U.S. Tax Portals

Pass-through entity tax by state

Last checked Nov 3, 2026

Which states let a partnership or S corporation elect to pay state income tax at the entity level, so the tax is deductible at the federal level outside the SALT cap, and the rules for making the election: who can elect, the deadline, the rate, estimated payments, the return and how owners claim the credit. From the revenue agencies' pages and the statutes.

Alabama: Elective entity-level tax, top rate 5%AL5%Alaska: No individual income taxAKArizona: Elective entity-level tax, top rate 2.5%AZ2.5%Colorado: Elective entity-level tax, top rate 4.4%CO4.4%Florida: No individual income taxFLGeorgia: Elective entity-level tax, top rate 4.99%GA4.99%Indiana: Elective entity-level tax, top rate 2.9%IN2.9%Kansas: Elective entity-level tax, top rate 5.58%KS5.58%Maine: Elective entity-level tax, top rate 7.15%ME7.15%Massachusetts: Elective entity-level tax, top rate 9%MA 9%Minnesota: Elective entity-level tax, top rate 9.85%MN9.85%New Jersey: Elective entity-level tax, top rate 10.9%NJ 10.9%North Carolina: Elective entity-level tax, top rate 3.99%NC3.99%North Dakota: Income tax, but no PTETNDOklahoma: Elective entity-level tax, top rate 4.5%OK4.5%Pennsylvania: Income tax, but no PTETPASouth Dakota: No individual income taxSDTexas: No individual income taxTXWyoming: No individual income taxWYConnecticut: Elective entity-level tax, top rate 6.99%CT 6.99%Missouri: Elective entity-level tax, top rate 4.7%MO4.7%West Virginia: Elective entity-level tax, top rate 4.58%WV4.58%Illinois: Elective entity-level tax, top rate 4.95%IL4.95%New Mexico: Elective entity-level tax, top rate 5.9%NM5.9%Arkansas: Elective entity-level tax, top rate 3.7%AR3.7%California: Elective entity-level tax, top rate 9.3%CA9.3%Delaware: Income tax, but no PTETDEDistrict of Columbia: Income tax, but no PTETDCHawaii: Elective entity-level tax, top rate 9%HI9%Iowa: Elective entity-level tax, top rate 3.8%IA3.8%Kentucky: Elective entity-level tax, top rate 3.5%KY3.5%Maryland: Elective entity-level tax, top rate 8.75%MD 8.75%Michigan: Elective entity-level tax, top rate 4.25%MI4.25%Mississippi: Elective entity-level tax, top rate 5%MS5%Montana: Elective entity-level tax, top rate 5.4%MT5.4%New Hampshire: No individual income taxNHNew York: Elective entity-level tax, top rate 10.9%NY10.9%Ohio: Elective entity-level tax, top rate 3%OH3%Oregon: Elective entity-level tax, top rate 9.9%OR9.9%Tennessee: No individual income taxTNUtah: Elective entity-level tax, top rate 4.45%UT4.45%Virginia: Elective entity-level tax, top rate 5.75%VA5.75%Washington: No individual income taxWAWisconsin: Elective entity-level tax, top rate 7.9%WI7.9%Nebraska: Elective entity-level tax, top rate 3.99%NE3.99%South Carolina: Elective entity-level tax, top rate 3%SC3%Idaho: Elective entity-level tax, top rate 5.3%ID5.3%Nevada: No individual income taxNVVermont: Income tax, but no PTETVTLouisiana: Elective entity-level tax, top rate 3%LA3%Rhode Island: Elective entity-level tax, top rate 5.99%RI 5.99%
Elective entity-level tax (37) Income tax, but no PTET (5) No individual income tax (9)
The figure under each state is its top PTET rate for the latest year recorded. Click a state for its rules.

States ranked by top PTET rate

The highest rate each state's entity-level tax applies, for the latest year recorded. Some states use one flat rate; others mirror their graduated individual rates. Hover or tap a state for its election deadline.

