Ask George: What are the reasons for tipping on either the pre-tax or post-tax totals at restaurants?

What are the reasons for tipping on either the pre-tax or post-tax totals at restaurants? —Scott C., St. Louis

Even before menu prices skyrocketed, questions about the nuances of tipping far outnumbered any other Ask George query. Today, with the onset of notions such as “tip fatigue,” “tipflation,” “guilt tipping,” “tipping fatigue,” and “tip creep,” even the buzzwords have reached the tipping point. It’s no surprise that the question of whether to tip pre- or post-sales tax has been dredged back up as well.

People who have worked in the industry tend to tip generously. Doing so has become a reflex for them but not so for many others. In fact, a recent CNBC article states that just 65 percent of Americans always tip at restaurants, and 5 percent don’t tip at all. (Last fall, in a similar Ask George article, we asked SLM‘s dining team whether they tipped pre- or post-tax. Their responses are here.)

A legit case can be made for tipping either on the pre- or post-tax totals:  

Post-tax:

• Convenience. Providing the service is good, take the easy-to-read final total, move the decimal to the left, and double that figure to get to a 20 percent tip (which is easy to do even when ciphering on a mobile pay device with the server looking over your shoulder). And if you round up the check total to the next dollar or more, then you’re at 20 percent-plus. Triple the total to get to 30 percent. 
• The dollar amount is miniscule. Assuming a 10 percent sales tax on a $100 bill, the tip difference between pre- tax and post- tax is $2.
• The headache factor. Post-taxers contend that it’s worth a few dollars more to avoid any arguments and rationalizations. No server will take you to task for a post-tax 20 percent tip.
• The appreciation factor. Skillful servers are scarcer post-pandemic. The good ones deserve a few extra bucks. (One curmudgeonly friend admits that he tends to overtip because “if someone has to interact with me and force themselves to be nice, then I’m not going to get over math-y with them.”)

Pre-tax:

• Logic. Tips are based on service, and taxes aren’t a service. No one served you a plate of tax.
• Aggregate dollars. In point No. 2 above, the incremental dollars add up: If you dine out three times per week at $100 per visit, then that’s an additional $312 spent—enough for a few more meals out.
• Restaurant endorsement. Most of the suggested tipping amounts printed on the bottom of guest checks are calculated on pre-tax totals.
• Tax rates vary. States such as Oregon levy no sales tax, while the tax rate is 15 percent or more in some resort areas. Tipping on the pre-tax amount ensures that the tip is consistent regardless of the tax rate. 

Other tipping notes:

• Remember that when using coupons or BOGOs, tips should be calculated on the undiscounted amount, considering the service is the same. 
• Some diners round up the grand total to the nearest dollar amount to minimize any tip manipulation (a.k.a. tip jacking) by an unjust server or establishment.
• To prevent similar manipulation, when tipping in cash, write the word “cash” on the tip line. 

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