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Pass-through entity tax (PTET) elections.

If you own an S corporation or partnership, most states let the business pay your state income tax for you, which can turn it into a federal deduction the SALT cap does not limit. Here’s where you can elect it for 2026.

Where PTET is allowed

The 37 states in blue let a business elect to pay state income tax at the entity level for 2026. Click a state for its guide.

AlabamaAlaska: no PTET for 2026ArizonaArkansasCaliforniaColoradoConnecticutDelaware: no PTET for 2026District of Columbia: no PTET for 2026Florida: no PTET for 2026GeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevada: no PTET for 2026New Hampshire: no PTET for 2026New JerseyNew MexicoNew YorkNorth CarolinaNorth Dakota: no PTET for 2026OhioOklahomaOregonPennsylvania: no PTET for 2026Rhode IslandSouth CarolinaSouth Dakota: no PTET for 2026Tennessee: no PTET for 2026Texas: no PTET for 2026UtahVermont: no PTET for 2026VirginiaWashington: no PTET for 2026West VirginiaWisconsinWyoming: no PTET for 2026
  • PTET election available for 2026
  • No PTET

Every state with a PTET

This guide is for general education and reflects rules as of October 2026. Tax law and agency websites change, and your situation may have details that change the answer. Please talk with your tax professional before acting on it.

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