Iowa · IA
Iowa Pass-Through Entity Tax (PTET)
Iowa's PTET regime is one of the 37+ state workarounds to the federal SALT cap (IRC §164(b)(6)). The election is annual, statute-pinned below, and interacts with composite filing and §199A QBI in state-specific ways.
- State DOR portal
- https://tax.iowa.gov/pass-through-entity-tax
- Election deadline
- [PLACEHOLDER: state DOR cite] — Iowa PTET election deadline to be pinned to tax.iowa.gov/pass-through-entity-tax.
- Election form
- IA PTE-C (Composite Return) and PTET schedule
- Entity-level rate
- [PLACEHOLDER: state DOR cite] — Iowa's top individual rate was 8.53% in 2022 but has declined under recent tax reform; 2026 rate to be pinned.
- Eligible entities
- s-corp, partnership, llc-as-s, llc-as-partnership
- Owner credit
- refundable
- Composite interaction
- mandatory — Iowa § 422.16B mandates composite return filing (IA PTE-C) for nonresident members starting tax year 2022; PTET layered on top.
- §199A QBI base reduction
- Yes — Reduces federal flow-through income (Notice 2020-75).
- Last verified
- 2026-05-11
Source: tax.iowa.gov/pass-through-entity-tax + tax.iowa.gov/iowa-composite-returns-2022. Iowa's PTET sits ON TOP of a mandatory composite-return regime — unusual structure.
Election walkthrough
- Verify eligibility. Iowa accepts: s-corp, partnership, llc-as-s, llc-as-partnership. Publicly traded partnerships meeting Iowa Code § 422.16B(5)(a) reporting requirements excluded.
- Check the deadline. [PLACEHOLDER: state DOR cite] — Iowa PTET election deadline to be pinned to tax.iowa.gov/pass-through-entity-tax. For tax year 2022, IDR extended the original election deadline (per tax.iowa.gov/idr-extends-2022-pass-through-entity-tax-election-deadline).
- Compute the entity-level tax. Apply the 0.00% rate to qualified net income.
- Pay and file. Use IA PTE-C (Composite Return) and PTET schedule. Quarterly estimates may be required.
- Owners claim the state credit. refundable credit on the personal state return.
- Verify composite interaction. Composite interaction: mandatory. See composite vs PTET.
- Run the federal §199A QBI math. PTET reduces the QBI base proportionally; net the federal SALT-arbitrage against the §199A offset.
Iowa PTET — common questions
Annual deadline reminder
State PTET law revises annually. Iowa's data was last verified on 2026-05-11. Re-confirm with the state DOR primary source before electing or filing. Last full-site review: 2026-05-12.