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Pass-through entity tax (PTET)

New York City Pass-through Entity Tax (NYC PTET)

The governor has signed legislation allowing eligible entities to opt in to the NYC PTET for 2022. For general guidance on NYC PTET, see TSB-M-22(1)C, (1)I, New York City Pass-Through Entity Tax. For more information on how to make the NYC PTET election, go to New York City pass-through entity tax (NYC PTET).

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.


Filing an Annual Pass-Through Entity Tax (PTET) Return

Filing an Annual Pass-Through Entity Tax (PTET) Return