How to make the Idaho PTET election.

Idaho’s Affected Business Entity election lets your business pay state income tax for its owners and deduct it federally, outside the SALT cap. Here’s when and how to elect for 2026, and how to pay.

Can your business elect?

Partnerships and S corporations, including LLCs treated as partnerships or S corporations for federal tax purposes. Shares belonging to members that are exempt from Idaho income tax are excluded from the tax base and from the credits.

The election is made by the entity and covers all members other than exempt entities; owners cannot opt in or out individually. The election must be signed by every member or by an officer, manager, or member authorized to make it, and without an authorized signer the signatures of all members are required on Form ABE. A partnership or S corporation that is itself a member of an ABE receives a credit for its share of the tax paid.

Rate: 5.3%, the Idaho corporate income tax rate under Idaho Code Section 63-3025 for taxable years beginning on or after January 1, 2025, with no brackets. The Tax Commission's 2026 corporate estimated tax worksheet (Form 41EST) uses 5.3%.

Income, gain, loss, and deduction of the entity derived from or connected with Idaho sources, adjusted for Idaho modifications attributable to taxable members. The share apportioned to exempt members is excluded. Resident members' non-Idaho income is not part of the base.

Available for 2026. Idaho's affected business entity (ABE) election is in Idaho Code Section 63-3026B and has no sunset. House Bill 733 (2026), effective July 1, 2026, changed the election timing rules. New to PTET? See how the election works.

Deadlines

Step	Due for 2026
Voluntary estimates	Any time in 2026 (Form ABE-ES)
Pay the ABE tax	April 15, 2027
Return and election	April 15, 2027
Extended return	October 15, 2027

These dates are for a calendar-year business. Pay at least two business days early, since state payment sites slow down on deadline days.

Electing, step by step

Deadline: Under House Bill 733 (effective July 1, 2026), the election can be made on any original 2026 return, regardless of when it is filed. Changing the election after filing requires an amended return filed before the original due date of April 15, 2027.

Start with 2025 Form 41S, S Corporation Income Tax Return, from the Idaho State Tax Commission.

Prepare the 2026 Form 41S (S corporations) or Form 65 (partnerships).
On page 1, question 1, check the 'Affected business entity' box next to 'Check the type of return' (Form 41S) or 'Check the return type' (Form 65).
Have an officer, manager, or member authorized by the entity sign the return. The entity keeps documentation of that authority (meeting minutes or Form ABE signed by each member).
If the person signing the return is not authorized by the entity, complete Form ABE, Affected Business Entity Election, with the signatures of all members and include it with the return.
File the original return. A separate election is made for each tax year; to change it, file an amended return before April 15, 2027.

2025 Form 41S, S Corporation Income Tax Return, page 1, showing the line used to make the Idaho PTET election: Check the type of return. — The election: “Check the type of return”

Paying the tax, step by step

Estimated payments on Form ABE-ES are voluntary and do not earn refund interest. The Tax Commission says each ABE must pay any tax due by April 15, 2027 for a calendar-year 2026 entity. The 2025 Form ABE-ES says the tax must be paid by the original due date (the same amount as for a valid extension: 80% of the current-year tax, or 100% of the prior year's tax) for the election to be valid.

What you need

Nothing to set up. Idaho Quick Pay (Taxpayer Access Point) takes payments without an account.
The business's FEIN.
The 2026 ABE tax amount from the Form ABE-ES worksheet or the return.
The business bank account routing and account numbers (ACH debit), or a card.
Payments of $100,000 or more must be made by ACH debit or ACH credit.

Start at Idaho Quick Pay (Taxpayer Access Point), Idaho's official site.

Go to Quick Pay at tax.idaho.gov/quickpay (no account needed), or log in to the business's TAP account.
Select the tax type Business Income Tax.
Choose the payment type: Estimated (estimated payment for future tax due) for a 2026 Form ABE-ES payment, or Return (payment for original return you just filed) for the balance with the return.
Enter the business's FEIN, the 2026 tax period, and the amount, then pay by bank account (ACH debit, no fee) or card (2.5% fee).
To pay by mail instead, send a check with the Form ABE-ES voucher (estimates) to the Idaho State Tax Commission, PO Box 83784, Boise ID 83707-3784.

Filing the return: Form 41S (S corporations) or Form 65 (partnerships) with the ABE box checked, due April 15, 2027 for a calendar-year 2026 entity. A six-month filing extension applies automatically if the extension prepayment is made by the original due date; the extension does not extend the time to pay.

Keep the ABE separate from your personal estimates. The business pays the ABE from its own account under its own ID. Once it does, each owner's personal Idaho estimates can usually drop by the credit they expect, so the same tax is not paid twice.

Claiming the credit

Each individual member receives a credit equal to its pro rata share of the ABE tax, reported on Form ID K-1, Part XI, line 58 (tax paid by affected business entity). Any credit in excess of the member's Idaho income tax is refunded. Corporate members receive a refundable credit against their corporate tax.

Good to know

A nonresident member whose only Idaho-source income comes from ABEs that file and pay the tax is not required to file an Idaho individual return.
An electing entity's Idaho net operating loss does not pass through to members. It carries forward at the entity level for later ABE years and passes through only in a year the entity does not elect.
An ABE cannot claim the Idaho capital gains deduction on sales of Idaho property. Owners take that deduction on their own returns.
An electing entity pays the $10 permanent building fund tax for each member that is an Idaho nonresident.
Filing Form ABE-ES or making an estimated payment is not itself an election.
Paying your personal Idaho estimates? See how to pay Idaho estimated taxes.
Business in more than one state? Each state has a guide of its own.

Official sources

Checked October 2026 against the Idaho State Tax Commission's own publications and Idaho Code Section 63-3026B.

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.