New Jersey tax payment plan with the Division of Taxation

At a glance: New Jersey plan rules

The Division of Taxation payment plan guidelines apply to any unpaid amount, whether it is for cigarette taxes or business taxes, for income tax or for money owed on these benefits: Anchor, Homestead, Stay NJ or Senior Freeze. Your plan must include every unpaid balance and every required return.

The same rules require a minimum of $25 for every monthly payment. A standard plan can run for 60 months at most. A plan that lasts longer carries extra conditions and it may require a financial statement listing the income, bills and assets you report. Every plan needs approval.

What are the costs of a New Jersey plan?

As you make payments, interest on unpaid tax continues to build. Technical Bulletin TB-21(R) sets the rate at 10% for January 1 through December 31, 2026. It is based on a 7% prime rate plus 3%, with annual compounding. This interest does not apply to repayments of benefits such as Anchor or Senior Freeze.

For penalties, interest and collection fees, the page identifies additional charges. For a late payment, you may owe 5% of the tax due as a penalty. When your bill goes to the state’s collection agency, a Referral Cost Recovery Fee is added. The fee is set at 9.85% beginning June 15, 2026. The fee was 11% before that date. If you paid late for a reasonable cause, you can ask for a waiver of some or all of the penalty.

What steps do you take to apply for a New Jersey payment plan?

Select the request form for the amount you owe. On the payment plans page, individual income tax and business taxes each have their own forms. Property tax relief repayments have their own versions of the form. Other versions cover unpaid cigarette taxes. A separate online request form is also available.

• Complete the individual income tax request form. Enter your balance, the monthly amount you can afford and your preferred due date. Your request can be changed by the Division.
• Submit that form to the Payment Plan Unit by fax, mail or email.
• Any missing New Jersey return must be filed by a business before it does anything else.
• Businesses also sign the Responsible Person Acknowledgement and Judgment Authorization.

When does a bill go to the collection agency?

If you do not answer a notice about unpaid tax or a missing return, New Jersey sends your account to a private collector. Coast Professional, Inc. is the collector at present. According to the collection process page, a caseworker mails you a Schedule of Liabilities showing the balance due now. Once that point is reached, Division staff can no longer help with that debt. You then deal directly with the agency. Accounts already held by the agency have extra plan conditions.

Levies, refund set-offs and Certificates of Debt

A Certificate of Debt may result from unpaid debt. As a tax lien, that document is filed with the Clerk of the New Jersey Superior Court. The Judgment Unit page says it acts like a court judgment and that anyone can view it. With that certificate, the state may place liens on motor vehicles and request that your bank turn over funds to the state. A cost of collection fee is added on top.

During your time on a plan, Set-off programs continue to operate. State income tax refunds and property tax relief payments may be applied by New Jersey toward what you owe. This stops once the debt is paid in full.

Two agencies with two plans

Owing money to both New Jersey and the IRS means you have two separate deals. The Division of Taxation and the IRS each set their own payment and due date. Money you pay to one is never applied to the other. New Jersey plans can run for up to 60 months. From the start, build one monthly budget for both amounts and both dates.

Nearby states

• New York
• Pennsylvania
• Delaware
• All states