use the official Division of Corporations online tax portal and enter the entity's Business Entity File Number. Pay by ACH or card, then keep the confirmation.
How is a Delaware LLC taxed?
Franchise tax is separate from federal and state income tax. Federally, an LLC is disregarded, a partnership or an elected corporation, depending on its members and elections.
Does Delaware offer an automatic extension for filing franchise tax and annual reports?
Official guidance does not provide an automatic payment extension for LLCs. Corporate relief is discretionary for good cause, and IRS extensions don't change Delaware's deadline.
