Self-employed taxes and LLC costs in New Jersey, 2026
New Jersey charges S corporations a minimum tax that LLCs never pay, and its income tax has no standard deduction at all.
Total tax on this income in 2026
$20,642
Put aside 24% of each payment · $5,161 per quarter
| Self-employment tax (15.3%) | $12,010 |
| Federal income tax | $5,790 |
| New Jersey income tax | $2,842 |
| QBI deduction used | $12,579 |
| Effective rate on all income | 24.3% |
With an S corp election and a $34,000 salary, about $3,375 less tax (check it).
Computed by Radif Partners from IRS and New Jersey agency documents read on October 15, 2026 · How we calculate
A New Jersey LLC costs $100 to form with the Division of Revenue and Enterprise Services and $75 for each annual report, with no franchise tax and no newspaper publication. Profit is taxed on the owner's New Jersey return at rates from 1.4 % to 10.75 %, with only a $1,000 personal exemption and no standard deduction. On $75,000 of profit, a single filer owes about $2,303 to New Jersey and $17,798 in total with federal income tax and self-employment tax; at $120,000, the state share is $4,914. Electing S corporation status adds the Corporation Business Tax minimum, $375 a year for New Jersey receipts under $100,000 and more above that. Even with it, a $50,000 salary on $120,000 of profit saves about $4,852 a year in the calculator, after $2,000 of payroll costs.
New Jersey at a glance, 2026
| LLC filing fee | $100 |
| Annual Report | $75 a year |
| Income tax | 1.4 % to 10.75 % |
| S corporation election | followed by the state |
| Tax on $75,000 of profit (single) | $17,798 in all, $2,303 to New Jersey |
Most states let an S corporation pass its income through without charging the company anything. New Jersey does pass the income through, but it still bills the corporation a minimum Corporation Business Tax scaled to New Jersey gross receipts: $375 below $100,000, then $562, $750, $1,125 and $1,500 as receipts climb past one million, according to the CBT-100S instructions (2025 CBT-100S instructions). An LLC taxed by default never sees this bill. Since 2022, a federal S corporation no longer needs a separate New Jersey election to be treated as one, though each shareholder must consent to New Jersey jurisdiction.
State income tax on a freelance profit
New Jersey income tax
$3,138
| State share of profit | 3.5% |
| Total with federal | $22,454 |
No standard deduction, brackets that do not move
The New Jersey return starts from gross income and allows a $1,000 exemption per person, not a standard deduction, and the brackets are not indexed to inflation, so the same dollar thresholds apply year after year (2026 NJ-1040-ES instructions). Federal deductions such as QBI do not carry over. The effect is visible at modest incomes: a single freelancer clearing $40,000 pays about $584 to Trenton. The single schedule climbs quickly to 6.37 % above $75,000, while married couples get wider brackets in the middle; a couple with $150,000 of profit pays about $4,817. The top 10.75 % rate applies above $1,000,000 of taxable income.
Estimated payments are required when you expect to owe more than $400 of New Jersey tax after withholding, on the federal dates, and underpaid amounts carry interest at prime plus 3% (NJ-1040-ES instructions). The quarterly estimated tax guide explains the federal half.
What the yearly LLC bill includes
Formation is the $100 public records filing, listed on the current fee schedule of the Division of Revenue (NJ DORES, fees); older guides still quote a higher amount. After that, the $75 annual report keeps the company in good standing, for a five-year state cost of $475. Multi-member LLCs taxed as partnerships may owe an extra filing fee per owner, which was not verified today and is not in the calculator. The LLC cost comparison ranks New Jersey against its neighbors.
The pass-through business alternative income tax
New Jersey also lets partnerships and S corporations elect to pay an entity-level tax, the BAIT, which owners then credit on their personal returns; it is mainly a way around the federal cap on state and local tax deductions. Its rates were not read on an official page today, so the calculator ignores it. For the federal side of the S decision, see the LLC vs S corp calculator and the New York page for a neighbor that treats S corporations very differently.
New Jersey income tax brackets
| Taxable income, single | Rate | Taxable income, joint | Rate |
|---|---|---|---|
| $0 to $20,000 | 1.4 % | $0 to $20,000 | 1.4 % |
| $20,000 to $35,000 | 1.75 % | $20,000 to $50,000 | 1.75 % |
| $35,000 to $40,000 | 3.5 % | $50,000 to $70,000 | 2.450 % |
| $40,000 to $75,000 | 5.525 % | $70,000 to $80,000 | 3.5 % |
| $75,000 to $500,000 | 6.37 % | $80,000 to $150,000 | 5.525 % |
| $500,000 to $1,000,000 | 8.970 % | $150,000 to $500,000 | 6.37 % |
| over $1,000,000 | 10.75 % | $500,000 to $1,000,000 | 8.970 % |