Mississippi PTET 2026: deadline, rate, who can elect

Elective PTET

Yes

For calendar year 2022 and each calendar year thereafter, a partnership, S corporation, or similar pass-through entity may elect to be an electing pass-through entity.

• Mississippi Department of Revenue, Notice 80-23-002

Who can elect

A partnership, S corporation, or similar pass-through entity. Fiduciaries cannot make the election. The election needs the vote required by the governing documents, or, if those documents are silent, more than 50 percent of the voting control and a vote of any governing body.

The notice states those rules.

• Mississippi Department of Revenue, Notice 80-23-002

How the election is made

Submit Form 84-381. The election is binding for that year and later years until it is revoked on the same form.

The notice says both the election and the revocation use that form and the same vote.

• Mississippi Department of Revenue, Notice 80-23-002

Election deadline

Any time during the tax year, or by the due date or extended due date of the pass-through entity tax return, or by the date the return is filed, whichever is latest.

The notice states that timing. It does not state a single calendar date.

• Mississippi Department of Revenue, Notice 80-23-002

Rate

Not verified. Stated in the 2025 pass-through entity instructions: 0 percent on the first $5,000 of taxable income, 4 percent on the next $5,000, and 5 percent on taxable income over $10,000. Stated for TY2025; 2026 instructions were not used as the 2026 rate.

• Mississippi Department of Revenue, 2025 pass-through entity instructions

Owner relief

A tax credit for the owner's pro rata or distributive share of the tax paid by the electing entity, claimed on Form 80-161 or, for a pass-through owner, Form 84-161. Additional credits generated by the entity pass through pro rata.

The notice says credit limits apply at the owner level.

• Mississippi Department of Revenue, Notice 80-23-002

Estimates

Not verified. Stated in the 2025 instructions: a composite or electing pass-through filer with annual liability over $200 must pay estimates, at least 90 percent of current liability by quarterly payments due the 15th day of the 4th, 6th, 9th, and 12th month after year end. Stated for TY2025; 2026 instructions were not used as the 2026 dates.

• Mississippi Department of Revenue, 2025 pass-through entity instructions

Sunset or repeal

Notice 80-23-002 says that for calendar year 2022 and each calendar year thereafter a partnership, S corporation, or similar pass-through entity may elect, and that the election is binding for that year and later years until it is revoked. The notice does not state an end date.

This is the notice's duration. The operative statute was not read.

• Mississippi Department of Revenue, Notice 80-23-002