Under Virginia law, pass-through entities (PTEs) can choose to pay Virginia income tax at the entity level, and eligible owners of the PTE can receive corresponding credits. The general effect of this is to transfer the Virginia income tax liability on the PTE’s income from the PTE’s eligible owners to the PTE itself. Electing PTEs are taxed at a rate of 5.75%. 

Eligible owners of a PTE are:

  • natural persons who are subject to Virginia income tax, or
  • estates or trusts subject to Virginia income tax.

Eligible owners of a PTE that chooses to pay the Elective PTET are entitled to a refundable credit on their individual and fiduciary returns equal to their portion of the amount of tax paid by the PTE.

The Elective Pass-Through Entity Tax (PTET) must be filed and paid electronically. There is no waiver from this electronic filing requirement for the Elective PTET. Please find a list of approved software products here. 

For Tax Year 2022 and 2023 filers, a free electronic filing option is now available through your online business account. 

Payment requirements and filing options vary depending on the tax year

Tax Year 2023 Filers 

Tax Year 2022 Filers 

  • The filing extension deadline for calendar year filers was October 16, 2023. 
  • We have a free electronic filing option available through your online business account. If you don't already have an account, you can set up an account here. 
  • Regardless of when an entity files, we encourage them to pay in full by their original due date to avoid penalties and interest. If the entity has not paid in full by their original due date, we encourage them to pay in full as soon as possible to reduce any additional penalties or interest. Payments can be made using the PTET-PMT eform or ACH credit. 

For more information, including estimated payment requirements, please see: