Oklahoma PTET 2026: deadline, rate, who can elect
Oklahoma (OK), tax year 2026, from the same rules the connector returns. Last verified October 24, 2026.
Informational. Not tax advice.
Elective PTET
Yes
For tax years beginning on or after January 1, 2022, 68 O.S. § 2355.1P-4 levies the pass-through entity tax on each electing pass-through entity. Any entity required to file an Oklahoma partnership return or an Oklahoma S corporation return may elect.
Who can elect
Any entity required to file an Oklahoma partnership income tax return or an Oklahoma S corporation income tax return may elect. The 2026 partnership instructions say an election by one pass-through entity is not binding on any other pass-through entity.
Eligibility is 68 O.S. § 2355.1P-4(F). Each entity elects for itself.
How the election is made
The 2026 partnership instructions say the entity elects by filing Form 586 or by making the election on Form 514. A first-time election checks the first-year box on Form 514 and includes Form 586. The election has priority over and revokes a composite election or an S corporation's nonresident-shareholder tax for the same year. Each pass-through entity elects for itself. Form 514-PT is the composite supplement. The electing tax is computed on Form 587-PTE.
Form 514-PT is not the electing-tax form. Form 587-PTE computes the electing tax.
Election deadline
For a tax year beginning on or after January 1, 2020, 68 O.S. § 2355.1P-4 says the election may be filed at any time during the preceding tax year, or within two months and fifteen days after the beginning of the tax year, or by filing a timely income tax return, including any extension. The election is binding until revoked.
The statute states two months and fifteen days. It does not state a calendar date.
Rate
68 O.S. § 2355.1P-4 multiplies an individual, trust, or estate member's Oklahoma distributive share by the highest marginal income-tax rate on natural persons under § 2355, and multiplies a corporate member that is not an S corporation, a pass-through-entity member, or a financial-institution member's share by 4 percent. A member that is an organization described in § 2359 is multiplied by the highest marginal rate that would apply to the item without the election. The 2026 partnership instructions compute that tax as 4.5 percent for individual and trust members and 4 percent for corporate, S corporation, and partnership members.
The statute states the highest marginal rate and the 4 percent categories. The 4.5 percent figure is the 2026 instructions' computation for individual and trust members. The instructions do not state 4.5 percent for estates.
Owner relief
The 2026 instructions say a member may exclude the Oklahoma income or loss covered by the election, citing 68 O.S. § 2358(A)(11). Section 2355.1P-4(E) says a nonresident individual member need not file an Oklahoma return if the only Oklahoma-source income is from electing pass-through entities that file and pay the tax.
The exclusion is in the instructions and § 2358(A)(11). The nonresident filing rule is in § 2355.1P-4(E).
Estimates
The pass-through entity tax is due on the same date as the electing entity's Oklahoma income tax return. For tax years beginning on or after January 1, 2020, estimated tax payments are required as provided in 68 O.S. § 2385.9. Section 2355.1P-4 does not state those payment dates. The 2026 partnership instructions say electing pass-through entities use Form OW-8-ESPTE or Form EF-PTE.
The statute requires estimates and does not list the dates. The instructions name the estimate form.
Sunset or repeal
The election is binding until revoked. A revocation within two months and fifteen days of the taxable year is effective the first day of that year. A revocation later in the year is effective the first day of the following year. The Tax Commission may revoke the election if the tax is not paid when due, effective for the first year the tax is not paid. The section does not state a calendar end date. A net entity loss may be carried back and forward under § 2358(A)(3)(b).
Revocation timing is in § 2355.1P-4. There is no stated repeal date.
Sources for this year
Bonus-depreciation conformity is on its own page.