South Carolina PTET 2026: deadline, rate, who can elect
South Carolina (SC), tax year 2026, from the same rules the connector returns. Last verified October 24, 2026.
Informational. Not tax advice.
Elective PTET
Yes
Beginning with tax year 2021, a qualified entity may elect to have active trade or business income taxed at the entity level.
Who can elect
A partnership, S corporation, or LLC taxed as a partnership or S corporation whose owners are all qualified owners, or partnerships owned by qualified owners. A qualified owner is an individual, trust, estate, or an entity type outside the sections the instructions name and not exempt from South Carolina income tax.
The I-435 instructions state that definition.
How the election is made
The entity elects for the year on its income tax return and uses Form I-435 to compute the tax.
The instructions say the entity reports the income taxed at entity level on the SC K-1.
Election deadline
The due date of the applicable income tax return, including extensions.
Both the I-435 instructions and the Department's ruling text state that deadline.
Rate
3 percent of South Carolina active trade or business income.
Form I-435 says to multiply taxable active trade or business income by 3 percent. The ruling says the same 3 percent rate.
Owner relief
A qualified owner excludes active trade or business income from an electing qualified entity when the entity filed and paid the tax on that income.
The ruling states the exclusion. It is not a credit.
Estimates
For tax years beginning after 2021, section 12-6-545(G)(7) requires an electing qualified entity to submit estimated tax payments pursuant to section 12-6-3910. Section 12-6-3910(A)(3)(a) sets calendar-year installment dates for taxpayers other than corporations at April 15, June 15, September 15, and January 15 of the following taxable year. Subsection (3)(b) sets calendar-year corporation dates at April 15, June 15, September 15, and December 15. Subsection (3)(c) substitutes the corresponding month when the taxable year does not begin on January 1.
The qualified-entity election incorporates section 12-6-3910 rather than restating one set of dates.
Sunset or repeal
Section 12-6-545(G), read through subsection (9), does not state an end date. The election under subsection (G)(2) is annual.
Subsection (G)(2) says a qualified entity may elect annually.
Still open in the source review
- The Department's ruling page currently serves SC Revenue Ruling 21-15. The I-435 instructions are the form source for the 3 percent computation and the election due date.
Sources for this year
Bonus-depreciation conformity is on its own page.