  1. New Jersey10.9%
  2. New York10.9%
  3. Oregon9.9%
  4. Minnesota9.85%
  5. California9.3%
  6. Hawaii9%
  7. Massachusetts9%
  8. Maryland8.75%
  9. Wisconsin7.9%
  10. Maine7.15%
  11. Connecticut6.99%
  12. Rhode Island5.99%
  13. New Mexico5.9%
  14. Virginia5.75%
  15. Kansas5.58%
  16. Montana5.4%
  17. Idaho5.3%
  18. Alabama5%
  19. Mississippi5%
  20. Georgia4.99%
  21. Illinois4.95%
  22. Missouri4.7%
  23. West Virginia4.58%
  24. Oklahoma4.5%
  25. Utah4.45%
  26. Colorado4.4%
  27. Michigan4.25%
  28. Nebraska3.99%
  29. North Carolina3.99%
  30. Iowa3.8%
  31. Arkansas3.7%
  32. Kentucky3.5%
  33. Louisiana3%
  34. Ohio3%
  35. South Carolina3%
  36. Indiana2.9%
  37. Arizona2.5%

Recent and coming changes

Every state

StatePTETRate (latest year)Election deadlineEnds
AlabamaElecting Pass-Through Entity (EPT) tax5%Any time during the tax year or before the due date of the Form 65 or Form 20S, including extensions granted (for tax years before 2025, the 15th day of the third month after the close of the tax year).
Alaskano income tax
ArizonaPass-Through Entity (PTE) election (Arizona PTE income tax)2.5%The department's 2025 Form 165 and 120S pages say no later than the due date or extended due date of the return. Publication 713 (revised November 2025) says S.B. 1274 (2025) retroactively removed the timely filing requirement: the election may be made on an amended return filed before the four-year statute of limitations expires, with each participating owner also amending.
ArkansasElective Pass-Through Entity Tax (PET tax)3.7% (net capital gains 1.85%)Before the due date for filing the return, as extended.
CaliforniaPass-through entity (PTE) elective tax9.3%The timely filed original return. Also a payment by June 15 of the election year (greater of $1,000 or 50 percent of the prior year's elective tax): for 2022 to 2025 an entity that misses or underpays it cannot elect; for 2026 to 2030 it may still elect, but its qualified taxpayers' credit is reduced by 12.5 percent of their pro rata share of the unpaid amount.Taxable years beginning before January 1, 2031 (last year 2030)
ColoradoSALT Parity Act election4.4%On the DR 0106 for the tax year (due the 15th day of the fourth month after year end, April 15 for calendar year filers, with an automatic six-month filing extension), or earlier during the year on DR 1705 or DR 0106EP.Condition: the election is allowed only in an income tax year in which there is a limitation on the deductions allowed to individuals under section 164 of the Internal Revenue Code (C.R.S. 39-22-343(2)). No end year is set.
ConnecticutPass-Through Entity Tax (PE Tax)6.99%No later than the due date of the entity's return, or the extended due date if an extension was requested and granted.
DelawareNo
District of ColumbiaNo
Floridano income tax
GeorgiaElection to pay tax at the entity level (HB 149 pass-through entity tax)4.99%By the due date or extended due date of the entity's income tax return for the year.
HawaiiPass-through entity (PTE) taxation9%20th day of the 4th month after the close of the taxable year, or the 20th day of the 10th month if an extension is granted; the extension is automatic if the electing PTE pays the properly estimated tax liability.
IdahoAffected business entity (ABE) election5.3%Since July 1, 2026, the election can be made on any original return, regardless of when it is filed (before, only on a timely filed return). The ABE tax must be paid on or before the 15th day of the fourth month after year end (April 15 for calendar year filers).
IllinoisPass-through entity (PTE) tax4.95%Made on the annual return; IDOR says the election becomes irrevocable after the extended due date for the year.
IndianaPass Through Entity Tax (PTET)2.90%Any time during the tax year or on the timely filed original return, including extensions; Form IN-PTET by the return due date with extensions or the date the original return is filed, whichever is first. No election after the original return is filed.
IowaPass-Through Entity Tax (PTET)3.8% (the individual rate under Iowa Code 422.5)Six months after the original due date of the IA 1065 or IA 1120S (for a calendar year return originally due April 30, the following October 31).Applies only to tax years for which the federal limitation on individual deductions under IRC section 164(b)(6) applies; Iowa DOR says the election is no longer scheduled to expire because of Public Law 119-21.
