Montana · MT
Montana Pass-Through Entity Tax (PTET)
Montana'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.
- Statute
- [PLACEHOLDER: state DOR cite] — Mont. Code Ann. § 15-30-3312 or equivalent PTE election section not pinned this session.
- Election deadline
- Pending
- Entity-level rate
- Graduated
- Eligible entities
- s-corp, partnership, llc-as-s, llc-as-partnership
- Owner credit
- refundable
- Composite interaction
- stacks
- §199A QBI base reduction
- Yes — Reduces federal flow-through income (Notice 2020-75).
- Last verified
- 2026-05-11
Source: mtrevenue.gov/taxes/pass-through-entities/pass-through-withholding/. MT PTE manifest is THIN — re-research Pub 18 / Form PTE 2025 to fully pin.
Election walkthrough
- Verify eligibility. Montana accepts: s-corp, partnership, llc-as-s, llc-as-partnership.
- Check the deadline. Pending pin.
- Compute the entity-level tax. Apply the 0.00% rate to qualified net income.
- Pay and file. Use Form PTE (Montana Pass-Through Entity Tax Return); Form PT-AGR (Owner Tax Agreement). Quarterly estimates may be required.
- Owners claim the state credit. refundable credit on the personal state return.
- Verify composite interaction. Composite interaction: stacks. 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.
Montana PTET — common questions
Annual deadline reminder
State PTET law revises annually. Montana'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.