Rev. 3/23
Making Mail-Order and Internet Sales
Tax Topic Bulletin S&U-5
Introduction....................................................................................................................................................................... 2
Sales and Use Tax ............................................................................................................................................................ 2
What is Taxable? ......................................................................................................................................................... 2
Who Must Collect Sales Tax? ................................................................................................................................. 2
Remote Sellers ............................................................................................................................................................. 3
Use Tax ........................................................................................................................................................................... 4
Exemption Certificates .............................................................................................................................................. 5
Collecting Sales Tax ........................................................................................................................................................ 6
Sales to Exempt Organizations .............................................................................................................................. 7
Sales to Out-of-State Customers .......................................................................................................................... 8
Paying Sales Tax to Suppliers ..................................................................................................................................... 8
Inventory and Materials ........................................................................................................................................... 8
Tools and Supplies ..................................................................................................................................................... 9
Packaging Materials .................................................................................................................................................. 9
Equipment ..................................................................................................................................................................... 9
Out-of-State Purchases ......................................................................................................................................... 10
Registration .................................................................................................................................................................... 10
New Jersey Registration ........................................................................................................................................ 10
Streamlined Sales Tax Central Registration ................................................................................................... 11
Registration for Remote Sellers ......................................................................................................................... 11
Filing Returns and Keeping Records ..................................................................................................................... 12
Filing Sales Tax Quarterly Returns and Monthly Remittance Statements .......................................... 12
Other Taxes .................................................................................................................................................................... 12
Employer Responsibilities ..................................................................................................................................... 12
Income Tax Estimated Payments ....................................................................................................................... 13
Corporation Business Tax ..................................................................................................................................... 13
C Corporations (filing separate returns) ..................................................................................................... 13
S Corporations (filing separate returns) ..................................................................................................... 13
Combined Groups .............................................................................................................................................. 14
Connect With Us ........................................................................................................................................................... 14
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Introduction
If you operate a business in New Jersey that sells products through the mail or over the
internet, you must comply with this State’s tax laws. This bulletin explains the New Jersey Sales
Sales and Use Tax
What is Taxable?
The New Jersey Sales and Use Tax Act imposes a tax on the receipts from every retail sale of
tangible personal property, specified digital products, certain services, admissions, prepared
food, and certain membership fees and parking charges, except as otherwise provided in the
Act. In addition, most services performed on tangible personal property are taxable unless
they are specifically exempted by law. Tangible personal property is property that can be
owned or leased, has a physical presence, and is moveable (with or without difficulty). It is
defined to include prewritten computer software delivered electronically.
Some items are exempt from tax regardless of who buys them or how they are used. Food
purchased for home consumption (except certain prepared food), clothing, footwear, and
drugs fall into this category. For more information, see the New Jersey Sales Tax Guide
.
Other products are exempt from Sales Tax when they are purchased to be used in a particular
manner. Purchases of certain machinery and equipment for use in the production of products
intended for sale, and packaging materials necessary for the delivery of property are examples
of items that are exempt because of their use.
For more information on the taxability of property and services, see
New Jersey Sales Tax
Guide and Sales Tax Exemption Administration. For information about the current Sales
Tax rate, visit our website. Sales Tax is calculated based upon the sales price of the purchase.
Who Must Collect Sales Tax?
New Jersey Sellers. In general, every New Jersey business selling taxable items or services
must collect and remit New Jersey Sales Tax when such sales are completed by delivery of the
item(s) to a New Jersey location or performance of the service in this State.
If you maintain a place of business in New Jersey, operate a website from a location in New
Jersey, have employees working in this State, or own any business property here such as a
warehouse or showroom, you have a physical presence in New Jersey. This means you must
register
and collect New Jersey Sales Tax on all taxable transactions, including delivery
charges. The term “employee” includes salespersons, consultants, customer representatives,
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service or repair technicians, instructors, and delivery persons, as well as independent
representatives or solicitors acting as agents on your behalf.
Remote Sellers
A remote seller is one who sells tangible personal property, specified digital products, or
services for delivery into a state via the internet, catalog, or telephone, and has no physical
presence in that state. As a result of the U.S. Supreme Court’s Wayfair decision, states may
impose Sales Tax collection and remittance obligations on remote sellers.
Sellers that have a physical presence in New Jersey, or who are otherwise legally obligated to
collect and remit New Jersey Sales Tax, are unaffected by the new law.
