Maryland updates pass-through entity tax election date for 2023 tax year

Based on state legislation enacting the elective pass-through entity tax (see S.B. 523 (2020), as well as S.B. 787 (2021) and S.B. 496 (2021) for subsequently enacted clarifying legislation), the Maryland Comptroller recently released instructions for Maryland Form 510/511D for tax years beginning after Dec. 31, 2022.

Such instructions require that Maryland pass-through entities that wish to make the Maryland pass-through entity tax (PTET) election to do so with the first estimated tax payment of the year. For tax year 2023, this is due April 17, 2023 for calendar year taxpayers. For fiscal year taxpayers with tax years beginning after Jan. 1, 2023, the election must be made with the payment of their estimated tax by, on, or before the due date of their first quarter estimated payment.

What does CohnReznick think?

In prior years, the PTET election was due with the timely filing of Maryland Form 511 Electing Pass-Through Entity Income Tax Return. The updated election due date will require pass-through-entity taxpayers to understand their Maryland filing method far in advance of the due date of the return. This should be considered in tandem with other jurisdictions that have early PTET election requirements, such as California, New York, and New York City.

This planning is especially important as the PTET election is irrevocable once made. Taxpayers should determine their filing methodology in Maryland as soon as possible to make the election for their upcoming 2023 tax year in a timely manner.


John Iannotti, CPA, Partner, State and Local Tax (SALT)


Jason Gajramsingh, CPA, Senior Manager, State and Local Tax (SALT)


James Gaul, Manager, National Tax, State and Local Tax (SALT)


Subject matter expertise

  • Contact John John+Iannotti
    John Iannotti

    CPA, Partner

  • Close


    Let’s start a conversation about your company’s strategic goals and vision for the future.

    Please fill all required fields*

    Please verify your information and check to see if all require fields have been filled in.

    Please select job function
    Please select job level
    Please select country
    Please select state
    Please select industry
    Please select topic

CohnReznick Tax: Alerts and Webinars

Related services

Any advice contained in this communication, including attachments and enclosures, is not intended as a thorough, in-depth analysis of specific issues. Nor is it sufficient to avoid tax-related penalties. This has been prepared for information purposes and general guidance only and does not constitute legal or professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice specific to, among other things, your individual facts, circumstances and jurisdiction. No representation or warranty (express or implied) is made as to the accuracy or completeness of the information contained in this publication, and CohnReznick LLP, its partners, employees and agents accept no liability, and disclaim all responsibility, for the consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.