Edison, in Middlesex County, has a very large Indian-American community. By the American Community Survey (2020 to 2024), about 43,200 of Edison township's 108,200 residents, roughly 40%, identify as Asian Indian alone or in combination, and Middlesex County overall is about 17%. We are a Naperville, Illinois CPA firm with a particular focus on US-India tax issues, and we serve Edison clients remotely; we do not have an office in New Jersey.
New Jersey gross income tax
New Jersey taxes residents on income from all sources and nonresidents on New Jersey-source income. The 2025 rate schedules climb from 1.4% on the first $20,000 to 10.75% above $1 million of taxable income, and married joint filers have their own schedule. Calendar-year 2025 returns were due April 15, 2026. If you live in Edison and work in New York City, you generally file a New York nonresident return and claim a credit on your New Jersey return for taxes paid to New York, so keep your work-day records.
New Jersey residents who work in Philadelphia face that city's nonresident wage tax, which was 3.43% for the second half of 2025. See our Philadelphia page for current rates.
BAIT for pass-through owners
New Jersey's BAIT lets partnerships, New Jersey S corporations and multi-member LLCs elect to pay tax at the entity level. The rates are tiered by taxable income: 5.675% up to $250,000, 6.52% from $250,001 to $1 million and 10.9% above $1 million. Members claim a refundable credit on their personal returns for their share. For calendar-year entities, the election is due March 15 of the following year, and estimated payments are due April 15, June 15, September 15 and January 15 when liability exceeds $400. Single-member LLCs and sole proprietors are not eligible. Whether the election helps depends on each owner's federal and state position, so model it before you commit.
Payroll: temporary disability and family leave
New Jersey employers collect payroll contributions that go to state disability and family leave programs. For 2026, employees pay 0.19% for Temporary Disability Insurance (maximum $325.09) and 0.23% for Family Leave Insurance (maximum $393.53) on the first $171,100 of covered wages. Employers pay no Family Leave contribution but contribute 0.10% to 0.75% for disability on the first $44,800 of each employee's wages. Our payroll services include withholding and reporting for these programs, and our paid family and medical leave guide compares states.
US-India tax issues in Edison
Many clients we meet in central New Jersey have accounts, property or family businesses in India. We help with the US-India tax treaty, FBAR filing for Indian bank accounts, rental and sale of property in India and foreign tax credits, and we prepare individual returns for people who moved back and forth between countries. We also work with employers who run payroll for staff in Edison and surrounding towns.
How we can help
We prepare New Jersey and federal returns, handle S corporation and partnership filings, and keep books and payroll for Edison-area businesses, all remotely from Naperville. See our business tax preparation page and our New Jersey page. For your own situation, speak with a qualified professional.
Frequently asked questions
Do I file a New Jersey return if I work in New York?
New Jersey residents report all income to New Jersey and claim a credit for tax paid to New York. You generally also file a New York nonresident return.
Can my S corporation elect BAIT?
An S corporation or multi-member LLC with at least one individual, estate or trust member subject to New Jersey tax may be able to. Elections are made each year.
Who pays New Jersey disability and family leave contributions?
Employees pay both for most workers. Employers pay a rate-based disability contribution but nothing toward family leave.
What is the deadline for New Jersey returns?
Calendar-year 2025 returns were due April 15, 2026. If you file an extension, check the payment rules.
Official sources
- New Jersey Division of Taxation: Pass-Through Business Alternative Income Tax (BAIT)
- New Jersey Division of Taxation: 2025 NJ-1040 instructions
- New Jersey Division of Taxation: income tax changes for tax year 2025
- New Jersey Department of Labor: employer TDI and FLI contributions
- U.S. Census Bureau: ACS 2020-2024 5-year, Table B02018 (Edison township and Middlesex County)
This page is a plain-language summary. The official source controls if there is any difference.
General information only, not tax, legal or accounting advice for your situation. Rules, limits and deadlines change; confirm the current rules with the official source or a qualified professional before you act. Reading this page does not create a professional relationship with CPA Tax Payroll and Accounting Corp.