How to make the Maine PTET election.

Maine’s Pass-Through Entity Tax 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 (as defined in IRC Section 7701(a)(2)) and entities classified as S corporations for federal tax purposes, including LLCs taxed as either. Publicly traded partnerships and entities subject to Maine's financial institution franchise tax (Chapter 819) cannot elect.

The tax is computed only on qualified members: individuals, trusts, and estates that are direct owners, including owners holding through a disregarded entity. Organizations exempt under IRC Section 501 are not qualified members, and entity owners (corporations, partnerships) are not covered. The election is made by the entity for all qualified members; the statute provides no individual opt-in or opt-out.

Rate: 7.15% for 2026, the highest marginal Maine individual income tax rate under 36 M.R.S. Section 5111. The 2% income tax surcharge that begins in 2026 does not apply to the PTET.

The sum of qualified members' distributive shares of income: for resident members, their full distributive share (including guaranteed payments); for nonresident members, only their Maine-source share. The total is increased by the Maine PTET itself and by any substantially similar PTET paid to other states.

Available for 2026. Maine enacted a new elective pass-through entity tax on April 10, 2026 (Public Law 2025, chapter 650, Part N, 36 M.R.S. Sections 5199-A to 5199-I and 5219-CCC) for tax years beginning on or after January 1, 2026. No sunset appears in the statute. New to PTET? See how the election works.

Deadlines

Step	Due for 2026
April and June estimates	Not required for 2026 (due before July 29, 2026)
3rd estimated payment	September 15, 2026
4th estimated payment	January 15, 2027
Return, election, and tax	March 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: The election is declared on a timely filed 2026 return, including any extension. The return is due March 15, 2027 for a calendar-year entity, and the election becomes irrevocable after the due date (including extensions).

File the 2026 annual PTET return electronically through the Maine Tax Portal (revenue.maine.gov). Paper returns are not allowed.
Filing the annual return is the election: there is no separate election form or checkbox described by Maine Revenue Services.
On the return, list each qualified member's distributive share of income and PTET, and pay any remaining tax by March 15, 2027.
Elect again each year. The election becomes irrevocable after the return due date, including extensions.

Paying the tax, step by step

The statute requires quarterly estimated payments on the 15th day of the 4th, 6th, 9th, and 13th months (April 15, June 15, and September 15, 2026, and January 15, 2027 for a calendar-year entity), each one quarter of the smaller of 90% of current-year PTET or 100% of prior-year PTET. Estimates are waived if current-year liability is under $1,000 or the prior year's PTET liability was under $1,000. For 2026, Maine Revenue Services said estimated payments would be accepted only through the Maine Tax Portal once it opened (expected early September 2026), and that previously due 2026 payments could be made then. Maine Revenue Services later said that for 2026, estimated payments are required only for due dates on or after July 29, 2026 (September 15, 2026 and January 15, 2027), that the underpayment penalty will not apply for 2026, and that the Maine Tax Portal began accepting PTET estimates in September 2026.

What you need

Nothing to set up. Maine Tax Portal (MTP) takes payments without an account.
An MTP username and password, or the entity's identifying details for the non-logged-in 'Make a Payment' option.
The installment amount (one quarter of the smaller of 90% of 2026 PTET or 100% of prior-year PTET).
The business bank account routing and account numbers.

Start at Maine Tax Portal (MTP), Maine's official site.

Go to the Maine Tax Portal at revenue.maine.gov.
Log in with the business's username and password, or select the 'Make a Payment' link to pay without logging in.
Select the appropriate tax type and payment type for a PTET estimated payment.
From the Period menu, select the last date of the tax year (December 31, 2026 for a calendar-year entity).
Enter the payment details and continue through the prompts until the Submission Confirmation screen appears. For help, call MRS at (207) 624-9784.

Filing the return: An annual PTET return filed electronically through the Maine Tax Portal, with the tax due March 15, 2027 for a calendar-year 2026 entity. The return lists each qualified member's distributive share of income and tax, and an electing entity may not amend it without the assessor's written consent.

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

Claiming the credit

Qualified members receive a refundable credit equal to 90% of their share of the PTET under 36 M.R.S. Section 5219-CCC. The entity must report each member's share of tax within 30 days after the return due date (by April 14, 2027 for calendar-year 2026).

Good to know

The member credit is 90% of the PTET paid, not 100%, so 10% of the tax is not recovered by owners.
On top of the PTET, the electing entity pays an estimated tax on behalf of nonresident qualified members equal to 10% of each nonresident's reported PTET share.
A nonresident individual whose entire Maine income comes from electing entities is not required to file a Maine return if the 90% credit plus the 10% nonresident estimated payment covers the Maine liability.
Maine individual income tax credits under Chapter 822 cannot reduce the PTET, and no interest is paid on PTET overpayments.
The return is due on the 15th day of the third month after year-end for both partnerships and S corporations, earlier than many other states' PTET deadlines.
Paying your personal Maine estimates? See how to pay Maine estimated taxes.
Business in more than one state? Each state has a guide of its own.

Official sources

Checked October 2026 against the Maine Revenue Services's own publications and 36 M.R.S. Sections 5199-A through 5199-I (Chapter 815, Subchapter 3) and Section 5219-CCC.

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.