Guides/Tip before or after tax
Tip before or after tax?
US restaurant checks often show a food/drink subtotal, then sales tax, then a blank tip line. Many guides suggest tipping on thepre-tax subtotal; some people tip on the total with tax. Neither is a law — local habit and service matter.
Two clear bases
- Pre-tax: tip% × food & drink (before sales tax).
- Post-tax: tip% × (subtotal + tax) — a bit higher in high-tax cities.
- Sales tax is not a tip; tip is voluntary gratuity —sales tax vs tip·gratuity vs service charge.
Worked example
- Subtotal $80, tax 8.875% ≈ $7.10, check total ≈ $87.10.
- 18% pre-tax: 0.18 × 80 = $14.40.
- 18% post-tax: 0.18 × 87.10 ≈ $15.68.
- Difference ≈ $1.28 — noticeable on large tables, small on lunch for one.
When the receipt decides for you
- Auto-gratuity for large parties is often calculated on a printed base — read the line item.
- Discounted checks: some tip on pre-discount service value —tipping on discounted bills.
- Percent shortcuts:15 vs 18 vs 20·mental tip math.
Practical takeaway
Pick a base and stay consistent with your group. Pre-tax 18–20% is a common US sit-down default; adjust for service and local norms.Etiquette basics.