How to make the Wisconsin PTET election.

Can your business elect?

A partnership for federal income tax purposes, including an LLC treated as a partnership, and an S corporation (tax-option corporation). A single-member LLC disregarded for federal purposes is also disregarded in Wisconsin and cannot elect on its own.

The election requires consent from owners holding more than 50% of the capital and profits (partnerships) or more than 50% of the shares (S corporations) on the day it is made. It then covers all owners. Separate owner signatures are not required, but the entity must be able to prove consent if asked. Tax-exempt owners' shares are not excluded.

Rate: 7.9% flat rate.

Net income that would be reportable to Wisconsin by the owners if no election were made: all income for Wisconsin resident owners and Wisconsin-apportioned income for nonresident owners. The entity cannot claim net operating losses, cannot deduct charitable contributions, and is limited to $3,000 of net capital loss per year.

Available for 2026. Created by 2017 Wisconsin Act 368 at Wis. Stat. Sections 71.21(6) (partnerships) and 71.365(4m) (S corporations), with 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: On or before the extended due date of Form 3 or Form 5S. For a calendar-year 2026 entity, the original due date is March 15, 2027; under an extension, the election can be made through September 15, 2027 (Form 3) or October 15, 2027 (Form 5S).

Start with 2025 Wisconsin Form 3, Partnership Return, from the Wisconsin Department of Revenue.

1. Get consent from owners holding more than 50% of the capital and profits (partnerships) or more than 50% of the shares (S corporations). Keep proof of the consent.
2. On page 1 of the 2026 Form 3, check box I, 'If the partnership is electing to pay tax at the entity level pursuant to s. 71.21(6)(a), Wis. Stats.' An S corporation checks box A7 on Form 5S, 'Electing to pay tax at the entity level.'
3. Complete Schedule 3-ET (partnerships) or Schedule 5S-ET (S corporations), Entity-Level Tax Computation, and carry the tax to Form 3, line 1.
4. File the return with the schedule by the extended due date. The election is made on the day the return is filed and must be made again each year.

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Paying the tax, step by step

Required if the tax is $500 or more, with underpayment interest under Wis. Stat. Section 71.84. Partnerships use Form 3-ES, due April 15, June 15, and September 15, 2026, and January 15, 2027. S corporations use Form Corp-ES, due the 15th day of the 4th, 6th, 9th, and 12th months (April 15, June 15, September 15, and December 15, 2026).

What you need

• Nothing to set up. My Tax Account Business Payment takes payments without an account.
• The business's FEIN and legal name.
• The 2026 tax year and payment amount.
• Bank routing and account numbers, or a card.

Start at My Tax Account Business Payment, Wisconsin's official site.

1. Go to My Tax Account at tap.revenue.wi.gov/mta, or use My Tax Account Business Payment if the business has no My Tax Account login.
2. For a partnership estimate, choose 'estimated payment' as the payment type and tax type code 01200, and select the 2026 tax year.
3. Pay by direct debit from a checking or savings account (no fee) or by credit card or another electronic option (fees may apply).
4. To pay by mail, create the Form 3-ES voucher (partnerships) or Corp-ES voucher (S corporations) on the department's Make a Payment page and mail it with the check.

Filing the return: Form 3 (partnerships) or Form 5S (S corporations), due March 15, 2027 for a calendar-year 2026 entity. Form 3 follows the six-month federal extension (September 15, 2027); Form 5S gets an automatic seven-month extension (October 15, 2027). An extension does not extend the time to pay.

Claiming the credit

Owners exclude the entity-taxed income from their Wisconsin adjusted gross income; there is no owner credit. Individuals subtract the income on Schedule SB (line 48 per the department's FAQ) and make the related tax addition on Schedule AD. The entity checks a box on each owner's Schedule 3K-1 or 5K-1 to show the election was made.

Good to know

• Resident owners cannot claim Wisconsin's credit for taxes paid to other states on income taxed at the entity level. The electing entity can claim that credit itself under Section 71.07(7)(b)3. (Schedule ET-OS).
• Pass-through withholding for nonresident owners is not required when the entity elects, unless it passes withholding through on the K-1s.
• Except for the credit for taxes paid to other states, the electing entity cannot use Wisconsin credits itself. Credits still pass through to owners, but the manufacturing and agriculture credit can offset only tax on that entity's income, so in an election year owners carry it forward (up to 15 years).
• Owners' basis is figured as if the election had not been made.
• If the entity does not pay, the Department may collect the tax from the owners based on their share of income.
• Paying your personal Wisconsin estimates? See how to pay Wisconsin estimated taxes.
• Business in more than one state? Each state has a guide of its own.

Official sources

Checked October 2026 against the Wisconsin Department of Revenue's own publications and Wis. Stat. Sections 71.21(6) and 71.365(4m).

• Wis. Stat. Chapter 71 (Sections 71.21(6) and 71.365(4m)), updated through 2025 Wis. Act 247
• Wisconsin DOR FAQ: Entity-Level Tax Partnership Election, General Questions
• Wisconsin DOR FAQ: Determining Income and Computing Tax
• Wisconsin DOR FAQ: Partner Reporting Questions
• 2025 Wisconsin Form 3 Instructions (2026 Form 3-ES dates)
• 2025 Wisconsin Form 5S Instructions
• 2025 Wisconsin Form 3, Partnership Return
• 2025 Wisconsin Form 5S, Franchise or Income Tax Return for Tax-Option (S) Corporations
• 2025 Wisconsin Form 3-ES Instructions (My Tax Account, EFT)
• Wisconsin DOR Make a Payment page

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.