What is the Wisconsin PTET rate?

Wisconsin's PTET rate is 7.90% flat. 7.9% flat (per § 71.21(6)(a) — top WI corporate rate, applied to PTE election).

Is the Wisconsin owner credit refundable?

Wisconsin's PTET owner credit is non-refundable. [PLACEHOLDER: state DOR cite] — pin owner-side mechanic from revenue.wi.gov FAQ.

Does Wisconsin PTET affect composite-return filing?

Stacks. Form PW-1 (nonresident withholding) interacts with PTE election — non-electing entities still file PW-1. See the composite-vs-PTET page for the full matrix.

Wisconsin · WI

Wisconsin Pass-Through Entity Tax (PTET)

Wisconsin'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: Wis. Stat. § 71.21(6)(a) (partnership PTE election) and § 71.365(4m)(a) (S corp PTE election)
State DOR portal: https://www.revenue.wi.gov/Pages/FAQS/ise-passthrough-tax.aspx
Election deadline: [PLACEHOLDER: state DOR cite] — exact election deadline mechanics (partnership Form 3 vs. S corp Form 5S) to be pinned in 2025 Form 3 / 5S instructions.
Election form: Form 3 (Wisconsin Partnership Return) or Form 5S (Wisconsin S Corp Franchise Return) with PTE election; Schedule 3-ET (entity-level tax computation)
Entity-level rate: 7.90% — 7.9% flat (per § 71.21(6)(a) — top WI corporate rate, applied to PTE election).
Eligible entities: s-corp, partnership, llc-as-s, llc-as-partnership
Owner credit: non-refundable — [PLACEHOLDER: state DOR cite] — pin owner-side mechanic from revenue.wi.gov FAQ.
Composite interaction: stacks — Form PW-1 (nonresident withholding) interacts with PTE election — non-electing entities still file PW-1.
§199A QBI base reduction: Yes — Reduces federal flow-through income (Notice 2020-75).
Last verified: 2026-05-11

Source: revenue.wi.gov/Pages/FAQS/ise-passthrough-tax.aspx + Form PW-1 instructions. WI was the FIRST state to enact PTE election (2018, tied with CT).

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

Reference computation

For a Wisconsin 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:

Wisconsin — reference example

QBI allocation·WI rate= Entity-level tax

$500,000×8%=$39,500

Wis. Stat. § 71.21(6)(a) (partnership PTE election) and § 71.365(4m)(a) (S corp PTE election)

Entity tax·Federal bracket= Federal deduction (gross)

$39,500×37%=$14,615

At a 37% federal bracket, the entity-level deduction saves $14,615 in federal tax. Net of §199A QBI offset (~20% × bracket × entity tax = $2,923), aggregate benefit is approximately $11,692.

IRS Notice 2020-75

Run the picker pre-filled for Wisconsin

Election walkthrough

Verify eligibility. Wisconsin accepts: s-corp, partnership, llc-as-s, llc-as-partnership.
Check the deadline. [PLACEHOLDER: state DOR cite] — exact election deadline mechanics (partnership Form 3 vs. S corp Form 5S) to be pinned in 2025 Form 3 / 5S instructions. Election filed annually; for tax years 2018+ for S corps and 2019+ for partnerships.
Compute the entity-level tax. Apply the 7.90% rate to qualified net income.
Pay and file. Use Form 3 (Wisconsin Partnership Return) or Form 5S (Wisconsin S Corp Franchise Return) with PTE election; Schedule 3-ET (entity-level tax computation). Quarterly estimates may be required.
Owners claim the state credit. non-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.

Wisconsin PTET — common questions

Annual deadline reminder

State PTET law revises annually. Wisconsin'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 Wisconsin 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)

$39,500×37%=$14,615

At a 37% federal bracket, the entity-level deduction saves $14,615 in federal tax. Net of §199A QBI offset (~20% × bracket × entity tax = $2,923), aggregate benefit is approximately $11,692.

IRS Notice 2020-75

Election walkthrough

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

Check the deadline. [PLACEHOLDER: state DOR cite] — exact election deadline mechanics (partnership Form 3 vs. S corp Form 5S) to be pinned in 2025 Form 3 / 5S instructions. Election filed annually; for tax years 2018+ for S corps and 2019+ for partnerships.

Compute the entity-level tax. Apply the 7.90% rate to qualified net income.

Pay and file. Use Form 3 (Wisconsin Partnership Return) or Form 5S (Wisconsin S Corp Franchise Return) with PTE election; Schedule 3-ET (entity-level tax computation). Quarterly estimates may be required.

Owners claim the state credit. non-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.

Wisconsin PTET — common questions