Pass-through tax rules

2026 PTET

Maine PTET 2026: deadline, rate, who can elect

Maine (ME), tax year 2026, from the same rules the connector returns. Last verified October 24, 2026.

Informational. Not tax advice.

Elective PTET

Yes

For taxable years beginning on or after January 1, 2026, section 5199-C imposes a tax on every electing pass-through entity.

Who can elect

A partnership, excluding a publicly traded partnership, or an S corporation. An entity taxed under chapter 819 is not a pass-through entity for this subchapter. A qualified member is an individual, trust, or estate that is a direct owner, other than an organization exempt under IRC section 501.

Section 5199-A states those definitions. Direct ownership includes ownership through a disregarded entity.

How the election is made

The entity declares the election annually on a timely filed return, including any extension.

Section 5199-B states the election.

Election deadline

The due date of the return, including any extension. The election is irrevocable after that date.

Section 5199-B does not state a calendar date.

Rate

Pass-through entity taxable income multiplied by the highest marginal rate under 36 M.R.S. section 5111, excluding the income tax surcharge in section 5111, subsection 7. The section does not state a percentage.

The tax may not be reduced by the credits in chapter 822.

Owner relief

A qualified member is allowed a refundable credit equal to 90 percent of the tax required to be reported to that member for the taxable year by an electing pass-through entity under section 5199-G. No credit is allowed unless the entity paid the tax imposed under chapter 815, subchapter 3, and identified the member on the pass-through entity tax return.

36 M.R.S. § 5219-CCC. The credit is against the tax imposed by Part 8.

Estimates

Estimated tax is required for the tax under section 5199-C. The requirement is waived if estimated liability is less than $1,000, or if the prior-year liability under the subchapter, excluding section 5199-D, was less than $1,000. The required amount is no less than the smaller of the prior-year liability, if that year was 12 months, or 90 percent of the current-year liability, in each case excluding section 5199-D. Installments are due the 15th day of the 4th, 6th, 9th, and 13th month following the beginning of the taxable year, generally in four equal installments. For a taxable year of less than 12 months, the estimated tax must be paid in full by the 15th day of the last month.

Section 5199-H states those rules.

Sunset or repeal

Section 5199-C imposes the tax for every taxable year beginning on or after January 1, 2026. The section does not state an end date.

The section was read through its budgetary-accounting sentence.

Still open in the source review

  • Section 5199-C uses the highest marginal rate under section 5111 and does not state a percentage.

Sources for this year

Bonus-depreciation conformity is on its own page.