New Jersey Corporate Tax - Guide for international expansion to the US

Are you planning to do business in New Jersey? Then it's essential to understand how corporate income tax works and what it means for your company.

In this guide, we'll break down everything you need to know about corporate taxes in New Jersey, from setting up your business to staying compliant. Whether you're launching a new venture or expanding your business, understanding your tax obligations is key to running a successful operation in the Garden State.

And if you're looking for smart ways to save money and manage payments, we'll also show you how Wise Business can help simplify your financial operations and keep your business running smoothly across borders.

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This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited, its subsidiaries or affiliates, and it is not intended as a substitute for obtaining business advice from a tax advisor or any other professional.

New Jersey Corporate tax rate in 2025

The corporate income tax rate in New Jersey is 9% for corporations with an entire net income of $100,000 or more, making it one of the more competitive rates among US states. For smaller corporations with an entire net income below $100,000, New Jersey applies a graduated tax structure with rates ranging from 6.5% to 7.5%¹.

For corporations engaged in business both within and outside New Jersey, income is apportioned using a single sales factor formula. This means that only sales delivered to customers in New Jersey are used to determine what portion of a corporation's income is subject to New Jersey tax¹.

The state also imposes a minimum tax ranging from $500 to $2,000, depending on the corporation's New Jersey gross receipts. This ensures that all corporations doing business in New Jersey pay at least a minimum amount of tax, regardless of their profitability¹.

Additionally, New Jersey has implemented certain provisions related to the federal Tax Cuts and Jobs Act, including modifications for interest deductions and net operating loss carryforwards, which can affect a corporation's overall tax liability².

How to pay corporate tax in New Jersey

Corporate tax payments in New Jersey must be made through the state's online system called NJWebFile, which is managed by the New Jersey Division of Taxation³. This system allows businesses to file returns and make payments electronically, providing a streamlined process for tax compliance⁴.

The state requires corporations to make estimated tax payments if their expected tax liability exceeds $500. These quarterly payments are due on the 15th day of the 4th, 6th, 9th, and 12th months of the tax year⁵.

The annual corporate tax return (Form CBT-100) must be filed by the 15th day of the 4th month following the close of the tax year. However, corporations can request an automatic six-month extension by filing Form CBT-150 and paying any estimated tax due⁶.

Late payment penalties in New Jersey are significant. If you fail to pay the full amount of tax by the due date, you'll be charged interest at a rate that's adjusted quarterly based on federal rates, plus additional penalties. The penalty for late payment is 5% of the unpaid tax for each month or part of a month that the payment is late, up to a maximum of 25%⁶.

Let's calculate the tax liability for a company with annual revenue of $1.5 million. Assuming a profit margin of 10%, this gives us a taxable income of $150,000¹.

At New Jersey's corporate tax rate of 9% for income over $100,000:

• Tax on first $100,000: $7,500 (using graduated rates)

• Tax on remaining $50,000: $50,000 × 9% = $4,500

• Total tax liability: approximately $12,000

If this company pays its tax 30 days late, assuming a 6% annual interest rate⁷, the additional cost would be:

$12,000 × 6% × (30/365) = approximately $59 in interest

Plus late payment penalty: $12,000 × 5% = $600

Total additional cost for being 30 days late: $659

New Jersey also requires corporations to maintain detailed records and may conduct audits to ensure compliance. The state has reciprocal agreements with other states for information sharing, making accurate reporting essential.

When expanding your business to the US, the right financial tools will make the process smoother. Using a platform like Wise Business makes it easy to expand internationally with local USD account details. A multi-currency account allows businesses to pay for incorporation costs, registration fees, and government taxes in local currency without paying high exchange rate fees.

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Tax Compliance in New Jersey

Businesses must keep up with annual filings and corporate tax obligations to stay compliant with New Jersey tax regulations⁸.

