Rhode Island Pass-Through Entity Tax (PTET)
Rhode Island'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.
- Election deadline
- [PLACEHOLDER: state DOR cite] — election deadline to be pinned to RI-1065/RI-1120S instructions.
- Election form
- RI Schedule PTE (attached to RI-1065 partnership return, RI-1120S S corp return, or RI-1041 trust return)
- Entity-level rate
- 5.99% — 5.99% (RI top individual marginal rate) — used for both PTE elective tax and nonresident composite. Confirm 2026 rate in 2025 RI-1065 instructions.
- 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: tax.ri.gov/tax-sections/corporate-tax/pass-through-entities + 2025 RI-1065 Instructions. RI was one of the EARLIEST adopters (2019).
Reference computation
For a Rhode Island 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:
At a 37% federal bracket, the entity-level deduction saves $11,082 in federal tax. Net of §199A QBI offset (~20% × bracket × entity tax = $2,216), aggregate benefit is approximately $8,865.
Election walkthrough
- Verify eligibility. Rhode Island accepts: s-corp, partnership, llc-as-s, llc-as-partnership.
- Check the deadline. [PLACEHOLDER: state DOR cite] — election deadline to be pinned to RI-1065/RI-1120S instructions. Starting tax year 2024, PTE election is reported on a SCHEDULE integrated into Forms RI-1041, RI-1065, RI-1120S — Form RI-PTE no longer standalone.
- Compute the entity-level tax. Apply the 5.99% rate to qualified net income.
- Pay and file. Use RI Schedule PTE (attached to RI-1065 partnership return, RI-1120S S corp return, or RI-1041 trust 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.
Rhode Island PTET — common questions
State PTET law revises annually. Rhode Island'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.