At a glance
- Corporate tax
- 9% (+2.5% transit fee over $10M)
- Tax on wages
- 1.4%–10.75%
- Sales tax
- 6.625%
- Economic nexus
- $100,000 or 200 transactions
- Minimum wage
- $15.92/hr
- UI wage base
- $44,800
- New-employer UI rate
- 2.8% (UI + workforce funds)
- Paid leave program
- TDI 0.19% + FLI 0.23% (employee, to $171,100)
- Annual report
- Anniversary month — $75
2026 figures, each explained with its source on the area’s page. On top of the federal baseline.
Setup, in order
Register the corporation in New Jersey
Before doing business in New JerseyFile for a certificate of authority with the Division of Revenue and Enterprise Services ($100), naming a New Jersey registered agent.
Register for state taxes
Before the first New Jersey payroll or saleComplete Form NJ-REG to open Corporation Business Tax, withholding, unemployment and disability accounts, and sales tax if needed.
Report new hires and contractors
Within 20 daysReport each new employee, and each independent contractor working in New Jersey, to the State Directory of New Hires.
Choose state or private TDI and FLI
Before the first New Jersey payrollTDI and Family Leave Insurance run through the state plan by default; an employer may instead use an approved private plan.
Register with Jersey City or Newark
With payroll in either cityRegister for the city payroll tax if anyone works in Jersey City or Newark.
Buy workers’ compensation insurance
Before the first New Jersey employee startsWorkers’ compensation coverage is required for New Jersey employees.
Register to collect sales tax
On physical presence or economic nexusCollect sales tax on taxable sales once deliveries pass $100,000 or 200 transactions.
File the annual report
Last day of the registration monthFile the $75 annual report with DORES every year.
The six areas
- AccountingAccounting and state tax in New JerseyNew Jersey’s Corporation Business Tax is 9% on income over $100,000, plus a 2.5% Corporate Transit Fee above $10 million, with mandatory combined reporting and market-based sourcing. Every filer pays a minimum tax of at least $500, and NOL deductions are capped at $1 million a year through mid-2030.CBT rate9%
- ReceivablesReceivables and sales tax in New JerseyNew Jersey charges 6.625% sales tax and still counts 200 transactions toward economic nexus. Remotely accessed SaaS is generally not taxable; electronically delivered software is, unless bought for business use.Sales tax rate6.625%
- PayablesPayables and contractors in New JerseyNew Jersey classifies workers with the ABC test, wants contractors reported like new hires, and wants 1099s of $1,000 or more filed electronically by February 15.1099s to New Jersey$1,000 or more
- PayrollPayroll taxes and employer rules in New JerseyNew Jersey runs its own disability and family leave insurance through payroll: in 2026 employees pay 0.19% TDI and 0.23% FLI up to $171,100, and the UI wage base is $44,800. Jersey City and Newark add a 1% employer payroll tax.Minimum wage, 2026$15.92 an hour
- ComplianceCompliance and filings in New JerseyNew Jersey compliance is a $75 annual report in the company’s anniversary month, the CBT return a month after the federal one, and an unclaimed property report before November 1.Foreign corporation registration$100
- AdvisoryAdvisory: credits and decisions in New JerseyNew Jersey lets startups sell their losses and R&D credits for cash, gives angel investors a 35% refundable credit, and follows federal QSBS from 2026.R&D credit10%
Who you register with
- NJ Division of TaxationCorporation Business Tax, sales tax, withholding, 1099 copies
- NJ Division of Revenue and Enterprise Services (DORES)Foreign registration, business registration (Form NJ-REG), annual report
- NJ Department of Labor and Workforce DevelopmentUnemployment, TDI and Family Leave Insurance contributions, wage and hour, ABC test
- New Jersey State Directory of New Hires (Child Support Employer Services)New-hire and independent contractor reporting
- NJ Unclaimed Property AdministrationAnnual holder report
- New Jersey Economic Development Authority (NJEDA)Angel Investor Tax Credit and the NOL transfer program
Hiring across the border
An employee who lives in one state and works in another is the most common way a startup ends up registered in two. These are New Jersey’s neighbors.
Common questions
Do we owe New Jersey corporate tax if we lost money?
