SCorpDesk / 2026 S-Corp & QBI Guides / District of Columbia (DC) 2026 S-Corp Tax Calculator, PTET Election & Franchise Tax Guide
District of Columbia (DC) 2026 S-Corp Tax Calculator, PTET Election & Franchise Tax Guide
What are the 2026 S-Corp tax and PTET rules in District of Columbia?
In District of Columbia (DC), the 2026 S-Corporation election rule is: TRAP: DC Taxes S-Corps as C-Corps (8.25% D-20 Franchise Tax!). For the Pass-Through Entity Tax (PTET) deduction: Entity-Level Unincorporated/Corporate Franchise Tax. Entity-level franchise/minimum tax: $250 Minimum DC Franchise Tax.
In District of Columbia (DC), the 2026 S-Corporation election rule is: TRAP: DC Taxes S-Corps as C-Corps (8.25% D-20 Franchise Tax!). For the Pass-Through Entity Tax (PTET) deduction: Entity-Level Unincorporated/Corporate Franchise Tax. Entity-level franchise/minimum tax: $250 Minimum DC Franchise Tax.
Open District of Columbia 2026 S-Corp & 20% Permanent QBI Calculator
2026 District of Columbia (DC) S-Corporation Statutory Tax Matrix
| District of Columbia S-Corp Compliance Area | 2026 Statutory Rule |
|---|---|
| State S-Corp Election Recognition | TRAP: DC Taxes S-Corps as C-Corps (8.25% D-20 Franchise Tax!) |
| Pass-Through Entity Tax (PTET) Election | Entity-Level Unincorporated/Corporate Franchise Tax |
| Annual Minimum / Franchise Tax | $250 Minimum DC Franchise Tax |
| Federal Section 199A QBI Deduction | Up to 23% of qualified K-1 income under Public Law 119-21 |
| Home Office & Mileage Deduction Method | Must use an IRC Section 62(c) Corporate Accountable Plan |
Frequently Asked Questions
Does District of Columbia require a separate state S-Corp election in 2026?
For District of Columbia (DC): TRAP: DC Taxes S-Corps as C-Corps (8.25% D-20 Franchise Tax!).
What is the District of Columbia S-Corp franchise or minimum tax for 2026?
In District of Columbia: $250 Minimum DC Franchise Tax.