New York City PTET 2026: deadline, rate, who can elect
New York City (NYC), tax year 2026, from the same rules the connector returns. Last verified October 24, 2026.
Informational. Not tax advice.
Elective PTET
Yes
The New York City pass-through entity tax is optional for tax years beginning on or after January 1, 2022.
Who can elect
An eligible city partnership with at least one partner or member who is a city taxpayer, or an eligible city resident S corporation whose shareholders are all city taxpayers. The entity must also elect the New York State PTET for the same year. Single-member LLCs that are not S corporations, sole proprietorships, trusts, nonprofits, and corporations that are not New York S corporations cannot opt in.
The city page states who can elect.
How the election is made
An authorized person, not a tax professional, elects online through the entity's Business Online Services account, on the same application and at the same time as the New York State PTET election.
A city resident S corporation must certify that every shareholder is a city taxpayer.
Election deadline
On or after January 1 and no later than March 15. The election is irrevocable after March 15. A Saturday, Sunday, or legal holiday moves the due date to the next business day.
The election is annual. A fiscal-year entity uses the calendar year in which its fiscal year ends.
Rate
3.876 percent of New York City pass-through entity taxable income.
The calculation page says to multiply NYC PTE taxable income by 3.876 percent.
Owner relief
A credit equal to the direct partner's, member's, or shareholder's share of the NYC PTET. Credits may go only to direct owners who are city residents taxable under Article 30, and the total credits reported cannot exceed the tax paid.
The calculation page states the credit. The city page says the credit is claimed on the New York State income tax return.
Estimates
Quarterly payments of at least 25 percent of the required annual payment. That payment is the lesser of 90 percent of the current-year NYC PTET or 100 percent of the preceding year's NYC PTET. If the entity did not opt in for the preceding year, the required payment is 90 percent of the current-year tax.
The city page states that rule. It says an electing entity cannot make estimated payments after the limit stated there.
Sunset or repeal
Not verified. The pages reviewed do not state a sunset.
Still open in the source review
- New York City is separate from the New York State PTET file.
Sources for this year
Bonus-depreciation conformity is on its own page.