Virginia PTET 2026: deadline, rate, who can elect
Virginia (VA), tax year 2026, from the same rules the connector returns. Last verified October 24, 2026.
Informational. Not tax advice.
Elective PTET
Yes
A qualifying pass-through entity may make an annual election to pay an elective income tax at the entity level.
Who can elect
"Pass-through entity" means any entity, including a limited partnership, a limited liability partnership, a general partnership, a limited liability company, a professional limited liability company, a business trust, or a Subchapter S corporation, that is recognized as a separate entity for federal income tax purposes, in which the partners, members, or shareholders report their share of the income, gains, losses, deductions, and credits on their federal returns or make the election and pay the tax under § 58.1-390.3. "Eligible owner" means a direct owner who is a natural person subject to the tax under Article 2 (§ 58.1-320 et seq.) or an estate or trust subject to the tax under Article 6 (§ 58.1-360 et seq.).
Code of Virginia § 58.1-390.1. Section 58.1-390 is repealed and was not used.
How the election is made
For taxable years beginning on and after January 1, 2022, a pass-through entity may make an annual election, on its timely filed return under § 58.1-392, to pay the tax at the entity level for the taxable period covered by the return.
Code of Virginia § 58.1-390.3(A)(2). The section does not name the owners who must consent.
Election deadline
For taxable years beginning on and after January 1, 2022, the election is made on or before the due date for filing the applicable return, including any extensions that have been granted. The section does not state a calendar date.
Code of Virginia § 58.1-390.3(A)(2). The return cross-reference is § 58.1-392. That section was not used to invent a calendar date.
Rate
5.75 percent.
The guidelines page states that rate.
Owner relief
A refundable income tax credit for certain owners for the tax paid by the electing entity. An individual may also claim a credit for tax paid to another state under a law substantially similar to section 58.1-390.
The page says the other-state credit does not apply to franchise, privilege, business, license, or occupation taxes.
Estimates
The Department assesses and collects the tax, interest, and penalties as if the tax is a corporate income tax under Article 10 (§ 58.1-400 et seq.). Section 58.1-390.3 does not state installment dates.
Code of Virginia § 58.1-390.3(F).
Sunset or repeal
Section 58.1-390.3(A)(2) allows the annual election for taxable years beginning on and after January 1, 2022. The section, read through subsection G, does not state an end date.
Subsection A(1) applied only to taxable years beginning on and after January 1, 2021, and before January 1, 2022. Subsection A(2) has no end date.
Still open in the source review
- The guidelines page states the rate and that the election is annual. It does not state the deadline or which entities qualify. It points to Tax Bulletin 22-6 and the final guidelines for the rest.
Sources for this year
Bonus-depreciation conformity is on its own page.