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Department of Taxation and Finance

Pass-through entity tax (PTET)

The period to opt in to PTET for tax year 2021 has ended.

The PTET is an optional tax that partnerships or New York S corporations may annually elect to pay on certain income for tax years beginning on or after January 1, 2021.

If an eligible partnership or eligible New York S corporation (electing entity) elects to pay the PTET, its partners, members, or shareholders subject to tax under Article 22 (personal income tax) may be eligible for a PTET credit on their New York State income tax returns.

The tax is imposed under Tax Law Article 24-A, which was enacted in 2021.

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