Illustration of the California PTE elective tax — 9.3% entity-level SALT cap workaround, the June 15 payment, and the new 2026 12.5% credit reduction rule
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California PTE Elective Tax: 9.3% SALT Workaround, 2026 Rules

BySW Accounting admin

What is California’s PTE elective tax, and what changed for 2026? The pass-through entity (PTE) elective tax lets a qualifying partnership or S corporation elect to pay a 9.3% entity-level California tax on its owners’ shares of income — and the owners then claim a personal income tax credit for the tax paid on their…