Economic Threshold. For sales made on and after November 1, 2018, a remote seller must
register, collect, and remit New Jersey Sales Tax if the remote seller meets either of the
following criteria (the economic threshold):
digital products, or services delivered into New Jersey during the current or prior calendar
year, exceeds $100,000; or
2. The remote seller sold tangible personal property, specified digital products, or services
delivered into New Jersey in 200 or more separate transactions during the current or
prior calendar year.
A remote seller that does not meet either of these criteria does not have to register with the
Division of Taxation to collect and remit New Jersey Sales Tax.
Marketplace Transactions. Remote sellers are not required to collect and remit Sales Tax
on the sale of tangible personal property, specified digital products, or services delivered into
New Jersey when sold through a marketplace. The law requires the marketplace facilitator to
collect and remit Sales Tax on all marketplace transactions, regardless of whether the
marketplace seller is above or below either of the economic thresholds. For additional
information, see
Sales Through a Marketplace.
Marketplace Facilitators Request for Delay of Collection and Reporting Requirements.
We may temporarily suspend or delay the registration, collection, and remittance obligations
of a marketplace facilitator for a period not to exceed 180 days with a written request. For
guidance, see
Sales Through a Marketplace.
Out-of-State Sellers. Certain out-of-state sellers may not be required to collect New Jersey
Sales Tax if their
only
contact with New Jersey is limited to maintaining a website outside this
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State that can be accessed by New Jersey residents; mailing catalogs, flyers, or other
advertisements to potential customers in New Jersey; and/or shipping property to a New
Jersey destination by means of commercial common carrier, parcel post, or the United States
mail.
An out-of-state seller that makes taxable sales of tangible personal property, specified digital
products, or services is presumed to be soliciting business
in New Jersey if that seller meets
the following conditions:
1. The seller enters into an agreement with a New Jersey independent contractor or other
representative to refer potential customers via a link on a website, or otherwise, to that out-
of-state seller in exchange for consideration based on completed sales; and
2. The seller has sales from these referrals to customers in New Jersey in excess of $10,000 for
the prior four quarterly periods ending on the last day of March, June, September, and
December.
Out-of-state sellers that meet both of these conditions are presumed to be soliciting business
and have nexus with New Jersey. The out-of-state seller must register
for Sales Tax purposes
and collect and remit Sales Tax on all sales delivered into New Jersey unless the seller provides
proof that the independent contractor or representative did not engage in any solicitation on
the seller’s behalf in New Jersey.
For more information, see Presumption of Soliciting Business in New Jersey by Out-of-
State Seller
and Notice – Sales and Use Tax Requirement for Out-of-State Sellers to
Collect Sales Tax if Soliciting Business in New Jersey.
Use Tax
Use Tax is due when taxable property (including specified digital products) and services are
purchased for use in New Jersey but Sales Tax is not collected by the seller or is collected at a
rate less than the New Jersey Sales Tax rate. Use Tax helps protect New Jersey sellers from
unfair competition from out-of-state sellers.
Typically, New Jersey Sales Tax is not collected on transactions when the seller is an out-of-
state business that is not required to register to collect the tax. Because the seller is not
authorized to collect New Jersey Sales Tax, the
purchaser
must pay Use Tax directly to the
State. Use Tax is calculated at the same rate as Sales Tax and is based on the purchase price
of the property, including any delivery charges.
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Example:
A New Jersey resident purchases some decorative candles through a catalog sent
to them by a California mail-order company. The company does not have an office or
employees in New Jersey and is not registered to collect New Jersey Sales Tax. The company
bills the individual $27.99 for the candles plus a charge of $3.00 for shipping. The individual
must remit 6.625% Use Tax ($30.99
X .06625 = $2.05) to New Jersey because the seller did not
collect Sales Tax.
Example:
A resident of Florida purchases furniture online from a store located in New Jersey.
The seller agrees to deliver the furniture to the individual’s Florida home. Since the furniture
is delivered out of state, the seller does not collect New Jersey Sales Tax and the individual
does not owe New Jersey Use Tax.
Internet purchases are treated in the same manner as purchases made through the mail. If the
internet retailer does not have a physical business presence in New Jersey and is not registered
with the State, the seller does not collect Sales Tax on items delivered into the State, and the
customer must pay Use Tax to New Jersey.
If you are an out-of-state seller that is not required to collect New Jersey Sales Tax, you should
inform your New Jersey customers that they must pay Use Tax on their mail-order or internet
purchases. You may want to include a message on your New Jersey customers’ receipts that
says:
“This purchase may be subject to your State’s Use Tax.”