• File your Annual Report: Every business must submit an annual report to confirm the registered agent and business address, along with a $75 filing fee. The corporate tax due date is tied to the month your company was initially formed, with the report due on the last day of that month each year. Failing to file can lead to the revocation of your business.
• File your corporate tax return: Depending on your structure, you may be required to file both state and federal returns. In New Jersey, the current corporate tax rate is 9%, considered among the world’s highest corporate tax rates. Businesses must also account for sales and use tax (6.625%) and payroll withholding taxes. Keeping accurate records will make it easier to file your corporate tax return and comply with corporate tax law.
• Avoid penalties: Noncompliance can be costly. Penalties include 5% per month up to 25% of the tax due, a 5% late payment charge, and $100 per month for late returns. Staying updated on corporate tax changes and filing on time helps businesses avoid these charges and remain in good standing.

International Expansion to New Jersey

New Jersey offers a compelling environment for companies expanding into the U.S. Its median household income is $99,781. This is significantly above the national average of $77,719, indicating strong consumer purchasing power^{9 10}. The state also boasts an educated workforce, with 43.8% of adults over 25 holding a bachelor’s Degree⁹, surpassing the U.S. average, and a GDP of $852 billion, ranking it 11th in the country¹¹.

Connectivity is another significant advantage. New Jersey is part of the busiest airport system in the U.S. It comprises Newark Liberty, JFK, and LaGuardia with over 1,500 daily nonstop flights.

Meanwhile, its port has become North America’s busiest maritime gateway, handling more than 9.4 million TEUs in 2022. The state’s dense network of highways, rails, and sea routes grants access to 60 million consumers within a day’s drive. NJ Transit (the third-largest mass transit provider in the U.S.) serves 270 million riders annually¹². This infrastructure supports reliable, cost-efficient supply chains and market reach.

Here’s a quick outline for setting up a business in New Jersey:

1. Develop a business plan tailored to the local market and workforce needs.
2. Select a business structure and a suitable location.
3. Register your business name and obtain an EIN from the IRS.
4. Register with the New Jersey Revenue & Enterprise Services Division for state taxes.
5. Acquire a Business Registration Certificate.

Once established, businesses can refine their corporate tax strategy by considering the New Jersey corporate tax rate and using professional corporate tax planning services to stay compliant with payment dates and optimise their tax budget.

For further guidance on structuring a U.S. business, the Wise blog onstarting a C-Corp in the U.S. as a non-resident explains why many international founders choose this option and the benefits it can provide.

Incorporation of Business in New Jersey

To incorporate a business in New Jersey, entrepreneurs must complete the process through themyRegistry portal of the Jersey Financial Services Commission (JFSC). Several pieces of information are required for incorporation, including¹³:

• Company Name: A unique name, checked against the Companies Registry.
• Company Type: The business structure under which the company will operate.
• Registered Office Address: Every company must maintain a registered office in New Jersey.
• Nature of Business Code and Activity: Businesses must identify the activity that best reflects their operations.
• Share Capital Structure: The memorandum must specify authorised capital, classes of shares, and the number of shares issued.
• Supporting Information: Articles of Association, Memorandum, directors, beneficial owners, company secretary, and an organisational chart.
• Nominated Person: At least one nominated person is legally required to act as the liaison with the Registry.

Note: Every corporation or LLC in New Jersey must appoint and maintain a registered agent with a physical address in the state. The agent must be available during normal business hours to receive official legal and tax documents. Failure to maintain one can result in penalties or loss of good standing.

Common business entities in New Jersey

Explore each business structure to learn its advantages and drawbacks¹⁴.

• Sole Trader: Popular with startups and small businesses. The owner is personally liable for debts, but can apply for a business license.
• Partnership: Two or more people share profits and debts. A “sleeping partner” may contribute capital without taking part in management.
• Limited Company: A separate legal entity, distinct from its directors and shareholders. It requires annual filings, a memorandum, and articles of association.
• Corporation: A more complex structure requiring directors, officers, and shareholders. Offers liability protection but may involve double taxation.
• Limited Liability Company (LLC): A hybrid structure providing liability protection with pass-through taxation, avoiding the double taxation corporations face.

Choosing the correct entity also affects taxation. New Jersey businesses must consider corporate tax residency, filing deadlines, and the federal corporate tax rate. Entrepreneurs should also plan for potential rate changes when budgeting. Professional corporate tax planning or the state’s tax helpline can assist with accurate calculations and compliance strategies.

International corporate tax best practices

Managing corporate tax obligations across multiple jurisdictions requires strategic planning and adherence to best practices that ensure compliance while optimising tax efficiency.

