--- title: What is the Pass-Through Entity Tax? description: If you're an S-Corp or Partnership you may be eligible for a tax saving strategy that allows you to deduct the taxes you pay as a business expense. --- [Skip to content](https://help.club.capital/en/faq/what-is-the-pass-through-entity-tax#main-content) [![club 1 transparent](https://help.club.capital/hs-fs/hubfs/Logos/club%201%20transparent.png?width=2379&height=448&name=club%201%20transparent.png)](https://help.club.capital/en/faq/?hsLang=en) - Industries Show submenu for Industries - [Insurance](https://club.capital/industries/insurance/) - [Youth Soccer](https://club.capital/industries/youth-soccer/) - Solutions Show submenu for Solutions - [Monthly Accounting](https://club.capital/solutions/monthly-accounting/) - [Tax Service](https://club.capital/solutions/tax-service/) - [CFO Services](https://club.capital/solutions/cfo-services-for-your-business/) - [Digital Marketing Services](https://club.capital/solutions/digital-marketing-services/) - Resources Show submenu for Resources - [Our Company](https://club.capital/our-company/) - [Testimonials](https://club.capital/testimonials/) - [Webinars](https://club.capital/webinars/) - [Partnerships](https://club.capital/partnerships/) - [Referral Program](https://club.capital/referral-program/) - [Est-Tax-Payments](https://club.capital/est-tax-payments/) - [Podcast](https://club.capital/podcast/) - Blogs Show submenu for Blogs - [Small Business Finance Blog](https://blog.club.capital/) - [Youth Sports Finance Blog](https://blog.club.capital/sports) - [Marketing Blog](https://blog.club.capital/club-capital-marketing-blog) Open main navigation Close main navigation - Industries Show submenu for Industries - [Insurance](https://club.capital/industries/insurance/) - [Youth Soccer](https://club.capital/industries/youth-soccer/) - Solutions Show submenu for Solutions - [Monthly Accounting](https://club.capital/solutions/monthly-accounting/) - [Tax Service](https://club.capital/solutions/tax-service/) - [CFO Services](https://club.capital/solutions/cfo-services-for-your-business/) - [Digital Marketing Services](https://club.capital/solutions/digital-marketing-services/) - Resources Show submenu for Resources - [Our Company](https://club.capital/our-company/) - [Testimonials](https://club.capital/testimonials/) - [Webinars](https://club.capital/webinars/) - [Partnerships](https://club.capital/partnerships/) - [Referral Program](https://club.capital/referral-program/) - [Est-Tax-Payments](https://club.capital/est-tax-payments/) - [Podcast](https://club.capital/podcast/) - Blogs Show submenu for Blogs - [Small Business Finance Blog](https://blog.club.capital/) - [Youth Sports Finance Blog](https://blog.club.capital/sports) - [Marketing Blog](https://blog.club.capital/club-capital-marketing-blog) - [Go to Club Capital's Homepage](https://club.capital/home/) [Go to Club Capital's Homepage](https://club.capital/home/) Hello. How can we help you? - There are no suggestions because the search field is empty. 1. [Knowledge Base](https://help.club.capital/en/faq?hsLang=en) 2. [Tax](https://help.club.capital/en/faq/tax?hsLang=en) # What is the Pass-Through Entity Tax? ## If you're an S-Corp or Partnership you may be eligible for a tax saving strategy that allows you to deduct the taxes you pay as a business expense. ### The Pass-Through Entity (PTE) Tax — What It Means for Insurance Agents You may have heard about the “PTE tax” or the “workaround for the $10,000 SALT cap,” but that probably sounds confusing if you’re not sure whether you *itemize* or take the *standard deduction* on your personal tax return. Here’s the good news: **the PTE tax can benefit you either way** — especially if you’re an **insurance agent operating as an S-Corp** (or partnership) in a state that allows it. In short, the **PTE election lets your business pay your state income tax directly**—as a business