TRENTON, N.J. — New Jersey is the seventh most expensive state to start a business in 2025, according to a new study by Simplify LLC, which analyzed costs such as taxes, wages, rent, and utilities.
The study found that New Jersey businesses face high expenses due to extensive regulations, elevated wages, and significant corporate tax rates. The state has 296,926 regulations, ranking 49th in the nation, and an average wage of $80,570, placing it 45th. New Jersey’s corporate tax rate stands at 7.67%, ranking 42nd.
Electricity costs are also a challenge, with businesses paying an average of $780.47 per month, ranking 38th. However, New Jersey fared better in some areas, with moderate rankings in labor force participation (64.6%, tied for 19th) and small business lending ($9.4 million per 100,000 people, 14th overall).
Nationally, Utah was ranked the least expensive state for startups, followed by South Dakota, Colorado, and Wyoming. California topped the list as the most expensive, followed by New York and Hawaii.
The report highlights rising business costs across the country, with labor expenses increasing 3.8% over the past year, commercial rent rising 3.2%, and commercial electricity costs jumping 22% since 2020.
With high taxes, wages, and regulations, New Jersey remains a costly place to launch a business in an era of rising expenses.