Division of TaxationIf your New Jersey taxable income is less than $100,000, you can use the New Jersey Tax Table or New Jersey Rate Schedules. When using the tax table, use the correct column.
If your New Jersey taxable income is $100,000 or more, you must use the New Jersey Tax Rate Schedules. Use the correct schedule for your filing status.
A composite return is a group filing. Technically, it is an individual return that each nonresident income earner must file, except that it is a composite filing of all the individual returns on one form.
New Jersey has a graduated Income Tax rate, which means it imposes a higher tax rate the higher the income. Since a composite return is a combination of various individuals, various rates cannot be assessed. Beginning 2018, entities preparing and filing the New Jersey Composite Return, Form NJ-1080-C, for participating taxpayers with New Jersey sourced income from the entity should apply the rate of 10.75% (N.J.A.C. 18:35-5.2).
For Tax Year 2017, the highest tax rate was 8.97%.
Participation in a composite return is elective. If the nonresident individual is going to be taxed at a higher rate than their financial circumstances would require if they filed individually, the individual can file the New Jersey Nonresident Income Tax Return, Form NJ-1040-NR.
For more information, see the instructions for Form NJ-1080-C or Form NJ-1040-NR.
Official Site of The State of New Jersey