The New Jersey DUE-DATE MISMATCH is the costly one. New Jersey CBT returns are due the 15th day of the month AFTER the month the federal return is due — so a calendar-year S corp files federal Form 1120-S by March 15 but Form CBT-100S by APRIL 15. Owners and even preparers routinely file NJ on the federal date or, worse, assume they already filed and miss April 15 entirely, drawing a 5%-per-month late-filing penalty plus $100 per month for a delinquent return. Compounding it: the minimum tax of $375–$1,500 is based on NEW JERSEY GROSS RECEIPTS, not profit, cannot be prorated, and is owed on a money-losing year. And although the separate NJ S election was abolished as of December 22, 2022, an entity that skips the Shareholder Jurisdictional Consent or is not registered with DORES as an 1120 Filer will not be recognized as a New Jersey S corporation at all.
S-corp election in New Jersey
In short
New Jersey Corporation Business Tax statutory minimum tax of $375–$1,500 based on New Jersey gross receipts (or $2,000 for certain affiliated groups), owed every year regardless of profit.
Does New Jersey recognize the federal S election?
THIS RULE CHANGED — most published guidance is out of date. Under P.L. 2022, c.133, for privilege periods beginning on or after DECEMBER 22, 2022, New Jersey ELIMINATED the requirement to file a separate New Jersey S corporation election. The old Form CBT-2553 election is no longer required, and the Division's guidance states a federal S corporation "can file as a New Jersey S corporation even if they did not previously make the New Jersey election." New Jersey now treats a federal S corp as a New Jersey S corp by default unless it affirmatively opts out. BUT three administrative conditions still apply, without exception: the entity must (1) be registered with the Division of Revenue and Enterprise Services (DORES) as a corporation with "1120 Filer" ownership type, (2) provide proof of federal S status (the IRS approval letter, CP261 or 385C), and (3) submit the Shareholder Jurisdictional Consent listing all shareholders and ownership percentages (Schedule SJC). TO OPT OUT and be taxed as a New Jersey C corporation, the entity maintains a C Corporation Tax Status Election Consent signed by 100% of shareholders and simply files Form CBT-100 or CBT-100U instead of CBT-100S — DORES states "there is no formal notification that needs to be sent to New Jersey to elect either tax filing status," the choice is communicated by which return you file. Shareholders may revoke C status by finalizing a vote by the 15th day of the third month of the privilege period.
Tax the entity still owes
An S corporation filing Form CBT-100S "pays only the statutory minimum tax" unless it has income taxed for federal purposes, in which case it owes the GREATER of the tax on taxable income or the statutory minimum. The minimum tax is assessed on New Jersey gross receipts (Schedule J, line 6): less than $100,000 = $375; $100,000 to less than $250,000 = $562; $250,000 to less than $500,000 = $750; $500,000 to less than $1,000,000 = $1,125; $1,000,000 or more = $1,500. If the taxpayer is a member of an affiliated or controlled group (IRC s.1504 or s.1563) with total payroll of $5,000,000 or more for the tax year, the minimum tax is $2,000 regardless of the taxpayer's own New Jersey gross receipts; short periods use a prorated payroll test of $416,667 per month. THE MINIMUM TAX CANNOT BE PRORATED and zero returns are generally not permitted. The Corporate Transit Fee does NOT apply to New Jersey S corporations. Separately, there is a NONCONSENTING SHAREHOLDER TAX: the S corp pays 10.75% on the pro rata share of S corporation income allocated to New Jersey for any nonconsenting shareholder (Schedule K, Part VII), and it cannot make payments on behalf of consenting shareholders. Bright-line economic nexus applies at more than $100,000 of New Jersey receipts or 200 or more separate transactions delivered to New Jersey customers.
Registering for payroll
File Form NJ-REG with the Division of Revenue and Enterprise Services to register the business; this is the gateway filing for employer obligations and also produces the Business Registration Certificate. You must obtain a federal EIN from the IRS before filing NJ-REG. Registration covers New Jersey Gross Income Tax employer withholding (administered by the Division of Taxation, using the withholding tables/methods in Form NJ-WT) and unemployment/disability coverage administered by the Department of Labor and Workforce Development. Recurring payroll filings are the quarterly Form NJ-927 (withholding plus UI/DI/FLI contributions) and Form WR-30 (wage reporting); all year-end filings and statements must be filed electronically. New Jersey uniquely funds unemployment, temporary disability and family leave insurance partly through EMPLOYEE payroll deductions in addition to employer contributions.