expense—rather than paying it personally. Since it’s paid by the S-Corp, it becomes **deductible at the federal level**, which lowers your taxable business income and, ultimately, your **federal tax bill**. If your state allows this election (and most do now), it’s usually a no-brainer to opt in. However, if you’re in a state with no income tax or one that doesn’t yet allow the PTE option, it won’t apply to you. Just like any other deductible expense—think rent, marketing, or office supplies—the **PTE payment must be made by December 31st** to count as a deduction for that year. Each state has its own process and deadline for making the election: - **New York** – Election due by **March 15th of the same year**. - **New Jersey** – Election due by **January 31st of the following year**. - **Many other states** (like Georgia, Colorado, or Minnesota) – You can elect when filing the return. Bottom line: the PTE election helps insurance agents keep more of what they earn by turning personal state taxes into deductible business expenses. It’s a smart move for S-Corp owners who want to **save on federal taxes while prepaying state taxes** they’d owe anyway. **Have questions about whether your state allows the PTE election or how to make the payment?** Our team at **Club Capital** is here to help you navigate it and make sure you’re taking full advantage of available tax savings. - [Payroll](https://help.club.capital/en/faq/payroll?hsLang=en#main-content) - [Running Payroll](https://help.club.capital/en/faq/payroll?hsLang=en#running-payroll) - [Paid Time Off](https://help.club.capital/en/faq/payroll?hsLang=en#paid-time-off) - [Garnishments](https://help.club.capital/en/faq/payroll?hsLang=en#garnishments) - [Offer Letters](https://help.club.capital/en/faq/payroll?hsLang=en#offer-letters) - [Employee Benefits](https://help.club.capital/en/faq/payroll?hsLang=en#employee-benefits) - [Remote Employees](https://help.club.capital/en/faq/payroll?hsLang=en#remote-employees) - [Payroll Tax Notices](https://help.club.capital/en/faq/payroll?hsLang=en#payroll-tax-notices) - [Accounting](https://help.club.capital/en/faq/accounting?hsLang=en#main-content) - [Cash Balances](https://help.club.capital/en/faq/accounting?hsLang=en#cash-balances) - [Business Receipts](https://help.club.capital/en/faq/accounting?hsLang=en#business-receipts) - [Spending Recommendations](https://help.club.capital/en/faq/accounting?hsLang=en#spending-recommendations) - [Diagnosing Financials](https://help.club.capital/en/faq/accounting?hsLang=en#diagnosing-financials) - [FAQ](https://help.club.capital/en/faq/accounting?hsLang=en#faq) - [Financial Statements](https://help.club.capital/en/faq/accounting?hsLang=en#financial-statements) - [Tax](https://help.club.capital/en/faq/tax?hsLang=en#main-content) - [Home Rental](https://help.club.capital/en/faq/tax?hsLang=en#home-rental) - [Notices](https://help.club.capital/en/faq/tax?hsLang=en#notices) - [Financial Essentials](https://help.club.capital/en/faq/financial-essentials?hsLang=en#main-content) - [Module 1: Introduccion](https://help.club.capital/en/faq/financial-essentials?hsLang=en#module-1-introduccion) - [Module 2: The Essentials](https://help.club.capital/en/faq/financial-essentials?hsLang=en#module-2-the-essentials) - [Module 3: Forward Financials](https://help.club.capital/en/faq/financial-essentials?hsLang=en#module-3-forward-financials) - [Bonuses](https://help.club.capital/en/faq/financial-essentials?hsLang=en#bonuses) - [Club Capital Toolbox](https://help.club.capital/en/faq/club-capital-toolbox?hsLang=en) - [Administrative](https://help.club.capital/en/faq/administrative?hsLang=en) [![Club Capital Logo](https://help.club.capital/hs-fs/hubfs/CC%20Logo_Transparent%20Small%20Size-2.png?width=220&height=41&name=CC%20Logo_Transparent%20Small%20Size-2.png "Club Capital Logo")](http://www.club.capital) Club Capital Knowledge Base Copyright © 2025, Club Capital LLC