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Division of Taxation

Atlantic City Businesses

The combined rate for sales subject to both Sales and Use Tax and the Atlantic City Luxury Tax is reduced from 12.875% to 12.625% (9% Atlantic City Luxury Tax and 3.625% Sales and Use Tax). The following rules apply to all sales made in Atlantic City on and after January 1, 2018:

  • Alcoholic beverages that are sold by the drink in Atlantic City – including bottles of beer and wine opened and consumed on the premises – are taxable at the combined rate of 9.625% (3% Atlantic City Luxury Tax and 6.625% Sales and Use Tax).
  • Sales that are subject to both taxes, other than alcoholic beverages sold by the drink, will be subject to the rate of 12.625% as described above.
  • Sales of packaged goods are subject to Sales and Use Tax at the rate of 6.625%.

The updated Combined Atlantic City Luxury Tax and State Sales Tax Collection Schedule (Form ST-275)


Last Updated: Wednesday, 03/18/20