LLC Franchise Tax and Minimum Tax by State: California $800, Texas Margin Tax, Delaware $400 (2026)

California's $800 is double the next highest flat charge, Delaware and Rhode Island at $400. At the bottom, New York's smallest LLCs pay $25, though that fee climbs with income.

The fee only starts once total California income reaches $250,000, then jumps fast. An LLC with $5,000,000 or more pays $11,790 on top of the $800 tax.

New York sets the fee by the prior year's New York source gross income, so last year's results decide this year's bill. Up to $100,000 of that income, you pay $25. From $100,001 to $250,000, you pay $50.

Minnesota charges nothing under $1.28M in Minnesota property, payroll and sales. Above that, the 2026 fee runs from $260 to $12,830.

These taxes leave small firms alone. Under $1 million in revenue, you won't owe any of them beyond Kentucky's $175 minimum. Oregon's threshold is the lowest, at $1 million of taxable Oregon commercial activity.

Texas franchise tax parameters by report year

Source: Texas Comptroller of Public Accounts, Franchise Tax. Download as image

California, Texas and Delaware LLC taxes at a glance

Source: State of California Franchise Tax Board, Limited Liability Company (LLC), business types; Texas Comptroller of Public Accounts, Franchise Tax; Delaware Division of Corporations, Pay LLC/LP/GP Tax, Alternative Entity Tax Instructions. Download as image

Entity-level franchise, privilege or minimum tax on a default (partnership-taxed) LLC by state

• 5Flat annual LLC tax
• 8Minimum tax or fee that rises with size
• 7Margin, gross receipts or profits tax above a threshold
• 0None identified

Which states charge an LLC franchise tax or minimum tax?

The states fall into a few groups. Some charge a flat yearly amount no matter what: California, Delaware, Arkansas, Rhode Island and Vermont are in this group. Others set a floor that rises as you grow, like Alabama's business privilege tax, Tennessee's franchise tax, Kentucky's limited liability entity tax and Wyoming's annual report license tax.

A third group taxes revenue or margin, but only past a high threshold. Texas, Ohio, Nevada and Oregon work this way, so a small LLC often owes nothing. Washington's B&O tax is the exception: it applies to gross receipts with no fixed minimum, and rates depend on what you do.

Some states hide the charge in a filing fee rather than calling it a tax. New York's LLC filing fee runs from $25 to $4,500 based on the prior year's New York source gross income. New Jersey charges $150 per owner, up to $250,000, on entities with New Jersey source income and more than two owners. Minnesota's minimum fee for partnerships ranges from $0 to $12,830 in 2026. Illinois has no LLC franchise tax but takes 1.5% of net income through its replacement tax.

Everywhere else, we haven't identified an entity-level franchise or minimum tax on a partnership-taxed LLC, though we haven't yet checked each of those states against its own tax agency. That doesn't mean free. Annual report fees, which we track on a separate page, still apply in most states. And if your LLC elects to be taxed as a corporation, corporate franchise or income tax rules may kick in.

Who pays California's $800 LLC tax?

Every LLC that is organized in California or doing business there owes the $800 annual tax. No revenue, no clients, no activity? You still owe it. The first-year exemption people mention only covered LLCs formed from 2021 through 2023, so a new LLC today pays from year one.

The $800 is due by the 15th day of the 4th month of your tax year. Separately, once total California income reaches $250,000, a gross-receipts LLC fee applies: $900 at the low end, rising to $11,790 at $5,000,000 or more. The estimate for that fee is due by the 15th day of the 6th month.

Here's how that plays out. A freelance designer in Los Angeles forms an LLC and bills less than $250,000 a year. She owes the $800 and no LLC fee. If her California income later lands between $500,000 and $999,999, she owes the $800 plus a $2,500 fee. From $1,000,000 up to $4,999,999, the fee is $6,000.

Notice that the fee is set by income, not profit. A reseller with thin margins can owe a bigger fee than a consultant who keeps most of what she bills. If you're near a tier boundary, talk to your tax preparer before year end about timing.

Do small LLCs owe Texas franchise tax?

Usually not in dollars, but you still have to deal with it. For 2026 and 2027 reports, an LLC with total revenue at or below $2,650,000 owes no tax. That threshold was $2,470,000 for 2024 and 2025 reports. Single-member LLCs count as taxable entities in Texas, so the rule covers you even if you're a one-person shop.

Above the threshold, the margin tax rate is 0.75%, or 0.375% for retail and wholesale businesses. There's also an EZ computation at 0.331% for businesses with total revenue up to $20 million. Reports are due May 15. If you're under the threshold, check what the Comptroller requires you to file anyway, since owing no tax and having nothing to file are not the same thing.

The practical risk for a growing Texas business isn't the rate, it's the jump. Revenue in Texas means total revenue, not profit. A wholesaler whose revenue crosses $2,650,000 in a low-margin year can owe tax for the first time, even though profit barely moved. Watch your totals in the final quarter.

