Tip Amount Based On Before or After Tax Total At A Restaurant
Financial Management

Tip Amount Based On Before or After Tax Total At A Restaurant

financial literacy

For a lot of adults I find that our version of giving Christmas gifts is simply taking people out for dinner as a way to get your friends and family together. It should be about spending time together anyways I feel. This brought up a topic about budget and how much one would have to spend on a restaurant. Of course, a point was brought up to remember that you should factor in the tips as part of the expense. One person then said most people usually spend too much on tips as you are supposed to calculate it based on the pre-tax price. With that said, I have heard some people say it’s supposed to be on the total bill in general.

Which one do you go with personally? I did write about this topic before and I have always went with the pre-tax total as that is simply what was taught to me and I think it makes sense. If you think about it, doing it after tax is like you are tipping people to give your money to the government as opposed to rewarding people based on the service value. Apparently for some people not tipping based on the total amount is considered cheap though. That is kind of silly in my opinion as regardless either option is still generous for people to do in my opinion.

Or maybe that’s the incentive to simply cook at home where you don’t need to think of either while saving a lot of money.

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