Pass-Through Entity (PTE) Elective Tax June 15th payment approachingTax News Flash

May 27, 2026

As a reminder, qualified entities are required to make a PTE elective tax payment on or before June 15, 2026. The payment amount is the greater of 50% of the elective tax paid the previous year or $1,000.  For taxable years beginning on or after January 1, 2026, if the qualified entity makes a valid election without the required June 15 payment, qualified taxpayers (i.e. partners, members, or shareholders) may receive a reduced PTE elective tax credit.

If a PTE elective tax payment is not properly made before the June 15 deadline, it is not a timely PTE elective tax payment. To avoid the PTE elective tax credit reduction, any errors related to the June 15 payment must be corrected on or before June 15, 2026. Franchise Tax Board cannot correct the June 15 payment after the June 15, 2026, due date.

For more information, go to Pass-through entity (PTE) elective tax.