What is the Nebraska PTET rate?

Nebraska's PTET rate is 4.55% flat. NE DOR PTET FAQ rate table: 2026 = 4.55%

Is the Nebraska owner credit refundable?

Nebraska's PTET owner credit is refundable.

Does Nebraska PTET affect composite-return filing?

Stacks. See the composite-vs-PTET page for the full matrix.

Nebraska · NE

Nebraska Pass-Through Entity Tax (PTET)

Nebraska'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: Neb. Rev. Stat. § 77-2727(6) and § 77-2734.01(8) (PTET Election); LB 754 (2023)
State DOR portal: https://revenue.nebraska.gov/tax-credits/nebraska-pass-through-entity-tax-ptet
Election deadline: Election made on or before the due date (including approved extensions) of the partnership's or S corp's Nebraska return. Submitted via Nebraska DOR secure file-sharing system OR by checking Box 5 on the applicable Nebraska income tax return.
Election form: Form PTET-E (PTE Election); Form 1065N (partnership) or Form 1120-SN (S corp)
Entity-level rate: 4.55% — NE DOR PTET FAQ rate table: 2026 = 4.55%
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: 2026-05-12

Source: revenue.nebraska.gov/tax-credits/nebraska-pass-through-entity-tax-ptet + Form PTET-E. NE PTET is RETROACTIVE to 2018 — taxpayers can file amended elections.

IRC §164(b)(6)Notice 2020-75 IRC §199A

Reference computation

For a Nebraska pass-through entity with $500,000 of qualified net income allocated to this state, at a 37% federal marginal bracket, the entity-level PTET and federal-deduction math is:

Nebraska — reference example

QBI allocation·NE rate= Entity-level tax

$500,000×5%=$22,750

Neb. Rev. Stat. § 77-2727(6) and § 77-2734.01(8) (PTET Election); LB 754 (2023)

Entity tax·Federal bracket= Federal deduction (gross)

$22,750×37%=$8,418

At a 37% federal bracket, the entity-level deduction saves $8,418 in federal tax. Net of §199A QBI offset (~20% × bracket × entity tax = $1,684), aggregate benefit is approximately $6,734.

IRS Notice 2020-75

Run the picker pre-filled for Nebraska

Election walkthrough

Verify eligibility. Nebraska accepts: s-corp, partnership, llc-as-s, llc-as-partnership. Publicly traded partnerships excluded.
Check the deadline. Election made on or before the due date (including approved extensions) of the partnership's or S corp's Nebraska return. Submitted via Nebraska DOR secure file-sharing system OR by checking Box 5 on the applicable Nebraska income tax return. Election applies for tax years beginning on and after January 1, 2018 (retroactive enactment 2023).
Compute the entity-level tax. Apply the 4.55% rate to qualified net income.
Pay and file. Use Form PTET-E (PTE Election); Form 1065N (partnership) or Form 1120-SN (S corp). 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.

Nebraska PTET — common questions

Annual deadline reminder

State PTET law revises annually. Nebraska's data was last verified on 2026-05-12. Re-confirm with the state DOR primary source before electing or filing. Last full-site review: 2026-05-12.

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Reference computation

For a Nebraska pass-through entity with $500,000 of qualified net income allocated to this state, at a 37% federal marginal bracket, the entity-level PTET and federal-deduction math is:

Entity tax·Federal bracket= Federal deduction (gross)

$22,750×37%=$8,418

At a 37% federal bracket, the entity-level deduction saves $8,418 in federal tax. Net of §199A QBI offset (~20% × bracket × entity tax = $1,684), aggregate benefit is approximately $6,734.

IRS Notice 2020-75

Election walkthrough

Verify eligibility. Nebraska accepts: s-corp, partnership, llc-as-s, llc-as-partnership. Publicly traded partnerships excluded.

Check the deadline. Election made on or before the due date (including approved extensions) of the partnership's or S corp's Nebraska return. Submitted via Nebraska DOR secure file-sharing system OR by checking Box 5 on the applicable Nebraska income tax return. Election applies for tax years beginning on and after January 1, 2018 (retroactive enactment 2023).

Compute the entity-level tax. Apply the 4.55% rate to qualified net income.

Pay and file. Use Form PTET-E (PTE Election); Form 1065N (partnership) or Form 1120-SN (S corp). 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.

Nebraska PTET — common questions