Podcast•Apr 24, 2026•3 min
Passthrough Entity Tax: New Laws, New Year, New Considerations
In this episode of Spidell's California Minute, host Katherine Zidane explains recent federal and California legislative changes affecting the June 15th pre‑payment for the pass‑through entity (PTE) tax, including the OBBBA SALT deduction increase to $40,000 and California SB 132’s new rules for 2026. She outlines how the higher SALT cap impacts the cost‑benefit analysis of making the PTE election, noting that most taxpayers still benefit because the deduction reduces adjusted gross income. The episode also details the revised penalty for missing the June 15th deadline—a 12.5% credit reduction regardless of when the payment is finally made—and offers guidance on whether to pay immediately or wait until the entity’s return due date.
