Texas — Pass-Through Entity (PTE) Tax Elections (State Tax Charts)
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Pass-Through Entity (PTE) Tax Elections
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Texas (TX) — Pass-Through Entity (PTE) Tax Elections: No PTE election — no individual income tax to work around. Texas offers no pass-through entity tax election because there is no individual income tax generating a SALT-cap problem at the state level. (The franchise tax applies to the entity regardless.) Authority: Tex. Tax Code ch. 171 (no PTE election provision). CPA-verified 2026-07-11.
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