Answer card

Should my practice elect the Oklahoma PTE tax?

It depends on your owners and facts. The Oklahoma PTE election lets an S corp or partnership pay state tax at the entity level, which may help owners limited by the federal SALT deduction cap. It is made on Form 586 and generally stays in effect until revoked [S1, S6]. Your CPA should model it before you elect.

What to check

• Owners’ residency and other-state credits
• Whether owners itemize
• Entity losses
• The year’s OTC rate (2024–2025: 4.75% for individual/trust/estate members and 4% for corporate/pass-through members [S3, S4]; 2026: 4.5% individual/trust/estate members and 4% corporate/S corporation/partnership members per OTC 2026 Form 587-PTE [S7]; confirm current OTC instructions before electing)
• Form 586 timing (per OTC instructions [S1])

Sources

• S1 OTC 2025 Form 586
• S3 OTC 2024 Form 587-PTE
• S4 OTC 2025 Form 587-PTE
• S6 OAC 710:50-3-47 (OTC Chapter 50 rules, 2024)
• IRS Notice 2020-75

Related guide: Oklahoma PTE election and Form 586.

Last reviewed: October 28, 2026. Educational information only; not tax, legal, or accounting advice. Coordinate with your CPA and attorney. Fees and conflicts: Form ADV Part 2A at https://www.baldwin.financial/disclosures.