For more information on Use Tax, see Use Tax in New Jersey.
Exemption Certificates
New Jersey has exemption certificates that buyers can use to purchase property and services
without paying Sales Tax in certain situations. Each exemption certificate has a specific use. A
New Jersey seller that accepts an exemption certificate
must
be registered with New Jersey.
The most common certificates are the Resale Certificate (Form ST‑3
), Exempt Use Certificate
(Form ST‑4), and Exempt Organization Certificate (Form ST-5).
The seller must keep these rules in mind when accepting exemption certificates:
1. Accept an exemption certificate only if it is fully completed; and
2. Keep exemption certificates for at least four years from the date of the purchase.
Only one exemption certificate is necessary for additional purchases of the same general type.
The seller must keep a record of every sale covered by a blanket certificate and must keep this
certificate for at least four years from the date of the last purchase covered by the certificate.
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SSUTA Exemption Certificate. As long as the purchaser completes the Streamlined Sales and
Use Tax Agreement Certificate of Exemption (Form ST-SST
) and provides it to the seller, the
seller is relieved of responsibility for collecting Sales Tax, even if it is later determined that the
purchaser was not eligible for the exemption. The certificate is accepted by all Streamlined
Sales and Use Tax Agreement member states. (See page 11.) For more information, see
Sales
Tax Exemption Administration.
Collecting Sales Tax
If you are a New Jersey seller, you must collect Sales Tax on all taxable items that you sell and
deliver to a New Jersey location. This is true even if an out-of-state customer purchases a
product from you and has it shipped to a recipient in New Jersey (e.g., a gift). A taxable
transaction also occurs if your customer, or an agent acting on behalf of the customer, takes
possession of the property in New Jersey even if the items are later shipped out of state. If the
customer is given a sales slip, invoice, receipt or other statement showing the price, service
charge, amusement charge, or rent paid or payable, the tax must be stated, charged, and
shown separately on the document that is provided (N.J.S.A. 54:32B-12(a)).
Delivery Charges. Your charges for the delivery of property (or services) directly to your
customer are subject to Sales Tax if the items sold are subject to tax. Delivery charges for
nontaxable items are not subject to tax. “Delivery charges” means your charges for the
preparation and delivery
of property or services. This includes transportation, shipping,
postage, handling, crating, packing, etc., even if such charges are separately stated on the bill.
The taxability of delivery charges follows the taxability of the property or services sold. Thus,
if a shipment includes both taxable and exempt property, you must allocate the delivery
charges based on either total sales price or total weight, and collect tax on the portion of the
delivery charges allocated to the taxable property. If you don’t allocate the delivery charges
for a shipment that includes both taxable and exempt property, you must charge tax on the
entire delivery charge.
Sales for Resale. When another business, whether registered in New Jersey or in another
state, buys your product for resale and takes possession in New Jersey, the transaction is not
taxable. However, the purchaser must give you a fully completed Resale Certificate (
Form ST-
3) or Streamlined Sales and Use Tax Agreement Certificate of Exemption (Form ST-SST). If a
customer claiming a resale exemption does not give you a fully completed ST‑3 or ST-SST,
you must collect New Jersey Sales Tax from that customer.
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Qualified Out-of-State Sellers. Qualified out-of-state sellers may make tax-exempt
purchases in New Jersey of property and services purchased for resale. When the qualified
out-of-state seller carries the property away from the point of sale, or sends its own vehicle or
messenger to pick it up in New Jersey, the qualified out-of-state seller may use the Resale
Certificate for Non-New Jersey Sellers (Form ST‑3NR
). “Qualified out-of-state sellers” are
sellers that (1) are not registered with New Jersey, (2) are not required to be registered with
New Jersey
and
(3) are registered with another state. An out-of-state seller may not use an
ST‑3NR unless the purchase qualifies for exemption under New Jersey law.
Drop Shipments. Occasionally an out-of-state business that is not registered in New Jersey
may instruct you to ship your product directly to their customer in New Jersey. This type of
transaction is called a drop shipment. Since it is a sale for resale (you’re selling your product
to the out-of-state business even though you’re delivering it directly to their customer in New
Jersey), you may accept any of the following:
• Purchaser’s resale certificate from another state;
• Uniform Sales & Use Tax Resale Certificate – Multijurisdiction
published by the
Multistate Tax Commission;
• Resale Certificate for Non-New Jersey Sellers (Form ST-3NR);
• Streamlined Sales and Use Tax Certificate of Exemption (Form ST-SST).
