2024 State Tax Changes, Effective January 1st

In 2021, House Bill 6633 became law and raised the 2024 unemployment insurance tax wage base from $15,000 to $25,000. The state will also deliver relief to some individual taxpayers. In 2024, the state’s 3 percent bracket will be reduced to 2 percent. Similarly, the 5 percent bracket will be reduced to 4.5 percent.

In 2022, Kansas lawmakers authorized the Department of Revenue to reduce the corporate income tax rate provided certain conditions were met. This occurred in 2023 and the Secretary of Revenue has reduced the corporate income tax rate from 4 percent to 3.5 percent beginning in January 2024. The surtax rate (3 percent), which applies to corporate income over $50,000, remains unchanged. With this change, the overall combined rate is reduced from 7 percent to 6.5 percent.

City, County, and Town Tax Information

Foreign corporations, those that are formed outside of Delaware, cannot file online. Business that are formed out of state but are registered to do business in Delaware must pay a $125 registration fee. This means that if you receive a high bill that was calculated under the first method, you can request a recalculation using the second method. Filing your Delaware franchise tax is a simple, online process.

  • Domestic Delaware corporations have a franchise tax and annual report due every March 1st.
  • Every for-profit corporation incorporated in Delaware is subject to the annual franchise-tax requirement.
  • House Bill 236 extends the one-year special unemployment insurance tax rates for another year.
  • If you don’t file your Delaware franchise tax on time, you will be charged a late fee.

The Delaware Registered Agent fee is separate from the Franchise Tax fee. For Franchise Taxes not paid by March 1 for corporations, the state imposes a late penalty of $125 and a 1.5 percent monthly interest fee. A franchise tax, sometimes called gaap software development a privilege tax, is a fee you pay for the privilege of doing business in a certain state. For these reasons, more than a million businesses are incorporated in Delaware, including more than half of all publicly traded and Fortune 500 companies.

Types of employees eligible to file unemployment benefits claim

As long as your issued shares constitute a third to half of your authorized shares, this method will save you money. This article focuses on businesses that are operating solely in Delaware. If your business is operating in multiple states, your business may have «nexus» with those other states. This means that you’re likely to need to pay taxes in those states. Delaware franchise tax is a tax charged by the state of Delaware for the right to own a Delaware company.

Delaware franchise tax calculator

Corporations that are formed out of state and registered to do business in Delaware pay a $125 registration fee. However, foreign corporations (corporations formed in another state or jurisdiction) cannot file online. The foreign corporation form gets mailed to us, and we scan it into your online account. You can print it out and mail or fax it into the state of Delaware with the payment. Franchise taxes for corporations registered to do business in Delaware are due by June 30th of each year. Let’s imagine a Delaware-incorporated company reported total gross assets of $1,000,000 on their federal taxes this year.

Q: Are there any additional fees required to be paid when filing my corporation’s Delaware annual report?

Delaware requires that annual report(s) be current prior to all dissolution and merger filings. At the time of dissolution or merger, all franchise taxes must be paid through the date of the filing of the Certificate of Dissolution or Merger with the Delaware Secretary of State. You are still required to file the Delaware annual report and pay the Delaware corporation tax (franchise tax) even if the corporation never engaged in business.

What Do I Submit with Payment?

Under this method, your franchise tax is based on how many shares your corporation has authorized. Every for-profit corporation incorporated in Delaware is subject to the annual franchise-tax requirement. The corporation does not have to be doing business in Delaware or earn any income there. This lesser-known requirement can be quite frustrating when it delays time-sensitive filings. We recommend identifying the tax due in these cases well in advance of the date of filing for a dissolution or merger. A professional registered agent company can assist with identifying total taxes due on any given date when you are handling a merger or dissolution.

Who has to file and pay?

For individual taxpayers, the state continues its march to a flat income tax rate of 3.9 percent by 2026. In 2024, the state’s corporate income tax rate will be reduced to 8.49 percent, down from 8.99 percent. In 2015, Michigan amended the state’s Income Tax Act and instituted automatic triggers that would reduce the flat individual income tax rate if certain economic factors were met. In 2023, these triggers were satisfied, and the rate was reduced to 4.05 percent. However, pursuant to an Attorney General opinion concluding (controversially) that this reduction was temporary, the rate will revert to 4.25 percent in 2024. This method is based upon the issued shares, the authorized shares and your Corporation’s total gross assets.