New Jersey PTET 2026: deadline, rate, who can elect
New Jersey (NJ), 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
The Pass-Through Business Alternative Income Tax remains in effect for 2026. The current PTE-100 instructions use the same three-bracket table as the 2025 instructions.
Who can elect
A partnership, a federal S corporation with a New Jersey S election, or an LLC classified as a partnership or an S corporation, with at least one individual, estate, or trust member liable for gross income tax on the share.
Single-member LLCs and sole proprietorships cannot elect.
How the election is made
Annual electronic election by the entity, before any estimated payment and on or before the original PTE-100 due date. Revocable electronically through that same original due date. Not retroactive.
Register with the Division of Revenue before electing.
Election deadline
The current instructions state the calendar-year 2026 PTE-100 is due March 15, 2027. The election is due on or before that original due date and before any estimated payment.
The FAQ's March 15 calendar-year rule matches March 15, 2027. An extension does not extend the election.
Rate
Over $0 but not over $250,000: 5.675% minus $0. Over $250,000 but not over $1,000,000: 6.52% minus $2,112.50. $1,000,000 and over: 10.9% minus $45,912.50.
Marginal rates are 5.675 percent, then 6.52 percent, then 10.9 percent, on distributive proceeds. Partnership sourcing: all income of resident individuals, estates, and trusts, and New Jersey-source income of other members. S corporations: New Jersey-source income.
Owner relief
A refundable credit for the member's share on the gross income tax or corporation business tax return.
Corporate members may also have a credit under N.J.S.A. 54:10A-5.43. Report the share on Schedule PTE-K-1. The older 20-year carryforward limitation is not restated.
Estimates
Electronic installments on or before the 15th of the fourth, sixth, and ninth months and the first month of the next year.
A weekend or holiday moves the date to the next business day. The first year of an election has the N.J.S.A. 54A:9-6 safe harbor described in the FAQ. PTE-200-T is a six-month extension and requires 80 percent of the current-year tax. No separate dollar threshold was verified.
Sunset or repeal
No sunset date is stated on the Division pages or in the current PTE-100 instructions reviewed.
This records the documents reviewed on October 24, 2026.
Still open in the source review
- The IRC conformity date was not verified.
- IRC 168(k) treatment was not verified.
- IRC 179 treatment was not verified.
- Add-back and subtraction mechanics were not verified.
Sources for this year
2025
Last verified October 24, 2026.
Elective PTET
Yes
New Jersey's Pass-Through Business Alternative Income Tax, N.J.S.A. 54A:12, applies to years beginning on or after January 1, 2020. The brackets below are the three-bracket table in the 2025 PTE-100 instructions, enacted as the P.L. 2021, c. 419 amendment. The older four-bracket schedule is not used.
Who can elect
A partnership, a federal S corporation that has made the New Jersey S election, or an LLC classified as a partnership or an S corporation, with at least one member who is an individual, estate, or trust liable for gross income tax on that member's share.
A single-member LLC and a sole proprietorship cannot elect.
How the election is made
The entity makes an annual electronic election before any estimated payment and on or before the original PTE-100 due date. It cannot be made retroactively. It can be revoked electronically on or before that same original due date.
The entity must be registered with the Division of Revenue first. The current FAQ and the 2025 instructions are the sources. An older description that every owner must consent is not restated, because the current FAQ describes an entity election.
Election deadline
The original due date of the 2025 PTE-100 is March 16, 2026, because March 15, 2026, is a Sunday. The election must also precede any estimated payment.
The FAQ states March 15 for a calendar-year filer. The 2025 instructions move that original due date to the next business day. An extension does not extend the election.
Rate
Over $0 but not over $250,000: 5.675% minus $0. Over $250,000 but not over $1,000,000: 6.52% minus $2,112.50. $1,000,000 and over: 10.9% minus $45,912.50.
That tax-table form is marginal. It is 5.675 percent on the first $250,000, 6.52 percent on the next $750,000, and 10.9 percent above $1,000,000. The base is distributive proceeds. Partnerships source all income of resident individuals, estates, and trusts, and New Jersey-source income of other members. S corporations use New Jersey-source income. The sourcing follows the NJ-1065 or CBT-100S.
Owner relief
A refundable credit for the member's share, claimed on the gross income tax or corporation business tax return.
The current Division overview calls the credit refundable. The FAQ confirms a tax credit. A corporate member includes the distributive share in entire net income and may be entitled to a corporation business tax credit under N.J.S.A. 54:10A-5.43. The share is reported on Schedule PTE-K-1. An older corporate minimum-tax and 20-year carryforward limitation was not reconfirmed on the current overview and is not stated.
Estimates
Electronic quarterly payments on or before the 15th day of the fourth, sixth, and ninth months of the tax year and the first month of the following year. Calendar dates are April 15, June 15, September 15, and January 15, or the next business day.
The election must come before any estimated payment. In the first year of an election, the FAQ describes a safe harbor under N.J.S.A. 54A:9-6 against a penalty for failing to make estimates. Form PTE-200-T extends the return six months and requires 80 percent of the current-year tax to be paid. It does not extend the time to pay. A dollar threshold for estimates was not verified and is not stated.
Sunset or repeal
No sunset date is stated on the Division pages or in the 2025 PTE-100 instructions reviewed.
The tax has been in effect for years beginning on or after January 1, 2020. This records those documents, not a full statutory search.
Still open in the source review
- The IRC conformity date was not verified.
- IRC 168(k) treatment was not verified.
- IRC 179 treatment was not verified.
- Add-back and subtraction mechanics were not verified.
Sources for this year
Bonus-depreciation conformity is on its own page.