Minnesota Pass-Through Entity Tax Status for 2026: What Business Owners Should Know

Minnesota PTE Tax Update for 2026

In this timely legislative update, Chris Wittich shares the latest developments on the Minnesota Pass-Through Entity (PTE) Tax and what business owners need to know right now.

The Minnesota PTE Tax Has Expired for 2026

As of 2026, the Minnesota PTE tax, which was available through 2025, has officially expired, meaning businesses are currently not eligible to elect or make PTE payments for the 2026 tax year.

Current Legislative Status of the Minnesota PTE Tax

However, there is ongoing legislative activity that could change this. A bill designed to extend the Minnesota PTE tax has already passed the Minnesota Senate, showing bipartisan support. The next, and critical, step is approval by the Minnesota House of Representatives before moving to the governor’s desk. While the governor is expected to sign the bill if it reaches that stage, the legislation is currently stalled in the House, and passage does not appear imminent.

What This Means for Minnesota Business Owners in 2026

This uncertainty creates a difficult planning environment for business owners and tax advisors who must decide whether to prepare for possible PTE payments in 2026 without clear legislative direction.

Chris also encourages business owners who benefit from the Minnesota PTE tax to contact their state legislators, especially House members, to voice support for the bill, as legislative momentum may depend on constituent engagement.

Stay tuned for future updates as the legislative session continues and additional developments occur.