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Division of Taxation

Atlantic City Luxury Tax

The Atlantic City Luxury Tax applies to receipts from specified retail sales within Atlantic City. These include:

  • Sales of alcoholic beverages for on-premises consumption;
  • Cover, minimum, or entertainment charges;
  • Room rental in hotels, inns, rooming, or boarding houses;
  • Hiring of rolling chairs, beach chairs, and cabanas; and
  • Tickets of admission within Atlantic City.

The Atlantic City Luxury Tax rate is 9% on sales – other than alcoholic beverages sold by the drink (beer, wine, etc.) and consumed on premises. (The Sales and Use Tax rate is charged at the reduced amount of 3.625%.) Atlantic City businesses collect a combined tax rate of 12.625% on the specified retail sales.

Alcoholic beverages that are sold by the drink in Atlantic City are taxable at the combined rate of 9.625% (3% Atlantic City Luxury Tax and 6.625% New Jersey Sales and Use Tax).

Sales of packaged goods are subject only to New Jersey Sales and Use Tax at the rate of 6.625%.

The tax is not levied on casual sales, sales to New Jersey or its political subdivisions, sales exempt by federal law, and sales by a church or nonprofit charitable organization.

Applicable Laws and Rules

N.J.A.C. 18:25

Last Updated: Thursday, 05/12/22