Sch. PTE: Pass-Through Entity Tax Calculation (2025)
Hawaii · Hawaii DoTax · Used for tax years 2025
Hawaii Schedule PTE calculates a pass-through entity’s elective tax using a 9.00% rate on qualified net income. It reports the number of qualified members, their qualified net income and their elective tax credit amounts.
What you'll need
Have Form N-20 or Form N-35 and the following information ready:
- The entity’s name as shown on its tax return and its federal employer identification number (FEIN).
- The total number of qualified members and their total qualified net income.
- Each qualified member’s name and FEIN or Social Security number (SSN).
- Each member’s pro-rata or distributive share and guaranteed payments included in qualified net income.
How to file
Attach Schedule PTE to Form N-20 or Form N-35.
Enter the total elective tax from Part I, line 4, on Form N-20, line 17a, or Form N-35, line 22f.
The supplied form does not give a mailing address or e-filing instructions.
Common mistakes
- Do not enter a negative calculated tax amount. If the result on Part I, line 4, or a member’s box b is less than zero, enter zero.
- Do not leave out page 2 amounts when totaling Part II. Line 2 combines all box a amounts on both pages, and line 3 combines all box b amounts on both pages.
- Remember to attach Schedule PTE to Form N-20 or Form N-35 and carry the Part I, line 4 amount to the specified return line.
Questions people ask
What elective tax rate appears on the form?
The elective tax rate is 9.00%.
How do I calculate the total elective tax?
Multiply total qualified net income on Part I, line 2, by the 9.00% rate on line 3. Enter the result on line 4. If the result is less than zero, enter zero.
How do I calculate each qualified member’s elective tax credit?
In Part II, enter the member’s pro-rata or distributive share and guaranteed payments included in qualified net income in box a. Multiply box a by 9.00% and enter the result in box b. If the result is less than zero, enter zero.
Where do I report qualified members?
Report them in Part II, the Schedule of Qualified Members, which continues on page 2. Each member entry includes a name, FEIN or SSN, income amount in box a, and credit amount in box b.