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Jun 1, 2012 10:01 AM

Tax and Gratuity

I'm having a dinner party tomorrow night at a restaurant. Can anyone tell me if when a restaurant adds gratuity to a bill is it done before or after the sales tax has been added? Thanks.

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  1. I've seen it done both ways but it should be after the bill and sales tax.

    1. I've noticed that some places do it after sales tax now, but traditionally, it's been based on the sale and service, exclusive of tax. Here's an old discussion....

      1. You'd expect it to be the same as the cultural norm for tipping in whatever part of the world you're in.

        1. Ask. The US norm is pretax. People are free to calculate it post tax if they prefer, but the social compact is pretax, as it were.

          1. I think some of the replies did not read the OP well enough.

            With the restaurant doing the gratuity, yes, they can figure it both ways. So, just give a short phone call and check, make sure you speak with a manager and get their name. So if the gratuity is done from the post tax amount, and on the phone, you were told, pre-tax amount, you can quickly clear it up.