Fill out the form and one of our experienced CPAs will get back to you shortly.
The NYC PTET (Pass-Through Entity Tax) is a state-level tax introduced in 2021 to help mitigate the impact of the federal $10,000 SALT cap (State and Local Tax deduction limit) imposed by the Tax Cuts and Jobs Act (TCJA). The PTET is designed for pass-through entities (such as partnerships, LLCs, and S corporations) to elect to pay New York State income taxes at the entity level, which allows individual owners to deduct the tax on their federal returns, effectively bypassing the SALT cap.
12+
Years Serving NYC
50
States Covered
5★
Rated on Yelp
150,000+
Returns Filed
Open
Evenings & Weekends
The PTET rate in New York State is around 6.85% for eligible pass-through entities. However, New York City does not have a separate PTET rate. Instead, the NYC PTET tax rate is essentially tied to the New York State rate, as pass-through entities in the city follow the state’s tax structure.
For New York City residents who are part of a pass-through entity that elects to participate in the PTET:
Pass-through entities (such as partnerships, LLCs, and S corporations) can elect to participate in the PTET program, allowing them to pay the state tax at the entity level. This election is typically made annually and must be submitted to the New York State Department of Taxation and Finance.
After the PTET is paid at the entity level, individual partners or shareholders can claim a credit for the taxes paid on their personal New York State tax returns. This is particularly beneficial for high-income earners because it enables them to deduct the PTET payments on their federal returns, helping to offset the impact of the SALT cap.
The NYC PTET tax rate follows the New York State PTET rate of approximately 6.85%. While New York City does not impose a separate PTET, the city’s residents who are part of pass-through entities can benefit from the state’s PTET program by claiming a credit on their personal tax returns. This provides significant tax relief for NYC residents, particularly those subject to the federal SALT cap.
No cost to start
Fifteen minutes with a CPA who handles this every week. We will walk you through your options — no sales pitch, no obligation.
“George has prepared and maintained the corporate accounting and provided consultant services for my company for a number of years. He has always done an outstanding, professional and courteous job. I feel that his rates are very fair and he provides a great value for the cost.”
“Excellent service and very professional. George and his team have been handling my business taxes for years and I couldn't be happier with the results. They are always available to answer questions and provide expert advice.”
“I've been working with Dimov CPA for both personal and business taxes. Their attention to detail and knowledge of tax law has saved me thousands. Highly recommend to anyone looking for a reliable CPA in NYC.”
Keep reading
RSA taxation explained by a New York CPA. Restricted stock units vs restricted stock awards, withholding at vest, sell to cover, forfeiture, and the QSBS clock.
Contributed too much to your 401(k)? What counts as an excess deferral, how a mid-year job change causes one, and what changes in 2026 for higher earners.
Filing and paying are two separate tests on two different numbers. You can be required to file the UBT and owe nothing at all. What each test measures.
Ready when you are
A CPA will review your situation and give you a straight answer. No commitment, no jargon.
