How to make the Utah PTET election.

Utah’s State and Local Tax (SALT) election (Voluntary Taxable Income Election for Pass-through Entities) 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?

A partnership (including an LLC taxed as a partnership), an S corporation, or an estate or trust with Utah-source income that passes income to one or more individual owners. A disregarded entity cannot elect.

If the entity elects, it must pay for every individual owner (resident and nonresident), and individual owners cannot opt out. Business entities, estates, and trusts that are owners are not covered. Only the entity that has the individual as a direct owner can elect; an upper-tier entity cannot pay for income that passes through a lower-tier entity.

Rate: 4.45% for tax years beginning in 2026. The SALT tax rate is the individual income tax rate in Utah Code Section 59-10-104(2), which 2026 S.B. 60 cut from 4.5% to 4.45% for taxable years beginning on or after January 1, 2026.

Voluntary taxable income: all income attributed to resident individual owners (except income taxed by another state), plus Utah-source business and nonbusiness income attributed to nonresident individual owners. The entity cannot exclude any type of voluntary taxable income.

Available for 2026. The election was originally limited to tax years beginning from January 1, 2022 through December 31, 2025; 2026 H.B. 77 removed that end date, effective May 6, 2026 and applying to tax years beginning on or after January 1, 2026. New to PTET? See how the election works.

Deadlines

Step	Due for 2026
SALT Report and payment (election)	December 31, 2026
TC-65 or TC-20S return	April 15, 2027
Extended TC-65 (partnerships)	September 15, 2027
Extended TC-20S (S corporations)	October 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: December 31, 2026 for a calendar-year 2026 entity. The election is made by filing the SALT Report and paying the tax on or before the last day of the entity's taxable year. Payments made after that date do not count and are refunded.

Go to Taxpayer Access Point (TAP) at tap.utah.gov and click the link for 'File SALT Report.' No TAP login is needed.
Fill out Form TC-75, State and Local Tax (SALT) Report: the legal business name, FEIN, organizational structure, sub entity type, and the last day of the 2026 tax year as the Filing Period.
Enter each individual owner on a separate row: SSN, first and last name, an X if the owner is a Utah resident or part-year resident, the total state taxes paid to Utah and any other state for that owner, and the Utah tax being paid for that owner. List individuals only.
Make the online SALT tax payment and submit the SALT Report on or before December 31, 2026. The payment is the election and is irrevocable for 2026.
Report the SALT tax on the 2026 TC-65 or TC-20S (Schedule N and Schedule K-1) and give each owner a Utah Schedule K-1 showing the tax paid.

Paying the tax, step by step

No quarterly estimates or prepayments are required for the SALT tax. The full amount must be paid by December 31, 2026 for a calendar-year entity.

What you need

Nothing to set up. Taxpayer Access Point (TAP), File SALT Report takes payments without an account.
The business's legal name, FEIN, and mailing address.
Each individual owner's name, SSN, Utah residency, and total state taxes paid to Utah and other states.
The bank or card details for the electronic payment.

Start at Taxpayer Access Point (TAP), File SALT Report, Utah's official site.

Go to TAP at tap.utah.gov and click 'File SALT Report.' A TAP login is not needed.
Complete the SALT Report for every individual owner and figure the SALT tax on voluntary taxable income.
Make the online payment and submit the report together. The SALT Pass-through (SLW) account does not accept a payment without a report.
Pay by December 31, 2026. Payments made after the last day of the tax year do not count and are refunded.
Keep the TAP payment confirmation number. An amended SALT Report asks for it on the Prior Payments tab.

Filing the return: The TC-75 SALT Report is the election and payment. The entity then reports the SALT tax on its regular return, Form TC-65 (partnerships) or TC-20S (S corporations), on Schedule N and Schedule K-1. Both returns are due April 15, 2027 for a calendar-year 2026 entity.

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

Claiming the credit

Each individual owner gets a nonrefundable credit equal to the SALT tax paid on their share. Owners add the tax back to income on Form TC-40A, Part 1 (code 67), and claim the credit on TC-40A, Part 4 (code AP). Unused credit carries forward up to 10 years. The entity reports the amount on the Utah Schedule K-1, line 17, using code AP.

Good to know

The deadline is the last day of the entity's tax year (December 31 for calendar-year entities), not the return due date, so the tax must be estimated before the year closes.
SALT tax paid for nonresident individual owners reduces the entity's Utah pass-through withholding for those owners on Schedule N.
An amended SALT Report can correct names, SSNs, residency, and how the tax is split among owners, but cannot change the total tax paid.
Starting in 2026, H.B. 77 adds a penalty when an entity reports SALT tax on a Utah Schedule K-1 but does not pay some or all of it.
The entity must give each owner a Utah Schedule K-1 showing the voluntary taxable income and SALT tax paid; the penalty for failing to do so is up to $100 per K-1.
Paying your personal Utah estimates? See how to pay Utah estimated taxes.
Business in more than one state? Each state has a guide of its own.

Official sources

Checked October 2026 against the Utah State Tax Commission's own publications and Utah Code Section 59-10-1403.2(2); owner credit at Section 59-10-1045.

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.