Division of TaxationIf your ³Ô¹ÏºÚÁÏ taxable income is less than $100,000, you can use the ³Ô¹ÏºÚÁÏ Tax Table or ³Ô¹ÏºÚÁÏ Rate Schedules. When using the tax table, use the correct column.
If your ³Ô¹ÏºÚÁÏ taxable income is $100,000 or more, you must use the ³Ô¹ÏºÚÁÏ 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.
³Ô¹ÏºÚÁÏ 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 ³Ô¹ÏºÚÁÏ Composite Return, Form NJ-1080-C, for participating taxpayers with ³Ô¹ÏºÚÁÏ 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 ³Ô¹ÏºÚÁÏ Nonresident Income Tax Return, Form NJ-1040-NR.
For more information, see the instructions for Form NJ-1080-C or Form NJ-1040-NR.