KansasSALT Parity Act (electing pass-through entity tax)5.58%The statute says the election is made on the return; it does not state a separate deadline.
KentuckyPass-through entity tax election and refundable pass-through entity tax credit (KRS 141.209)3.5%For taxable years beginning on or after January 1, 2023, at any time during or after the taxable year but no later than the 15th day of the 4th month after the close of the taxable year, or the 15th day of the 10th month if the return is filed under the KRS 141.170 extension. For 2022, the election had to be made after March 31, 2023 and before August 31, 2024.
LouisianaPass-through entity tax election (R.S. 47:287.732.2)3%Any time during the taxable year before the first year the election applies, any time during that first year, or on or before the 15th day of the fourth month after that first year closes. LDR may accept a later election case by case for reasonable circumstances (such as death or serious illness of an owner or the preparer, or a federally declared disaster); paying less tax under the election is not one.
MainePass-through entity tax (36 MRSA chapter 815, subchapter 3)7.15%The due date of the return, including any extension: the 15th day of the third month after the end of the taxable year (March 15 for calendar year entities), extended automatically by a federal extension plus 30 days.
MarylandPass-through entity election to pay tax on all members' shares (Electing PTE), Form 5118.75% on individual and fiduciary members' shares (6.50% plus 2.25%); 8.25% on entity members' sharesWith the first filing or payment of the tax year; if there are none, by filing Form 511 by its due date. For tax year 2026 only, the Comptroller ignores any election or nonelection made with the first quarter estimated payment and honors the one made with the next filing or payment after April 15, 2026.
MassachusettsElective pass-through entity (PTE) excise (chapter 63D PTE excise; from 2026 also the chapter 63E PTE excise)5% (chapter 63D excise), plus an optional additional 4% (chapter 63E excise)Form 63D-ELT or 63-ELT is due with the entity's Form 3, Form 355S or Form 2, taking into account valid extensions (generally March 15 for Form 3 and Form 355S and April 15 for Form 2, for calendar year filers). An unpaid balance does not void an election made on a return filed within 6 months of the original due date.Condition: chapter 63D does not apply to any taxable year for which the federal SALT deduction limitation of Code § 164(b)(6), as amended and in effect for the year, has expired or is otherwise not in effect. DOR says both excises will expire if the federal SALT deduction limitation expires or is repealed.
MichiganFlow-through entity tax4.25% under MCL 206.51(1)(b), unless reduced for the year under 206.51(1)(c)Tax years beginning on or after January 1, 2024: on or before the last day of the ninth month after the end of the tax year (September 30, 2026 for calendar 2025; September 30, 2027 for calendar 2026). Tax years beginning before 2024: the 15th day of the third month of the tax year.Levied only while the federal SALT deduction limitation in IRC 164(b)(6)(B) exists (Treasury FAQ; MCL 206.847).
MinnesotaPass-Through Entity (PTE) TaxThe highest individual rate for the year (9.85% currently)On or before the due date or extended due date of the entity's return (September 15, 2026 for calendar year 2025). Late elections are not accepted.Expires for taxable years beginning after December 31, 2027 (set by Laws 2026, chapter 128; before that it expired at the same time and on the same terms as IRC section 164(b)(6)(B)).
MississippiElecting pass-through entity (electing PTE)graduated 0% to 5%: 0% on the first $5,000 of taxable income, 4% on the next $5,000 and 5% above $10,000Any time during the tax year, or by the due date or extended due date of the Pass-Through Entity Tax Return for the year, or by the date the return is filed, whichever is latest.
MissouriSALT Parity Act (affected business entity tax)The highest individual rate under RSMo 143.011 for 2026 (not confirmed)
MontanaMontana Pass-Through Entity Tax (PTET)5.4%No later than the due date of the return including extensions; an election on a return received after the extended due date is not valid and is reversed.
NebraskaNebraska Pass-Through Entity Tax (PTET)3.99% (2027 and after)On or before the due date of the partnership's or S corporation's Nebraska return, including any approved extension. Elections for tax years 2018 to 2022 (Form PTET-ER) closed on December 30, 2025.
