The "Garden State" borders New York to the north, with the Hudson River forming a natural border in places. Nearby you will also find High Point, New Jersey's highest peak at just 550 meters, in the Kittatinny Valley (part of the Great Appalachian Valley).
To the west, another river, the Delaware, separates New Jersey from Pennsylvania and Delaware. To the south and east, the state runs along the Atlantic coast.
The capital of New Jersey is Trenton. In Downtown Trenton you will find a wide range of restaurants, shops and entertainment.
The state is a magnet for international investment (much like Texas). 17 Fortune 500 companies are based here, alongside 1,100 multinationals. On top of that, 225 foreign companies have their headquarters here. If you want to break into the North American market, New Jersey gives you a warm welcome.
Five Foreign Trade Zones and outstanding logistics and distribution infrastructure give you unrivaled access to the market.
Where is New Jersey?
World-class infrastructure
The Port of New York & New Jersey is the largest cargo port on the US East Coast (Port Authority of NY & NJ). Second place for "Busiest port for imports in North America" (Pacific Merchant Shipping Association, 2018) underlines how important it is. From here, your goods can be shipped anywhere in the world with ease.
With almost 1,000 miles of freight rail, New Jersey is one of North America's leading freight hubs. Its rail density is the highest in the US. New Jersey has six Amtrak stations and connections to many Amtrak routes, including the Northeast Regional line with stops in New York City, Philadelphia, Washington D.C. and Boston.
A business in central New Jersey can serve more than 38 million consumers within a two-hour drive. You can reach a third of the US population within a day's drive. No other US state moves people and products like New Jersey.
Wired like nowhere else
The Garden State's tech infrastructure is just as impressive. 99 percent of the population has broadband at 100 Mbit/s or faster, and 68 percent has access to fiber. That makes New Jersey the "Most connected state in the U.S." (Broadbandnow.com, 2019).
Many of the state's cities offer lightning-fast WiFi to support businesses that need high-speed internet. Newark has one of the best fiber networks in the world, delivering 10 gigabits per second over 26 miles of underground municipal fiber.
A national leader in education
Princeton University was named the best university in the country (U.S. News & World Report's Best Colleges, 2020), for the tenth year in a row. And that is not New Jersey's only education award. The state also has the best public school system (Education Week, 2020) and is the best "State for education at every level" (U.S. News & World Report, 2021).
Local elite colleges and universities grow the talent pool and give businesses the chance to do research under world-class conditions through partnerships. New Jersey has an outstanding reputation for programs that adapt quickly to employers' changing needs, helping companies find and train staff. These include competitive Employee Training Grants, Apprenticeship Training and On-the-Job Training programs.
Income tax in New Jersey
New Jersey levies income tax of 1.4 to 10.75%, depending on income. On top of that, you pay federal income tax.
Corporate income tax in New Jersey
New Jersey levies corporate income tax of 9% (on profits over $100,000; below that, 7.5% or 6.5% applies). For taxable income over $10 million, a Corporate Transit Fee of 2.5% is added for the years 2024 to 2028, for a total of 11.5%. On top of that, you pay federal corporate income tax.
Sales tax in New Jersey
The USA has no VAT on the European model. Instead, states, counties and municipalities levy a local sales tax on the sale of goods (but not services).
Sales tax rate in New Jersey
Sales tax in New Jersey is 6,625% at state level. Cities and counties do not levy sales tax.
New Jersey nexus laws & sales tax
Learn more about economic nexus laws and sales tax.
Effective date
November 1, 2018
Included transactions:
Gross revenue from tangible personal property, specified digital products or taxable services (services listed under N.J.S.A. 54:32B-3(b)) delivered into the state, excluding sales for resale
Treatment of exempt sales:
Exempt sales (other than sales for resale) count toward the threshold. All revenue from taxable services listed under N.J.S.A. 54:32B-3(b) and delivered into New Jersey should be included in the threshold calculation, even if a service is exempt under the specific circumstances of the transaction. Exempt services are not included.
Trigger:
Sales or transactions
Sales/transaction threshold:
$100,000 or 200 transactions
Evaluation period:
The threshold applies to the current or previous calendar year
Additional information:
- Registration requirements: New Jersey requires a remote business to register to collect and remit New Jersey sales tax within 30 calendar days of exceeding the economic nexus threshold. For more information, see Remote Seller FAQs.
- Remote sellers making only non-taxable retail sales must register in New Jersey once they reach the economic threshold, but can then request non-reporting status by completing Form C-6205-ST. See Remote Seller FAQs.
- Information for remote sellers
- NJ A4496
New Jersey marketplace sellers & sales tax
Learn more about registration requirements for marketplace sellers
Effective date for marketplace facilitators:
November 1, 2018
Economic nexus threshold:
More than $100,000 in gross revenue from New Jersey sales or at least 200 transactions into the state in the current or previous calendar year. Remote sellers should include sales made through a marketplace when calculating the threshold. Marketplace facilitators include all sales made through the marketplace when calculating the threshold.
Registration requirements:
- Remote multichannel sellers: Once you exceed the economic nexus threshold, you must register with the New Jersey Division of Taxation and collect New Jersey sales tax on sales not taxed by a marketplace facilitator.
- Remote marketplace sellers: Once you exceed the economic nexus threshold, you must register and collect New Jersey sales tax.
- You can request non-reporting status for sales tax.
- In-state multichannel sellers: You must register with the New Jersey Division of Taxation and collect tax on sales not taxed by a marketplace facilitator.
- In-state marketplace sellers: You must register. Contact the New Jersey Division of Taxation for more information.
- Learn more here.
For an overview of every state, see our directory US states at a glance. Our guide Which US state is best for your company? helps you pick the right state, and the guide to forming a US company walks you through the process. And if you want to run your US LLC tax-free without a US permanent establishment, our sister site zerotax.llc is the place to go.
Our services for New Jersey:
Whether your New Jersey business needs its own US company, and which state it should be in, is something we work out in a consultation. You will find entity types, options and fees under US Company Formation.