New Jersey LLC Taxes: The Complete Filing Guide (2025)

New Jersey LLC Tax Basics

Navigating your New Jersey LLC tax obligations doesn’t have to be complicated. We’ll walk you through the essentials of pass-through taxation, explain New Jersey’s specific requirements, and highlight strategies to stay compliant and organized. This guide covers everything from federal income taxes to city-specific requirements and filing deadlines.

Use the links below to jump directly to the section you need:

• New Jersey LLC Taxes at a Glance
• Understanding LLC Taxation Basics
• Federal Tax Obligations
• New Jersey State Taxes
• Local Tax Considerations
• Tax Calendar and Filing Tips
• Tax Strategies for New Jersey LLCs
• Forms and Resources

New Jersey LLC Taxes at a Glance

Tax Type	Rate	Filing Deadline	Forms Required
Federal Income Tax	10-37% (personal brackets)	April 15, 2025	Form 1040 + Schedule C or Schedule E/K-1
Self-Employment Tax	15.3%	April 15, 2025	Schedule SE
New Jersey Gross Income Tax	1.4%–10.75%	April 15, 2025	Form NJ-1040
New Jersey Business Alternative Income Tax	5.675%–10.9%	March 15, 2025	Form PTE-100
Federal Payroll Taxes (If Employees)	7.65% employer + 7.65% employee (FICA)	Quarterly (April 30, July 31, October 31, January 31)	Form 941
New Jersey Unemployment Tax (If Employees)	1.2%–7% (new employers: 3.4%)	Quarterly (Apr 30, Jul 31, Oct 31, Jan 31)	Filed online
New Jersey Corporate Business Tax	6.5%–9%	April 15, 2025	Form CBT-100
Federal Unemployment (FUTA)	6% on first $7,000 per employee (0.6% after credits)	January 31, 2026 (annual)	Form 940
Sales & Use Tax	6.625%	Monthly or quarterly, depending on sales volume	Filed online
City Payroll Tax	Up to 1%	Quarterly	Varies by city (Jersey City, Newark)
Annual Report	$75 fee	Due by end of LLC’s anniversary month	Filed online

Understanding LLC Taxation Basics

How New Jersey LLCs Are Taxed By Default

Your New Jersey LLC doesn’t pay taxes itself. Instead, profits flow through to you and your members, who report them on personal tax returns. This is called pass-through taxation.

Here’s how it works:

1. Your LLC earns income from business activities
2. The LLC itself files no tax return (unless you elect otherwise)
3. Profits “pass through” to members based on ownership percentage
4. Each member reports their share on their personal tax return
5. Members pay tax at their individual income tax rates

What this means for you: Unlike corporations, your business profits are only taxed once, which typically saves money.

Tax Classification Options

While pass-through taxation is the default, your New Jersey LLC can choose alternative tax treatments:

Default LLC Tax Status:

• Single-member LLC: Taxed as a sole proprietorship
• Multi-member LLC: Taxed as a partnership

Optional Tax Classifications:

• S Corporation: Can reduce self-employment taxes by paying “reasonable salaries”
• C Corporation: LLC pays corporate tax on profits, members pay personal tax on distributions (creates double taxation)

NJ Pass-Through Business Alternative Income Tax Option:

• Optional tax that allows LLCs taxed as partnerships or S Corps to pay tax at the entity level
• Can help overcome the $10,000 SALT deduction limitation
• Election must be made annually

Not sure which tax classification is right for your business? Schedule a free consultation with 1-800Accountant.

Federal Tax Obligations

Income Tax

As a New Jersey LLC owner, you’ll report your share of business profits on your personal tax return using:

• Form 1040 + Schedule C (single-member LLCs)
• Form 1040 + Schedule E + Schedule K-1 (multi-member LLCs)

Federal income tax rates range from 10% to 37% based on your tax bracket (actual brackets will depend on inflation adjustments and any tax law changes).

Simply Put: Whatever money your business makes (after expenses) gets added to your personal tax return, just like income from a job.

Self-Employment Tax

LLC members actively involved in the business must pay self-employment tax of 15.3% (covering Social Security and Medicare) on their share of LLC profits.

Key points:

• Applies to net earnings of $400 or more
• Calculated on Schedule SE
• You can deduct 50% of the self-employment tax as an “above-the-line” deduction, which lowers your adjusted gross income

What happens if I miss this payment? The IRS charges penalties of 0.5% per month plus interest. However, first-time mistakes can often qualify for penalty abatement if you have a clean compliance history.

Employment Taxes

If your LLC has employees, you must:

• Withhold federal income tax
• Pay and withhold FICA taxes (7.65% each for employer and employee)
• Pay federal unemployment tax (FUTA)
• File quarterly employment tax returns (Form 941)
• Provide W-2 forms annually

Estimated completion time: 2-3 hours per quarter (significantly less with payroll software or professional help)

Estimated Tax Payments

Because no tax is withheld from your LLC profits, you’ll likely need to make quarterly estimated tax payments using Form 1040-ES. These payments cover both income and self-employment taxes on your share of the business income. Missing deadlines or underpaying can lead to IRS penalties, even if you pay in full later.

Working with an accountant can help ensure accurate calculations, on-time payments, and a smarter overall tax strategy.

Key deadlines:

• April 15
• June 16
• September 15
• January 15

Pro Tip: Set calendar reminders 15 days before each deadline. This gives you time to prepare without the last-minute rush that leads to mistakes.

New Jersey State Taxes

New Jersey Gross Income Tax

New Jersey doesn’t use a standard income tax like most states. Instead, it applies a Gross Income Tax on your share of LLC income. 

• Required only if gross income exceeds $10,000
• Rates range from 1.4% to 10.75%, depending on your income bracket
• Due April 15, 2025
• Use New Jersey Form NJ-1040

Bottom Line: For every $1,000 your LLC earns, you should expect to pay at least $14 in New Jersey Gross Income Tax (in addition to federal taxes).

NJ Pass-Through Business Alternative Income Tax 

This optional tax can benefit many New Jersey LLC owners:

• Tax rate: 5.675% to 10.9%, based on total distributive proceeds
• Paid by your LLC instead of individual members
• Members receive a refundable tax credit on their New Jersey personal returns
• Helps bypass the $10,000 SALT deduction limitation
• Must elect by filing Form PTE-100 by March 15, 2025
• Election applies for one year and must be renewed annually

Real Savings Example: For an LLC with $400,000 in profits, the Business Alternative Income Tax (BAIT) could save owners up to $9,650 in federal taxes by working around the SALT deduction cap.

New Jersey Corporate Business Tax

If your LLC elects to be taxed as a C Corporation, it must pay the New Jersey Corporate Business Tax (CBT) at the entity level.

• Rate ranges from 6.5% to 9%
• File using Form CBT-100
• Due April 15, 2025 for calendar-year filers

Sales and Use Tax

If your New Jersey LLC sells physical products or certain services, you’ll need to::

• Collect 6.625% sales tax on all taxable transactions
• Register for a sales tax certificate through the New Jersey Division of Taxation
• File and pay using Form ST-50 through the New Jersey Tax Portal
• Filing frequency is monthly or quarterly, based on your sales volume

60-Second Check: Do I Need to Collect Sales Tax?

• Do you sell physical products in New Jersey? → If yes, collect tax
• Do you sell digital products? → Generally not taxable
• Do you provide services? → Most services are exempt
• Do you sell online to New Jersey customers? → If yes, collect tax

Services typically exempt from sales tax include:

• Professional services (legal, accounting)
• Personal services (haircuts, fitness training)
• Medical services

Products typically subject to sales tax include:

• Tangible personal property
• Prepared food
• Some digital products

Payroll Taxes 

If you have employees in New Jersey, you will be responsible for two types of payroll taxes. 

Unemployment Insurance (UI) Tax 

• Register through the NJ Online Payroll Tax Filing System
• Rate for new employers: 3.4% (adjusted later based on experience)
• Due quarterly (April 30, July 31, October 31, January 31)

Employer Withholding Tax

• Use the tables in Form NJ-WT to determine the required amount
• Submit payments through the NJ Online Payroll Tax Filing System
• Due monthly, quarterly, or twice monthly (based on total)

Annual Report Filing

While not a tax, your New Jersey LLC must file an annual report each year in order to remain in good standing with the state.

• $75 filing fee
• Due by the last day of your LLC’s anniversary month
• Can be submitted via the NJ Annual Reports portal

Calendar Alert: Set a reminder for the first day of your LLC’s anniversary month so you have plenty of time to file before the deadline.

