Newark's Local Taxes & Fees: The Rules That Matter

Every city handles local taxes & fees a little differently. In Newark, New Jersey, there are 2 distinct rules that residents and property owners should be aware of. Some are stricter than what neighboring cities enforce, and others are more relaxed. Here is what you need to know.

Parking Tax

Newark imposes a 15% municipal parking tax on the gross receipts of commercial parking lots and garages under NJ §40:48C-6, a major revenue source given Penn Station and EWR airport demand.

Key details: Rate: 15 percent of receipts. Statute: NJ §40:48C-6. Coverage: Off-street commercial lots. On-street meters: Not covered.

Operating an unregistered lot or under-reporting receipts can result in back taxes, interest, civil penalties, and revocation of the city zoning approval needed to operate the parking facility.

Business Tax Classification

Newark imposes a 1% employer payroll tax under NJ §40:48C-15 on wages paid to employees working in the city, with a carve-out for wages paid to Newark residents to encourage local hiring.

Key details: Rate: 1 percent of payroll. Resident wages: Exempt. Nonprofits: Exempt 501(c)(3). Statute: NJ §40:48C-15.

Failing to register, file, or remit the payroll tax results in interest, penalties, and potential personal liability for responsible corporate officers under New Jersey tax-collection rules.

The Bottom Line

Newark's local taxes & fees rules are a mixed bag. Some areas are strict, others are relaxed, and the details matter. The best approach is to check the specific rule that applies to your situation rather than assuming Newark is broadly strict or permissive.

Keep in mind that Newark can amend these rules at any council meeting. For the most current version of any rule mentioned here, check the specific ordinance page, where we track updates as they happen.