Delaware LLC franchise tax: $400 a year (up from $300), with the 2026 tax due June 1, 2027
Delaware's yearly tax on a limited liability company is a flat $400, set by 6 Del. C. § 18-1107(b) as amended by a 2026 law that raised it from $300 effective January 1, 2026. It is due on or before June 1 following the calendar year it covers, so the tax for 2026 is due June 1, 2027. LLCs file no annual report. A late payment adds a $200 penalty plus interest of 1.5% per month.
- Annual tax per LLC
- $400 (was $300 before January 1, 2026)
- Who owes it
- Every Delaware LLC and every foreign LLC registered to do business in Delaware
- Due date
- June 1 following the calendar year (2026 tax: June 1, 2027)
- Annual report
- None for LLCs
- Late penalty
- $200, plus interest of 1.5% per month or part of a month
- Each registered series
- $100 a year (late: $50)
- Unpaid for 3 years
- Certificate of formation canceled on the third anniversary of the due date
- Where it is paid
- Delaware Division of Corporations online system (Pay LLC/LP/GP Tax)
Figures above were read from the Delaware Code (Title 6, Chapter 18), 85 Del. Laws c. 273 and the Delaware Division of Corporations on 2026-10-17. See sources.
Is it a "franchise tax"?
The statute calls it an "annual tax". The Division of Corporations titles its payment page "LLC/LP/GP Franchise Tax Instructions", which is why most people search for the Delaware LLC franchise tax. It is a fixed amount: it does not depend on the LLC's income, members or activity.
It is a different charge from the franchise tax that Delaware corporations pay. A corporation files an annual franchise tax report and pays a calculated franchise tax by March 1. An LLC files nothing and pays the flat annual tax by June 1. The Division's LLC page states: "There is no requirement to file an Annual Report."
| Delaware entity | Yearly state amount | Annual report | Due | Late charge | Source |
|---|---|---|---|---|---|
| LLC (domestic, or foreign LLC registered in Delaware) | $400 | None | June 1 | $200 + 1.5% per month | 6 Del. C. § 18-1107 |
| Registered series of an LLC | $100 per series | None | June 1 | $50 + interest | 6 Del. C. § 18-1107 |
| Limited partnership (domestic or registered foreign) | $400 | None | June 1 | $200 + interest | 6 Del. C. § 17-1109 |
| General partnership that filed a statement of partnership existence | $400 | None | June 1 | $200 + interest | 6 Del. C. § 15-1208 |
| Domestic corporation (non-exempt) | Franchise tax: minimum $175 (Authorized Shares method) or $400 (Assumed Par Value Capital method); maximum $200,000 ($250,000 for a Large Corporate Filer); plus $50 report fee | Yes | March 1 | $200 + 1.5% per month | Division of Corporations franchise tax pages; 8 Del. C. § 504 |
Who owes the $400
Section 18-1107(b) reads: "Every domestic limited liability company and every foreign limited liability company registered to do business in the State of Delaware shall pay an annual tax, for the use of the State of Delaware, in the amount of $400." The same subsection adds $100 for each registered series of a domestic LLC.
The Division explains when a year counts: "Annual taxes are assessed if the entity is active in the records of the Division of Corporations anytime during January 1st through December 31st of the current tax year." The test is the LLC's status in the Division's records; the statute sets a flat amount with no income or activity threshold.
Limited partnerships and general partnerships with a statement of partnership existence owe the same $400 on the same date. Limited liability partnerships are different: they pay an annual report fee of $300 for each partner (capped at $180,000 a year) under § 15-1207.
The first year: no proration
An LLC formed at any point in 2026 owes the full 2026 tax of $400, due June 1, 2027. The Division states: "There is no proration on alternative entity taxes." The first payment therefore comes in the June after the year of formation, not in the year of formation itself.
The tax also falls due when the LLC ends. Under § 18-1107(c), if an LLC's existence will cease by filing a certificate, "the full amount of the annual tax for the calendar year in which the certificate becomes effective is due and payable before the filing of the certificate." The Division's fee schedule lists a domestic LLC cancellation as "plus annual taxes to cancel".
What changed in 2026
House Bill 400, enacted as 85 Del. Laws c. 273 and approved May 21, 2026, raised the alternative entity taxes. Section 45 of the law says: "Sections 9, 16, and 23 of this Act take effect January 1, 2026." Those are the sections that change the partnership, limited partnership and LLC annual taxes. Most of the law's other fee changes took effect August 1, 2026.
| Annual tax | Before | Under 85 Del. Laws c. 273 | Effective | Code section |
|---|---|---|---|---|
| LLC | $300 | $400 | January 1, 2026 (Section 23) | 6 Del. C. § 18-1107(b) |
| Registered series of an LLC | $75 | $100 | January 1, 2026 (Section 23) | 6 Del. C. § 18-1107(b) |
| Limited partnership | $300 | $400 | January 1, 2026 (Section 16) | 6 Del. C. § 17-1109(a) |
| General partnership (statement of existence filed) | $300 | $400 | January 1, 2026 (Section 9) | 6 Del. C. § 15-1208(a) |
| LLP annual report fee, per partner | $200 (cap $120,000) | $300 (cap $180,000) | August 1, 2026 (Section 8) | 6 Del. C. § 15-1207 |
On 2026-10-17 the Division's LLC tax page, its tax information page and one answer on its FAQ page state $400. Another answer on the same FAQ page still states $300. The statute states $400.
Late payment, good standing and cancellation
- Penalty. A tax not paid on or before June 1 adds $200 (§ 18-1107(e)); for a registered series, $50.
