How to make the Rhode Island PTET election.

Can your business elect?

S corporations, partnerships, LLCs not taxed as corporations, trusts, and sole proprietorships (including single-member LLCs) filing Form RI-1065 or RI-1120S. Only shares belonging to individual owners can be covered.

The tax covers only individual members who make the election; shares of non-individual members and of individual members who do not elect are left out of the computation. The entity issues an RI Schedule K-1 to each covered owner showing the tax paid on that owner's behalf.

Rate: 5.99% for 2026.

The entity's income apportioned to Rhode Island multiplied by the combined ownership percentage of the individual members who elect. Income outside Rhode Island is not included, even for resident owners.

Available for 2026. R.I. Gen. Laws Section 44-11-2.3 has allowed the election since 2019 (P.L. 2019, ch. 88) with no sunset; P.L. 2024, ch. 117 cut the owner credit to 90% of the tax for tax years beginning on or after January 1, 2025. 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: Made on the 2026 return by completing RI Schedule PTE and paying the tax. Form RI-1065 and RI-1120S are due March 15, 2027 (April 15, 2027 for a calendar-year single-member LLC filing RI-1065). Whether an election on an extended return is valid is not stated.

Start with 2025 RI Schedule PTE, Pass-through Entity Election Tax Schedule, from the Rhode Island Division of Taxation.

1. Decide which individual members the election covers. Schedule PTE, Part A, line 2 counts only individual members making the election.
2. Complete RI Schedule PTE, Pass-through Entity Election Tax Schedule: Part A, lines 1 through 5 (tax at 5.99%), Part B, and Part C (allowable credit at 90%).
3. Enter the tax from Schedule PTE, Part A, line 5 on line 7d of Form RI-1065 or Form RI-1120S.
4. Issue an RI Schedule K-1 to each covered member showing the tax paid on its behalf and its increasing modification, and enter the count on the RI-1065 line 'Total number of RI K-1s issued for Schedule PTE.'
5. File the return with Schedule PTE by March 15, 2027 and pay the tax; the tax must be paid for members to receive the credit. Larger business registrants must file and pay electronically.

1

Paying the tax, step by step

Estimated payments must total at least the lesser of 80% of the current-year tax or 100% of the prior-year tax, with at least one quarter of the tax paid each quarter unless the annualization method is used. The Division's examples use April 15, June 15, September 15, and December 15. Underpayments are charged interest at 12% per year.

What you need

• Nothing to set up. Rhode Island Tax Portal takes payments without an account.
• The entity's FEIN.
• A Tax Portal User ID linked with the mailed PIN, or the details needed for a guest payment.
• The estimated 2026 tax from Form BUS-EST, Part 1.

Start at Rhode Island Tax Portal, Rhode Island's official site.

1. Log in to the Rhode Island Tax Portal. A portal account needs a User ID linked to the tax accounts with a PIN the Division sends by postal mail.
2. Without a portal account, use the portal's Same-day Services Guest Payment feature.
3. Pay the estimate as the RI Schedule PTE, Pass-through Entity Election estimate (the Form BUS-EST tax type for this tax), not as corporate tax or pass-through withholding.
4. By the four due dates, cumulative payments should reach 25%, 50%, 75%, and 100% of the year's estimated tax.
5. Form BUS-EST states that payments must be made electronically.

Filing the return: Form RI-1065 or Form RI-1120S with RI Schedule PTE and an RI Schedule K-1 for each covered owner, due March 15, 2027 (April 15, 2027 for a calendar-year single-member LLC). The tax is entered on line 7d of the return.

Claiming the credit

Owners claim a credit equal to their pro rata share of 90% of the tax paid, reported on RI Schedule W of Form RI-1040 or RI-1040NR. Owners also report their share of the tax paid as an increasing modification on RI Schedule M, line 2h, on a cash or accrual basis matching the entity's method.

Good to know

• The owner credit is 90% of the entity's tax for tax years beginning on or after January 1, 2025, so 10% of the tax is not recovered as an owner credit.
• An electing entity does not have to withhold on nonresident owners under Section 44-11-2.2.
• The tax must actually be paid for owners to receive the credit.
• Starting with tax year 2027, the FY 2027 budget (H 7127 Sub A) lets an electing entity also pay the new High-Income Surtax (1% in 2027, rising to 3% in 2029 on income over $1 million) at the entity level. This does not apply to 2026.
• Under Section 44-11-2.3(e), a similar entity-level tax paid to another state is treated as tax paid to another jurisdiction for the Section 44-30-18 credit.
• Paying your personal Rhode Island estimates? See how to pay Rhode Island estimated taxes.
• Business in more than one state? Each state has a guide of its own.

Official sources

Checked October 2026 against the Rhode Island Division of Taxation's own publications and R.I. Gen. Laws Section 44-11-2.3.

• 2025 RI-1065 instructions (Pass-through Entity Election and RI Schedule PTE)
• 2025 RI-1120S instructions
• R.I. Gen. Laws Section 44-11-2.3
• RI Division of Taxation, 2026 Summary of Legislative Changes
• 2025 RI Schedule PTE, Pass-through Entity Election Tax Schedule
• 2025 Form RI-1065
• Form BUS-EST, Business Tax Estimated Payment Form
• ADV 2026-15, June Estimated Payment Due Date Reminder

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.