Usually yes, and it starts small. A corporation with nexus in New Jersey files Form CBT-100 even at a loss and pays at least the minimum tax, which is set by New Jersey gross receipts: $500 under $100,000, rising to $2,000 at $1 million or more. A member of an affiliated group with total payroll of $5 million or more pays $2,000 regardless.
Is SaaS taxable in New Jersey?
Generally no. The Division of Taxation treats remotely accessed software as a service as access to software, not a sale of software, so most SaaS charges aren’t subject to sales tax. The exception is SaaS that is an information service, such as a research database. Prewritten software delivered electronically is taxable unless the business-use exemption applies.
Can we pay someone in New Jersey as a contractor?
Not just a 1099. New Jersey uses the ABC test: a worker paid for services is an employee unless the company shows all three of (A) freedom from control, (B) work outside its usual course of business or places of business, and (C) an independently established trade. The Department of Labor adopted regulations codifying its reading of the test in 2026, operative October 1, 2026, and a 1099 or a signed contractor agreement doesn’t change the answer.
Does New Jersey have state disability and paid family leave deductions?
Yes, and both sides pay. In 2026 the employee pays 0.19% for Temporary Disability Insurance and 0.23% for Family Leave Insurance on wages up to $171,100, and 0.425% toward UI and workforce funds on the first $44,800. The employer pays UI (2.6825% for a new employer), 0.1175% to workforce funds and 0.5% TDI on the first $44,800.
When is the New Jersey annual report due?
On the last day of the month the company was formed in or registered to do business in New Jersey, every year, with a $75 fee to the Division of Revenue and Enterprise Services. The state may not send a reminder; failing to file can lead to revocation.
Can a pre-profit startup turn New Jersey NOLs into cash?
Yes. The Technology Business Tax Certificate Transfer Program, run by NJEDA, lets an eligible technology or life sciences company sell unused NOLs and R&D credits to a profitable corporation for at least 80% of their value, up to $20 million over the company’s lifetime. Applications open once a year; the 2026 window ran from May 1 to June 30, with a $1,000 application fee and an approval fee of 1% on awards over $100,000, and NJEDA expects the 2027 cycle to open in early May. With the new $1 million cap on using NOLs against the CBT, selling them can be the faster route to their value.
Sources
Checked against each agency’s own page on . Rates and thresholds change, usually on January 1.
- NJ Division of Taxation — Corporation Business Tax Overview
- NJ Division of Taxation — 2025 CBT-100 Instructions
- NJ Division of Taxation — TB-114, The New Jersey Research and Development Tax Credit
- NJ Division of Taxation — Remote Sellers
- NJ Division of Taxation — Sales and Use Tax
- NJ Division of Taxation — Filing and Remitting Sales and Use Tax
- NJ Division of Taxation — TB-72, Cloud Computing (SaaS, PaaS, IaaS)
- NJ Division of Taxation — NJ-WT, Income Tax Withholding Instructions
- NJ Division of Taxation — NJ Income Tax Rates
- New Jersey Legislature — P.L. 2025, c.67 (A4455)
- NJ Department of Labor — Rate information, contributions, and due dates
- NJ Department of Labor — Independent contractors (ABC test)
- NJ Department of Labor — N.J.A.C. 12:11 notice of adoption (ABC test rules)
- NJ Department of Labor — Wage and Hour employer FAQs
- NJ Department of Labor — Minimum wage rises to $15.92 (Oct 1, 2025)
- N.J.A.C. 10:110-11.2 — New-hire and contractor reporting
- NJ Division of Revenue and Enterprise Services — Fees
- Business.NJ.gov — Taxes and Annual Report
- NJ Unclaimed Property Administration — Business FAQs
- NJEDA — Angel Investor Tax Credit Program
- NJEDA — Technology Business Tax Certificate Transfer (NOL) Program
- City of Jersey City — Payroll Tax FAQ
- City of Newark — Payroll Tax Booklet 2025
- NJ Department of Labor — Minimum wage rises to $16.48 (Jan 1, 2027)
- New Jersey Legislature — A5322 (P.L. 2026, c.21), CBT net operating loss limit
General information for US companies, not tax, legal or accounting advice for yours. Rules and thresholds change; confirm the specifics with a CPA or the agency before you act on them.