How to File LLC Taxes in New Jersey (2026)
Your New Jersey LLC's state tax form depends on how the IRS classifies it. A single-member LLC reports its profit on the owner's own Form NJ-1040. A multi-member LLC files Form NJ-1065.
An S-corp election moves the return to Form CBT-100S, and a C-corp election makes it Form CBT-100. All four routes go to the New Jersey Division of Taxation.
This page also covers the current income tax and Corporation Business Tax rates, the state's BAIT election, and the employer, sales and local taxes you may owe. The federal side lives on the hub page linked below.
Quick Summary
- New Jersey splits the work between two Treasury divisions: one collects your taxes, the other handles LLC registration and reports.
- New Jersey changes its income tax and Corporation Business Tax brackets by statute, so confirm the current figure before you file each year.
- Electing S-corp status or the BAIT pass-through tax can lower your bill, but only after a CPA runs the numbers for your specific LLC.
New Jersey LLC tax summary
The table below maps each LLC tax classification to its federal form, its New Jersey form and the agency that receives it. The Division of Taxation does not publish a standard refund or processing-time estimate for any of these returns.
| LLC Type | Federal Form | State Form | Filed With | Filing Deadline & Tax Rate |
|---|---|---|---|---|
| Single-member LLC | Form 1040, Schedule C | Form NJ-1040 | New Jersey Division of Taxation | April 15 1.4% to 10.75% NJ Gross Income Tax |
| Multi-member LLC | Form 1065, Schedule K-1 | Form NJ-1065 | New Jersey Division of Taxation | April 15 1.4% to 10.75% NJ Gross Income Tax (per owner's share) |
| S-Corp election | Form 1120-S | Form CBT-100S | New Jersey Division of Taxation | April 15 $375 to $1,500 minimum tax (entity) 1.4% to 10.75% NJ Gross Income Tax (shareholders) |
| C-Corp election | Form 1120 | Form CBT-100 | New Jersey Division of Taxation | April 15 6.5%, 7.5% or 9% CBT (one rate by net-income tier, not marginal) $500 to $2,000 minimum tax |
How New Jersey LLCs are taxed
New Jersey's Division of Taxation collects your state tax return. A separate division, the Division of Revenue and Enterprise Services (DORES), handles LLC registration and annual reports.
Once you start an LLC in New Jersey, its tax status follows the IRS default. Profit passes straight through to the members unless they file a classification election.
Members can change that default by electing S-corp or C-corp tax treatment with the IRS. New Jersey follows whichever federal classification the LLC picks, so the state form matches the federal one in every case. For the federal side of each election, see the file LLC taxes hub.
New Jersey state taxes by LLC type
New Jersey's state form and rate depend entirely on how your LLC is classified:
1. Single-member LLC: Form NJ-1040
A single-member LLC is disregarded for tax purposes. The LLC itself files no separate New Jersey return. The owner reports the LLC's profit and loss on their own Form NJ-1040 and pays New Jersey Gross Income Tax on that share. Nonresident owners use Form NJ-1040NR instead.
2. Multi-member LLC: Form NJ-1065
New Jersey requires Form NJ-1065 from a multi-member LLC, due April 15 for a calendar-year filer. Partnerships with more than two owners and New Jersey-source income owe one more charge on top of that: a $150 filing fee per owner, capped at $250,000. Each member then reports their share on their own NJ-1040.
3. S-Corp election: Form CBT-100S
Since December 22, 2022, New Jersey no longer requires a separate state S-corp election [1]. Once the IRS approves federal S-corp status, the LLC registers as a corporation with DORES and submits the federal approval letter. It also signs a Shareholder Jurisdictional Consent before it can file Form CBT-100S.
S-corps owe their own minimum tax too, based on New Jersey gross receipts. It starts at $375 under $100,000 and rises to $1,500 at $1 million or more. For the full cost picture of running a New Jersey LLC, see how much an LLC costs in New Jersey.
4. C-Corp election: Form CBT-100
A C-corp election files Form CBT-100, due the 15th day of the 4th month after the tax year ends (April 15 for a calendar-year LLC). An automatic six-month extension is available on Form CBT-200-T.
New Jersey taxes the corporation's entire net income at one rate, set by which tier the total falls into, not on a marginal scale. That rate is 6.5% at $50,000 or less, 7.5% from $50,001 to $100,000, and 9% above $100,000.
C-corps with income over $10 million owe a further 2.5% Corporate Transit Fee on top of that tax, through 2028 [2]. The C-corp minimum tax runs from $500 up to $2,000, based on gross receipts.
New Jersey income tax rate for tax year 2026
New Jersey taxes individual income, including your share of LLC profit, on a graduated scale. The New Jersey Tax Rate Schedules run from 1.4% on the lowest bracket up to 10.75% on income over $1 million. That top rate applies no matter your filing status. Check the current schedule each year, since New Jersey adjusts these brackets by statute rather than automatically.
