When is the Ohio PTET 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. Disregarded entities cannot make the election.

What is the Ohio PTET rate?

Graduated rates apply; see the picker.

Is the Ohio owner credit refundable?

Ohio's PTET owner credit is refundable. Owners must ADD BACK the proportionate share of PTE-paid taxes on Ohio Schedule of Adjustments (to extent not already in federal/OH AGI), then claim REFUNDABLE credit on Ohio Schedule of Credits.

Does Ohio PTET affect composite-return filing?

Stacks. Ohio also has the older IT 4708 composite tax (5%) and IT 1140 withholding (5%). IT 4738 layered on top — entity chooses ONE of the three. See the composite-vs-PTET page for the full matrix.

Ohio · OH

Ohio Pass-Through Entity Tax (PTET)

Ohio'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: Ohio Rev. Code § 5747.38 (Electing PTE Tax); SB 246 (2022)
State DOR portal: https://tax.ohio.gov/business/pass-through-entity-and-fiduciary-income-tax/it-4738
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 form: Form IT 4738 (Electing Pass-Through Entity Income Tax Return)
Entity-level rate: [PLACEHOLDER: state DOR cite] — Ohio used 3% for tax years 2022 and 5% for 2023+; verify 2026 IT 4738 rate at tax.ohio.gov.
Eligible entities: s-corp, partnership, llc-as-s, llc-as-partnership
Owner credit: refundable — Owners must ADD BACK the proportionate share of PTE-paid taxes on Ohio Schedule of Adjustments (to extent not already in federal/OH AGI), then claim REFUNDABLE credit on Ohio Schedule of Credits.
Composite interaction: stacks — Ohio also has the older IT 4708 composite tax (5%) and IT 1140 withholding (5%). IT 4738 layered on top — entity chooses ONE of the three.
§199A QBI base reduction: Yes — Reduces federal flow-through income (Notice 2020-75).
Last verified: 2026-05-11

Source: tax.ohio.gov/business/pass-through-entity-and-fiduciary-income-tax/it-4738. Ohio has THREE pass-through tax regimes — IT 4738 is the SALT-cap workaround.

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

Election walkthrough

Verify eligibility. Ohio accepts: s-corp, partnership, llc-as-s, llc-as-partnership. Disregarded entities excluded.
Check the 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. Disregarded entities cannot make the election.
Compute the entity-level tax. Apply the 0.00% rate to qualified net income.
Pay and file. Use Form IT 4738 (Electing Pass-Through Entity Income Tax Return). 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.

Ohio PTET — common questions

Annual deadline reminder

State PTET law revises annually. Ohio'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.