Side-by-side at $1,000,000 qualified income, 37% bracket
| Field | Alabama | Georgia |
|---|---|---|
| Statute | Code of Alabama 1975 § 40-18-24.2 (Electing Pass-Through Entity Tax); definitions at § 40-18-1 and § 40-18-160 | O.C.G.A. § 48-7-23 (PTE election); HB 149 (2021) |
| Election deadline | Election via Form PTE-E submitted online through My Alabama Taxes at any time during the tax year or on or before the 15th day of the third month following close of the tax year (March 15 for calendar-year filers). | Annual irrevocable election made by checking the box on a timely-filed (including extensions) Form 700 (partnership) or Form 600S (S corp). Election must be made by the due date or extended due date of the entity return. |
| Rate | 5.00% flat | 5.39% flat |
| Owner credit | refundable | non-refundable |
| Composite interaction | forced-out | stacks |
| §199A QBI reduction | Yes | Yes |
| Last verified | 2026-05-11 | 2026-05-11 |
Reference federal-arbitrage computation
Both scenarios assume $1,000,000 qualified net income, a 37% owner federal bracket, and no apportionment. Both reduce §199A QBI base proportionally; net benefit shown is the federal SALT-arbitrage less the rough QBI offset (~20% × bracket × entity tax).
Entity-level tax: $50,000. Net of QBI offset (~$3,700): $14,800.
Entity-level tax: $53,900. Net of QBI offset (~$3,989): $15,954.
Why owners with K-1 income across these two states care
Alabama and Georgia interact in three ways that matter to a multi-state K-1 holder: (1) independent elections — each state's PTET is its own election with its own deadline and form, so a missed AL deadline does not affect GA; (2) aggregate federal deduction — the entity-level tax paid to BOTH states is deductible at the federal entity level under IRS Notice 2020-75, so the federal arbitrage compounds; (3) composite-return interaction may differ — see each state's row above.
Run the multi-state picker pre-filled with both jurisdictions: