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The Corporation Business Tax rate is 9% on adjusted entire net income or on the portion allocable to New Jersey. The rate is 7.5% for all corporations with entire net income of $100,000 or less. The rate is 6.5% for all corporations with entire net income of $50,000 or less.
For privilege periods ending on or after July 1, 2006 but before July 1, 2010, each taxpayer shall be assessed and must pay a surtax equal to 4% of the amount of tax liability remaining after applying credits against liability, other than credits for installment payments, estimated payments made with a request for extension to file a return, or overpayments from a prior privilege period. Payments of the surtax are to be made annually as required under N.J.S.A. 54:10A-15. No credits shall be allowed against the surtax liability except for credits for installment payments, estimated payments made with a request for an extension of time for filing a return, or overpayments from prior privilege periods.
For calendar years beginning in 2006 and thereafter, the minimum tax on corporations shall be based on New Jersey gross receipts. The minimum tax is calculated based upon the following schedule:
New Jersey Gross Receipts
Minimum Tax
Less than $100,000
$500
Equal to or greater than $100,000, but less than $250,000
$750
Equal to or greater than $250,000, but less than $500,000
$1000
Equal to or greater than $500,000, but less than $1,000,000
$1,500
Equal to or greater than $1,000,000
$2,000
The minimum tax for affiliated or controlled groups remains the same, $2,000 for each member of a group that has a total payroll of $5,000,000 or more for a privilege period.
Accounting year, whether calendar or fiscal, is the same accounting period as for federal tax purposes. Please note that the ending month of the accounting period for federal returns and New Jersey returns must be the same, however, the tax return year in the return's title for the federal and State returns may differ. For example, the tax return for a taxable year ending August 31, 2019, may be filed on a 2018 Federal 1120 form, but the State return for the same period must be filed on a 2019 New Jersey CBT-100.
The CBT-100 must be completed using the same method of accounting (cash, accrual, or other) that was used in completing the corporation's federal return. New Jersey does not permit the filing of consolidated returns. A corporation which is included in a consolidated federal return must complete all CBT-100 schedules on its own separate basis and include a copy of the Affiliations Schedule, Form 851, which was filed with Federal Form 1120.
The due date for the filing of a CBT-100 is the 15th day of the fourth month following the ending month of the accounting period. For example, if a corporation's accounting period ends on June 30, 2020, the due date for filing the 2019 New Jersey CBT-100 is October 15, 2020. (If the due date is a Sunday, the return is due the next business day.)
In general, the State of New Jersey will grant an automatic six-month extension of time to file the CBT-100. However, no extensions will be granted unless requested on tentative return form CBT-200T which must be postmarked on or before the original due date for filing the return. The CBT-200T must include the tentative tax payment.
Rate C Corporation Tax Rates:
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 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.
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.
For 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.
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.
C Corporation - MINIMUM TAX:
The minimum tax is assessed based on New Jersey Gross Receipts:
Gross Receipts
Tax
Less than $100,000
$500
$100,000 or more but less than $250,000
$750
$250,000 or more but less than $500,000
$1000
$500,000 or more but less than $1,000,000
$1,500
$1,000,000 or more
$2,000
Provided however that for a taxpayer that is a member of an affiliated or controlled group (as per sections 1504 or 1563 of the Internal Revenue Code of 1986) which has a total payroll of $5,000,000 or more for the return period, the minimum tax shall be $2,000.
Total payroll refers to the total payroll of the affiliated group rather than total New Jersey payroll of a single corporation. Taxpayers that are members of an affiliated or controlled group must submit a schedule of payroll per member and a copy of the taxpayer’s federal affiliations schedule, Form 851, with the return. Refer to Schedule A-GR for the determination of New Jersey gross receipts.
Tax periods of less than 12 months are subject to the higher minimum tax if the prorated total payroll exceeds $416,667 per month.
S Corporation Tax Rates:
For taxpayers with total entire net income that is not subject to federal income taxation or such portion thereof as may be allocable to New Jersey, there shall be no rate of tax imposed.
For taxpayers with total entire net income plus nonoperational income with New Jersey Nexus, greater than $50,000 and less than or equal to $100,000, the applicable tax rate for entire net income that is subject to federal corporate taxation is 7.50% (.075).
Tax periods of less than 12 months qualify for this reduced rate if the prorated amount of entire net income plus nonoperational income with New Jersey Nexus does not exceed $8,333 per month.
For taxpayers with total entire net income plus nonoperational income with New Jersey Nexus of $50,000 or less, the tax rate for entire net income that is subject to federal corporate taxation is 6.5% (.065).
Tax periods of less than 12 months qualify for the 6.5% rate if the prorated if the prorated amount of entire net income plus nonoperational income with New Jersey Nexus does not exceed $4,166 per month.
For taxpayers with total entire net income that is not subject to federal income taxation or such portion thereof as may be allocable to New Jersey, there shall be no rate of tax imposed.
The tax rate is 9.00% (.09) of entire net income that is subject to federal income taxation or such portion thereof as may be allocable to New Jersey.
The tax rate on net pro rata share of S corporation income allocated to New Jersey for non-consenting shareholders for tax year 2010 periods beginning 8/09 through 12/09 is 10.75% (.1075); periods beginning on and after 1/10 is 8.97 (.0897).
S Corporation- MINIMUM TAX (Tax Year 2007 – Forward):
The minimum tax is assessed based on New Jersey Gross Receipts:
Gross Receipts
Tax
Less than $100,000
$375.00
$100,000 or more but less than $250,000
$562.50
$250,000 or more but less than $500,000
$750.00
$500,000 or more but less than $1,000,000
$1,125.00
$1,000,000 or more
$1,500.00
The minimum tax is assessed based on the New Jersey Gross Receipts (Schedule A-GR) as follows: provided however that for a taxpayer that is a member of an affiliated or controlled group (as per sections 1504 or 1563 of the Internal Revenue Code of 1986) which has a total payroll of $5,000,000 or more for the return period, including periods beginning on or after January 1, 2012, the minimum tax shall be $2,000.
Total payroll refers to the total payroll of the affiliated group rather than total New Jersey payroll of a single corporation. Taxpayers that are members of an affiliated or controlled group must submit a schedule of payroll per member and a copy of the taxpayer’s federal affiliations schedule, Form 851, with the return. Refer to Schedule A-GR for the determination of New Jersey gross receipts.
Tax periods of less than 12 months are subject to the higher minimum tax if the prorated total payroll exceeds $416,667 per month.
Official Site of The State of New Jersey