Sales to Exempt Organizations
Some organizations such as churches, hospitals, veterans’ organizations, and fire companies
are exempt from Sales Tax on purchases made for the exclusive use of the organization. The
Division of Taxation issues an Exempt Organization Certificate (Form ST‑5) to those
organizations that qualify for exempt status with the State of New Jersey. When you sell your
product to such an organization, you must get a photocopy of its ST‑5 certificate to show why
you did not collect Sales Tax.
Any New Jersey State agency, political subdivision of the State of New Jersey (such as counties
or municipalities), federal agency, the United Nations, or any other international organization
of which the United States is a member also is exempt from paying Sales Tax. However, these
organizations do not use ST‑5 certificates. In transactions with government agencies, the
acceptable proof of exemption from Sales Tax is:
• A copy of a government purchase order, official contract, or order on official
government letterhead signed by a qualified officer. When the amount of the
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transaction is $150 or less, a fully completed Exempt Use Certificate (Form ST-4) form
can be issued instead; and
• Federal employees are exempt if payment is made by a GSA SmartPay credit card
having a 0, 6, 7, 8, or 9 as the sixth digit of the account number (credit card centrally
billed to and paid for by the federal government). If payment is made with a GSA
SmartPay card having a 1, 2, 3, or 4 as the sixth digit, the card is individually billed to
and paid by the employee, and the federal government exemption does not apply.
o If payment is made with a GSA SmartPay credit card having a 5 as the sixth
digit, the taxability of the transaction depends on the purchase, since expenses
can be either centrally or individually billed. Car rentals and lodgings are
centrally billed to and paid by the federal government, and are exempt from
tax. Meals and other travel-related incidentals are subject to tax as they are
individually billed to and paid by the employee.
In addition, certain exemptions are granted to qualified foreign diplomatic and consular
personnel who reside in the United States. (See Diplomatic/Consular Sales Tax Exemptions
.)
For more information, see Nonprofit Organizations and Government Entities
.
Sales to Out-of-State Customers
Items that are normally taxable when sold and delivered to a New Jersey location are generally
not subject
to New Jersey Sales Tax when they are shipped to a destination outside this State.
The taxability of the transaction is determined by the laws of the state in which the purchaser,
or the purchaser’s agent, takes possession of the property. You should contact the taxing
authority of the state into which the items are delivered to find out your responsibilities under
their sales tax laws.
If no New Jersey Sales Tax was charged on a New Jersey taxable item because it was shipped
out of state, and the item is subsequently returned to New Jersey for use in this State, Use Tax
may be due if the purchaser is a New Jersey resident.
For more information, see Out-of-State Sales and Sales Tax Exemption Administration
.
Paying Sales Tax to Suppliers
Inventory and Materials
Products that you buy for resale (inventory) are not taxable. Raw materials that are
incorporated into a finished product you make and sell also are exempt. When you purchase
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such items, you may issue a Resale Certificate (Form ST‑3) or Streamlined Sales and Use Tax
Agreement Certificate of Exemption (Form ST-SST) to your supplier and not pay Sales Tax
Example:
You design and print your own greeting cards and sell them through your internet
company. You may issue a fully completed ST‑3 or ST-SST to your New Jersey supplier when
you buy the paper, ink, paint, and glue that ultimately become part of the cards that you sell.
You pay no Sales Tax when you purchase these materials.
If you buy materials or inventory items with a resale certificate and later decide to use them
for your own purposes (not resell them), you must pay Use Tax on the wholesale purchase
price.
Tools and Supplies
When you buy tools and supplies, you must pay Sales Tax. Items such as scissors, knives,
brushes, easels, hand tools, detergents, and disposable paper products differ from raw
materials in that they are not incorporated into and resold as part of your final product.
Supplies become your personal property; they belong to you and are not exempt.
Packaging Materials
Nonreturnable materials used to contain, protect, wrap, and ship property are exempt from
New Jersey Sales Tax. You may issue a fully completed Exempt Use Certificate (Form ST‑4) or
Streamlined Sales and Use Tax Agreement Certificate of Exemption (Form ST-SST) to your
supplier when purchasing these items and not pay Sales Tax. To qualify for the exemption the
packaging materials must be used in the delivery of property. Inventory storage containers
are not considered to be exempt packaging materials, nor are materials used in your business
facility. However, containers that are used in a farming enterprise are exempt.
