63D-ELT: Entity Level Tax (2025)
Massachusetts · Massachusetts DOR · Used for tax years 2025
Massachusetts Form 63D-ELT is the entity-level tax return for electing pass-through entities. It reports qualified income subject to the 5% entity-level tax, tax payments, any balance due or overpayment, and qualified members’ income and refundable credits.
Who files this form
Form 63D-ELT is for eligible pass-through entities that make the annual voluntary election to pay Massachusetts entity-level tax under MGL chapter 63D. The form lists S corporations, partnerships and trusts as entity types.
The election cannot be revoked once made and applies only to the current taxable year.
What you'll need
Have the information requested on the form ready:
- The entity’s name, federal identification number, address and taxable period.
- The total number of members and the number of Massachusetts qualified members.
- Income, gains, losses and adjustments for the applicable income section.
- Each qualified member’s name, taxpayer identification number, address, member type, income, tax and refundable credit information.
- Prior-year overpayments applied to this year, estimated entity-level tax payments and extension payments. If amending, include the tax payment made with the original return.
The form also directs you to enclose Form M-2210 if claiming the penalty exception shown on line 12.
How to file
File Form 63D-ELT and all accompanying schedules electronically.
- Complete Section 1 for an S corporation or partnership, or Section 2 for a trust.
- Report total qualified income as a combined amount from all partners, shareholders or beneficiaries with qualified taxable income subject to the chapter 63D entity-level tax.
- Complete the 5.0% entity-level tax calculation and qualified-member information.
- Have the declaration signed by the taxpayer’s president, treasurer or another principal officer authorized to sign the return.
Common mistakes
- Filing on paper: The form and all accompanying schedules must be filed electronically.
- Selecting multiple entity types: The form says to fill in only one entity type.
- Using the wrong income section: Section 1 is only for S corporations and partnerships. Section 2 is only for trusts.
- Using line 6 on an original return: The tax calculation’s line 6, for tax paid with the original return, is only for amended returns.
- Treating the election as ongoing or reversible: The declaration states that the election is irrevocable and valid only for the current taxable year.
Questions people ask
What is the entity-level tax rate shown on the form?
The rate is 5.0%. In the tax calculation, multiply line 1, total income subject to the tax, by .05 and enter the result on line 2.
Does the election carry over to later tax years?
No. The declaration says the annual voluntary election is valid only for the current taxable year. Once made, it cannot be revoked.
Who must sign the declaration?
The taxpayer’s president, treasurer or another principal officer must sign. The signer declares that they are authorized to sign and have made the required annual voluntary election.
How does the form handle an overpayment?
The form has separate lines for the amount of overpaid entity-level tax to apply to next year and the amount to be refunded.