Nevadano income tax
New Hampshireno income tax
New JerseyPass-Through Business Alternative Income Tax (PTE/BAIT)graduated 5.675% to 10.9% (same brackets)On or before the original due date of the entity's Form PTE-100 (March 15 of the following year for calendar year filers; for example June 15 for a March 31 fiscal year end). The election cannot be made retroactively.
New MexicoEntity-level tax election (pass-through entity)5.9%With the return, which is due on or before the due date of the entity's federal return.
New YorkPass-through entity tax (PTET)graduated 6.85% to 10.90% (same table: the statute applies it to each taxable year beginning on or after January 1, 2021)On or after January 1 and no later than March 15 of the tax year (next business day if March 15 falls on a weekend or legal holiday). No later opt-in is allowed for newly formed entities.
North CarolinaTaxed pass-through entity (Taxed PTE) election: Taxed Partnership or Taxed S Corporation3.99%By the due date of the North Carolina return, including extensions. An election on a late filed return is not valid, and the election cannot be made on an amended return after the original return is filed.
North DakotaNo
OhioElecting pass-through entity (EPTE) income tax, Form IT 47383%On or before the due date of the IT 4738, including the extended due date for a PTE that received a federal extension.
OklahomaElecting pass-through entity tax (Pass-Through Entity Tax Equity Act of 2019)4.5% for individual and trust members; 4% for corporate, S corporation and partnership membersStand-alone Form 586: at any time during the preceding tax year or within two months and 15 days after the beginning of the current tax year. On the return: no later than the due date of the return, including extensions.
OregonPass-Through Entity Elective (PTE-E) Tax (pass-through business alternative income tax)graduated 9% to 9.9%: 9% of the first $250,000 of distributive proceeds and 9.9% of the excessThe due date of Form OR-21 including extensions: April 15, or October 15 on extension. Returns filed after the due date including extensions are not accepted, and the election may not be made retroactively.Tax years beginning before January 1, 2028 (last calendar year 2027). The repeal provision also applies to years to which the federal SALT limit (IRC section 164(b)(6)) does not apply, and the department states the law will expire if the federal SALT limitation expires or is repealed.
PennsylvaniaNo
Rhode IslandPass-through entity election to pay state income tax at the entity level (Pass-through Entity Election Tax)5.99%Made with the return: Forms RI-1065 and RI-1120S are due the 15th day of the third month after the close of the taxable year (September 15 for June 30 fiscal years). The sources read do not say whether the election can be made on an extended return.
South CarolinaActive Trade or Business Income Tax election (entity level), Code § 12-6-545(G)3%No later than the due date of the SC1065 or SC1120S, including extensions (March 15, or September 15 with a valid extension, for calendar year entities). There is no relief for a late election.
South Dakotano income tax
Tennesseeno income tax
Texasno income tax
UtahVoluntary taxable income election for pass-through entities (TC-75, State and Local Tax (SALT) Report)4.45%The last day of the entity's taxable year (December 31 for calendar year entities). Only tax remitted by then counts as the elective tax.
VermontNo
VirginiaElective pass-through entity tax (PTET), Form 502PTET5.75%On or before the due date for filing Form 502PTET, including any automatic extension (for a calendar year entity, filed by October 15 to stay within the 6 month extension).
Washingtonno income tax
West VirginiaElective Pass Through Entity Tax (EPT), Form EPT-1004.58%The Tax Division says the election for calendar year taxpayers is due on or before March 15. The statute says the election must be made on or before the due date of the return, including any extensions granted.
WisconsinElection to pay tax at the entity level (pass-through entity-level tax)7.9%On or before the due date or extended due date of the return; the election is made on the day the return is filed.
Wyomingno income tax

Informational only, not tax advice. Whether the election helps depends on the owners' federal and state positions; confirm the current rules with the state before electing.

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