How to make the Ohio PTET election.

Can your business elect?

Qualifying pass-through entities: partnerships, LLCs, and other entities that are not taxed as corporations for federal purposes. Disregarded entities, trusts, estates, 501(c) entities, publicly traded partnerships, REITs, RICs, and REMICs cannot elect.

Each entity makes its own election, which binds the whole entity: the tax is levied on the sum of all owners' distributive shares, including owners such as trusts and corporations. Under R.C. 5747.38(D), an electing entity may claim refundable credits available to its owners, including the credit for tax paid by a lower-tier electing entity, as if it were the owner.

Rate: 3%. R.C. 5747.38 sets the rate equal to the rate on taxable business income under R.C. 5747.02(A)(4)(a), which is 3%.

Qualifying taxable income: the sum of owners' distributive shares of business income apportioned to Ohio plus nonbusiness income allocated to Ohio. Compensation and guaranteed payments to owners of 20% or more are added back.

Available for 2026. Senate Bill 246 (2022) created the electing pass-through entity tax in R.C. 5747.38 for taxable years beginning on or after January 1, 2022, and the statute has no sunset. 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: By the IT 4738 filing deadline including extensions: April 15, 2027, or the federal extended due date (September 15, 2027 for most calendar-year partnerships and S corporations) if the entity has a federal extension.

Start with Form EPTE-ELEC, Electing Pass-Through Entity Election Form, from the Ohio Department of Taxation.

1. If the entity has never filed an Ohio IT 1140, IT 4708, or IT 4738, submit the Pass-Through Entity and Fiduciary Income Tax Registration Form before the first estimated payment.
2. Make the election by filing Form EPTE-ELEC, Electing Pass-Through Entity Election Form, or by timely filing the 2026 Form IT 4738.
3. On EPTE-ELEC, enter the FEIN and entity type, enter 2026 next to 'The election is effective for taxable year' with the reporting period dates, and answer whether the entity filed an Ohio pass-through entity return before.
4. Have an officer, partner, member, or other authorized individual sign, then submit the form by one of the methods printed on it (Online Notice Response Service, email, eFax, or mail).
5. File the IT 4738 by April 15, 2027, or by the extended date with a copy of the IRS extension attached. The election is irrevocable for the year, and the entity cannot also file IT 1140 or IT 4708 for 2026.

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Paying the tax, step by step

For tax years beginning on or after January 1, 2026, estimated payments for a calendar-year entity are due April 15, June 15, and September 15, 2026, and January 15, 2027. Late or missed estimates are charged the 2210 interest penalty.

What you need

• Nothing to set up. OH|TAX eServices takes payments without an account.
• The entity's FEIN.
• Bank routing and account numbers for the ACH debit.
• A filed Pass-Through Entity and Fiduciary Income Tax Registration Form, if this is the entity's first Ohio PTE filing.
• An OH|TAX eServices username and password, unless paying as a guest.

Start at OH|TAX eServices, Ohio's official site.

1. Go to OH|TAX eServices and log in, or continue as a guest user.
2. Select Estimated, Extension, or Return Payment, and choose the 2026 tax year for the IT 4738.
3. Pay by electronic check (ACH debit). Online credit card payments are not available for pass-through entity filers.
4. Or send an ACH credit through the Ohio Treasurer of State, using the IT 4738 instructions at tos.ohio.gov.
5. To pay by mail, send a separate check payable to 'Ohio Treasurer of State' with the IT 4738 Ohio Universal Payment Coupon (OUPC), and write the FEIN, 'IT 4738', and the tax year end on the memo line.

Filing the return: Form IT 4738, due April 15, 2027. A federal extension extends the Ohio filing date if a copy is attached, but payment is still due April 15, 2027.

Claiming the credit

Owners claim a refundable credit for their share of tax paid on the IT 1040 Ohio Schedule of Credits, supported by the Ohio IT K-1 from the entity. Owners add back their share of the tax on line 2 of the Ohio Schedule of Adjustments if it was deducted or excluded federally.

Good to know

• The IT 4738 satisfies a nonresident owner's Ohio filing requirement if the owner has no other Ohio income.
• The tax is computed without regard to deductions or credits owners could claim on their own returns.
• Individual IT 1040 estimated payments cannot be applied to IT 4738.
• This is separate from the Commercial Activity Tax and from the IT 1140 nonresident withholding tax and IT 4708 composite return. Estimated payments already made for IT 1140 or IT 4708 under the same FEIN can be claimed on IT 4738.
• Paying your personal Ohio estimates? See how to pay Ohio estimated taxes.
• Business in more than one state? Each state has a guide of its own.

Official sources

Checked October 2026 against the Ohio Department of Taxation's own publications and Ohio Rev. Code 5747.38.

• Ohio Rev. Code 5747.38 (effective September 30, 2025)
• Ohio Rev. Code 5747.39 (owner credit, refundable)
• Ohio Rev. Code 5747.02 (business income rate)
• 2025 IT 4738 instructions (rev. 12/25)
• Form EPTE-ELEC, Electing Pass-Through Entity Election Form

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.