Franchise Tax Filing by State

States levy a variety of different types of taxes besides income taxes that are often aggregated under the term “franchise tax," although naming conventions vary widely by state. Franchise taxes hit you for the privilege of doing business in a state, regardless of whether you turn a profit.

Unlike corporate income tax, which looks at your actual earnings, franchise tax gets calculated using net worth, capital stock, or flat fees, and the rules change completely once you cross state lines. Texas calls it a "margin" tax, Washington buries it in their B&O gross-receipts system, and other states brand the same concept as "business privilege" taxes.

Franchise tax by state (2025)

This table gives you the essential franchise tax details for 2025 compliance planning. The information is sourced from the latest publicly available sources; however, rules change rapidly, so always verify numbers, forms, and deadlines on the official state website before filing.

State/Territory	Tax Name	Entity Types Affected	2025 Due Date	Minimum Tax	Filing Complexity	Notable 2025 Changes
Alabama	Business Privilege Tax	Corps, LLCs	Apr 15	See site	Moderate	❌
Alaska	❌	❌	❌	❌	❌	❌
Arizona	❌	❌	❌	❌	❌	❌
Arkansas	Franchise Tax	Corps	See site	See site	Moderate	Corporation rate tax cut (income) only
California	Franchise Tax (min)	Corps, LLCs	Apr 15	$800	Moderate	❌
Colorado	❌	❌	❌	❌	❌	❌
Connecticut	Franchise / Capital Stock	Corps	See site	See site	Complex	❌
Delaware	Franchise Tax	Corps	Mar 1	$175	Complex	❌
Delaware	Franchise Tax	LLCs/LPs	Jun 1	$300	Simple	❌
District of Columbia	❌	❌	❌	❌	❌	❌
Florida	❌	❌	❌	❌	❌	❌
Georgia	Net-Worth Tax	Corps	See site	$125	Moderate	❌
Hawaii	❌	❌	❌	❌	❌	❌
Idaho	❌	❌	❌	❌	❌	❌
Illinois	Franchise / Paid-In Capital	Corps	See site	See site	Moderate	❌
Indiana	❌	❌	❌	❌	❌	❌
Iowa	❌	❌	❌	❌	❌	❌
Kansas	❌	❌	❌	❌	❌	❌
Kentucky	Limited Liability Entity Tax	Corps, LLCs	See site	See site	Moderate	❌
Louisiana	Franchise Tax	Corps	May 15	See site	Moderate	❌
Maine	❌	❌	❌	❌	❌	❌
Maryland	❌	❌	❌	❌	❌	❌
Massachusetts	Excise (franchise-style)	Corps	See site	See site	Complex	❌
Michigan	❌ (CIT only)	❌	❌	❌	❌	No franchise tax
Minnesota	❌	❌	❌	❌	❌	❌
Mississippi	Franchise Tax	Corps	See site	See site	Moderate	❌
Missouri	❌	❌	❌	❌	❌	Franchise tax repealed (still repealed)
Montana	❌	❌	❌	❌	❌	❌
Nebraska	Franchise Tax	Corps	See site	See site	Moderate	Rate cut (income)
Nevada	❌	❌	❌	❌	❌	No franchise tax; Commerce Tax remains
New Hampshire	❌	❌	❌	❌	❌	❌
New Jersey	Capital Stock / Franchise	Corps	See site	See site	Complex	Surtax made permanent
New Mexico	❌	❌	❌	❌	❌	Flat income-tax structure only
New York	Franchise Tax	Corps	See site	Fixed-dollar min	Complex	❌
North Carolina	❌	❌	❌	❌	❌	No franchise tax
North Dakota	❌	❌	❌	❌	❌	❌
Ohio	❌	❌	❌	❌	❌	Franchise tax repealed; CAT remains
Oklahoma	❌	❌	❌	❌	❌	Franchise tax repealed in 2024
Oregon	❌	❌	❌	❌	❌	❌
Pennsylvania	Capital Stock / Franchise	Corps	See site	See site	Complex	Rate phase-down (income)
Rhode Island	Franchise Tax	Corps, LLCs	See site	See site	Moderate	❌
South Carolina	❌	❌	❌	❌	❌	❌
South Dakota	❌	❌	❌	❌	❌	No franchise tax
Tennessee	Franchise Tax	Corps, LLCs	Apr 15	$100	Moderate	❌
Texas	Margin (Franchise) Tax	Most entities	May 15	None if < threshold	Moderate	❌
Utah	❌	❌	❌	❌	❌	Corporation rate tax cut (income) only
Vermont	Franchise Tax	Corps	See site	See site	Moderate	❌
Virginia	❌	❌	❌	❌	❌	❌
Washington	❌	❌	❌	❌	❌	No franchise tax; B&O tax remains
West Virginia	❌	❌	❌	❌	❌	❌
Wisconsin	Franchise / Income (either-or)	Corps	See site	See site	Moderate	❌
Wyoming	❌	❌	❌	❌	❌	No franchise tax; asset-based license fee

