Taxation in New Jersey

Updated on Tuesday 13th November 2018

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For starting a business in the state of New Jersey, foreigners should pay attention to the taxes which need to be paid. It is good to know that there is no privilege or franchise tax imposed on businesses in New Jersey, but one must consider the corporate business tax or the CBT as it is known. Our specialists in company formation in USA are at the disposal of entrepreneurs with information about the taxes they need to pay and about the registration of businesses in each state, including New Jersey.

What is the CBT rate in New Jersey?


Companies with establishments in New Jersey are subject to the corporate business tax which applies on the entire net income as seen in the table below:
 
Taxable Income Tax Rate
$50,000 or less 6.5%
Between $50,000 and $100,000 7.5%
More than $100,000 9%


What is AMA and how is it applied in New Jersey?


The Alternative Minimum Assessment based on gross receipts or gross profits involve the multistate corporations that have a business presence in New Jersey, but restricted to soliciting orders in USA. In other words, AMA based on gross receipts or gross profits is available for companies that do not want to pay the CBT imposed for the corporate income, under the federal law involving the taxation in New Jersey.
 

The Corporate Business Tax for S corporations in New Jersey


S corporations are subject to CBT in New Jersey and particularly for gross receipts as follows in this table:
 
Gross Receipts Tax
Less than $100,000 $375
Between $100,000 and $500,000 $562.50
Between $500,000 and $1,000,000 $1,125
More than $1,000,000  $1,500
 
For complete information about the taxes a company needs to pay in New Jersey, we recommend you address to our company incorporation agents in USA who can also help you start a business in USA, including in New Jersey. Our team can handle the registration process of your company and can provide support and information about the taxation in New Jersey.


What is the sales tax in New Jersey?


The sales tax of 6.625% is applicable to goods and services that are for sale purposes in the state of New Jersey. It is good to know that there is no city sales tax.

We invite you to contact our team of company formation representatives in USA and find out more details about the tax structure for companies with establishments in New Jersey.