PTET by state
Pass-Through Entity Tax (PTET) is a state-level workaround to the federal SALT cap (IRC §164(b)(6)). IRS Notice 2020-75 confirmed that entity-paid state PTET is deductible at the entity level for federal purposes.37+ states + NYC have enacted PTET regimes; each has its own statute, deadline, rate, owner-credit treatment, and composite-return interaction. Click any state below for its detail page.
Verified states — primary-source pinned (37)
- California· 9.30%
- New York· graduated
- New York City· 3.88%
- Illinois· 4.95%
- New Jersey· graduated
- Massachusetts· 5.00%
- Alabama· 5.00%
- Arizona· 2.50%
- Arkansas· 3.90%
- Colorado· 4.40%
- Connecticut· 6.99%
- Georgia· 5.39%
- Hawaii· 9.00%
- Idaho· 5.80%
- Indiana· 2.95%
- Iowa· graduated
- Kansas· 5.58%
- Kentucky· 3.50%
- Louisiana· graduated
- Maryland· graduated
- Michigan· 4.25%
- Minnesota· 9.85%
- Missouri· graduated
- Mississippi· 5.00%
- Montana· graduated
- Nebraska· 4.55%
- New Mexico· 5.90%
- North Carolina· 3.99%
- Ohio· graduated
- Oklahoma· 4.75%
- Oregon· 9.00%
- Rhode Island· 5.99%
- South Carolina· 3.00%
- Utah· 4.50%
- Virginia· 5.75%
- West Virginia· graduated
- Wisconsin· 7.90%
Enacted, primary-source verification pending (0)
Listed as enacted by EisnerAmper and CBIZ cross-checks. Per-state primary (state DOR) pins land in the Wave 1 Agent A manifest update; pages render a placeholder card until pinned. Why we placeholder.
No PTET regime (15)
Either no state individual income tax, or no PTET workaround enacted as of our last review. Re-verify at every annual content cycle — state legislatures revisit PTET annually.
- Florida· no state individual income tax; SALT-cap workaround not applicable
- Texas· gross-receipts margin tax instead of income tax; not a classic PTET
- Tennessee· Hall income tax repealed (2021); excise/franchise tax on business entities is not a PTET
- Nevada· no state individual income tax
- South Dakota· no state individual income tax
- Washington· no state individual income tax (B&O tax is gross receipts)
- Wyoming· no state individual income tax
- Alaska· no state individual income tax
- New Hampshire· Interest & Dividends tax only; no broad income tax; not a classic PTET (and I&D tax repealed effective 2025)
- Washington DC· DC has unincorporated business franchise tax (UBT) but no SALT-cap PTET workaround as of 2026-05-11; verify
- Delaware· has not enacted PTET as of 2026-05-11; cross-check before publication
- Maine· has not enacted PTET as of 2026-05-11; cross-check before publication
- Vermont· has not enacted PTET as of 2026-05-11; cross-check before publication
- Pennsylvania· has not enacted classic PTET as of 2026-05-11; cross-check (HB 1584 pending in some years)
- North Dakota· has not enacted PTET as of 2026-05-11; cross-check before publication