Delaware

Delaware's top corporate income tax rate is 8.7%, applied as a flat rate. This places Delaware in the "High (8% or higher)" tier among U.S. states.

8.7% flat corporate income tax on income derived from Delaware sources. Note: Delaware-incorporated companies that do not operate in Delaware are not subject to this tax but still owe franchise tax.

Delaware imposes an annual franchise tax on all incorporated entities. Methods: Authorized Shares Method ($175 minimum, up to $200,000 max) or Assumed Par Value Capital Method ($400 minimum). LLCs pay a flat $300 annual tax instead.

Delaware imposes a Gross Receipts Tax on most businesses ranging from 0.0945% to 0.7468% depending on industry. This is in addition to the corporate income tax and applies to the seller's total receipts (no deductions for cost of goods or expenses).

Delaware recognizes federal S-corp election. Pass-through entities (including S-corps and LLCs) are not subject to corporate income tax in Delaware on income passed through to non-resident owners.

For current corporate tax rules in Delaware, consult the state's official source at https://revenue.delaware.gov/business-tax-forms/corporate-income-tax/. Rates and rules change annually — verify with a qualified tax professional before taking any action.