Equipment
When you purchase office equipment (e.g., computers, printers, fax machines, copiers, desks,
etc.) for use in your business, you are required to pay Sales Tax. If you do not pay New Jersey
Sales Tax on such items at the time of purchase, you owe Use Tax.
However, machinery or equipment is exempt if used
directly and primarily
in the production
of tangible personal property for resale by manufacturing, processing, assembling or refining.
You may issue a fully completed Exempt Use Certificate (Form ST‑4) or Streamlined Sales and
Use Tax Agreement Certificate of Exemption (Form ST-SST) to your supplier when purchasing
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such equipment. (The exemption does not apply to tools that are simple, handheld, and
manually operated instruments.)
Example:
Company A uses computers to operate its website and to design greeting cards,
among other things. The business must pay either Sales or Use Tax on such purchases of
computer equipment. The company also prints some cards on its own printing press. Since
the printing press is used directly in the production of products for resale, Company A issued
a fully completed ST‑4 and paid no Sales Tax when it purchased the press from a New Jersey
supplier.
For more information, see Sales Tax Exemption Administration and Business Purchases.
Out-of-State Purchases
If you buy taxable tangible personal property or specified digital products outside New Jersey
for use in this State, you must pay Use Tax to New Jersey if you did not pay Sales Tax to the
state where you made the purchase. If you paid a lesser tax in the state of purchase (4% for
example) and can document the payment, you may remit the difference (2.625%) to the State
of New Jersey instead of the full 6.625%.
You are not required to pay Use Tax if the tangible property, or specified digital product,
purchased outside New Jersey is entitled to exemption in New Jersey (e.g., production
machinery).
For more information, see Use Tax in New Jersey
.
Registration
New Jersey Registration
Every person or entity engaged in selling taxable property (including specified digital
products) or services in this State or otherwise conducting or soliciting business
in New Jersey
must register with the State for tax purposes. Conducting business includes maintaining a
place of business in New Jersey, owning business property here, and employing workers in
this State.
Businesses can register online through the Division of Revenue and Enterprise Services’ NJ
Business Gateway Services website.
For more information about starting a business in New Jersey, see our Starting a Business
Tax Guide.
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Streamlined Sales Tax Central Registration
The central online registration system was developed by the Streamlined Sales and Use Tax
Project for sellers that want to register with every member state of the Streamlined Sales and
Use Tax Agreement (SSUTA), including those states that adopt the agreement after the seller
registers. Registering through this central system is
voluntary.
By registering through this system, sellers agree to collect and remit tax on all sales sourced
to any full-member state. In addition, a registered seller may choose to collect and remit taxes
to any or all states that are associate members. By registering through the central system, a
seller that makes predominantly mail-order or online sales subjects itself to collecting the
appropriate tax for property delivered to locations in associate member states.
Sellers that register through the central system have the option of choosing from three
methods of calculating, reporting, and remitting the tax. These methods involve the selection
of a Certified Service Provider (CSP), a Certified Automated System (CAS), or the seller’s own
proprietary system. Sellers also may report and remit tax based on traditional means, but there
are benefits to using one of the other systems that are not available for traditional systems.
Privacy and confidentiality protections also are addressed.
Additional information about the central registration system, the identification and
certification of CSPs and CASs, and other administrative simplifications is available on the
Streamlined Sales Tax website
.
Registration for Remote Sellers
Beginning November 1, 2018, remote sellers should go to the Division of Revenue and
Enterprise Services
website and choose the option “Register as Remote Seller Only.”
Alternatively, a remote seller may register for Streamlined member states by completing one
online application through the
Streamlined Sales Tax Registration System. Once registered,
the remote seller will receive a letter containing filing and payment information.
A remote seller that is over the economic threshold, but sells solely through one or more
marketplaces must register, but may request to be placed on a non-reporting basis for Sales
Tax, since the marketplace is required to collect the tax on all marketplace transactions.
A remote seller also must register if it is over the economic threshold, but only makes sales
that are for resale or otherwise nontaxable. However, the seller may request to be placed on
a non-reporting basis for Sales Tax
by completing and mailing to the Division Form C-6205-
ST, Request to Be Placed on a Non-Reporting Basis.
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Filing Returns and Keeping Records
New Jersey requires you to keep copies of the exemption certificates that you accept from
your customers for at least four years to show why you did not collect Sales Tax. You also
should keep copies of invoices and other records, such as those that verify out-of-state
deliveries (shipping receipts, bills of lading, etc.) in case of an audit.
