How to make the Maryland PTET election.

Can your business elect?

S corporations, partnerships, limited liability companies not taxed as corporations, and business trusts or statutory trusts not taxed as corporations can elect.

The election covers all members' shares, and members cannot opt out. Individual members are taxed at the individual rate plus the lowest county rate, and entity members at the corporate rate. An electing PTE cannot file a composite return for any member.

Rate: 8.75% of individual members' share (6.50% top state rate plus the 2.25% lowest county rate). 8.25% of entity members' share.

For 2026, resident and nonresident members' shares of income derived from or reasonably attributable to the entity's business in Maryland only. A 2025 law that would have taxed resident members' income from everywhere was postponed to tax year 2027.

Available for 2026. The election to pay tax on all members' shares (Tax-General Section 10-102.1, as amended by S.B. 496 of 2021, the RELIEF Act) has no sunset date in Comptroller guidance. New to PTET? See how the election works.

Deadlines

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 made with the entity's first filing or payment of the tax year. For tax year 2026 only, the Comptroller ignores any choice made with the first-quarter payment and honors the choice made with the next filing or payment after April 15, 2026, usually the June 15, 2026 estimated payment.

Start with 2026 Form 510/511D, from the Comptroller of Maryland.

1. Open the 2026 Form 510/511D, Pass-Through Entity Declaration of Estimated Income Tax, or the same form in approved tax software, and check the entity type box.
2. Check Box A, 'Check here if PTE has made the irrevocable election for Tax Year 2026 to remit tax with respect to all members' shares.'
3. Submit the form with a payment. The Comptroller does not process a Form 510/511D filed without a payment, and it is not a valid election.
4. For 2026 only, the Comptroller ignores the choice made with the first-quarter payment and honors the choice made with the next filing or payment after April 15, 2026, usually the June 15 estimate.
5. Check Box A again on every later 2026 Form 510/511D and on Form 510/511E if the entity extends, then file Form 511 (not Form 510) as the year-end return.
6. An entity that makes no estimated payments and files no extension makes the election by filing Form 511 itself.

1

Paying the tax, step by step

Quarterly payments on Form 510/511D are required when the tax is expected to exceed $1,000. For a calendar-year 2026 entity, payments are due April 15, June 15, September 15, and December 15, 2026 for S corporations, and January 15, 2027 (instead of December 15) for partnerships and LLCs. To avoid interest and penalty, payments must total at least 90% of the 2026 tax or 110% of the 2025 tax.

What you need

• An account with Maryland Tax Connect for the business. Set it up before the first deadline.
• The entity's FEIN.
• A Maryland Tax Connect profile with the pass-through entity account linked (Registration Code or shared secrets).
• Routing and account numbers for a U.S. bank account (foreign accounts are not accepted).

Start at Maryland Tax Connect, Maryland's official site.

1. Log in to Maryland Tax Connect, or select Sign Up to create a profile.
2. Link the pass-through entity's tax account to the profile before the first estimated payment, using the Registration Code mailed by the Comptroller or the account's shared secrets.
3. Make the 2026 Form 510/511D estimated payment from the pass-through entity account by ACH direct debit from a U.S. bank account.
4. To pay a PTE bill (a balance the Comptroller has billed), use the PTE Bill Payments link to the Comptroller's partner site Velocity, by eCheck or credit card.
5. To pay by mail, send the Form 510/511D with a check payable to Comptroller of Maryland, showing the FEIN, tax year, and tax type, to Revenue Administration Division, 110 Carroll Street, Annapolis, MD 21411-0001.

Filing the return: Form 511, Pass-Through Entity Election Income Tax Return. For a calendar-year 2026 entity, it is due March 15, 2027 for S corporations and April 15, 2027 for partnerships, LLCs, and business trusts. Form 510/511E extends the time to file but not to pay.

Claiming the credit

Members claim a credit for their share of the tax shown on Maryland Schedule K-1 (510/511). Individuals claim it on Form 502CR (Part CC, line 9 in 2025), and it flows to the refundable credits line of Form 502, so credit above the member's liability is refunded. Members must add the credit amount back to federal adjusted gross income in the same year.

Good to know

• The 2% Maryland tax on net capital gain for individuals with federal AGI over $350,000 is not part of the PTE tax. The PTE credit does not cover it, so members pay it themselves.
• Overpayments of PTE tax are refunded to the entity and cannot be passed to members as credit.
• The 2026 Budget Reconciliation and Financing Act changes the PTE tax calculation starting in tax year 2027 and gives electing PTEs options for how to calculate it. The Comptroller has said separate guidance will follow.
• An electing PTE cannot file a composite return for any member.
• Paying your personal Maryland estimates? See how to pay Maryland estimated taxes.
• Business in more than one state? Each state has a guide of its own.

Official sources

Checked October 2026 against the Comptroller of Maryland's own publications and Md. Code, Tax-General Section 10-102.1.

• Maryland Tax Alert: Changes to Tax Year 2026 Pass-Through Entity Estimated Payments (April 13, 2026)
• 2026 Form 510/511D Pass-Through Entity Declaration of Estimated Income Tax and instructions
• 2025 Form 511 Pass-Through Entity Election Income Tax Return
• Technical Bulletin 6: Taxation of Pass-Through Entities (Dec. 27, 2023)
• 2025 Maryland Resident Tax Booklet (Form 502 and 502CR instructions)
• Comptroller of Maryland: Payment Methods (KB0010092)
• Comptroller of Maryland: Pass-Through Entity Tax Returns FAQs (KB0010179)
• Maryland Tax Connect home page (PTE account linking notice)
• Create a Maryland Tax Connect Profile and Link Your Tax Accounts Guide (September 2026)
• 2025 Form 510/511E Application for Extension (extension lengths)
• Tax Year 2025 PTE Booklet 511

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.