Montana PTET 2026: deadline, rate, who can elect
Montana (MT), tax year 2026, from the same rules the connector returns. Last verified October 24, 2026.
Informational. Not tax advice.
Elective PTET
Yes
Senate Bill 554 created an elective tax for partnerships and S corporations.
Who can elect
Partnerships and S corporations. Affected owners are individuals, estates, trusts, and pass-through entities owned directly or indirectly by individuals, estates, or trusts.
The election applies to every affected owner's Montana-source distributive share. A resident-income election is optional.
How the election is made
A representative designated by the entity makes the election annually on Form PTE.
The page says the election is made on the timely filed form.
Election deadline
The extended due date of the return. The election cannot be made after that date and is irrevocable.
The page states that limit.
Rate
5.9 percent of an affected owner's distributive share of Montana-source income.
The page states that rate. A separate election can include a Montana resident's entire distributive share.
Owner relief
An owner that is not a pass-through entity may claim the distributive share of the owner's entity tax paid by an electing pass-through entity as a refundable credit against the taxes under chapter 30.
Mont. Code Ann. § 15-30-3328(1). Subsection (4) says these sections do not prevent a resident owner from claiming the credit for taxes paid to another state under § 15-30-2302.
Estimates
Required when the election is made and the annual amount, after flow-through payments or prior overpayments, is more than $500, unless it is the first election year or the current liability after credits and withholding is under $500. Installments are the lesser of four equal payments of 100 percent of the prior-year tax or 90 percent of the current-year tax. Calendar dates are April 15, June 15, September 15, and January 15, or the next business day.
The entity must make the payments. The Department will not move an owner's estimates to the entity.
Sunset or repeal
Sections 15-30-3325 through 15-30-3328 were read through the last subsection of each. They do not state an end date. The election under § 15-30-3327 must be made annually.
Each section's history line is Chapter 702, Laws of 2023. No later subsection states an expiration.
Still open in the source review
- The page refers to PTET credits in the estimate rules. It does not separately describe the owner's claim.
Sources for this year
Bonus-depreciation conformity is on its own page.