Should You Tip on the Pre-Tax or Post-Tax Amount?
The pre-tax vs. post-tax tipping debate, settled. Learn what etiquette experts say, how much it actually matters, and why restaurants want you to tip on the higher number.
7 min read · Updated
The Short Answer
Tip on the pre-tax amount. That's the traditional etiquette answer, and it's the right one. The tip is for the service you received, and sales tax is a payment to the government — it has nothing to do with the food you ate or the service your waiter provided.
Now, let's talk about why this simple question generates so much confusion, how much it actually matters in dollars, and why the restaurant industry would prefer you didn't think about it too carefully.
What Etiquette Experts Actually Say
Every major etiquette authority — Emily Post Institute, Debrett's, the various "manners" columnists — agrees: the proper base for a tip is the pre-tax subtotal. The tax on your meal is not part of the cost of the food or the service. You wouldn't tip on a gift card surcharge or a processing fee, and logically, you shouldn't tip on the government's cut either.
This isn't controversial in etiquette circles. It's settled. The controversy only exists because restaurants and payment systems have made it easy to forget.
Why Restaurants Show Post-Tax Suggestions
Take a look at the bottom of your receipt next time. Many restaurants print "suggested tip" amounts based on the total after tax, not the subtotal. Some even bold the total and bury the subtotal further up the receipt.
This isn't an accident. It's a design choice. Here's why:
- Higher base means higher tips. A 20% tip on a $100 post-tax total is $20.00. A 20% tip on the $91 pre-tax subtotal (in a high-tax area) is $18.20. The restaurant — and the server — gets an extra $1.80 per table. Multiply that across hundreds of customers per week, and it adds up.
- Point-of-sale systems default to it. Most POS software calculates suggested tips on the total by default. Changing it requires configuration that many restaurant owners don't bother with — or don't want to bother with.
- Nobody complains. Most customers don't notice or don't care enough to do the math. The path of least resistance favors the restaurant.
To be clear: this isn't some grand conspiracy. But it is a system designed to nudge you toward paying more, and you should be aware of it.
How Much Difference Does It Actually Make?
Let's do the math with real numbers, because this is where the debate loses some of its heat.
Low-Tax State (5% sales tax)
| Bill Subtotal | Tax (5%) | Total | 20% on Pre-Tax | 20% on Post-Tax | Difference |
|---|---|---|---|---|---|
| $50.00 | $2.50 | $52.50 | $10.00 | $10.50 | $0.50 |
| $100.00 | $5.00 | $105.00 | $20.00 | $21.00 | $1.00 |
| $200.00 | $10.00 | $210.00 | $40.00 | $42.00 | $2.00 |
High-Tax State (10% combined sales tax)
| Bill Subtotal | Tax (10%) | Total | 20% on Pre-Tax | 20% on Post-Tax | Difference |
|---|---|---|---|---|---|
| $50.00 | $5.00 | $55.00 | $10.00 | $11.00 | $1.00 |
| $100.00 | $10.00 | $110.00 | $20.00 | $22.00 | $2.00 |
| $200.00 | $20.00 | $220.00 | $40.00 | $44.00 | $4.00 |
For an average dinner for two at a modest restaurant ($60-80 subtotal), we're talking about a difference of $1-2 in a typical state and $2-3 in a high-tax city. For a quick lunch, the difference might be 50 cents.
Is it worth calculating precisely every time? Probably not. Is it worth understanding so you can make an informed choice? Absolutely.
Where It Matters More: High-Tax Locations
Sales tax varies dramatically across the United States. In some places, the gap between pre-tax and post-tax tipping is negligible. In others, it's significant enough to care about.
Highest combined sales tax rates (state + local):
- Chicago, IL: Up to 10.25%
- Seattle, WA: Up to 10.25%
- Los Angeles, CA: Up to 10.25%
- New York City, NY: 8.875%
- Minneapolis, MN: Up to 8.025%
If you live in or are visiting one of these high-tax areas and you dine out regularly, tipping on post-tax adds up. On a $100 pre-tax dinner in Chicago, the difference between tipping 20% pre-tax ($20) and 20% post-tax ($22.05) is over $2 per meal. Dine out twice a week and you're paying an extra $200+ per year in tips — not because of better service, but because of a higher tax rate you have no control over.
States with no sales tax on restaurant meals:
- Oregon, Montana, New Hampshire, Delaware — no sales tax at all, so the pre-tax vs. post-tax question is moot. The bill is the bill.
If you live in one of these states, congratulations. This entire debate doesn't apply to you.
The Practical Middle Ground
Here's what actually happens at most tables: people glance at the total on the bill, do quick math (or pull up a calculator), and tip on whatever number is in front of them. That number is usually the post-tax total. And for most meals, the dollar or two difference is not worth agonizing over.
If you want to be technically correct: tip on the pre-tax subtotal. Find it on your receipt (it's usually labeled "subtotal" or "food & beverage"), and calculate from there.
If you want to be generous and keep things simple: tip on the total. Your server will appreciate it, and the extra dollar won't change your life.
If you want to be deliberate: this is exactly the kind of thing our tip calculator is built for. Enter the pre-tax amount, rate the service, and get a precise recommendation.
What About Alcohol?
A related question: should you tip on the full amount if a large portion of the bill is expensive wine or liquor?
Technically, yes. The server still opened the bottle, poured the wine, and served the drinks. Some people argue that tipping 20% on a $300 bottle of wine is excessive for the act of uncorking it, and that's a fair point. A reasonable approach for very expensive bottles: tip 20% on the food and a smaller percentage (10-15%) on high-priced wine. Nobody will judge you for this.
For normal drink orders — cocktails, beers, glasses of wine — tip on the full amount just like you would for food.
What About Discounts and Coupons?
If you used a coupon, gift card, or got a discount, tip on the original pre-discount amount. Your server did the same amount of work regardless of your discount. They served a $50 meal even if you only paid $30 for it.
This is one situation where most etiquette experts are in strong agreement, and we agree too. The server shouldn't be penalized because you had a Groupon.
Our Recommendation
Here's our straightforward take:
- Tip on the pre-tax subtotal. It's correct etiquette, and it's logical — tax is not part of the service.
- Don't obsess over it. For most meals, the difference is a dollar or two. If you accidentally tip on the post-tax amount, you haven't committed a social crime — you've just been slightly more generous.
- Be aware of receipt tricks. When a receipt shows "suggested tip" amounts, check whether those percentages are calculated on the subtotal or the total. In most cases, it's the total, which means their "20%" is actually higher than 20% of the real food cost.
- Use exact numbers when it matters. For expensive dinners, large parties, or high-tax cities, the difference is real money. Take a few seconds to find the subtotal and tip on that. Or use our tip calculator to handle the math.
For more on quick mental math tricks to calculate tips at the table, check out our guide on how to calculate a tip in your head.
The Bottom Line
The pre-tax vs. post-tax question is a real etiquette distinction with a clear answer: pre-tax is correct. But it's also one of the smaller financial decisions you'll make at dinner. Know the rule, apply it when it's convenient, and don't lose sleep over it when you don't.
What matters much more than the tax distinction is whether you're tipping fairly based on the service you received. Our tip calculator helps you get that part right — enter your pre-tax bill, rate the experience, and get an honest suggestion that reflects what the service was actually worth.