The Governor of New Jersey has signed a new corporate tax increase that will impact certain corporations doing business in New Jersey. The new tax, which is named the “corporate transit fee,” is a 2.5 percent additional surtax to be added to the current 9 percent corporate rate for corporate taxpayers with New Jersey allocated taxable net income in excess of $10 million. The transit fee is similar to the 2.5 percent corporate surtax that existed on corporations with New Jersey taxable income in excess of $1 million, which expired at the end of 2023.
While the new surtax tax is to take effect July 1, 2024, it is retroactive to taxable income earned on or after January 1, 2024. This means that a New Jersey corporation with New Jersey taxable income greater than $10 million in 2024 will pay a tax rate of 11.5 percent on the entirety of its 2024 New Jersey taxable income.
The new surtax is to be in effect from January 1, 2024, to December 31, 2028.
If you wish to discuss any of the matters in this update in more detail, please contact Danelle Stewart or Charles Marston or call 724-934-0344 (Cranberry Township, PA office) or 304-233-5030 (Wheeling, WV office).
