Atlantic City Sales Tax Guide 2025 (New Jersey)

Navigating sales tax compliance in Atlantic City, New Jersey, can be challenging for businesses of all sizes. Understanding local regulations, sales tax registration process, New Jersey sales tax rates, use tax, and filing requirements is critical to staying compliant and avoiding penalties. At Kintsugi, we simplify sales tax compliance for businesses through seamless integrations and participation in the streamlined sales tax program, helping you focus on growth without the headache of managing complex tax rules. In this guide, we'll break down everything you need to know about sales tax in Atlantic City for 2025.

Atlantic City Sales Tax Rate (New Jersey)

As of 2025, Atlantic City, New Jersey, imposes a 6.62% sales tax on most goods and services. Additionally, the city levies a 9% luxury tax on certain items, with a combined rate of 12.62% for specified retail sales.

Jurisdiction	Sales tax rate
State Tax	6.62%
County Tax	0.00%
City Tax	0.00%
Special Tax	0.00%
Combined Tax	6.62%

(Note: Sales tax rates are subject to change. Check the New Jersey Department of Revenue’s website for the latest updates.)

Atlantic City Sales Tax Calculator (New Jersey)

As a business owner in Atlantic City, NJ, understanding the sales and use tax registration process and how to calculate these taxes accurately, including finding the accurate rates, is crucial to ensure compliance with state and local laws. Unlike other cities in New Jersey, Atlantic City has additional taxes, such as the luxury tax, which affects specific goods and services. This guide will walk you through the process step by step.

Step 1: Understand the Sales Tax Rates in Atlantic City, NJ

Atlantic City has two different tax rates depending on the type of product or service:

• Standard New Jersey Sales Tax Rate: 6.625% applies to most taxable goods and services.
• Atlantic City Luxury Tax: 9% applies to certain luxury goods and services, including hotel stays, alcoholic beverages sold at bars and restaurants, and nightclub admissions.
• Combined Tax Rate: Some sales are subject to both the luxury tax (9%) and half the standard NJ sales tax (3.3125%), making the total rate 12.3125%.

To check which tax applies to your business, visit the New Jersey Division of Taxation website (here).

Step 2: Determine If the Item or Service is Taxable

• Standard 6.625% Sales Tax Applies To: retail goods (electronics, furniture, most clothing, etc. and general services (repairs, salon services, etc.)
• Luxury Tax (9%) Applies To: hotel accommodations: (motels, resorts, casinos, alcoholic beverages: (sold for on-premises consumption), and admission charges: (nightclubs, entertainment venues).
• Luxury Tax + Half Sales Tax (12.3125%) Applies To: certain retail sales, such as cover charges and club admissions.

Step 3: Calculate the Sales Tax on a Product

Imagine you own an electronics store in Atlantic City and sell a television for $1,500:

1. Multiply the price by the standard tax rate: 1,500 × 6.625% = 99.38
2. Total Price to Charge the Customer: 1,500 + 99.38 = 1,599.38

Final Price: $1,599.38

Final Tips for Atlantic City Business Owners

• Use the correct tax rate: 6.625% for general goods, 9% for luxury tax items, and 12.3125% for special cases.
• Confirm tax-exempt items: Groceries and prescription medications are generally not taxable.
• File taxes on time: New Jersey requires monthly, quarterly, or annual filings depending on sales volume.
• Use automation: Point-of-sale (POS) systems like QuickBooks, Shopify, or Square can help calculate and apply sales tax correctly.

FAQ on Sales Tax in Atlantic City NJ

What is the Atlantic City Sales Tax?

The standard sales tax in Atlantic City, NJ, is 6.62%, but certain items, like luxury goods and hotel stays, are subject to a 9% luxury tax or a 12.3125% combined tax.

How much is Sales Tax in Atlantic City?

Most goods are taxed at 6.62%, but luxury items (hotels, nightclub admissions, alcohol) are taxed at 9% or 12.3125% when combined with part of the state tax.

What is the Atlantic City Sales Tax Rate?

The base sales tax rate is 6.62%, but for luxury items, the luxury tax is 9%, and for specific sales, a combined tax of 12.3125% applies.

Atlantic City Sales Tax Filing Steps