New Jersey LLC Taxes: How Your LLC Is Actually Taxed in 2026

New Jersey Income Tax on LLC Members

New Jersey's Gross Income Tax is graduated, not flat. The NJ Division of Taxation's current tax rate schedule, read September 17, 2026, gives these brackets for single filers:

This is the same personal income tax schedule that applies to wages — your share of LLC profit is added to your other income and taxed at these rates. Married-filing-jointly and head-of-household filers use a slightly different schedule at the lower brackets, but the 10.75% top rate above $1,000,000 is the same for every filing status.

Source and read date: these brackets are the NJ Division of Taxation's New Jersey Tax Rate Schedules (nj.gov/treasury/taxation, Table A for single filers) — verified against that page on September 17, 2026.

The $150-Per-Owner Partnership Fee

Separate from income tax, an LLC taxed as a partnership with more than two owners and New Jersey-source income owes a $150-per-owner partnership filing fee when it files Form NJ-1065, capped at $250,000. Single-member LLCs and two-owner LLCs owe none of it. This fee is not a tax on income — it is a flat charge per owner, and it is covered in full, with the annual report and formation costs, in our New Jersey LLC costs guide.

Source and read date: the $150-per-owner amount, the more-than-two-owners threshold, and the $250,000 cap are stated on the NJ Division of Taxation's Prepayment of Partnership Filing Fee page (nj.gov/treasury/taxation) — verified against that page on September 17, 2026.

BAIT: The Optional Entity-Level Election

New Jersey also offers an election most LLC owners have never heard of until their accountant mentions it: the Pass-Through Business Alternative Income Tax, known as BAIT. It lets a partnership, a New Jersey S corporation, or an LLC classified as either — with at least one member who is an individual, estate, or trust — elect to have the entity itself pay New Jersey tax, instead of the tax landing on the members' personal returns. Single-member LLCs are not eligible.

The current PTE-100 return's BAIT rate table applies these three tiers to the entity's total distributive proceeds:

Source and read date: these three tiers are the current rate table published on the NJ Division of Taxation's Pass-Through Business Alternative Income Tax (BAIT) page (nj.gov/treasury/taxation/baitpte) and the 2025 PTE-100 return instructions' own rate chart — verified against both on September 17, 2026.

Members then claim a refundable credit on their own NJ return for their share of the tax the entity already paid. The election is made annually — the Division's BAIT page states it is due on or before the original due date of the entity's Form PTE-100, which is March 15 for calendar-year filers. If the entity expects to owe more than $400, it also has to make quarterly estimated payments on Form PTE-150, due April 15, June 15, September 15, and January 15.

Source and read date: the election deadline and the $400 estimated-payment threshold are stated on that same nj.gov/treasury/taxation/baitpte page — verified on September 17, 2026.

Electing Corporate Tax Instead

An LLC can also file an election to be taxed as a corporation for federal and New Jersey purposes. Do that, and pass-through taxation stops applying entirely — the LLC instead files and pays New Jersey's Corporation Business Tax on its own return. The NJ Division of Taxation's Corporation Business Tax Overview sets the rate at 6.5% on entire net income of $50,000 or less, 7.5% on entire net income between $50,000 and $100,000, and 9% on entire net income above $100,000, allocated to New Jersey.

Source and read date: these three rates and thresholds are stated on nj.gov/treasury/taxation/corp_over.shtml — verified against that page on September 17, 2026.

This is a deliberate, fairly permanent choice, not a box to check by accident — most small LLCs stay pass-through. It is worth knowing it exists mainly so you recognize the term if a tax preparer raises it.

Sales Tax, If You Sell Taxable Goods or Services

If your LLC sells taxable goods or services, New Jersey's sales tax is separate from all of the above. The NJ Division of Taxation's Sales and Use Tax page states: "New Jersey assesses a 6.625% Sales Tax on sales of most tangible personal property, specified digital products, and certain services unless specifically exempt under New Jersey law."

Source and read date: quoted directly from nj.gov/treasury/taxation/businesses/salestax — verified against that page on September 17, 2026.

Bottom Line

For the full annual cost picture — formation fee, annual report, and the partnership fee all in one table — see New Jersey LLC Costs 2026. To keep the LLC itself in good standing beyond taxes, check New Jersey registered agent requirements.

This article is for informational purposes only and does not constitute legal or tax advice. Verify current figures with the NJ Division of Taxation and consider a CPA for BAIT or corporate-election decisions specific to your LLC.