NYS Grants More Time to Elect 2022 Pass-through Entity Tax

It is not too late for partnerships and S Corporations to elect the New York State (NYS) pass-through entity tax (PTET) for 2022. NYS has extended the deadline for eligible entities to take advantage of this workaround to the federal state and local tax (SALT) deduction limitation for the current tax year.

Originally due by March 15, 2022, the election can now be made by September 15, 2022. The timing of the election will determine how much estimated tax will be due upon election:

  • For entities that make the election on or after March 15 and before June 15, 25% of the annual estimated PTET will be due to validate the election.
  • For entities that make the election between June 15 and September 15, 50% of the annual estimated PTET will be due.

For more information on the benefits and requirements of electing the NYS PTET, please reach out to your Grassi advisor or contact Dorothy McAuliffe or Jason Drucker, Senior Tax Managers in our State & Local Tax practice.


Jason Drucker Jason Drucker, CPA is a Tax Senior Manager at Grassi, he has more than 10 years of experience providing tax and business consulting services for middle-market businesses and their owners. His clients span the manufacturing and distribution, property management, retail, and wholesale industries. Jason has extensive experience servicing closely held businesses. As a leader in the firm’s Manufacturing and Distribution Practice, he serves as... Read full bio

Dorothy McAuliffe Dorothy McAuliffe is a Senior Tax Manager in Grassi’s Cannabis Advisory practice. She has more than 18 years of experience helping small businesses, entrepreneurs, professional services firms and high-net-worth individuals plan and achieve their tax savings goals. Dorothy specializes in tax advisory, controversy, planning and compliance for businesses faced with complicated federal, state and local, and sales and use tax issues. She advises Cannabis... Read full bio

Categories: State & Local Tax, Tax