NYS Pass-Through Entity Tax – 2026 Election

18 Feb NYS Pass-Through Entity Tax – 2026 Election

 NYS Pass-Through Entity Tax
2026 Election & Important Dates

Filing season is upon us at Fuller Lowenberg & Co. and we are working diligently to prepare all of your corporate federal and state tax filings; we wanted to remind you that the New York State Pass-Through Entity Tax (PTET) election requires annual action. Please note:

• The PTET election is not mandatory and may not be beneficial for all taxpayers.
• Recent federal tax law changes may impact whether opting in is advantageous for you.
• If you have not already discussed your PTET election with us please contact your Fuller Lowenberg advisor to determine if the 2026 election is appropriate for your situation.

2026 ELECTION

In order to take advantage of the benefits of the PTET in 2026, the annual election must be made by March 16, 2026.

As in previous years, this election must be made via your NYS Online Services Account by an authorized person. It cannot be made by a tax professional on behalf of their clients. Here is a link to a video showing how to make the election: NYS PTET Election Walkthrough

Please note: If you are an S Corporation making the election for 2026, there are two options to choose from when selecting entity type:

• Resident S corporation – This option should be selected by any entity that certifies that all shareholders are NYS residents as of the date of the election.
• Standard S corporation – If the entity cannot certify that all shareholders are NYS residents, select this option.

Once the election is made, please send confirmation to your tax advisor at Fuller Lowenberg. By making this election, additional tax filings, calculations, projections and estimated tax payments will be necessary. These items will all be subject to additional fees that are not included in your standard tax preparation fees or retainer.

NEW YORK CITY ELECTION

NYC has instituted its own PTET and when entities make their election for the 2026 NYS Election, they’ll also have the option to elect into the NYC PTET for 2026. In order to opt in:

Partnerships – At least 1 member must be a NYC resident individual.

S Corporations – It is choosing to be taxed as a resident S corporation (mentioned above) and all shareholders are NYC resident individuals.

PLEASE NOTE: NYC PTET Eligibility is based on the residency of the owner. NYC Revenue or physical location of the business is not relevant. If there are no NYC residency ties to entity ownership, the entity should opt-out of the NYC PTET Election.

2026 ESTIMATED TAX PAYMENTS

Once the election is made, the entity is obligated to make quarterly estimated tax payments via their NYS Online Service Account as well, with the first payment due on March 16, 2026. If not already provided, please reach out to your tax advisor at Fuller Lowenberg to discuss.

RECAP OF IMPORTANT PTET DEADLINES:

March 16^th, 2026

• 2026 Pass-through Entity Election
• 2026 1^st Quarter Estimate for Pass-Through Entity Tax (if election is made)

June 15^th, 2026

• 2026 2^nd Quarter Estimate for Pass-Through Entity Tax (if election is made)

September 15^th, 2026

• 2026 3^rd Quarter Estimate for Pass-Through Entity Tax (if election is made)

December 15^th, 2026

• 2026 4^th Quarter Estimate for Pass-Through Entity Tax (if election is made)

For a pdf version, click here: 2026 PTET Election