How to make the Mississippi PTET election.

Mississippi’s Electing Pass-Through Entity 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, S corporations, and similar pass-through entities can elect. Fiduciaries (estates and trusts) cannot.

The election requires a vote meeting the entity's governing documents. If the documents are silent, it requires a vote or written consent of owners holding more than 50% of voting control, plus the governing body's consent if the entity has one. The election applies at the entity level to all owners, with no individual opt-out found. In tiered structures, each level may elect, and credits pass through multiple layers.

Rate: The 2025 instructions tax electing pass-through entities on the general schedule in Miss. Code Section 27-7-5(1)(a): 0% on the first $5,000, 4% on the next $5,000, and 5% above $10,000. The 2025 law (H.B. 1) that cuts the rate to 4% in 2026 applies only to individuals and leaves that schedule unchanged, but 2026 instructions are not yet published.

The entity's Mississippi net taxable income (Form 84-122, line 35), after Mississippi apportionment and any electing PTE net operating loss.

Available for 2026. Partnerships and S corporations have been able to elect entity-level tax since 2022 (H.B. 1691, 2022), and H.B. 1668 (2023) revised the election method. No sunset appears in the statute. New to PTET? See how the election works.

Deadlines

Step	Due for 2026
1st estimated payment	April 15, 2026
2nd estimated payment	June 15, 2026
3rd estimated payment	September 15, 2026
4th estimated payment	December 15, 2026
Form 84-105 and balance due	March 15, 2027
Extended return, election deadline	September 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: Any time during the tax year, or by the due date or extended due date of the Pass-Through Entity Tax Return, or by the date the return is filed, whichever is latest. For a calendar-year 2026 entity, the return is due March 15, 2027, and Mississippi follows the federal extension (September 15, 2027).

Start with Form 84-381, Pass-Through Entity Election Form (Rev. 10/25), from the Mississippi Department of Revenue.

Get approval under the entity's governing documents, or if they are silent, a vote or written consent of owners holding more than 50% of voting control (plus the governing body, if there is one).
Complete Form 84-381, Pass-Through Entity Election Form: enter the tax year, FEIN, and entity details, check Partnership/LLC/LLP or S Corporation, and under CHECK ONE mark 'Electing PTE' with the effective date.
Check the consent box confirming the vote or written consent, and have an officer sign.
Submit it in TAP (log in, go to the Pass-Through Entity account, click 'Submit Pass-Through Election Form') or mail it to Department of Revenue, P.O. Box 23191, Jackson, MS 39225-3191, by the return's due date or extended due date.
The election stays in effect for later years until revoked, so an entity that elected for an earlier year does not file it again for 2026. Attach a copy of Form 84-381 to the Form 84-105 return and check its 'Electing Pass-Through Entity' box.

Form 84-381, Pass-Through Entity Election Form (Rev. 10/25), page 1, showing the line used to make the Mississippi PTET election: Check box if the election to be taxed. — The election: “Check box if the election to be taxed”

Paying the tax, step by step

Required if annual income tax liability exceeds $200, using Form 84-300. For a calendar-year 2026 entity, payments are due April 15, June 15, September 15, and December 15, 2026, and must total at least 90% of the tax, or qualify under the prior-year exception. Underpayment costs a 10% penalty plus interest of 1/2% per month, figured on Form 83-305.

What you need

Nothing to set up. Taxpayer Access Point (TAP) takes payments without an account.
The entity's FEIN and legal name.
The tax year and payment amount.
The bank routing and account numbers.

Start at Taxpayer Access Point (TAP), Mississippi's official site.

Go to TAP. To pay without logging in, select Make an Estimated Payment in the Payments section; logged-in users pay from the Pass-Through Entity account.
Enter the taxpayer name, choose the account type, and enter the entity's ID number.
Enter the payment details and bank account information, then submit and save the confirmation number. Make a separate payment for each company.
To pay by mail, use Form 84-300, Pass-Through Entity Income Tax Voucher: check 'Electing Pass-Through Entity' and 'Estimate Payment' (or 'Return Payment'), and mail it with a check payable to Department of Revenue to P.O. Box 23192, Jackson, MS 39225-3192.

Filing the return: Form 84-105, Pass-Through Entity Tax Return, with the 'Electing Pass-Through Entity' box checked and Form 84-381 and Mississippi Schedules K-1 (Form 84-132) attached. Due March 15, 2027 for a calendar-year entity.

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

Claiming the credit

Owners report their share of income and claim a credit for their share of tax paid, shown on the Mississippi K-1 (Form 84-132), using Form 80-161 (individuals and fiduciaries) or Form 84-161 (businesses). Excess credit is refunded or carried forward, at the owner's choice.

Good to know

Unlike most states, the election is ongoing. It continues each year until the entity files Form 84-381 to revoke it.
Nonresident owners whose only Mississippi income comes from the electing entity do not need to file a Mississippi nonresident return.
In the first election year, individual estimated payments can be moved to the entity account or refunded by written request.
Resident individuals may claim both the electing PTE credit and the credit for taxes paid to other states (Form 80-160). The other-state credit cannot be taken at the entity level.
An entity cannot file both a composite return and an electing PTE return.
Paying your personal Mississippi estimates? See how to pay Mississippi estimated taxes.
Business in more than one state? Each state has a guide of its own.

Official sources

Checked October 2026 against the Mississippi Department of Revenue's own publications and Miss. Code Ann. Section 27-7-26.

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.