The PTET is an optional tax that partnerships or New York S corporations may annually elect to pay on certain income for tax years beginning on or after January 1, 2021.

Aug 22, 2024 · The pass-through entity tax (PTET) is a way for owners of pass-through entities—partnerships, limited liability companies, S corporations—to gain benefit from the …

Feb 23, 2025 · PTET is a state-imposed tax on pass-through entities. It allows these businesses to pay New York state income taxes at the entity level rather than through individual tax returns.

Authorized persons filing on behalf of eligible entities can opt in to the New York State and New York City PTET for tax year 2025 using the online PTET Annual Election application.

Aug 30, 2025 · To circumvent the federal SALT cap, many states have adopted pass-through entity tax (PTET) regimes. Instead of business owners deducting state income tax on their …

PTET regimes, adopted by 36 states following the 2017 Tax Cuts and Jobs Act (TCJA), allow pass-through entities to pay state taxes at the entity level, which are then deductible on federal …

What is the pass-through entity tax (PTET)? Find out if you qualify for PTET elections on your pass-through business income.

Sep 1, 2024 · Connecticut’s PTET as enacted was mandatory but was amended to be elective in 2023 (beginning with 2024 tax years). A number of states have changed tax rates, changed …

Dec 10, 2025 · The PTET tax rate is determined by an income based marginal tax bracket that only considers New York state sourced income. The brackets range from a 6.85% to 10.9% …

Taxpayers who live in states with higher tax rates (both income tax and real estate taxes) lost a significant benefit as a result of this limitation. In response, many states created a workaround …