New Jersey taxes

Personal and business state taxes in New Jersey for the 2025 tax year, filed in 2026.

New Jersey taxes personal income at 1.4% to 10.75%, and it builds that income its own way rather than starting from your federal return. A sole proprietor or single-member LLC is taxed as an individual, so the profit goes on the owner's Form NJ-1040; an LLC also pays a $75 annual report fee. Partnerships with more than two owners pay $150 for each owner. C corporations pay 6.5% to 9% corporation business tax, or a minimum tax of $500 to $2,000 if that is higher.

Personal income tax

New Jersey residents file Form NJ-1040. The rate rises in steps from 1.4% to 10.75%. If your New Jersey gross income is $10,000 or less ($20,000 for joint, head of household and surviving spouse filers), you owe no New Jersey tax at all.

New Jersey does not start from your federal return. It counts its own list of income, and it differs on purpose. There is no deduction for 401(k) or traditional IRA contributions, so your New Jersey wages are usually higher than your federal ones. A loss in one kind of income, such as a business loss, cannot reduce another, such as wages. There is no standard deduction, only exemptions. Social Security and military pensions are not taxed.

Return
Form NJ-1040
Rates, single and married filing separately
1.4% up to $20,000, 1.75% from $20,000, 3.5% from $35,000, 5.525% from $40,000, 6.37% from $75,000, 8.97% from $500,000, 10.75% from $1,000,000
Rates, married filing jointly, head of household and surviving spouse
1.4% up to $20,000, 1.75% from $20,000, 2.45% from $50,000, 3.5% from $70,000, 5.525% from $80,000, 6.37% from $150,000, 8.97% from $500,000, 10.75% from $1,000,000
No tax at all
New Jersey gross income of $10,000 or less, or $20,000 for joint, head of household and surviving spouse filers
Exemptions
$1,000 for you and for your spouse, another $1,000 each at 65 or older, $1,000 each if blind or disabled, $6,000 each for a veteran, $1,500 per dependent, and another $1,000 per dependent in college
Retirement income
At 62 or older, up to $100,000 married filing jointly, $75,000 single or head of household, $50,000 married filing separately, when income is $100,000 or less. Above that only a share of it, and nothing above $150,000
Property tax
A deduction of up to $15,000 ($7,500 married filing separately) when it saves at least $50, otherwise a $50 refundable credit. Renters count 18% of rent as property tax
Child Tax Credit
Up to $1,000 for each child aged 5 or younger, refundable, ending above $80,000 of taxable income
Health coverage
New Jersey still charges a shared responsibility payment to a household without health insurance

Sole proprietor

New Jersey treats a sole proprietor as an individual for income tax. There is no business income tax return and no annual report, and New Jersey charges no fee for the business itself.

Your business profit goes on your own Form NJ-1040. A business loss can bring business income down to zero, but it cannot reduce your wages or other income.

Single-member LLC

A single-member LLC files no business income tax return. New Jersey treats it as an individual, so its profit goes on your own Form NJ-1040.

The LLC does file an annual report every year to stay in good standing. The fee is $75, due by the last day of the month the LLC was formed in, and it is owed whatever the business earned. The $150-per-owner partnership fee does not apply to it.

Partnership

A New Jersey partnership files Form NJ-1065. The profit passes through to the partners, who report it on their own returns.

Once a partnership has more than two owners and any New Jersey income or loss, it pays a filing fee of $150 for each owner, capped at $250,000. The fee is due the 15th day of the fourth month after the year ends, so April 15 for a calendar year. It is owed whether the business made money or lost it, and half of it is also prepaid towards next year at the same time.

If any partner lives outside New Jersey, the partnership itself is taxed on that partner's share, on NJ-CBT-1065.

S corporation

A New Jersey S corporation files Form CBT-100S, the S corporation business tax return.

Shareholders report their share of the profit on their own Form NJ-1040, where partnership and S corporation income is its own category. A loss there cannot reduce other kinds of income.

C corporation

A C corporation files Form CBT-100 and pays corporation business tax on the income allocated to New Jersey. The rate is picked by the corporation's whole entire net income: 6.5% when entire net income is $50,000 or less, 7.5% when entire net income is $100,000 or less, 9% above $100,000. A corporation selling into other states counts only its New Jersey share, measured by sales alone.

If the tax on income comes to less than the minimum tax, the corporation pays the minimum instead. The minimum is set by New Jersey gross receipts: $500 under $100,000, $750 under $250,000, $1,000 under $500,000, $1,500 under $1,000,000, $2,000 at $1,000,000 or more.

Return
Form CBT-100
Corporation business tax
6.5% when entire net income is $50,000 or less, 7.5% when entire net income is $100,000 or less, 9% above $100,000
Minimum tax, by New Jersey receipts
$500 under $100,000, $750 under $250,000, $1,000 under $500,000, $1,500 under $1,000,000, $2,000 at $1,000,000 or more
Multi-state profit
New Jersey sales over total sales

Estimate your state tax

Pick your business type and enter this year's numbers to see the state business tax New Jersey charges. It assumes all your sales are in New Jersey.

An estimate for planning, not tax advice.

Sources

Last reviewed August 2026.

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