General tax structure- The Corporation Business Tax Act imposes a franchise tax on a domestic corporation for the privilege of existing as a corporation under New Jersey law, and on a foreign corporation for the privilege of having or exercising its corporate charter in this State or doing business, employing or owning capital or property, maintaining an office, deriving receipts, or engaging in contracts in New Jersey. The tax applies to all domestic corporations and all foreign corporations having a taxable status unless specifically exempt. The tax rate is 9% of entire net income, or the portion of entire net income allocated to New Jersey. For tax years beginning in calendar year 2002 and thereafter, the minimum Corporation Business Tax is $500 or $2,000 for all members of a controlled or affiliated group of corporations if the aggregate annual payroll for all corporations is $5 million or more.
For accounting years beginning on and after January 1, 2002, the 7.5% Corporation Business Tax rate for corporations with entire net income of $100,000 or less is reduced to 6.5% for corporations with entire net income of $50,000 or less. For privilege periods ending on or after July 1, 2006, but before July 1, 2009, each taxpayer shall be assessed and must pay a surtax equal to 4% of the amount of tax liability remaining after applying credits against liability, other than credits for installment payments, estimated payments made with a request for extension to file a return, or overpayments from a prior privilege period.
The State of New Jersey collects property taxes at both the state and local levels.
Businesses which pay employees must register with the state and pay state unemployment and withholding taxes. Self-employed individuals who pay themselves wages from their business are also subject to unemployment and withholding taxes.
Sales taxes-7% statewide tax. New Jersey allows for a lower local tax rate in specified "Urban Enterprise Zones.”
Business licenses - If you are a registered business in the state, you may be required to obtain a license, permit, or certification for yourself and/or your business. 'New Jersey Licensed Occupations Guide'. New Jersey Permits, Licensing and Certification.
Information Links –
New Jersey State Sales Tax Rates and Regulations
New Jersey Corporation Business Tax - Most tax related questions
Starting a Business in New Jersey - Information on starting an LLC or corporation
New Jersey Business and Industry Association - Information on specific industry regulations
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Posted Dec 31, 1969 4:33:30 PM by: New Jersey State Sales Tax Rates and Requirements | Education