Federal taxes New Jersey LLC owners pay
An LLC member active in the business pays the federal self-employment tax: 15.3% on net earnings, covering Social Security and Medicare. New Jersey has no separate state-level self-employment tax layered on top of that.
Members who expect to owe $1,000 or more generally make quarterly estimated payments to the IRS on April 15, June 15, September 15 and January 15. New Jersey Gross Income Tax follows the same estimated-payment calendar for members who owe state tax on their LLC share.
Other New Jersey taxes that may apply
Beyond income and Corporation Business Tax, other charges can apply to a New Jersey LLC:
Employer taxes. Hiring staff in New Jersey means registering with the New Jersey Department of Labor and Workforce Development for unemployment insurance. For 2026, the taxable wage base is $44,800.
A new employer pays a combined 2.8% rate for its first three years: 2.6825% for unemployment insurance plus 0.1175% for workforce development. On top of that, the employer owes a 0.5% disability insurance contribution.
Sales and use tax
An LLC registers for a Certificate of Authority before it starts selling taxable goods or services. New Jersey then charges its Sales and Use Tax at a flat 6.625% statewide, with no local add-on anywhere. The same 6.625% use tax applies when the LLC buys taxable goods out of state and brings them into New Jersey.
Industry and local taxes
Some New Jersey cities add their own payroll tax on top of state and federal taxes. Newark charges 1% of wages for work performed in the city, cut to 0.5% for employers whose workforce is mostly Newark residents.
Jersey City charges a flat 1% of gross payroll too. Employers with less than $2,500 in quarterly payroll are exempt.
Any LLC doing retail, hospitality or entertainment business in Atlantic City faces one more charge. The city adds its own 9% Luxury Tax on sales like room rentals and admission tickets, on top of a reduced local sales tax rate.
New Jersey taxes specific industries and products separately too, including cannabis, cigarettes and hotel occupancy. For the state's periodic filing on top of these taxes, see New Jersey's annual report.
New Jersey pass-through business alternative income tax (BAIT) election
Multi-member LLCs and LLCs taxed as S-corps can elect New Jersey's Pass-Through Business Alternative Income Tax, known as BAIT. The entity pays the tax directly, on a graduated scale.
That's 5.675% up to $250,000 in distributive proceeds, 6.52% from there up to $1 million, and 10.9% above $1 million. Each member then claims a matching credit on their own NJ-1040 or CBT return.
The point of the election is the federal $10,000 cap on state and local tax deductions. Paying the tax at the entity level instead lets the full amount flow through as a business deduction.
File the election and Form PTE-100 by March 15 following the tax year. Estimated payments are due the 15th day of the 4th, 6th and 9th months, plus the following January. The election does not carry over. It must be made again every year.
What is deductible for a New Jersey LLC
New Jersey follows federal rules for most ordinary business deductions. Costs like rent, payroll and supplies reduce the income your LLC reports on both returns.
The state's own credits are narrower. A New Jersey S-corp can claim the earned income tax credit. Employers who qualify can further claim the child and dependent care credit against their New Jersey liability.
Federal deductions like the Qualified Business Income deduction under Section 199A apply only to your federal return. New Jersey does not allow it. Ask a CPA familiar with the Division of Taxation which of these state credits actually fit your LLC.
FAQs
What Is the Minimum Tax for a New Jersey LLC Taxed as a Corporation?
The minimum tax for a New Jersey LLC taxed as a corporation depends on its gross receipts. An S-corp pays $375 to $1,500. A C-corp pays $500 to $2,000. Default LLCs owe no separate minimum tax, though a multi-member LLC still owes its $150-per-owner filing fee.
Does New Jersey Still Require a Separate S Corporation Election?
No, New Jersey has not required a separate S corporation election since December 22, 2022. If your federal approval letter is older than that, you may still need a retroactive election to cover earlier tax years.
What Is New Jersey's Sales Tax Rate?
New Jersey's sales tax rate is 6.625% statewide, with no additional local sales tax anywhere in the state. Atlantic City stacks its own 9% Luxury Tax on top of that for room rentals and admission tickets.
Do I Have to Pay New Jersey's Pass-Through Business Alternative Income Tax?
No, the Pass-Through election for New Jersey's Business Alternative Income Tax is optional for eligible multi-member LLCs and S-corps. If you need more time to file it, Form PTE-200-T gives a 6-month extension, though 80% of the tax must already be paid by March 15.
References:
- https://www.nj.gov/treasury/taxation/cbt/scorpfaq-proceduralchanges.shtml
- https://www.nj.gov/treasury/taxation/cbt/corporatetransitfee.shtml
