California Pass-Through Entities: PTET Payment Deadline Approaching!
If your business operates as a partnership, LLC, or S corporation in California and you’re considering the Pass-Through Entity Elective Tax (PTET) for 2025, mark your calendar: Monday, June 16, 2025, is the critical deadline to make your initial payment and preserve your eligibility for this tax-saving strategy.
Why PTET Matters:
The PTET allows qualifying entities to pay state income taxes at the entity level, potentially converting non-deductible state taxes into deductible business expenses. This can result in significant federal tax savings, especially for high-income taxpayers.
Payment Requirements:
Amount Due: The greater of $1,000 or 50% of your 2024 PTET liability.
Payment Methods: Utilize the Franchise Tax Board’s Web Pay system or submit Form 3893 via mail.
Important Note: Missing the June 16 payment deadline will disqualify your entity from making the PTET election for 2025 .
For those who made the election in 2024, ensure your payment reflects 50% of last year’s PTET liability. If you’re new to PTET, a minimum payment of $1,000 is required.

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Disclaimer: This content is provided for educational purposes only and is not legal, tax, accounting, or financial advice. Every situation is unique, so consult your own attorney, CPA, or financial advisor before making decisions based on this information.