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Division of Taxation

Railroad Property Tax

The Division taxes property used by a railroad to transport freight by rail. Property can include:

  • Buildings;
  • Tracks; and
  • land parcels;
used by the railroad to support moving goods by rail. These properties are not taxed at the local level. The Division collects this tax annually from railroads operating in New Jersey. Final Property Tax bills are sent out around December 15th and are payable the following December 1st.

Railroad Franchise Tax

The Division collects this tax from railroads for doing business in New Jersey. This tax is calculated based on:
  • the miles of track the railroad has in the state;
  • their revenues; and
  • their net railway income.
Railroads pay the Franchise Tax annually instead of paying the Corporation Business Tax. Franchise Tax bills are sent out on June 1st and are due June 15th.

For questions or concerns on the Railroad Property Tax or the Railroad Franchise Tax, please call 609-292-7974.

Last Updated: Thursday, 01/16/20