How to make the Missouri PTET election.

Missouri’s SALT Parity Act pass-through entity tax (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 (including LLCs taxed as partnerships, but not publicly traded partnerships) and S corporations (including LLCs taxed as S corporations) can elect. Out-of-state entities doing business in Missouri can also elect.

Any member can opt out of having the tax imposed on their share. Resident members file Form MO-PTE Opt-Out and nonresident members file Form MO-PTENR, before the earlier of the MO-PTE's original due date or its filing date. An opt-out continues for later years until revoked. In tiered structures, an electing member entity subtracts its share of a lower-tier electing entity's Missouri income.

Rate: The highest Missouri individual income tax rate under RSMo Section 143.011. The Department's 2026 withholding formula uses 4.7% as the top rate for 2026.

Partnership or S corporation income derived from Missouri sources only, for all members who have not opted out. It is reduced by the Missouri business income deduction under Section 143.022 and adjusted by Missouri modifications.

Available for 2026. The SALT Parity Act, enacted by 2022 H.B. 2400 and amended by 2024 H.B. 1912, applies to tax years ending on or after December 31, 2022. It has no sunset and is not tied to the federal SALT cap. New to PTET? See how the election works.

Deadlines

Step	Due for 2026
Optional prepayment (Form MO-PTEAP)	Any time before the return (not required)
Member opt-out forms	April 15, 2027, or the MO-PTE filing date if earlier
Form MO-PTE, election, and payment	April 15, 2027
Extended return	Up to 180 days after April 15, 2027, with an approved federal extension or Form MO-7004

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: Made on a timely filed Form MO-PTE: by April 15, 2027 for a calendar-year 2026 entity, or by the extended due date if an extension is approved. Member opt-outs stay tied to the original April 15, 2027 due date.

Start with 2025 Form MO-PTE, Pass-Through Entity Income Tax Return (Revised 12-2025), from the Missouri Department of Revenue.

Collect any member opt-out elections: resident members file Form MO-PTE Opt-Out and nonresident members file Form MO-PTENR, before the return's original due date or its filing date, whichever is first.
On page 1 of Form MO-PTE, select the box 'Select this box if you are electing to become an Affected Business Entity and consent to become subject to the tax imposed by Section 143.436, RSMo.'
If any member opted out, select the opt-out box, attach the federal K-1 for each opt-out member, and mark those members in the member schedule.
Sign the return: an officer, manager, or member authorized to make the election, each person who is a member when it is filed, or the Affected Business Entity Representative.
Mail it to Missouri Department of Revenue, P.O. Box 3080, Jefferson City, MO 65105-3080, or email it to pteincome@dor.mo.gov, by April 15, 2027. Electronic filing is not available.

2025 Form MO-PTE, Pass-Through Entity Income Tax Return (Revised 12-2025), page 1, showing the line used to make the Missouri PTET election: electing to become an Affected Business Entity. — The election: “electing to become an Affected Business Entity”

Paying the tax, step by step

No estimated payments are required. An entity may prepay with Form MO-PTEAP.

Missouri does not accept electronic PTE tax payments. Pay by check, money order, or cashier's check.
Use Form MO-PTEV, Pass-Through Entity Tax Payment Voucher, for the amount due with the return, or Form MO-PTEAP, Anticipated Tax Payment Voucher, for an optional 2026 prepayment.
Enter the Missouri Tax I.D. number, FEIN, tax year, and payment amount in whole dollars, and make the check payable to the Missouri Department of Revenue.
Mail the voucher and check to Missouri Department of Revenue, P.O. Box 3080, Jefferson City, MO 65105-3080.

Filing the return: Form MO-PTE, filed by mail or email (no e-filing), with payment by check using Form MO-PTEV. Due April 15, 2027 for a calendar-year 2026 entity. The entity still files Form MO-1065 or MO-1120S.

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

Claiming the credit

Members claim a credit for their direct and indirect share of tax paid on Form MO-TC, attached to the Missouri return, with the entity's report or Form MO-5889. Credit above the member's liability is not refunded but carries forward until used.

Good to know

Members still make the addition modification for state and local income taxes deducted on the federal Form 1065 or 1120S.
Nonresident individuals whose only Missouri-source income comes from electing entities do not need to file a Missouri return.
A Missouri net loss computed on Form MO-PTE carries forward to later years in which the entity elects.
Residents get a credit (Form MO-CR) for a substantially similar PTE tax paid to another state. That credit is not refundable and does not carry forward.
Miscellaneous tax credits can reduce the PTE tax but are generally not treated as tax paid for the member credit.
Paying your personal Missouri estimates? See how to pay Missouri estimated taxes.
Business in more than one state? Each state has a guide of its own.

Official sources

Checked October 2026 against the Missouri Department of Revenue's own publications and RSMo Section 143.436.

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.