Maryland PTET 2026: deadline, rate, who can elect
Maryland (MD), tax year 2026, from the same rules the connector returns. Last verified October 24, 2026.
Informational. Not tax advice.
Elective PTET
Yes
Tax-General §10-102.1 requires a pass-through entity to pay tax on the shares of nonresident and nonresident-entity members, and it allows the entity to elect to pay the tax on the shares of all members. The 2026 Form 510/511D is the declaration used for that election.
Who can elect
Tax-General §10-102.1(a)(7) defines a pass-through entity as an S corporation, a partnership, a limited liability company that is not taxed as a corporation under the title, or a business trust or statutory trust that is not taxed as a corporation. A member is a shareholder of an S corporation, a general or limited partner, a member of a limited liability company, or a beneficiary of a business trust or statutory trust.
The definition is in §10-102.1(a)(4) and (a)(7).
How the election is made
Check Box A on the 2026 Form 510/511D to elect tax on all members' shares. For tax years beginning after December 31, 2022, that choice on the first filing is irrevocable, and an entity that checks Box A files Form 511 as the year-end return. Box B is the payment of tax only on behalf of nonresident members, which the statute requires even without the election. If neither box is checked on the first filing, the Comptroller treats the entity as paying only for nonresident members. If both boxes are checked, the Comptroller treats the entity as electing tax on all members' shares.
Box A is the election. Box B is the mandatory nonresident payment.
Election deadline
The 2026 Form 510/511D says that for tax years beginning after December 31, 2022, the election must be made with the first filing of the tax year and is irrevocable. The Comptroller's April 13, 2026 tax alert says that for tax year 2026 the Comptroller will ignore an election or nonelection made with the first-quarter estimated payment and will honor the election or nonelection made with the next filing or payment after April 15, 2026. For most pass-through entities that next filing is the second-quarter estimated payment. The alert does not state a calendar date for that second-quarter payment.
The standing rule is the first filing of the tax year. The April 13, 2026 alert is a 2026-only exception. April 15, 2026 is the date after which the next filing is honored, not a general election deadline.
Rate
The 2026 Form 510/511D says an electing pass-through entity's tax is 6.50 percent, the top marginal state rate, plus 2.25 percent, the lowest local rate, of members' pass-through entity taxable income, and 8.25 percent for entity members. The form and the April 13, 2026 tax alert say that for tax year 2026 the tax is imposed on resident and nonresident shares attributable to Maryland. Tax-General §10-102.1 caps the tax at the members' shares of distributable cash flow and states the rate by cross-reference to §§10-106.1, 10-105(a), and 10-105(b).
The percentages are on the 2026 form. The statute states the rate by cross-reference and states the distributable-cash-flow cap. The percentages are not added together.
Owner relief
Tax-General §10-102.1(e) and §10-701.1 allow a member a credit for the member's proportionate share of the tax paid by the pass-through entity under §10-102.1. The 2026 Form 510/511D says the entity issues Maryland Schedule K-1 (510/511) and the member claims the credit on the member's own return.
The credit is in the statute. The form says how the member claims it.
Estimates
The 2026 Form 510/511D says that when the tax is expected to exceed $1,000, the pass-through entity must make quarterly estimated payments. The worksheet computes estimated tax due per quarter as one-fourth of the year's estimated tax. The form says to file Form 510/511D on or before the 15th day of the 4th, 6th, 9th, and 12th months following the beginning of the tax year for S corporations, or by the 4th, 6th, 9th, and 13th months for partnerships, limited liability companies, and business trusts. The April 13, 2026 tax alert says a pass-through entity that already paid the 2026 first quarter on the prior resident-everywhere calculation may adjust the remaining quarters, and that 2026 estimates stay on Maryland-source income.
The form states the installment schedule and the one-fourth worksheet. The alert states the 2026 adjustment. Neither page names a single calendar due date for every entity.
Sunset or repeal
The sections reviewed do not state an end date. The April 13, 2026 tax alert says the 2026 Budget Reconciliation and Financing Act postponed the resident-everywhere tax base to tax year 2027, so the 2026 tax stays on Maryland-source shares. The alert says 2027 calculation guidance will be issued separately.
No end date is stated. The 2027 change is a postponed tax-base rule, not a repeal.
Sources for this year
Bonus-depreciation conformity is on its own page.