What is the Virginia PTET rate?

Virginia's PTET rate is 5.75% flat. 5.75% (VA top individual rate). 2026 Appropriation Act AMENDMENTS REMOVED THE SUNSET PROVISION — PTET now permanent.

Is the Virginia owner credit refundable?

Virginia's PTET owner credit is refundable. REFUNDABLE income tax credit to PTE owners for income tax paid by PTE.

Does Virginia PTET affect composite-return filing?

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

Virginia · VA

Virginia Pass-Through Entity Tax (PTET)

Virginia'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: Va. Code § 58.1-390.3 (PTE Elective Tax)
State DOR portal: https://www.tax.virginia.gov/elective-pass-through-entity-tax-guidelines
Election deadline: PTE makes the election by (a) an estimated payment of PTET, (b) an extension payment of PTET, OR (c) filing Form 502PTET on or before the extended due date for the taxable year. Once Form 502PTET is filed, election is binding for that year.
Election form: Form 502PTET (Virginia Pass-Through Entity Tax Return)
Entity-level rate: 5.75% — 5.75% (VA top individual rate). 2026 Appropriation Act AMENDMENTS REMOVED THE SUNSET PROVISION — PTET now permanent.
Eligible entities: s-corp, partnership, llc-as-s, llc-as-partnership
Owner credit: refundable — REFUNDABLE income tax credit to PTE owners for income tax paid by PTE.
Composite interaction: stacks
§199A QBI base reduction: Yes — Reduces federal flow-through income (Notice 2020-75).
Last verified: 2026-05-11

Source: tax.virginia.gov/elective-pass-through-entity-tax-guidelines + tax.virginia.gov/sites/default/files/taxforms/corporation-and-pass-through-entity-tax/2025/502ptet-instruction-package-2025.pdf. SUNSET REMOVED in 2026 Appropriation Act — VA PTET is permanent.

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

Reference computation

For a Virginia 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:

Virginia — reference example

QBI allocation·VA rate= Entity-level tax

$500,000×6%=$28,750

Va. Code § 58.1-390.3 (PTE Elective Tax)

Entity tax·Federal bracket= Federal deduction (gross)

$28,750×37%=$10,638

At a 37% federal bracket, the entity-level deduction saves $10,638 in federal tax. Net of §199A QBI offset (~20% × bracket × entity tax = $2,128), aggregate benefit is approximately $8,510.

IRS Notice 2020-75

Run the picker pre-filled for Virginia

Election walkthrough

Verify eligibility. Virginia accepts: s-corp, partnership, llc-as-s, llc-as-partnership.
Check the deadline. PTE makes the election by (a) an estimated payment of PTET, (b) an extension payment of PTET, OR (c) filing Form 502PTET on or before the extended due date for the taxable year. Once Form 502PTET is filed, election is binding for that year. Form 502PTET due 15th day of 4th month following close of taxable year (April 15 for calendar-year filers). Must be filed AND paid electronically — no waiver from electronic filing.
Compute the entity-level tax. Apply the 5.75% rate to qualified net income.
Pay and file. Use Form 502PTET (Virginia Pass-Through Entity 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.

Virginia PTET — common questions

Annual deadline reminder

State PTET law revises annually. Virginia'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.

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Reference computation

For a Virginia 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:

Virginia — reference example

QBI allocation·VA rate= Entity-level tax

$500,000×6%=$28,750

Va. Code § 58.1-390.3 (PTE Elective Tax)

Entity tax·Federal bracket= Federal deduction (gross)

$28,750×37%=$10,638

At a 37% federal bracket, the entity-level deduction saves $10,638 in federal tax. Net of §199A QBI offset (~20% × bracket × entity tax = $2,128), aggregate benefit is approximately $8,510.

IRS Notice 2020-75

Election walkthrough

Verify eligibility. Virginia accepts: s-corp, partnership, llc-as-s, llc-as-partnership.

Check the deadline. PTE makes the election by (a) an estimated payment of PTET, (b) an extension payment of PTET, OR (c) filing Form 502PTET on or before the extended due date for the taxable year. Once Form 502PTET is filed, election is binding for that year. Form 502PTET due 15th day of 4th month following close of taxable year (April 15 for calendar-year filers). Must be filed AND paid electronically — no waiver from electronic filing.

Compute the entity-level tax. Apply the 5.75% rate to qualified net income.

Pay and file. Use Form 502PTET (Virginia Pass-Through Entity 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.

Virginia PTET — common questions