Annual LLC tax, the income based LLC fee and the estimated fee penalty for 2026.
| Total California income | LLC fee |
|---|
Estimate using the Franchise Tax Board rules for 2026. Total income means gross income plus cost of goods sold, so cost of goods sold is not taken off. Income already charged the fee by another LLC is excluded, and commonly controlled LLCs may be added together. Calendar year dates shown.
This California LLC fee calculator shows owners of California limited liability companies what they owe the Franchise Tax Board for 2026: the $800 annual tax, the LLC fee based on total California income and any 10% penalty for underpaying the estimated fee. It follows the FTB's own definition of income, which trips up many owners of a limited liability company who sell physical goods, and it shows how close you are to the next fee band. Figures checked October 2026 against the 2026 FTB 3536 instructions.
Quick answer: Every California LLC pays the $800 annual tax. With total California income of $250,000 or more it also pays an LLC fee of $900, $2,500 from $500,000, $6,000 from $1,000,000 and $11,790 from $5,000,000. A California LLC fee calculator shows $620,000 of sales costs $3,300 in total.
In This Guide
What Is the California LLC Fee?
The California LLC fee is a yearly charge on LLCs whose total income from California sources reaches $250,000, paid on top of the flat $800 annual LLC tax. It is not a tax on profit: an LLC that makes a loss on $600,000 of sales still pays it.
The formula in plain words: add up gross income from California sources, then add back cost of goods sold, because the Form 568 instructions define total income as gross income plus cost of goods sold. Find the band that total falls in and read off the fee. Then add the $800 annual tax to get the yearly bill. The fee is a fixed amount per band, so $499,999 of income costs $900 while $500,000 costs $2,500.
How to Use the California LLC Fee Calculator
Step 1: Enter Your California Income
Enter gross receipts from sales assigned to California, then any other California income such as interest, rent, royalties or gains. If you also trade outside the state, include only the share California's sales assignment rules give to California. Leave out amounts received from another LLC that already paid the fee on them.
Step 2: Check Cost of Goods Sold
Enter your cost of goods sold. The calculator does not take it off, but it warns you if deducting it would have put you in a lower band, which is a common and costly mistake. To see what that cost leaves you as profit, the profit margin calculator works out your margin from the same sales and cost figures.
Step 3: Enter Your Estimated Payment
Enter what you paid with form FTB 3536 by 15 June 2026 and the LLC fee you owed for 2025. The tool checks whether the 10% underpayment penalty applies or whether last year's fee protects you.
Step 4: Read Your Total
The headline is your 2026 tax plus fee. The stats show each part, the penalty and the cost as a share of California income. The table highlights your band, and the box tells you how far you are from the next one.
How Much Is the California LLC Fee in 2026?
The 2026 LLC fee is $0 below $250,000 of total California income and between $900 and $11,790 above it, always in addition to the $800 annual tax. These are the bands the FTB publishes for Form 568, line 1.
| Total California income | LLC fee | With $800 annual tax |
|---|---|---|
| Under $250,000 | $0 | $800 |
| $250,000 to $499,999 | $900 | $1,700 |
| $500,000 to $999,999 | $2,500 | $3,300 |
| $1,000,000 to $4,999,999 | $6,000 | $6,800 |
| $5,000,000 and over | $11,790 | $12,590 |
Worked example: Elena runs Clayfield Studio LLC, a ceramics business in Los Angeles that sold $620,000 of pottery to California customers in 2026, with $310,000 of cost of goods sold. Deducting cost of goods sold would suggest $310,000 of income and a $900 fee, but the FTB adds it back, so her total California income is $620,000 and the fee is $2,500. With the $800 annual tax she owes $3,300, about 0.53% of sales. She paid $900 by 15 June, the same as her 2025 fee, so she must pay the other $1,600 by the return due date but avoids the 10% penalty.
When Are the California LLC Tax and Fee Due?
For a calendar year LLC, the 2026 annual tax of $800 is due by 15 April 2026 with form FTB 3522, and the estimated LLC fee is due by 15 June 2026 with form FTB 3536. Form 568 is due on 15 March 2027 for an LLC classified as a partnership, or 15 April 2027 for most single member LLCs. Any unpaid fee must be paid by the return's original due date, because an extension to file does not extend the time to pay. If you are comparing states, the Delaware franchise tax calculator shows the flat $400 Delaware LLC tax, though a Delaware LLC doing business in California still owes California's tax and fee.
Is There a First Year Exemption From the $800 LLC Tax?
No, not for new LLCs today. The first year exemption covered LLCs organised or registered for tax years 2021 to 2023 only, so an LLC formed in 2026 pays the $800 tax for its first year. For your federal return, the IRS guide to LLCs explains how a federal classification as a partnership, disregarded entity or corporation changes the return you file and how the owners are taxed.
This California LLC fee calculator gives an estimate. Multi state sales assignment, the deployed military exemption and the FTB's power to add together the income of commonly controlled LLCs are not modelled, so confirm complex cases with the Franchise Tax Board.
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How we checked this tool: the Tools Veria Editorial Team built this tool by hand, checked it against the official rules or published standards where they apply, and tested it against worked examples. Results are estimates for planning, not personal financial or tax advice. Read our editorial policy and disclaimer, or report an error.
Frequently Asked Questions
How is the California LLC fee calculated?
The fee depends on total California income, which is gross income plus cost of goods sold. Below $250,000 there is no fee; above it the fee is $900, $2,500, $6,000 or $11,790 depending on the band, paid in addition to the $800 annual tax.
Is the California LLC fee based on gross receipts or net income?
It is based on total income, not profit. The FTB defines total income as gross income plus cost of goods sold, so for a business that sells goods the figure is close to gross receipts. Business expenses are not deducted.
Do I pay the $800 California LLC tax if I made no money?
Yes. Every LLC organised or registered in California, or doing business there, pays the $800 annual tax each year until it is cancelled, even with no income. The fee only starts at $250,000 of total California income.
When is the California LLC fee due for 2026?
A calendar year LLC must pay its estimated 2026 LLC fee by 15 June 2026 with form FTB 3536. Any balance is due by the original due date of Form 568, and the $800 annual tax was due by 15 April 2026.
What is the penalty for underpaying the California LLC fee?
The FTB adds 10% of the shortfall between the fee owed and the estimate paid by 15 June. No penalty applies if your estimate was at least last year's total LLC fee, so paying $900 when you owe $2,500 can be penalty free.
Is the California LLC fee due in the first year?
Yes, if the LLC reaches $250,000 of total California income in its first taxable year. The first year exemption from the $800 annual tax only covered tax years 2021 to 2023, so new LLCs pay both.