- Interest. The statute says "the tax shall bear interest at the rate of 1½% for each month or portion thereof until fully paid" (§ 18-1107(c)). The Division's page says the 1.5% applies "on tax and penalty". On a $400 tax and a $200 penalty, 1.5% is $9 for each month or part of a month (our arithmetic). The pages we read do not say whether interest compounds.
- Good standing. "A domestic limited liability company that neglects, refuses or fails to pay the annual tax when due shall cease to be in good standing as a domestic limited liability company" (§ 18-1107(h)). While it is not in good standing, the Secretary of State will not accept most filings for it or issue a certificate of good standing (§ 18-1107(k)), and it may not bring a lawsuit in a Delaware court (§ 18-1107(l)). Its members and managers do not become liable for its debts solely because of the unpaid tax (§ 18-1107(n)).
- Foreign LLCs. "A foreign limited liability company that neglects, refuses or fails to pay the annual tax when due shall cease to be registered as a foreign limited liability company in the State of Delaware." (§ 18-1107(h))
- Cancellation after three years. Under § 18-1108(a), a domestic LLC's certificate of formation is canceled if the tax is not paid for 3 years from its due date, "such cancellation to be effective on the third anniversary of such due date." For the 2026 tax, due June 1, 2027, that would be June 1, 2030. The Secretary of State must publish the list of canceled LLCs online for one week on or before October 31 each year (§ 18-1108(c)).
- Revival. A canceled LLC can file a certificate of revival with the filing fee plus all unpaid annual taxes, penalties and interest (§ 18-1109(a)). The Division's fee schedule revised August 1, 2026 lists $220 for a revival of a domestic LLC.
How the tax is paid
The Division's "Pay LLC/LP/GP Tax" link opens its online payment system, which asks for the entity's Business Entity File Number. The Division says the application is available daily between 8:00 am and 11:45 pm Eastern Time. It accepts a checking account (ACH debit) or Visa, Mastercard, American Express and Discover; ACH is required for all transactions over $5,000.00.
The statute requires the Secretary of State to mail an annual statement for the tax to each LLC in care of its Delaware registered agent at least 60 days before June 1 (§ 18-1107(d)). The Division also warns about "deceptive solicitations" and says LLCs should be suspicious of mail or email about the tax that does not come directly from the State or the LLC's Delaware registered agent.
Registered agent fees are separate
Every Delaware LLC must have and maintain a registered office and a registered agent in Delaware (§ 18-104(a)). If an agent resigns and the LLC does not designate a new one within 30 days after the agent files its certificate of resignation, the certificate of formation is canceled (§ 18-104(d)). A commercial registered agent's yearly charge is set by the agent and is paid to the agent, not to the State; it is not part of the $400. Our registered agent price comparison lists published agent prices, and our LLC filing fees by state page compares Delaware's $110 formation fee and $400 yearly tax with every other state.
What we could not confirm
- The amount actually billed for the 2025 tax that was due June 1, 2026 ($300 or $400). The 2026 law was approved on May 21, 2026, and its LLC section is dated effective January 1, 2026. The Division of Corporations pages and the law's synopsis that we read do not say which tax year is the first billed at $400. Several filing-service websites report that the June 1, 2026 payment was $300 and that the first $400 payment is due June 1, 2027. We looked at the Division's LLC tax page, tax information page, FAQ page, newsroom and 2026 law amendments page, and the bill's page on the General Assembly website.
- When the online system starts accepting payment of a year's tax (some websites say January or February). The Division's pages we read do not give a date.
- Whether the 1.5% monthly interest is simple or compounded. Neither § 18-1107 nor the Division's pages say.
Questions
What is the Delaware LLC franchise tax amount?
What is the Delaware LLC franchise tax due date?
Does a Delaware LLC have to file an annual report?
Do I owe the tax for the year my LLC was formed?
What happens if the Delaware LLC tax is not paid?
Sources
- Delaware Code Title 6, Chapter 18, Subchapter XI (§§ 18-1105, 18-1107, 18-1108, 18-1109) - Delaware Code Online, read 2026-10-17
- Delaware Code Title 6, Chapter 18, Subchapter I (§ 18-104, registered agent) - Delaware Code Online, read 2026-10-17
- Delaware Code Title 6, Chapter 17, Subchapter XI (§ 17-1109, limited partnerships) - Delaware Code Online, read 2026-10-17
- Delaware Code Title 6, Chapter 15, Subchapter XII (§§ 15-1207, 15-1208, partnerships) - Delaware Code Online, read 2026-10-17
- Delaware Code Title 8, Chapter 5 (§ 504, corporation franchise tax due date) - Delaware Code Online, read 2026-10-17
- Laws of Delaware Volume 85, Chapter 273 (formerly House Bill 400 as amended by House Amendment No. 2), approved May 21, 2026 - Delaware General Assembly, read 2026-10-17
- House Bill 400, bill detail and synopsis - Delaware General Assembly, read 2026-10-17
- LLC/LP/GP Franchise Tax Instructions - Delaware Division of Corporations, read 2026-10-17
- Annual Report and Tax Information - Delaware Division of Corporations, read 2026-10-17
- Annual Report and Tax Instructions (corporations) - Delaware Division of Corporations, read 2026-10-17
- Frequently Asked Questions - Delaware Division of Corporations, read 2026-10-17
- Division of Corporations Fee Schedule, revised August 1, 2026 - Delaware Division of Corporations, read 2026-10-17
- Pay taxes, Business Entity File Number entry - Delaware Division of Corporations eCorp, read 2026-10-17
Source links are not affiliate links. This page is general information, not legal or tax advice; the rules that apply depend on the facts and the state.
