NJ
New Jersey Small Business Tax Guide
The sales tax, Corporation Business Tax and income tax points a New Jersey small business meets, quoted from the Division of Taxation with each page's update date. Not tax advice.
Disclaimer: This page is educational content only. Tax laws change, and your situation may differ. It is not legal, tax, or financial advice. Consult a qualified professional licensed in New Jersey before making filing or planning decisions.
Tax landscape for small businesses
New Jersey sales tax reaches some services as well as goods. As the New Jersey Division of Taxation's sales and use tax page (New Jersey, last updated September 28, 2026) puts it: "New Jersey assesses a 6.625% Sales Tax on sales of most tangible personal property, specified digital products, and certain services unless specifically exempt under New Jersey law."
Corporations pay the Corporation Business Tax. The Division's CBT page (New Jersey, last updated September 28, 2026) explains: "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." The rate depends on income; the Division's Corporation Business Tax overview (New Jersey, last updated April 9, 2025) says: "For 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." For smaller incomes it lists "7.5% (.075)" and "6.5% (.065)", and it adds: "The minimum tax is assessed based on New Jersey Gross Receipts". The same overview warns: "This page has not been updated to reflect all the legislative changes that have impacted the Corporation Business Tax Act in recent years", so check the Division's "Changes to the Corporation Business Tax Act" page before relying on these bands. This page doesn't quote New Jersey's individual income tax rates, which the Division publishes in its rate schedules.
Worked example (sample figures, not tax advice): a Newark studio invoices a customer $800.00 for taxable goods. Using the 6.625% rate on the Division's sales tax page (New Jersey, last updated September 28, 2026), the tax is $800.00 × 6.625% = $53.00, and the invoice totals $853.00.
Tax overview
Each row lists a tax area and its notes. Confirm current figures with your state's tax agency or the IRS.
| Tax type | Rate or basis | Notes |
|---|---|---|
| Sales tax | "6.625%" (the New Jersey Division of Taxation's sales and use tax page (New Jersey, last updated September 28, 2026)) | Applies to "most tangible personal property, specified digital products, and certain services" unless exempt. |
| Corporation Business Tax, upper band | "9% (.09)" for "Entire Net Income greater than $100,000" (the Division's Corporation Business Tax overview (New Jersey, last updated April 9, 2025)) | On adjusted entire net income allocable to New Jersey. Note the overview's warning: "This page has not been updated to reflect all the legislative changes that have impacted the Corporation Business Tax Act in recent years". |
| Corporation Business Tax, middle band | "7.5% (.075)" for "Entire Net Income greater than $50,000 and less than or equal to $100,000" (New Jersey Division of Taxation, last updated April 9, 2025) | Same overview. |
| Corporation Business Tax, lower band | "6.5% (.065)" for "Entire Net Income of $50,000 or less" (New Jersey Division of Taxation, last updated April 9, 2025) | The overview adds: "The minimum tax is assessed based on New Jersey Gross Receipts". |
Filing requirements
This list isn't a complete checklist for your business.
Collect sales tax on taxable sales
The New Jersey Division of Taxation's sales and use tax page (New Jersey, last updated September 28, 2026) says: "New Jersey assesses a 6.625% Sales Tax on sales of most tangible personal property, specified digital products, and certain services unless specifically exempt under New Jersey law." For sellers outside the state, the Division's remote sellers page (New Jersey, last updated April 24, 2025) says: "For sales made on and after November 1, 2018, a remote seller that makes a retail sale of tangible personal property, specified digital products, or taxable services delivered into New Jersey must register, collect, and remit New Jersey Sales Tax if the remote seller meets either of the following criteria (the economic threshold):" gross revenue from such sales into New Jersey that "exceeds $100,000", or sales "in 200 or more separate transactions during the current or prior calendar year."
Corporation Business Tax
The Division's CBT page (New Jersey, last updated September 28, 2026) says: "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." It adds: "The tax applies to all domestic corporations and all foreign corporations having a taxable status (nexus) unless specifically exempt."
Income tax tables or schedules
The Division's tax tables page (New Jersey, last updated September 28, 2026) says: "If your New Jersey taxable income is $100,000 or more, you must use the New Jersey Tax Rate Schedules."
Deductions and write-offs
Confirm with your state how it treats each item.
- Self-employment tax deduction (IRS, In the US (federal), last reviewed or updated October 30, 2026): "You can deduct the employer-equivalent portion of your self-employment tax in figuring your adjusted gross income."
- Health insurance for the self-employed (same IRS page): "Under Section 2042 of the Small Business Jobs Act, a deduction, for income tax purposes, is allowed to self-employed individuals for the cost of health insurance."
- This page makes no claim about how New Jersey treats these federal deductions; ask a tax professional or the Division of Taxation.
Practical tips
- Before you bill a service, check whether it is one of the "certain services" the Division's sales tax page (New Jersey, last updated September 28, 2026) refers to.
- For a corporation, compare entire net income with the bands in the Division's CBT overview (New Jersey, last updated April 9, 2025).
- Put New Jersey sales tax on a separate invoice line, at the rate the Division quotes (New Jersey, last updated September 28, 2026).
- Follow up on unpaid work. Billed's invoice software page says: "Invoice reports show which invoices are paid, partially paid or past due, and you can see who owes you money and send them a payment reminder."
Frequently asked questions
Explore More State Tax Guides
Start Invoicing With Billed
Create invoices, track payments and keep your clients' details in one place with Billed.
At a glance
| Tax | Source wording |
|---|---|
| Sales tax | "6.625%" (New Jersey Division of Taxation, last updated September 28, 2026) |
| CBT above $100,000 | "9% (.09)" (New Jersey Division of Taxation, last updated April 9, 2025) |
| CBT $50,000 or less | "6.5% (.065)" (New Jersey Division of Taxation, last updated April 9, 2025) |
| Federal self-employment tax | "The self-employment tax rate is 15.3%." (IRS, In the US (federal), last reviewed or updated October 30, 2026) |
When this isn't for you
Coverage here stops at New Jersey's sales tax, Corporation Business Tax and the income tax table rule. Property tax, payroll, the pass-through business alternative income tax and multi-state questions aren't included, and none of this is tax advice; for your situation, contact a tax professional or the Division of Taxation.