Restaurant Tax Calculator
- Food and drinks
- Tax
- Tip
Using your own rate. If the receipt's tax differs, check whether alcohol or a service charge is taxed at another rate.
How the restaurant tax calculation works
Add tax and a tip to a restaurant bill and split it between the table. Enter your own combined rate, or start from a state rate.
Start from the subtotal
The check lists food and drinks first, before tax. Here, $84.50.
Add the tax
Multiply the subtotal by the combined rate. At 8%, $84.50 × 0.08 = $6.76. The rate includes state, county, city and any meals tax, so the rate on your receipt is the best guide.
Add the tip
20% of the $84.50 subtotal is $16.90. Tipping on the total with tax, 20% of $91.26, would be $18.25.
Split the total
$84.50 + $6.76 + $16.90 = $108.16. Between 4 people, each pays $27.04.
Worked example. An $84.50 restaurant bill at an 8% combined tax rate carries $6.76 of tax. A 20% tip on the pre-tax subtotal is $16.90, so the total is $108.16, or $27.04 each for 4 people.
Restaurant Tax FAQ
How do I calculate restaurant tax?
Multiply the food and drink subtotal by the tax rate as a decimal, then add it to the bill. $84.50 × 0.08 = $6.76, for $91.26 before the tip.
What is the tax rate on restaurant food?
It depends on where you eat: the state rate plus any county, city or district tax, and in some states a separate meals tax. Vermont, for example, charges 9% on meals and 10% on alcoholic drinks, plus 1% in towns with a local option tax. The receipt shows the combined rate that applies.
Why is the tax on my receipt higher than the state rate?
State rates leave out county, city and district taxes, and some places add a meals or beverage tax. Enter the combined rate from the receipt as your own rate to match it.
Should you tip on the bill before or after tax?
Either is common. Many people tip on the subtotal before tax, since tax is not part of the service. Tipping on the total with tax gives a slightly bigger tip: 20% of $91.26 is $18.25 instead of $16.90.
Is the tip taxed at a restaurant?
This calculator adds tax to the food and drinks only, not to the tip you add. A mandatory service charge printed on the check can be taxed differently depending on the state, so check the receipt.
How do I split a restaurant bill with tax and tip?
Add the subtotal, tax and tip, then divide by the number of people. $108.16 ÷ 4 = $27.04 each. If people ordered very different amounts, run each person's items separately.
Which states have no statewide sales tax?
Alaska, Delaware, Montana, New Hampshire and Oregon have no statewide sales tax. That does not rule out a local or meals tax on the check, so go by the receipt.
Sources: Vermont Department of Taxes: Getting Started with Meals and Rooms Tax · Federation of Tax Administrators: state tax agencies · Streamlined Sales Tax: rate and boundary files