Filing Sales Tax Quarterly Returns and Monthly Remittance Statements
As a New Jersey seller collecting Sales Tax and remitting Use Tax, you must file a New Jersey
Sales and Use Tax Quarterly Return (Form ST-50) every three months, whether or not any Sales
or Use Tax is due for that particular quarter. In addition, if you collected more than $30,000 in
New Jersey Sales and Use Tax during the preceding calendar year, you must file a Sales and
Use Tax Monthly Remittance Statement (Form ST-51) for the first and/or second month of
each calendar quarter (January, February, April, May, July, August, October, and November).
Make the required payment if the amount of tax due for that month is more than $500. If you
collected $30,000 or less in New Jersey Sales and Use Tax during the preceding calendar year,
you are not required to file Form ST-51 regardless of the amount of tax due for that particular
month.
Monthly remittance statements and quarterly returns are due by the 20th day of the month
following the end of the period covered by the filing. All taxpayers must file their Sales and
Use Tax quarterly returns and monthly remittance statements electronically. They can file
either online or by phone through the NJ Sales and Use Tax EZ File Systems, and submit
payments electronically, either by electronic check (E-check), electronic funds transfer (EFT), or
credit card.
For more information, see Filing Sales and Use Tax Returns
.
Other Taxes
Employer Responsibilities
Every New Jersey employer is required to register with the State for tax purposes and to
withhold New Jersey Income Tax from wages paid to both resident and nonresident
employees working in this State. (This does not apply to Pennsylvania residents covered under
the Reciprocal Personal Income Tax Agreement between New Jersey and Pennsylvania).
Employers also have Department of Labor and Workforce Development responsibilities to
withhold New Jersey unemployment insurance, health care subsidy fund, workforce
development partnership fund, disability insurance, and/or family leave insurance
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contributions. (See
New Jersey Income Tax Withholding Instructions
(NJ-WT) for more
information.)
Income Tax Estimated Payments
New Jersey’s Income Tax is a pay-as-you-go tax. You must pay the tax as you earn or receive
income throughout the year. Unlike the requirement that an employer withhold the tax from
wages, there are no provisions for withholding New Jersey Income Tax from the business
income of a sole proprietor, partner or, in general, shareholder of a corporation. New Jersey
residents with business income and nonresidents with business income from New Jersey
sources may be required to make estimated tax payments to satisfy their Income Tax liability
to the State on these earnings. You must file a quarterly Declaration of Estimated Tax (Form
NJ‑1040‑ES) if you estimate your New Jersey Income Tax liability for the tax year to be more
than $400 in excess of any credits.
For more information, see Estimating Income Taxes
.
Corporation Business Tax
C Corporations (filing separate returns)
The New Jersey Corporation Business Tax Act imposes an annual Franchise Tax on every New
Jersey corporation. This also applies to out-of-state corporations that acquire a taxable status
in New Jersey by doing business, employing or owning capital or property, maintaining an
office, or deriving receipts, or engaging in contacts within New Jersey. Both domestic and
foreign C corporations are required to file a New Jersey Corporation Business Tax Return (Form
CBT-100
) regardless of whether they had any assets or conducted any business activities in
New Jersey.
S Corporations (filing separate returns)
For privilege periods beginning on and after January 1, 2023, a federal S corporation will
automatically be recognized as a New Jersey S corporation, unless the corporation opts out,
which requires consent from 100% of the shareholders. S corporations pay a reduced rate of
Corporation Business Tax. New Jersey S corporations are required to file a New Jersey
Corporation Business Tax Return (Form CBT-100S
).
S corporations that elect to be a member of a combined group are treated as C corporations
for tax purposes.
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Combined Groups
A combined group is a group of companies that have a common ownership and are engaged
in a unitary business, if at least one company is subject to New Jersey Corporation Business
Tax. These groups are required to calculate their Corporation Business Tax on a combined
basis. The managerial member of the combined group is responsible for addressing all tax
matters, including paying tax and filing the CBT-100U
on behalf of the group.
For more information on Corporation Business Tax, visit our website.
Connect With Us
Email your State tax questions;
Visit a Regional Information Center;
Call 609-292-6400;
Subscribe to our NJ Tax Alert E-News;
Follow us on:
In March 2023, this document was revised to include information about payments made with a
GSA SmartPay credit card that has 5 as the sixth digit.
This document is designed to provide guidance to taxpayers and is accurate as of the date issued.
Subsequent changes in tax law or its interpretation may affect the accuracy of this publication.
