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BizTaxMetrics

· delaware · annual-tax · 2026

Delaware LLC annual tax raised to $400 effective 1/1/2026

Delaware HB 400 §23 raises the LLC annual tax from $300 to $400, applicable to tax years beginning on or after January 1, 2026. The BizTaxMetrics Delaware page has been updated.

Delaware House Bill 400, §23, raises the annual tax on LLCs from $300 to $400, effective for tax years beginning on or after January 1, 2026 (6 Del. C. § 18-1107). The change is part of Delaware’s broader fiscal package and applies to LLC annual tax payments due March 1, 2026.

Background on Delaware’s LLC tax structure

Delaware requires every LLC registered in the state to pay an annual tax to the Delaware Division of Corporations. This tax is separate from any franchise tax that may apply to corporations, and it is separate from the registered agent fee that most LLCs also pay. The annual tax is a flat amount — it does not vary with revenue, profit, or the number of members.

Prior to HB 400, the annual tax was $300. The new $400 figure applies to all Delaware LLCs regardless of size, activity, or whether the LLC is domestic (formed in Delaware) or foreign (formed elsewhere but registered in Delaware). The tax is due annually and must be paid to keep the LLC in good standing with the Division of Corporations.

What changed on the calculator

  • state.llc.recurring for Delaware moved from 300 to 400.
  • The S-Corp recurring in Delaware remains the same flat $400 (DE’s corporate annual franchise tax is a separate filing and is not included in the BizTaxMetrics “S-Corp recurring” field — DE’s corporate annual franchise tax is $400 minimum for a stock corporation with no-par shares; the LLC tax is the relevant number for a default-taxed LLC).

The calculator’s Delaware page now reflects the $400 recurring cost for both LLCs and S Corps. Because the LLC and S-Corp recurring fees are identical in Delaware ($400 each), the state-level cost does not affect the breakeven analysis — the entire federal payroll-tax delta flows through to the net modeled benefit. This is one of the structural advantages of Delaware for small S-Corp owners: the state fee does not penalize the S-Corp election relative to the LLC.

Why this matters for small business owners

For a small out-of-state LLC owner using Delaware as a registered-agent jurisdiction, the increase is small in absolute terms ($100) but it moves the break-even slightly. Most Delaware LLCs that are formed for liability protection but operate in another state pay this annual tax regardless of whether they have economic activity in Delaware. The increase affects both LLCs and S Corps equally, so it does not change the relative advantage of one structure over the other.

The more significant consideration for Delaware-registered business owners is that the annual tax is owed even if the LLC has no revenue. A dormant LLC in Delaware still costs $400 per year. For business owners who are evaluating whether to maintain their Delaware registration, the increase may be a reason to consider domesticating the entity in the state where they actually operate — particularly if that state has a lower or zero annual fee.

Comparison with other states

Delaware’s $400 annual tax is moderate compared to other states. California’s $800 minimum franchise tax is the highest for small LLCs. New York has a $25 biennial filing fee for LLCs but imposes publication requirements that can cost $1,000+ in the first year. Texas has no annual fee for most LLCs (annualized revenue under $2.65M). Wyoming charges $50 or $60 depending on assets. The BizTaxMetrics state-by-state comparison shows the full breakdown for all 50 states.

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