Official Site of The State of New Jersey

Composite Return Tax Rate

The New Jersey Administrative Code at N.J.A.C. 18:35-5.2 requires income taxation on composite returns, Form NJ-1080C at the highest rate. For tax years beginning on or before December 31, 2012, the Division will continue allowing the use of two rates in order to encourage nonresident individuals to elect to participate in a composite return.

Entities preparing and filing the NJ-1080C return for participating taxpayers with New Jersey sourced income from the entity of less than $250,000 will apply the 6.37% rate and for participating taxpayers with New Jersey sourced income of $250,000 or more will apply the highest tax rate which was 10.75% in 2009 and 8.97% in 2010, 2011 & 2012.

The Division is reviewing its composite return policy which may result in a revision for tax years beginning on and after January 1, 2013. Any prospective change in policy will be posted on the Division’s website.