Local Tax Considerations

City Payroll Taxes

There are two cities in New Jersey that currently charge a local payroll tax, which your LLC will need to pay if it has employees working within city limits.

Cities with local payroll taxes include:

• Jersey City: 1% on gross wages (if total payroll exceeds $2,500 per quarter)
• Newark: 1% on total wages paid to employees working in Newark

Filing requirements:

• Only applies to employers located in the taxing city
• Must file a separate payroll tax return for each city (Jersey City / Newark)
• Returns for both are due quarterly on April 30, July 31, October 31, and January 31.

Property Taxes

If your LLC owns real property in New Jersey:

• Rates vary by locality
• Assessed annually
• May qualify for various exemptions based on business type
• Personal property tax may apply to business equipment

Tax Calendar and Filing Tips

Key Deadlines for New Jersey LLCs

January:

• January 15: Final estimated tax payment for previous year
• January 31: Issue W-2s/1099s to employees/contractors
• January 31: Fourth quarter payroll tax payment due (state and federal)

March:

• March 17: New Jersey Pass-Through BAIT return and/or election due

April:

• April 15: Personal tax returns due (state and federal)
• April 15: Corporate Business Tax returns due for C corps 
• April 15: First quarter estimated tax payment due 
• April 30: First quarter payroll tax payment due (state and federal)
• April 30: City payroll tax returns due (Jersey City and Newark)

June: 

• June 16: Second quarter estimated tax due 

July: 

• July 31: City payroll tax returns due (Jersey City and Newark)
• July 31: Second quarter payroll tax payment due (state and federal)

September:

• September 15: Third quarter estimated tax payment due

October:

• October 31: City payroll tax returns due (Jersey City and Newark) 
• October 31: Third quarter payroll tax payment due (state and federal)

Record-Keeping Checklist

Keep these records for at least 7 years:

• Business income records (invoices, receipts)
• Expense receipts and documentation
• Bank and credit card statements
• Asset purchase and improvement records
• Vehicle mileage logs
• Home office documentation
• Payroll records
• Previous tax returns

Tax Strategies for New Jersey LLCs

S Corporation Election Benefits

Converting your LLC to an S Corporation for tax purposes can save on self-employment taxes:

1. File Form 2553 with the IRS
2. Pay yourself a “reasonable salary” subject to employment taxes
3. Take remaining profits as distributions exempt from self-employment tax

Example: An LLC making $100,000 in profit pays 15.3% self-employment tax on the entire amount. As an S Corp, if $60,000 is a reasonable salary and $40,000 is taken as distributions, only the $60,000 is subject to employment taxes.

Potential Savings: In this example, you’d save about $6,120 in self-employment taxes.

Pass-Through Entity Tax Election

Consider electing New Jersey’s Pass-Through Entity Tax if:

• You’re losing out on federal deductions due to the $10,000 state and local tax (SALT) cap
• Your LLC earns more than $100,000 in annual profit and distributes income to multiple members
• You or your partners live in high-tax states and want to reduce your personal federal tax liability
• You expect your income to remain steady or grow, making the election more valuable over time

Business Expense Deductions

Common deductions New Jersey LLC owners often overlook:

• Home office deduction
• Business mileage (70¢ per mile for 2025)
• Health insurance premiums
• Retirement plan contributions
• Professional development expenses
• Business meals (50% deductible)

Forms and Resources

Federal Tax Forms

• Schedule C: Profit or Loss From Business (sole proprietors)
• Form 1065: U.S. Return of Partnership Income
• Schedule K-1: Partner’s Share of Income, Deductions, Credits
• Form 1120-S: U.S. Income Tax Return for an S Corporation
• Form 2553: Election by a Small Business Corporation (S Corp)
• Form 8832: Entity Classification Election

New Jersey Tax Forms

• Form NJ-1040: New Jersey Gross Income Tax Return
• Form PTE-100: New Jersey Business Alternative Income Tax (BAIT) Return
• Form CBT-100: New Jersey Corporate Business Tax Return

Helpful Resources

• New Jersey Division of Taxation
• NJ Department of the Treasury: Division of Revenue & Enterprise Services
• New Jersey Department of Labor and Workforce Development
• Internal Revenue Service