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New Jersey Gross Income Tax
NJ-NR-A
(10-23) Business Allocation Schedule
For Tax Years Beginning On and After January 1, 2023
Use this schedule if business activities are carried on both inside and outside New Jersey or if business activities are carried on 100% outside New Jersey.
For tax years beginning on and after January 1, 2023, services are sourced based on market sourcing, not cost of performance.
This form must be enclosed and filed with your New Jersey Income Tax return.
Enter name, address, and Social Security/federal employer identification number as shown on Form NJ-1040NR, NJ-1041, or NJ-1065.
Legal name of taxpayer Social Security Number/Federal EIN

Trade name of business if different from legal name above For the Tax Year Ending
(Month, Day, Year)
Address (number and street or rural route)

City or Post Office State ZIP Code

Business Allocation Percentage
Receipts: Amounts (omit cents)

1. From sales of tangible personal property shipped to points within New Jersey .................................................... . 1.

2. From services, if the benefit of the service is received in New Jersey. ................................................................... 2.

3. From rentals of property situated in New Jersey. .................................................................................................... 3.

4. From royalties for the use in New Jersey of patents, copyrights, and trademarks. .................................................. 4.

5. All other business receipts earned in New Jersey................................................................................................... 5.

6. Total New Jersey receipts (Total of lines 1 through 5). ........................................................................................... 6.

7. Total receipts from all sales, services, rentals, royalties, and other business transactions everywhere. ................ 7.
8. Business Allocation Percentage (Allocation Factor)(Divide line 6 by line 7). %
Carry the fraction to 6 decimal places and express as a percent. . ........................................................................ 8.

If business activities are carried on both inside and outside New Lines 1–5 – Receipts
Jersey, use this form to determine the business allocation per- Receipts Allocated to New Jersey
centage. This will be applied to the business income to determine • Receipts from sales of tangible personal property if the goods
the amount from New Jersey sources. For purposes of this form, are shipped to points within New Jersey
business allocation percentage and allocation factor are used • Receipts from the sale of goods if shipped to a New Jersey or
interchangeably. a non-New Jersey customer where possession is transferred in
New Jersey
Beginning with Tax Year 2023, the business allocation percent-
age uses market-based sourcing, not cost of performance, to • Receipts from the sale of goods shipped to a taxpayer from
determine the portion of the business income sourced to New outside New Jersey to a New Jersey customer by a common
Jersey. The business allocation percentage is calculated using a carrier
single sales factor formula rather than a three-factor formula. See • Services performed if the benefit of the service is received in
N.J.A.C. 18:7-7.1 through N.J.A.C. 18:7-10.1 for more information. New Jersey
• Rentals from property situated in New Jersey
Only activities related to operational activity are to be used when • Royalties from the use in New Jersey of patents, copyrights,

calculating the business allocation percentage. Do not include
and trademarks
nonoperational activity. Nonoperational income is income or loss
generated by activities outside the regular trade or operating activ- • All other business receipts earned in New Jersey
ities of a business. See N.J.S.A. 54:10A-6.1 for more information.
Receipts Not Allocated to New Jersey. Receipts from the sale
Be sure that Form NJ-NR-A is enclosed with Form NJ-1040NR, of goods shipped from outside New Jersey to a New Jersey lo-
NJ-1041, or NJ-1065, and that the name and address on the cation where the goods are picked up by a common carrier and
Business Allocation Schedule agree exactly with the name and transported to a customer outside New Jersey are not allocated to
address on the return with which it is enclosed. New Jersey.

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Receipts From Sales of Capital Assets. Receipts from sales of 
capital assets not held for sale to customers in the regular course 
of business, either within or outside New Jersey, should be in-
cluded in the numerator and the denominator based on the net 
gain recognized and not on gross selling prices. If the taxpayer’s 
business is the buying and selling of real estate or of securities 
for trading purposes, gross receipts from the sales of such assets 
should be included in the numerator and the denominator of the 
receipts fraction.

Lines 6 – Total Receipts From All Sales, Services, and Other 
Business Transactions In New Jersey
Add lines 1 through 5 and enter the total.

Line 7 – Total Receipts From All Sales, Services, and Other 
Business Transactions Everywhere
Enter on line 7 the total receipts from all sales made, services 
per formed, and business transactions conducted both inside and 
outside New Jersey during the period covered by the return.

Line 8 – Business Allocation Percentage
Divide line 6 by line 7 and enter the result. The result will be 100% 
or less. Also enter this percentage on the appropriate line of the 
following returns:

• Part III, Form NJ-1040NR;
• Schedule D, Form NJ-1041;
• Line 19b, Form NJ-1065;
• Partnership Filing Fee, Form NJ-1065; and
• Partners Directory, Form NJ-1065.

Note: If filing Form NJ-1065, enter the business allocation per-
centage as a decimal (e.g., enter 12.345% as .12345).

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