Should I tip on the pre-tax or post-tax amount?

Pre-tax is the convention. Tipping on the total means the tip rises with the tax rate, which has nothing to do with the service.

Do I tip on top of a service charge?

Usually not. A service charge is intended to serve the same purpose, and adding a full tip on top doubles it.

EverydaydiningUnited States only

Restaurant Bill with Tax and Tip

A restaurant bill with tax, service charge and tip, split between people. Tipping on the pre-tax amount rather than the total is the convention, and the difference is not trivial on a large bill.

Also called: tip calculator, bill split calculator.

Each person pays

$738.00

$738.00 each across 4 people. The bill is $2,952.00: 2,400 of food, $120.00 of tax, $0.00 of service charge and $432.00 of tip.

Total bill

$2,952.00

Tax

$120.00

Service charge

$0.00

Tip

$432.00

Tip calculated on

$2,400.00

Total uplift over the food bill

23%

How this is calculated

Computed from the published rates for the tax year you selected, which is not necessarily the current year. A calculation, not tax advice, and it does not know anything about your circumstances beyond the figures entered.

Method and background

How this is calculated

Service charge is added by the restaurant to the food bill; tax applies on top. The tip is yours to set, and the convention is to calculate it on the pre-tax food total rather than on the grand total, since tipping on tax means tipping the government. Where a service charge has already been added, a further tip is a matter of choice rather than expectation.

total = food, plus service charge, plus tax, plus tip on whichever base you choose

F: Food and drink (currency)
s: Service charge (decimal)
t: Tax rate (decimal)

Worked examples

Each of these is asserted on every build. If a change to the engine ever moved one of these answers, the build would fail before the page could print it.

a bill split four ways

Food and drink: $2,400.00
Tax rate: 5%
Service charge added by the restaurant: 0%
Tip: 18%
Tip on the pre-tax amount: Yes
Split between: 4

Each person pays$738.00

Tip on the 2,400 pre-tax figure, worked by hand

Open this example

tipping on the total costs more

Food and drink: $2,400.00
Tax rate: 5%
Service charge added by the restaurant: 0%
Tip: 18%
Tip on the pre-tax amount: No
Split between: 4

Each person pays$743.40

boundary: the convention this page states

Open this example

no tax, service or tip is just the food

Food and drink: $2,400.00
Tax rate: 0%
Service charge added by the restaurant: 0%
Tip: 0%
Tip on the pre-tax amount: Yes
Split between: 1

Each person pays$2,400.00

degenerate case

Open this example

Method and limits

What it assumes

A single tax rate on the whole bill.

What it deliberately does not model

Alcohol is often taxed at a different rate from food.
Whether a service charge is mandatory is a consumer-protection question that varies by jurisdiction.

Formula version 1.0.0 · definition 1.0.0 · United States · Report a problem with this calculator

Frequently asked questions

Should I tip on the pre-tax or post-tax amount?: Pre-tax is the convention. Tipping on the total means the tip rises with the tax rate, which has nothing to do with the service.
Do I tip on top of a service charge?: Usually not. A service charge is intended to serve the same purpose, and adding a full tip on top doubles it.