Indiana PTET 2026: deadline, rate, who can elect
Indiana (IN), tax year 2026, from the same rules the connector returns. Last verified October 24, 2026.
Informational. Not tax advice.
Elective PTET
Yes
Certain pass-through entities may elect to pay tax at the entity level. The tax is retroactive to taxable years beginning on or after January 1, 2022.
Who can elect
Partnerships, S corporations, and LLCs taxed as a partnership or an S corporation. The election is not available to C corporations, trusts, sole proprietorships, or LLCs taxed as C corporations.
The FAQ states who may elect. The bulletin adds that estates and trusts cannot elect, with the pass-through rules it describes for them.
How the election is made
The election must be made by an authorized person from the eligible electing entity. For tax year 2023 the FAQ says the election is the PTET checkbox on Form IT-20S or IT-65 if Form IN-PTET is not filed. The FAQ also says you cannot make a PTET election after you have filed your original return, and you are not able to amend your return to elect PTET.
The FAQ does not restate the checkbox instruction as a 2026 sentence. The bulletin says the election cannot be revoked for the taxable year.
Election deadline
For 2023 and tax years thereafter, the election may be made at any time during the taxable year or on the entity's timely filed return, including extensions. The FAQ also says you cannot make a PTET election after you have filed your original return, and you are not able to amend your return to elect PTET.
The 2023-and-later sentence is the deadline used for 2026. The FAQ does not state a separate calendar date.
Rate
2.95 percent for 2026.
Information Bulletin 72B lists 2026 at 2.95 percent and 2027 at 2.90 percent. The FAQ says the rate is the individual rate for the tax year and its table ends with 2025 at 3.00 percent.
Owner relief
A refundable credit equal to the tax paid by the electing entity on the owner's share. A separate credit is available for pass-through entity tax paid to another state.
The Department's PTET page states both credits.
Estimates
For 2026 and later, calendar-year estimates are due April 20, June 20, September 20, and December 20. Fiscal-year estimates are due on the 20th day of the fourth, sixth, ninth, and twelfth months. A weekend or holiday moves the date to the next business day.
The FAQ states those 2026 dates.
Sunset or repeal
IC 6-3-2.1-1 says the pass-through entity tax chapter applies to taxable years beginning after December 31, 2021. The section does not state an end date.
The chapter heading lists sections 1 through 7. Section 1 is the applicability sentence.
Still open in the source review
- The FAQ rate table stops at 2025. The 2026 percentage is taken from Information Bulletin 72B.
Sources for this year
Bonus-depreciation conformity is on its own page.