Massachusetts PTET 2026: deadline, rate, who can elect
Massachusetts (MA), tax year 2026, from the same rules the connector returns. 2025 is below for comparison. Last verified October 24, 2026.
Informational. Not tax advice.
Elective PTET
Yes
For a tax year beginning on or after January 1, 2026, an eligible entity may elect chapter 63D, chapter 63E, or both. St. 2026, c. 101 enacted chapter 63E. The Department's elective-excise page is the source used here.
Who can elect
An S corporation, a partnership, or certain trusts that pass income to beneficiaries. Qualified members are natural persons, estates, and trusts. Members cannot opt out. A corporate partner is not a qualified member.
Chapter 63E applies to a qualified member's distributive income that is subject to chapter 62 and above the surtax threshold. A nonresident who is over that threshold and claims the chapter 63E credit files Form 1-NR/PY. The chapter 63E credit cannot be claimed on a nonresident composite return.
How the election is made
The entity elects chapter 63D, chapter 63E, or both by filing Form 63-ELT electronically with the timely original return, including extensions.
For chapter 63E election timing only, a 52- or 53-week year that begins in the last week of December 2025 is treated as beginning on January 1, 2026. Members cannot opt out.
Election deadline
The timely filed original return, including extensions. The FAQ states April 15 if the entity is a trust and March 15 if it is a partnership or an S corporation.
The election is made by filing Form 63-ELT with that return. Estimates are due even though the election itself is made on the return.
Rate
Chapter 63D: 5 percent of qualified income taxable in Massachusetts at the member level. Chapter 63E: 4 percent of each qualified member's distributive income that is subject to chapter 62 and above the surtax threshold. The 2026 inflation-adjusted threshold on the Department page is $1,107,750.
An entity may elect either excise or both. Chapter 63E is 4 percent only of the amount in excess of $1,107,750 for each qualified member, not of all qualified income.
Owner relief
A credit equal to 90 percent of the member's distributive share of each excise elected. The 2025 chapter 63D instructions treat the excess chapter 63D credit as an overpayment.
The current Department page states the 90 percent credit for qualified members of both excises. The chapter 63E credit is not claimed on a nonresident composite return. This file does not add a refund rule for chapter 63E beyond the credit the page describes.
Estimates
If the required annual payment for an excise is $400 or more, pay on April 15, June 15, September 15, and January 15. For tax year 2026 only, the underpayment penalty is waived for the first and second quarters if the entity elected chapter 63E, whether or not it also elected chapter 63D.
The waiver does not apply if the entity elected only chapter 63D. Member estimates cannot be applied to the entity. An entity that pays estimates and does not elect can request a refund by e-message after filing without the election and without passing credits on Schedules K-1. If 80 percent of the excise ultimately due is not paid by the due date, the addition to tax is computed on Form M-2210 under chapter 62B, section 14, subject to the 2026 waiver.
Sunset or repeal
Both the chapter 63D and chapter 63E excises expire for a taxable year if IRC 164(b)(6), as amended and in effect for that year, has expired or is otherwise not in effect.
As of October 24, 2026, section 164(b)(6) is still in effect for 2026, including the $10,000 cap that applies after 2029. There is no calendar sunset date in the Department materials reviewed.
Still open in the source review
- IRC 168(k) treatment for 2026 was not verified.
- IRC 168(n) treatment was not verified.
- IRC 179 limits were not verified.
- The IRC conformity date was not verified.
- The Department page states a chapter 63E credit of 90 percent. A separate statement that the chapter 63E excess is an overpayment was not copied beyond that credit.
Sources for this year
2025
Last verified October 24, 2026.
Elective PTET
Yes
For 2025 the elective excise is chapter 63D only. Chapter 63E applies to tax years beginning on or after January 1, 2026, and is not part of this 2025 file.
Who can elect
An eligible pass-through entity: an S corporation, a partnership, or certain trusts that pass income to beneficiaries.
Qualified members are natural persons, estates, or trusts, resident, nonresident, or part-year, who are shareholders, partners, or beneficiaries. A corporate partner is not a qualified member.
How the election is made
The entity makes an annual irrevocable election on its timely filed original return by filing Form 63D-ELT electronically. The election cannot be made on an amended return.
The underlying return is Form 3, Form 355S, Form 63-FI, or Form 2. Members cannot opt out.
Election deadline
The due date of the timely filed original return, including the extension rules that apply to that return. Form 63D-ELT is due when Form 3, Form 355S, Form 63-FI, or Form 2 is due.
The Department FAQ states the return due date as April 15 if the electing entity is a trust and March 15 if it is a partnership or an S corporation. The election cannot be made on an amended return.
Rate
5 percent of qualified income taxable in Massachusetts at the member level.
Chapter 63D is the only excise for 2025. The rate is 5 percent.
Owner relief
A refundable credit equal to 90 percent of the qualified member's distributive share of the chapter 63D excise paid.
The 2025 instructions treat the excess as an overpayment. A corporate partner is not a qualified member and does not claim the credit.
Estimates
If the required annual payment is $400 or more, estimates are due April 15, June 15, September 15, and January 15 for a calendar year.
The election cannot be made until the return is filed, but estimates are still due. A member's estimates cannot be applied to the entity excise. If the entity pays estimates and does not elect, it can request a refund by an e-message after filing without checking the election box and without passing credits on the Schedules K-1. If 80 percent of the excise ultimately due is not paid by the due date, the addition to tax under chapter 62B, section 14, is computed on Form M-2210. The 2026 first-and-second-quarter waiver for a chapter 63E election does not apply to 2025.
Sunset or repeal
The chapter 63D excise expires for a taxable year if the federal limitation under IRC 164(b)(6), as amended and in effect for that year, has expired or is otherwise not in effect.
G.L. c. 63D, section 3, is the conditional sunset. As of October 24, 2026, section 164(b)(6) remains in effect for 2025. There is no calendar end date in the materials reviewed. The excise did not end after 2025 merely because the original federal cap was rewritten.
Still open in the source review
- IRC 168(k) treatment for 2025 was not verified from a current form or notice.
- IRC 168(n) treatment was not verified.
- IRC 179 limits were not verified.
- The IRC conformity date was not verified.
Sources for this year
Bonus-depreciation conformity is on its own page.