Hawaii PTET 2026: deadline, rate, who can elect

Elective PTET

Yes

HRS section 235-51.5 allows partnerships and S corporations to elect to pay Hawaii income tax at the entity level.

• Hawaii Department of Taxation, pass-through entity taxation

Who can elect

A partnership, including an LLC treated as a partnership and excluding a publicly traded partnership, or an S corporation. A single-member LLC can elect only if it is taxed as an S corporation. A qualified member is an individual, trust, or estate. An entity with no qualified members cannot elect.

Act 50, SLH 2024, is the source of the qualified-member definition on the page.

• Hawaii Department of Taxation, pass-through entity taxation

How the election is made

File Form N-362E, the pass-through entity tax election. The election is made for each tax year.

The page states the form and the filing deadline.

• Hawaii Department of Taxation, pass-through entity taxation

Election deadline

Form N-362E is due the 20th day of the fourth month after the close of the taxable year, or the 20th day of the tenth month if an extension is granted. An extension is automatic if the electing entity pays the properly estimated tax.

The Department FAQ states that deadline.

• Hawaii Department of Taxation, pass-through entity taxation

Rate

9 percent for tax year 2024 and later.

The page says Act 50, SLH 2024, changed the rate to 9 percent, and that 2024 and forward are 9 percent. Tax year 2023 was the highest individual rate, then 11 percent.

• Hawaii Department of Taxation, pass-through entity taxation

Owner relief

Eligible members receive a Hawaii income tax credit for their pro rata share of the tax paid. Unused credit carries forward until exhausted. A qualified member adds back that member's share of the tax paid by the electing entity.

Act 50, SLH 2024, and Act 58, SLH 2025, are the changes the page describes.

• Hawaii Department of Taxation, pass-through entity taxation

Estimates

Not verified. The page says electing entities may make estimated payments and should adjust them for the 9 percent rate. It does not state the 2026 due dates.

• Hawaii Department of Taxation, pass-through entity taxation

Sunset or repeal

Not verified. The page does not state a sunset.

• Hawaii Department of Taxation, pass-through entity taxation