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Do you tip a restaurant server on the pre-tax or post-tax total? —Richard P., St. Louis
That's a good question, as tipping practices and percentages in this country are constantly changing, especially given the recent dramatic increase in restaurant prices overall.
Restaurant owners tell us that the large majority of tipping appears to occur post-tax, if for no other reason than its it’s the last number that customers see before the tip line and usually printed in larger type. That may be true, but wouldn’t it be more logical to tip pre-tax, for only the amount of one’s food and beverage and not the sales tax added to it? Does that tax add value to the dining experience?
Customers should also consider that some servers must “tip out” a percentage of their sales total, including tax, to bartenders, bussers, runners, and sometimes front-desk staffers. (We’ll save the 'pay people more and abolish tipping' discussion for another time.)
Personally, I'm a post-tax tipping guy, for the reason stated above but also because the difference between the two tips is usually negligible (on a $100 check, it's under $3). My logic is that a decent dining experience is worth a couple of extra bucks. I still tip from 20 to 30 percent (and tipped more at the beginning at the pandemic). My tip percentage hasn’t changed just because restaurants have become more expensive, but my dining out frequency has.
I asked several members of SLM’s dining team whether they tip pre-or post-tax and whether their tipping habits have changed over time.
Dave Lowry: “From Mishnaic Hebrew comes the word 'tzaykan,' to describe a miserly cheapskate. Learn it, and don't be one by tipping only on the pre-tax bill.”
Collin Preciado: “I tip 20 percent, plus another dollar on the bottom dollar figure. And usually 10 percent on takeout orders, since a lot of work can go into getting those together as well, depending on the restaurant.”
Cheryl Baehr: “I always tip on the post-tax amount. It's the final amount and printed in boldface. I feel like taking off the tax is nickel-and-diming hardworking people. I've always been a 20 percent-er but rounded up when the bill is close to the next tens place. For a $68 check, I'll tip 20 percent of $70 to make it a round number. I'm still tipping roughly the same in a post-pandemic world, though I'm creeping closer to 25 percent these days. But then again, I was a server for years, so that's where my loyalties are.”
Trevor Johnson: “Although many people, including myself, tip based on the grand total, I believe it is standard practice for people to tip on the pre-tax total. In fact, a lot of bars will tell you to go ahead and tip on the pretax. From my experience working in the industry, people are tipping just as well since prices have gone up post-pandemic. Diners now realize that going out to eat and drink has become expensive in general and if tipping were abolished, menu prices would skyrocket further. Unfortunately, bad tippers will always tip badly, no matter the level of service.”
Jenny Agnew: “I tip on the post-tax total and haven't changed the percentage (20 percent).”
Bill Burge: “I'd hoped the pandemic would expose 'tip culture' and restaurants would go full-Bulrush and charge for the true cost of dining (i.e., service included) and pay all employees a fair wage. It's hard work, and as restaurant costs have gone up, I've wondered if tips have come down because the average consumer wants to eat out but can't do so as often as they may have pre-pandemic. I would suspect service staff in all but the busiest spots has not seen a return to pre-pandemic wages, but inflation is no fault of the service staff, so I do what I've always done: round up to the next increment of 10 and multiply by two with disregard to the tax—meaning $21 gets the same baseline 20 percent as $30, regardless of the quality of service. I then slide up (only up!) from there based on the situation. I'm more apt to hit 30 precent on the high and low situations. The latter are often rough jobs for low pay, and my assumption is a lot of people are likely tipping poorly, and on the high side, the service staff likely did more for me. As for those dipping low to zero on the quality of service...if the service is that poor, you should be talking to the manager, especially since servers often have to tip the other people working with them, and they shouldn't be penalized because one server is having a bad go.”
Lynn Venhaus: “I tip 20 precent post-tax, although I have friends and family who do pre-tax. If the service is exceptional, I might round up. If I’m in a larger group, where servers often get dinged, I often give more. The biggest thing that changed with the pandemic is that now I tip more for carryout and delivery and for counter service. During the first two years, I was tipping 20–25 percent. Now, I usually do 15 percent if it's a quick pickup and sometimes 20 percent if it's more labor-intensive.”
Pat Eby: "Properly tipping people in the post-Covid world in the middle of an inflationary spiral means I go out to eat less frequently. We generally go out for breakfast and lunch, dinner on special occasions like birthdays and anniversaries. Even though our average check is now a higher dollar amount, I want to leave a tip of 25 percent or more, which I often leave in cash, now that I am carrying cash again. I hadn't thought about tipping only on the pre-tax part of the bill and through force of habit, I doubt I will."
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