Multi-State PTE Election Comparison Calculator 2026 β 36 States
Compare PTET elections across all 36 participating states. Calculate federal SALT savings, partner credit recovery, and net benefit for K-1 pass-through income.
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Your share of partnership/S-corp/LLC income The entity's state of operation
Where you live β may also give credit for PTET paid to source state
K-1 income:
$0
Federal SALT Savings
$0
PTET Paid by Entity
$0
Partner Credit on State Return
$0
Net Federal Benefit
PTET Analysis
How PTET Saves Federal Tax
Under IRS Notice 2020-75, a PTET paid by an entity reduces the federal K-1 income flowing to partners β completely bypassing the $40,000 SALT cap.
Net Benefit Formula
PTET = K-1 Income Γ State PTET Rate
Federal Benefit = PTET Γ Federal Marginal Rate (tax saved on reduced K-1)
Partner Credit = PTET Γ State Credit % (from state personal return)
Net Benefit = Federal Benefit (CA credit offsets state cost)
Extended
3-State Side-by-Side Comparison + Multi-State K-1 Allocation
Pick 3 states to compare PTET rates, credit rules, and election deadlines β plus multi-state K-1 income split table
Select three states to compare PTET rates, credits, and net benefit side-by-side.
| Item | State 1 | State 2 | State 3 |
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All 36 PTET states ranked by federal SALT savings on your K-1 income.
| Rank | State | PTET Rate | PTET Amount | Fed Savings | Partner Credit | Net Benefit | Deadline |
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Allocate your total K-1 income across multiple states. Each state generates its own PTET savings.
| State | Allocated Income | PTET | Fed Savings | Net Benefit |
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Frequently Asked Questions
What is a Pass-Through Entity Tax (PTET) election?
A PTET election allows partnerships, S-corporations, and LLCs taxed as partnerships to pay state income tax at the entity level rather than passing the liability to individual partners/shareholders. Because the payment is made by the business entity, it is deductible as a business expense on the federal return β bypassing the $40,000 SALT deduction cap that applies to individual state taxes. The individual partner/shareholder then receives a state tax credit equal to their share of PTET paid, so there is no double taxation. This is sometimes called the "SALT cap workaround" and is recognized by the IRS under Notice 2020-75.
How many states have PTET elections?
As of 2026, approximately 36 states plus New York City have enacted PTET elections. The states include AL, AZ, AR, CA, CO, CT, GA, ID, IL, KS, LA, MD, MA, MI, MN, MO, MT, NJ, NM, NY, NC, ND, OH, OK, OR, RI, SC, UT, VA, WI, WY, and others. Each state has different rules regarding: election deadlines, partner credit rules, applicable tax rates, whether resident and nonresident partners are treated differently, and whether the election must be unanimous or can be made by a managing partner.
How does the SALT cap savings work with PTET?
Without PTET: the individual pays state income tax, but can only deduct up to $40,000 of SALT on their federal return. With PTET: the entity pays the same state tax amount, but deducts it in full as a business expense on the federal Schedule K-1. The individual's K-1 income is reduced by the PTET amount, reducing their federal taxable income β with no $40,000 cap. The net federal benefit is: PTET Amount Γ Federal Marginal Rate. If you are already below the $40,000 SALT cap (e.g., your state taxes are less than $40K), the PTET election still works but the net benefit is only the incremental amount above the cap.
Do I get a state credit for PTET paid by the entity?
In most states, yes. Partners/shareholders receive a state tax credit on their personal return equal to their allocable share of PTET paid by the entity. This prevents double taxation. However, the rules vary: (1) Some states give a 100% credit (dollar-for-dollar). (2) Some states give a partial credit (e.g., 87% in New York). (3) Some states give a credit only to resident partners, not nonresident partners. (4) If you live in a different state than the source state, you may get a credit in both states (resident state credit for tax paid to nonresident state) which can eliminate most state-level double taxation.
What is the PTET election deadline and can I miss it?
Election deadlines vary dramatically by state. California: by the 15th day of the 6th month of the tax year (June 15 for calendar year entities), also requires a prepayment. New York: by March 15 of the tax year, also requires estimated payments. New Jersey: annual election with no prepayment requirement until filing. Texas: no PTET (because TX has no income tax). Some states allow late elections or retroactive elections under certain circumstances. Missing the election deadline means you cannot use the PTET for that year β a potentially expensive mistake for high-income pass-through owners.