Startup Costs in New Jersey

Data current as of May 2026

New Jersey's location between New York and Philadelphia gives businesses access to two major metro markets. The state has high costs - above-average rents, a $15.49 minimum wage, and the highest top income tax rate in the region - but also has one of the highest median household incomes in the country. Jersey City and Newark are developing as more affordable alternatives to Manhattan for startups.

New Jersey (NJ) by the Numbers

LLC Filing Fee
$125
Annual Report
$75
State Income Tax
10.75%
Sales Tax
6.63%
Min Wage
$15.92/hr
Cost of Living
1.18x
Labor Cost
1.15x
Rent Index
1.20x

What New Jersey's Numbers Mean for Founders

  • State income tax tops out at 10.75%, one of the higher rates in the country.
  • Labor costs run 15% above the national average, so factor higher payroll into your first-year budget.
  • Commercial rent sits 20% above the national average, especially in Trenton and the larger metros.
  • Minimum wage is $15.92/hour - on the high end nationally, which lifts your entry-level labor costs.
Capital: Trenton
Major metros: Newark, Jersey City, Paterson, Elizabeth
Top industries: Pharmaceuticals, Finance, Technology, Food Production

New Jersey Cost Guides (10)