Is Delaware's LLC tax $300 or $400?

Many guides still quote $300. The Delaware Division of Corporations now states $400 a year for LLCs, LPs and GPs formed or registered there, due June 1. There's no annual report for an LLC, just the tax.

Miss the date and it gets expensive. The late penalty is $200 plus 1.5% interest per month. If you formed a Delaware LLC years ago on advice from a startup checklist and forgot about it, check your account now.

Should you form your LLC in a cheaper state?

For most freelancers and small businesses, no. California's rule applies to LLCs doing business in the state, not just ones formed there. If you live and work in San Diego, a Wyoming LLC owes Wyoming's $60 minimum, then has to register in California and pay the $800 too. You pay twice and keep two sets of filings.

The same goes for clients. If your contract with a client in another state means you're doing business there, that state may expect you to register and pay its charge. Before you sign a long engagement that puts you on site, ask whether it creates a filing duty.

Out-of-state formation can make sense when owners are spread out, investors ask for Delaware, or you genuinely operate in the other state. Otherwise, form where you work and budget for that state's charge as a fixed cost, like insurance.

What to do before your next due date

• Find your state on the map and note whether it's flat, a rising minimum, or a threshold tax.
• Put the due date in your calendar: the 15th day of the 4th month of the tax year for California, May 1 for Arkansas, May 15 for Texas, June 1 for Delaware.
• If you registered in a second state, add that state's charge too.
• Price the tax into your rates. An $800 cost on a small client list is real money.
• Write down in your operating agreement who pays entity-level taxes and how they're split.
• If you stopped using the LLC, formally dissolve or cancel it. In California, the $800 keeps coming until you do.

Sources and method

Every number on this page comes from the sources below, each opened and read on or before October 18, 2026. A second, independent review checked every figure against its source and corrected anything that did not match. 20 of 51 state entries were confirmed; any that could not be are marked "Not yet confirmed" and left out of every count and chart.

1. State of California Franchise Tax Board, Limited Liability Company (LLC), business types (Last updated 03/05/2026 (accessed 2026-10-18))
2. Delaware Division of Corporations, Pay LLC/LP/GP Tax, Alternative Entity Tax Instructions (accessed 2026-10-18 (no revision date printed))
3. Texas Comptroller of Public Accounts, Franchise Tax (2026 and 2027 reports table, accessed 2026-10-18)
4. Texas Comptroller of Public Accounts, Franchise Tax Frequently Asked Questions, Taxable Entities (accessed 2026-10-18 (no revision date printed))
5. Tennessee Department of Revenue, Franchise & Excise Tax (accessed 2026-10-18 (no revision date printed))
6. Tennessee Department of Revenue (support site), FT-1, Franchise Tax Computation (accessed 2026-10-18 via search index (direct fetch returned 403))
7. Alabama Department of Revenue, Business Privilege Tax Incentives (accessed 2026-10-18 (no revision date printed))
8. Arkansas Secretary of State, Annual LLC Franchise Tax Report 2024 (form LLC1 FT) (2024 report form (most recent edition found as of 2026-10-18))
9. District of Columbia Office of Tax and Revenue, 2025 D-30 Unincorporated Business Franchise Tax Return Instructions (Tax year 2025 booklet (file dated 02/23/2026))
10. Kentucky General Assembly (Kentucky Revised Statutes), KRS 141.0401, Limited liability entity tax (accessed 2026-10-18 (no revision date printed))
11. Minnesota Department of Revenue, Minimum Fee (2026 minimum fee table, accessed 2026-10-18)
12. Nevada Department of Taxation, Commerce Tax (accessed 2026-10-18 (no revision date printed))
13. New Hampshire Department of Revenue Administration, Business Profits Tax, Frequently Asked Questions (accessed 2026-10-18 via search index (direct fetch returned 403))
14. State of New Jersey, Division of Taxation, 2025 NJ-1065 Instructions (2025 edition (calendar-year 2025 returns due April 15, 2026))
15. New York State Department of Taxation and Finance, Annual filing fee for LLCs, LLPs and partnerships (Form IT-204-LL) (Updated: January 31, 2025)
16. Ohio Department of Taxation, Commercial Activity Tax (CAT) (accessed 2026-10-18 (no revision date printed))
17. Oregon Department of Revenue, Corporate Activity Tax (accessed 2026-10-18 (no revision date printed))
18. Rhode Island Division of Taxation, Notice 2026-01: LLC filing requirements (February 2026; read via search index (direct fetch returned 403))
19. Vermont Department of Taxes, Business Entity Income Tax (accessed 2026-10-18 (no revision date printed))
20. Washington State Department of Revenue, Business & Occupation tax (accessed 2026-10-18 (no revision date printed))
21. Wyoming Secretary of State, Business Division Filing Fee Schedule (Effective July 1st, 2026)
22. Illinois Department of Revenue, Income Tax Rates (No revision date printed (accessed 2026-10-18))