Delaware Increased Its Corporate Franchise Taxes


The new law signed by the Delaware governor increased Delaware’s maximum corporate franchise tax from $180,000 to $200,000 and creates a second top-tier tax of $250,000 applicable to a “Large Corporate Filer” (i.e. a public company with greater than $750 million in either consolidated revenue or consolidated assets and no less than $250 million in both consolidated revenue and consolidated assets, which otherwise would pay the $200,000 maximum tax) for tax years beginning on or after January 1, 2017. The new law also increased the tax rate for corporations with greater than 10,000 authorized shares (from $75 to $85 per each 10,000 shares or part thereof),¬†greater than $1 million of assumed no-par capital (from $75 to $85 per $1 million or part thereof), or greater than $1 million of assumed par value capital (from $350 to $400 per $1 million or part thereof), as well as increasing the minimum tax for taxpayers using the assumed par value method (from $350 to $400) for tax years beginning on or after January 1, 2018.

For more information about this article, please contact our tax professionals at taxalerts@windes.com or toll free at 844.4WINDES (844.494.6337).