TipNTax guide

Tip Before or After Tax?

Compare the two bases using real examples.

Two different tipping bases

A pre-tax tip uses the menu and drink subtotal before sales tax. An after-tax tip uses the subtotal plus sales tax. Different customers and establishments use different conventions.

Example: $100 bill, 8% sales tax, 20% tip

Pre-tax tip: $100 × 20% = $20, giving a $128 total.
After-tax tip: $108 × 20% = $21.60, giving a $129.60 total.
Difference: $1.60.

Neither method changes the tax itself. The difference comes only from the amount used to calculate the tip. Use the toggle in our tip calculator to compare both methods.

Check your receipt

An automatic gratuity or service charge is different from an optional tip. Look for existing charges before choosing a final amount.