Side-by-side at $1,000,000 qualified income, 37% bracket
| Field | Ohio | Michigan |
|---|---|---|
| Statute | Ohio Rev. Code § 5747.38 (Electing PTE Tax); SB 246 (2022) | MCL 206.813 (Michigan Flow-Through Entity Tax) |
| Election deadline | Form IT 4738 due April 15 after end of the entity's fiscal year (next business day if weekend/holiday). Election is binding on all owners. | Election must be made by the 15th day of the 3rd month of the FTE's tax year (March 15 for calendar-year filers) under MCL 206.813. Election submitted electronically via Michigan Treasury Online (MTO). |
| Rate | graduated / pending | 4.25% flat |
| Owner credit | refundable | refundable |
| Composite interaction | stacks | stacks |
| §199A QBI reduction | Yes | Yes |
| Last verified | 2026-05-11 | 2026-05-11 |
Why owners with K-1 income across these two states care
Ohio and Michigan 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 OH deadline does not affect MI; (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: