Tax periods of less than 12 months qualify for the 6.5% rate if the prorated entire net income does not exceed $4,166 per month. Tax periods of less than 12 months qualify for the 7.5% rate if the prorated entire net income does not exceed $8,333 per month.įor taxpayers with Entire Net Income of $50,000 or less, the tax rate is 6.5% (.065) on adjusted net income or such portion thereof as may be allocable to New Jersey. Exempt from the tax are certain agricultural cooperative associations federal corporations which are exempt from state taxation corporations created under the limited-dividend housing corporation law nonprofit cemetery corporations nonprofit corporations without capital stock non-stock mutual housing corporations railroad and canal corporations sewerage and water corporations insurance companies subject to premiums tax and certain municipal electric corporations.įor taxpayers with Entire Net Income greater than $100,000, the tax rate is 9% (.09) on adjusted entire net income or such portion thereof as may be allocable to New Jersey.įor taxpayers with Entire Net Income greater than $50,000 and less than or equal to $100,000, the tax rate is 7.5% (.075) on adjusted entire net income or such portion thereof as may be allocable to New Jersey. The tax applies to net income for the firm’s accounting period (calendar year or fiscal year), or any part thereof during which the corporation has a taxable status within New Jersey. The income-based tax is measured by that portion of the net income allocable to New Jersey. Also, a corporation is defined as any other entity classified as a corporation for federal income tax purposes and any state or federally chartered building and loan association or savings and loan association. The tax also applies to joint-stock companies or associations, business trusts, limited partnership associations, financial business corporations, and banking corporations, including national banks. The tax applies to all domestic corporations and all foreign corporations having a taxable status unless specifically exempt. 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. Corporation Business Tax Overviewĭescription | Rate | Disposition of Revenues | History Installment Payments of Estimated Tax | Partnerships | Banking and Financial Corporations Investment Companies| Deferred Predissolution Payment | Allocation Factor Corporations: For details on those changes, see Corporation Business Tax Reform Information. This page has not been updated to reflect changes from P.L.
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