‍

Note the following:

“❌” means the state doesn't impose a separate franchise tax (though other business taxes or fees may apply).
"See site" flags items that change frequently or haven't been published yet for 2025. Check the state's revenue or the Secretary of State's portal for exact numbers.
Complexity ratings range from simple flat fees to multi-factor calculations, such as Delaware's two-method system.

In most states, accountants handle franchise taxes, as they usually require extensive accounting data, and are typically filed in conjunction with your other business state tax returns. The concept of Franchise taxes is most often used by states as a sort of minimum tax to do business in the state (regardless of profitability).

For these states, Discern has compiled some helpful resources:

Alabama

Alabama has a Business Privilege Tax. It is typically filed by an accountant given the detailed financial information required. As of 2024, Alabama annual reports are due separately with the Secretary of State. The tax is calculated based on net worth with some adjustments, multiplied by the “apportionment factor”, less deductions.

We wrote a quick guide on Alabama's Business Privilege Tax.

Arkansas

Arkansas Franchise Taxes are typically filed by your accountant. Arkansas has detailed information on who needs to file and how to file on its website.

We wrote a detailed guide on Arkansas Franchise Taxes.

California

California has a minimum tax for Corporations called a Franchise Tax. Every corporation incorporated, registered, or doing business in California is required to pay the $800 minimum franchise tax. It's due with your California tax return. California has detailed information about the Franchise Tax on the Franchise Tax Board's website.

LLCs in California are required to pay an Annual LLC tax, which has separate instructions available on the California Franchise Tax Board's website.

We put together a detailed guide about California's franchise taxes.

Delaware

Delaware has a Franchise Tax for Corporations that uses the lesser of two calculation methods to determine tax due. The state also has an annual tax for LLCs and LPs.

We wrote a detailed guide on Delaware's franchise taxes.

Georgia

Georgia has a Net Worth Tax, which is in addition to its Corporate Income Taxes, due at the same time. It's typically filed by an accountant.

There is also an initial Net Worth Tax return due for C Corporations on the fifteenth day of the fourth month after initial registration in the state. Georgia has an FAQ about both taxes on its state website.

Here’s a guide about Georgia's Net Worth Tax.

Illinois

Illinois Corporate Franchise Taxes are calculated using paid-in-capital and typically filed by your accountant. The state provides a worksheet to calculate your tax directly on the annual report filing.

For more information, you can read our detailed guide on Illinois Franchise Taxes.

Louisiana

Louisiana has a Franchise Tax based on Capital Employed in addition to its Corporate Income Taxes. It's typically filed by an accountant. The state has in-depth information about both taxes on the Revenue Department's website.

We wrote a short guide on the Louisiana Franchise Tax.

Mississippi

Entities taxed as Corporations pay franchise tax annually for the privilege of doing business in the State of Mississippi. The franchise tax is a component of the corporate income and franchise tax return, so it is typically filed by an accountant.

Franchise tax is computed at a rate of the value of the capital employed, or the assessed property values in this state, whichever is greater. The minimum franchise tax due is $25.00.

For more insights, you can view our short guide on Mississippi's Franchise Tax.

