I tip on pretax amount. Usually 20%. Exceptional service 25%, poor service 0-10%. Very rarely 0%. Some restaurants now add 2-3% service charge for back of the house personnel. I exclude that as well when calculating the tip.
I learned from my parents (long ago) to pre-tax tip as long as an easy way to calculate 15% tip (10% + half of that amount). The basis is arbitrary; remember you're tipping for the service you get/got. I generally tip 20% currently but adjust up (usually) or down depending on the server.
I have always tipped based on Pre-Tax amount. We should really do away with tipping as a primary source of income at service based places, not a thing in Europe and the UK mostly. They should be paid a fair wage and occasional tipping for exceptional service. I also try to tip in cash to avoid the fees back to the providers, it helps the servers there are some odd tip sharing schemes at places.
Great newsletter today! Funny that it landed in my email today. I literally was just re-reading a few of your old ones this morning and thought "i sure miss Rick", and BAM a new one showed up! Thanks Rick!
i find it supper annoying when the "calculated" tip suggestion is made using the post-tax charge. Even more annoying when that suggestion starts at 22%. No joke - it's happening more & more and they just don't expect you to pay attention.
Easy way to calculate tip… double the tax. Mine is 9.75% (no unnecessary comments about how living in CA sucks, I already know this), so it’s super easy to get a 19.5% tip while only needing 1st grade math skills!
And if you're in a place that automatically adds gratuity, or where they show you the tip amounts at the bottom of the bill for convenience, double-check the amount, because they will often calculate it on the after-tax amount.
I tip on the total. I usually just round up anyway and try to tip separately with cash. We are talking like 50 cents on a $50 bill. To be honest, I didn't people thought about this - I am with Rick and just always tipped on the total . Its not correct to say "otherwise you are tipping the government". The waiter or waitress gets the total tip and the government just gets the tax, not the tax plus the tip on the tax.
It’s incredible that one would tip on the TOTAL bill! Your tip is for the service extended to you by the waiter/waitress NOT for the various state & local taxes; AND NOW the surplus amount charged by restaurants when you pay with a charge card!! It’s getting ridiculous!
As a tight-wad CPA I've always found that tippping on the sales tax is a rip-off, but that's what they want you to do with their quick and easy calculations at the bottom of the receipt. There have been times when I've received exceptional service I've tipped on the total.
I dont tip on booze if we only have a drink or two. I had waitstaff at an establishment in West Springfield MA ask if she had done something wrong because I tipped 15% on the food. She was offended. Service was decent, nothing to write home about.
Fantastic newsletter. I did the claim thing and should be receiving between $50-$100. Oh and Dad told me to tip based on the cost not including the tax. 15-20% is my norm based on service. Thanks again Rick.
I tip on pretax amount. Usually 20%. Exceptional service 25%, poor service 0-10%. Very rarely 0%. Some restaurants now add 2-3% service charge for back of the house personnel. I exclude that as well when calculating the tip.
I learned from my parents (long ago) to pre-tax tip as long as an easy way to calculate 15% tip (10% + half of that amount). The basis is arbitrary; remember you're tipping for the service you get/got. I generally tip 20% currently but adjust up (usually) or down depending on the server.
I have always tipped based on Pre-Tax amount. We should really do away with tipping as a primary source of income at service based places, not a thing in Europe and the UK mostly. They should be paid a fair wage and occasional tipping for exceptional service. I also try to tip in cash to avoid the fees back to the providers, it helps the servers there are some odd tip sharing schemes at places.
I always tip on pre-tax amount.
Great newsletter today! Funny that it landed in my email today. I literally was just re-reading a few of your old ones this morning and thought "i sure miss Rick", and BAM a new one showed up! Thanks Rick!
Awwww! 😍
i find it supper annoying when the "calculated" tip suggestion is made using the post-tax charge. Even more annoying when that suggestion starts at 22%. No joke - it's happening more & more and they just don't expect you to pay attention.
Easy way to calculate tip… double the tax. Mine is 9.75% (no unnecessary comments about how living in CA sucks, I already know this), so it’s super easy to get a 19.5% tip while only needing 1st grade math skills!
And if you're in a place that automatically adds gratuity, or where they show you the tip amounts at the bottom of the bill for convenience, double-check the amount, because they will often calculate it on the after-tax amount.
I tip on the total. I usually just round up anyway and try to tip separately with cash. We are talking like 50 cents on a $50 bill. To be honest, I didn't people thought about this - I am with Rick and just always tipped on the total . Its not correct to say "otherwise you are tipping the government". The waiter or waitress gets the total tip and the government just gets the tax, not the tax plus the tip on the tax.
I tip on the post-tax amount. Servers depend on tips, and giving an extra few dollars will help them more than hurt me.
Since COVID-19, I strive to tip 20%. At hotels, $10/nite because not everyone is able to tip so well. But at a bar, $1/drink.
You know, I never think to tip at hotels (especially now that many of them don't clean the room/make the bed every night unless requested).
It’s incredible that one would tip on the TOTAL bill! Your tip is for the service extended to you by the waiter/waitress NOT for the various state & local taxes; AND NOW the surplus amount charged by restaurants when you pay with a charge card!! It’s getting ridiculous!
It's just how I learned to do it... never occurred to me to look at the pre-tax total. :)
As a tight-wad CPA I've always found that tippping on the sales tax is a rip-off, but that's what they want you to do with their quick and easy calculations at the bottom of the receipt. There have been times when I've received exceptional service I've tipped on the total.
I was always told to tip on the pre-tax total.
I dont tip on booze if we only have a drink or two. I had waitstaff at an establishment in West Springfield MA ask if she had done something wrong because I tipped 15% on the food. She was offended. Service was decent, nothing to write home about.
Fantastic newsletter. I did the claim thing and should be receiving between $50-$100. Oh and Dad told me to tip based on the cost not including the tax. 15-20% is my norm based on service. Thanks again Rick.