Annual filings
Form CBT-100S, New Jersey S Corporation Business Tax Return, with Schedule SJC (Shareholder Jurisdictional Consent) — DUE THE 15TH DAY OF THE MONTH FOLLOWING THE MONTH THE FEDERAL RETURN IS DUE, which for a December 31 year end is APRIL 15, not March 15 (the instructions' due-date table maps a 12/31/2025 year end to 4/15/2026). Form CBT-200-T for a six-month extension, which requires at least 90% of the tax liability to have been paid. Installment payments of estimated tax on Form CBT-150 by the 15th day of the 4th, 6th, 9th and 12th months. Form PTE-100 (March 15) plus PTE-150 estimates if BAIT is elected. Electronic filing is mandatory for all CBT returns and payments. New Jersey annual report with DORES — due the last day of the anniversary month of formation each year, $75; failure to file can result in revocation.
Pass-through entity tax
New Jersey has the Pass-Through Business Alternative Income Tax (PTE/BAIT), effective for tax years beginning on or after January 1, 2020, available to S corporations with at least one member who is an individual, estate or trust liable for New Jersey Gross Income Tax on their share of distributive proceeds. Current rate brackets: 5.675% on $0–$250,000; 6.52% on $250,001–$1,000,000; 10.9% over $1,000,000. THE ELECTION MUST BE MADE EVERY SINGLE YEAR — elections do not carry forward automatically — and it must be made electronically through the PTE File and Pay System before any payments can be accepted, by March 15 for calendar-year filers. Forms: PTE-100 (annual return, due March 15; the 2025 return was due March 16, 2026), PTE-150 (estimated payments, due April 15, June 15, September 15 and January 15 for calendar-year filers), PTE-200-T (extension, which does not extend the payment deadline). All forms, returns and payments must be submitted electronically. No sunset provision is stated. Note that Form 329 is used to apply BAIT credit against gross income tax paid on behalf of nonconsenting shareholders on the CBT-100S.
The mistake owners make most often in New Jersey
Filing your federal Form 2553
Businesses operating in New Jersey send Form 2553 to the IRS Kansas City service center — fax 855-887-7734. Full address and filing checklist for New Jersey.
Frequently asked questions
Does New Jersey require a separate S-corporation election?
No. New Jersey does not require a separate state election. THIS RULE CHANGED — most published guidance is out of date. Under P.L. 2022, c.133, for privilege periods beginning on or after DECEMBER 22, 2022, New Jersey ELIMINATED the requirement to file a separate New Jersey S corporation election.
What tax does an S corporation pay in New Jersey?
New Jersey Corporation Business Tax statutory minimum tax of $375–$1,500 based on New Jersey gross receipts (or $2,000 for certain affiliated groups), owed every year regardless of profit.
Where do I file Form 2553 from New Jersey?
With the IRS Kansas City service center. Fax 855-887-7734, or mail to Department of the Treasury, Internal Revenue Service, Kansas City, MO 64999.
What is the most common S-corp mistake in New Jersey?
The New Jersey DUE-DATE MISMATCH is the costly one. New Jersey CBT returns are due the 15th day of the month AFTER the month the federal return is due — so a calendar-year S corp files federal Form 1120-S by March 15 but Form CBT-100S by APRIL 15. Owners and even preparers routinely file NJ on the federal date or, worse, assume they already filed and miss April 15 entirely, drawing a 5%-per-month late-filing penalty plus $100 per month for a delinquent return. Compounding it: the minimum tax of $375–$1,500 is based on NEW JERSEY GROSS RECEIPTS, not profit, cannot be prorated, and is owed on a money-losing year. And although the separate NJ S election was abolished as of December 22, 2022, an entity that skips the Shareholder Jurisdictional Consent or is not registered with DORES as an 1120 Filer will not be recognized as a New Jersey S corporation at all.
Compare with other states: New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma.
Sources
- https://www.nj.gov/treasury/taxation/pdf/current/cbt/cbt100sins.pdf
- https://www.nj.gov/treasury/taxation/cbt/scorpfaq-proceduralchanges.shtml
- https://www.nj.gov/treasury/taxation/baitpte/index.shtml
- https://www.nj.gov/treasury/taxation/pdf/pubs/tb/tb105.pdf
- https://www.nj.gov/treasury/revenue/gettingregistered.shtml
- https://www.nj.gov/treasury/taxation/businesses/payroll/index.shtml
File your Form 2553 correctly
Scorply completes your federal election and includes a New Jersey guide in your packet, so you know exactly what else you owe here.
Start my Form 2553Researched from official New Jersey sources and verified July 30, 2026. State tax rules change. This is general information, not tax advice — confirm with the state or a CPA before you rely on it.