Nebraska

Nebraska has an Occupation Tax at the state level, which is based on the amount of paid-up capital stock (domestic corporations) or the amount of real estate and personal property in Nebraska (foreign corporations). For corporations, it's due in even-numbered years.

Nebraska has basic instructions on its state website and an online filing portal, which is only open during the filing window (January 1 to April 15). Given the nature of the calculation, the Occupation Tax filing is typically handled by an accountant.

But for more guidance, you can view our short guide on Nebraska's Occupation Tax.

New York

Both foreign and domestically registered general business corporations typically file Franchise Taxes alongside their corporate tax return, by an accountant. New York has short instructions on the basics of its franchise tax.

You can also check out our guide on New York's franchise tax for more insights.

North Carolina

Franchise Taxes in North Carolina are due as part of the Corporate income tax filing, and are typically filed by an accountant. The state of North Carolina has detailed information about Franchise Taxes on its website.

We also wrote a concise guide on North Carolina's Franchise Tax.

Oklahoma

Oklahoma eliminated its franchise tax in 2024. Final franchise tax returns were due by June 1, 2024, for those paying the maximum tax to avoid delinquency. All other taxpayers were required to remit by July 1, and the final franchise tax return must be remitted on or before September 15, 2024.

Previously, every corporation doing business in Oklahoma had to file a Franchise Tax return, which was typically filed alongside the state corporate income tax filing, by an accountant. Oklahoma historically released a tax packet like this, which described details about both tax filings.

Aside from the Oklahoma franchise tax, you might also have other compliance obligations, which we covered in our detailed guide.

South Carolina

In lieu of a separate annual report, a Corporate License Fee and Annual Report is filed with state corporate income tax filings by your accountant. South Carolina has detailed information on who needs to file and how to file on their website.

Additionally, we have written a quick guide on South Carolina License Fees.

Tennessee

Tennessee has a franchise tax, in addition to its Excise Tax, which is typically filed by an accountant. You can find recent information about both taxes on the state’s website.

Check out our short guide on Tennessee's Franchise Tax.

Texas

The Texas Franchise Tax is a privilege tax imposed on each taxable entity formed or organized in Texas or doing business in Texas. The tax is calculated as a percentage of a business’s margin, which most likely requires detailed input from your accountant. Even if your entity qualifies for “no tax due”, you need to file a Texas Franchise Tax Report.

The state has detailed information on the applicability of the franchise tax to your legal entity and how to pay it on its website. Texas franchise taxes are due May 15th. If May 15 falls on a Saturday, Sunday or legal holiday, the next business day becomes the due date.

For more guidance, you can review our detailed guide on Texas Franchise Taxes.

Wisconsin

For Corporations, Wisconsin has a couple of filings that resemble franchise taxes, either in name or format, that are typically filed by an accountant. Foreign registered Corporations in Wisconsin must report on "Capital representation" in Wisconsin on the state's annual report, which is used to calculate the filing fee. It requires detailed financial information.

The state also has Franchise Taxes, which are typically filed by an accountant, as they are virtually identical to Corporate Income Taxes. A Corporation will only pay Franchise Taxes or Corporate Income Taxes in a given year, not both.

Wisconsin provides detailed guidance on who is required to file franchise taxes and how to file on its website.

We also put together a quick guide on Wisconsin Franchise Tax.

Wyoming

Wyoming technically doesn’t have a “franchise tax”, but the filing fee (or “Annual Report License Tax”) for the annual report uses a calculation of total assets in the state of Wyoming, which an accountant typically files.

When paying over $500 in license fees (equivalent to having over $2.5 million in assets in Wyoming), the annual report cannot be filed digitally. Annual Reports for corporations, LLCs, and LPs are due on the first day of the anniversary month of formation.

For more guidance, you can check out our detailed guide on Wyoming Franchise Taxes.

Can Discern help me file franchise taxes?

Discern customers can digitally file their Secretary of State annual reports and Delaware franchise tax directly from our platform, in minutes. We also automatically notify you when other franchise taxes are due, and provide guidance, links to the filings themselves, and a centralized place to track your filings.

Book a demo today to learn more about what Discern can do.

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Author

The Discern Team

Published Date

August 13, 2025

Franchise tax filing information by state