The One Mistake You're Making When Leaving A Tip At A Restaurant

August 30, 2016 by Justine Schwartz
shefinds | Style

If you like to eat out (who doesn’t?) you know how quickly the cost of tipping and other extras can add up. Grabbing an $8 sandwich quickly becomes a $20 affair when you add things like tip, tax, extra mayo and a drink. The best thing you can do for your wallet is to mitigate these extra costs associated with eating out–the biggest one of all being the tip.

Read More: The One Mistake You’re Making When Ordering Water At A Restaurant

It turns out that *many* people are making a huge mistake when it comes to calculating the tip: basing it off the post-tax amount. Whatever percentage you feel is appropriate for the service you received (suggested: 15-20%), should be calculated off the subtotal (the amount before taxes).

Read More: The One Thing You Should Never Do When Ordering Wine

Some restaurants will even put a suggested dollar amount, calculated off the subtotal, for each of the tiers–15%, 18%, 20%–at the bottom of the receipt for you. This should be a clear indication that tips should be calculated pre-tax–but most of us spend years dining out in restaurants before we pick up on this.

Read More: The One Thing You Should Never Do When Ordering Sushi

Well, now you know–so, how many dollars do you think you’ll save a year just by making this easy change?

[Photo: Jacks Wife Freda]


Editorial Director

Justine Schwartz is a veteran women's lifestyle editor; she's written extensively about style & beauty tips, health advice and wedding planning for more than a decade. Her work has appeared in New York Magazine, Huffington Post and New York Weddings. Justine has been with SheFinds since 2010; you can reach her via email at [email protected]

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