This is a reminder that the first installment of the California Passthrough Entity (PTE) elective tax payment for the 2025 tax year is due by June 16, 2025. This applies to eligible passthrough entities (e.g., partnerships, S corporations, LLCs treated as partnerships or S corps for tax purposes) electing to pay the PTE tax under California’s elective tax regime.
The amount due is the greater of 50% of the PTE elective tax paid for the 2024 taxable year, or $1,000 minimum payment.
The payment deadline is June 16, 2025. However, due to the federal disaster declaration for Los Angeles County, if your business address is located in Los Angeles County, all federal and CA filing and payment due dates falling from January 7, 2025, to October 15, 2025, are automatically postponed to October 15, 2025, which include the CA PTE tax. The postponement may also apply if you are outside of LA County and we are preparing your tax return. Filing and payment due dates for any state returns other than California are not postponed.
Payments should be made using the California Franchise Tax Board’s Web Pay system (at the following link) or via mail using Form FTB 3893.
Timely payment of the June installment is mandatory in order to make a valid PTE tax election for the 2025 tax year (unless included in the tax relief as detailed above). Failure to meet this deadline disqualifies the entity from making the election, which can impact the ability of the owners to claim the associated federal deduction benefit.
Please contact us as soon as possible if you have any questions about your entity’s eligibility, the required payment amount, or how to process the payment.
