NJ-NR-A: Business Allocation Schedule and Instructions (2025)
New Jersey · NJ Division of Taxation · Used for tax years 2025
Form NJ-NR-A is New Jersey’s Business Allocation Schedule. It reports New Jersey business receipts and total receipts everywhere to calculate the allocation factor used to determine operational income from New Jersey sources.
Who files this form
Use Form NJ-NR-A if your business activities take place both inside and outside New Jersey, or entirely outside New Jersey.
Enclose the schedule with your New Jersey Income Tax return: Form NJ-1040NR, NJ-1041, or NJ-1065. For businesses operating both inside and outside New Jersey, the schedule calculates the allocation factor used to determine the New Jersey share of operational income.
What you'll need
Have the following information ready:
- Your Form NJ-1040NR, NJ-1041, or NJ-1065, so the name, address, and Social Security number or federal EIN match.
- Your business trade name, if different from your legal name, and the tax year ending date.
- Receipt totals for New Jersey sales, services, rentals, royalties, and other business transactions.
- Total business receipts everywhere for the period covered by the return.
- Receipts flowing through from lower-tier unitary partnerships, if applicable.
- Net gains from sales of capital assets not held for sale to customers in the regular course of business, if applicable.
How to file
- Enter your identifying information exactly as shown on the return. Include your trade name, if different, and the tax year ending date.
- Enter New Jersey receipts on lines 1 through 5, omitting cents. For services, use where the benefit is received, not the cost of performance.
- Add lines 1 through 5 and enter the total on line 6.
- Enter total receipts from business transactions everywhere on line 7.
- Divide line 6 by line 7. Enter the allocation factor on line 8, carrying the fraction to six decimal places.
- Also enter the decimal in the applicable place: Part III of NJ-1040NR, Schedule D of NJ-1041, or line 19b and the Partnership Filing Fee section of NJ-1065.
- Enclose NJ-NR-A with your New Jersey Income Tax return.
The supplied text does not give a mailing address or e-file directions.
Common mistakes
- Leaving out the schedule. NJ-NR-A must be enclosed with the return.
- Using mismatched identifying information. The name and address must agree exactly with the return, and the Social Security number or federal EIN must be entered as shown on it.
- Using cost of performance or a three-factor formula. The schedule uses market-based sourcing and a single sales factor.
- Including excluded activity. Use only operational activity. Do not include nonoperational activity or income from nonunitary partnerships. Lower-tier nonunitary partnership receipts are excluded; lower-tier unitary partnership receipts are included.
- Using gross selling prices for certain capital assets. For capital assets not held for sale to customers in the regular course of business, use the net gain recognized. Businesses that buy and sell real estate or securities for trading purposes use gross receipts from those sales.
- Including cents or shortening the allocation factor. Omit cents from receipt amounts and carry the allocation factor to six decimal places.
Questions people ask
Do I use this schedule if my business operates entirely outside New Jersey?
Yes. The form says to use it when business activities are carried on 100% outside New Jersey, as well as when activities occur both inside and outside the state.
How are service receipts assigned to New Jersey?
Include service receipts if the benefit of the service is received in New Jersey. The form uses market sourcing, not cost of performance.
How do I calculate the allocation factor?
Divide total New Jersey receipts on line 6 by total receipts everywhere on line 7. Enter the result on line 8 to six decimal places.
Do receipts from lower-tier partnerships count?
Receipts from lower-tier unitary partnerships flow through and are included. Receipts from lower-tier nonunitary partnerships do not flow through and are not included.
Are goods passing through New Jersey always treated as New Jersey receipts?
No. Receipts are not allocated to New Jersey when goods are shipped from outside the state to a New Jersey location, then picked up by a common carrier and transported to a customer outside New Jersey.