• Stay compliant with local and international tax laws by completing all required registrations in every jurisdiction where your business operates.
• File tax returns on time to avoid penalties, and maintain current knowledge of local tax law changes.
• Understanding international frameworks like the OECD's Base Erosion and Profit Shifting (BEPS) initiatives helps ensure transparency and prevents tax avoidance issues.
• Leverage double taxation treaties (DTTs) to avoid being taxed twice on the same income (the United States has tax treaties with over 60 countries).
• Maintain comprehensive and up-to-date financial records that support your tax positions. Proper documentation not only facilitates accurate tax return preparation but also provides essential evidence during tax audits.
• Consider the timing of income recognition and expense deductions across different jurisdictions to optimise your overall tax position.

Take the complexity out of international expansion with Wise Business

Researching corporate tax is a crucial step when expanding your business into a new country. The next step is setting up the financial infrastructure to handle the complexities of operating across borders, from managing multi-currency cash flow to mitigating FX risk.

The Wise Business account provides the financial tools to make your international expansion to New Jersey efficient and simple. It's the one account for managing your money globally.

With a Wise Business account, you can:

• Pay suppliers and initial fees: Pay suppliers, global payroll, and one-off incorporation costs in the local currency.
• Get paid like a local: Use local account details for 8+ major currencies to easily receive payments from customers or investors.
• Manage your money across borders: Hold and exchange 40+ currencies in one account, always with the mid-market exchange rate and low, transparent fees.
• Streamline your accounting: Integrate with tools like Xero or QuickBooks to simplify tracking your company's international finances.
• Empower your team: Provide multi-user access for your finance team and issue expense cards for international spending.

Wise is designed to support every step of your journey, from paying your first registration fee to receiving international payments and managing your global treasury.

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FAQs - Corporate tax in New Jersey

Who is liable for corporate tax in New Jersey?

All corporations doing business in New Jersey or deriving income from New Jersey sources are subject to corporate income tax. This includes domestic corporations incorporated in New Jersey and foreign corporations conducting business activities within the state. The tax applies regardless of where the corporation is headquartered, as long as there's a sufficient business connection to New Jersey.

Are there any tax incentives for businesses in New Jersey?

Yes, New Jersey offers several tax incentive programmes to encourage business investment and job creation. The Economic Development Authority administers programmes like the Emerge Program for emerging technology and life sciences companies, and various tax credits for businesses that create jobs or invest in certain geographic areas. Manufacturing companies may qualify for reduced tax rates on certain types of income.

What is the tax treatment of dividends in New Jersey?

Dividends received by New Jersey corporations from other corporations may qualify for a dividends received deduction, similar to federal tax treatment. However, the specific percentage of deduction depends on the ownership percentage and other factors. Dividends paid by New Jersey corporations to shareholders are generally not deductible for corporate tax purposes.

What is the process for registering for corporate tax in New Jersey?

Corporations must register with the New Jersey Division of Taxation before beginning business operations. This involves obtaining a New Jersey tax identification number and registering for corporate income tax. The registration can be completed online through the NJ Business Gateway, which streamlines the process of obtaining various business licenses and tax registrations.

What are the common pitfalls to avoid regarding corporate tax in New Jersey?

Common mistakes include failing to make required estimated tax payments, incorrectly calculating the apportionment of income for multi-state businesses, and missing filing deadlines. Many businesses also overlook the minimum tax requirements or fail to properly document transfer pricing for related-party transactions. Additionally, not maintaining adequate records to support tax positions can lead to problems during audits.

Sources used in this article:

1. Corporate Business Tax Rates
2. Corporation Business Tax Act Reform
3. New Jersey Division of Taxation - Business
4. New Jersey CBT Portal
5. Corporation Business Tax Estimated Payments
6. CBT-100 Form Instructions (PDF)
7. New Jersey Interest on Tax Underpayments
8. New Jersey Business - Filings and Accounting
9. U.S. Census Data - New Jersey
10. U.S. Census Data - United States
11. Visualizing America's $29 Trillion Economy by State
12. 10 Reasons Why New Jersey is the Best State for Business
13. Jersey Financial Services Commission - Incorporate a Company
14. Choose a Business Structure in New Jersey

Sources last checked 20/08/2025