Tipping at restaurants is a common practice in many countries, particularly in the United States. But when it comes time to calculate how much to tip, a common question arises: Should you tip based on the total bill, including tax and additional charges, or on the subtotal, which is the amount before taxes and extra fees? While there’s no single rule that applies to every situation, understanding the reasoning behind both approaches can help you make a more informed and considerate decision.
Understanding Subtotal vs. Total
The subtotal is the cost of your food and drinks before taxes and any service charges. The total bill, on the other hand, includes the subtotal plus local taxes and sometimes other fees like delivery charges, service fees, or special surcharges (for example, large party fees or holiday pricing).
The confusion over which amount to tip on comes from differing interpretations of what a tip is meant to cover. Is it a thank-you for the server’s effort in managing your meal experience—or simply a percentage of the full amount you’ve paid, regardless of where that money goes?
Tipping on the Subtotal: The Conservative Approach
Tipping on the subtotal is a widely accepted practice and generally viewed as fair. The idea behind this approach is that tax is not something the server earns or controls—it’s government-mandated and goes directly to the state. Therefore, many diners believe it makes sense to calculate a tip based only on the amount the restaurant actually receives for the food and service.
For example, if your meal subtotal is $50 and the tax is $5, tipping 20% on the subtotal would mean leaving a $10 tip rather than $11. While it may not seem like a big difference, it can add up over time—especially if you’re dining out frequently or spending large amounts.
This approach is also helpful when tipping in countries or regions with high sales tax rates. By excluding tax from your tip calculation, you keep the gratuity focused on the service you received, not on fees outside the server’s control.
Tipping on the Total: The Generous Approach
Others argue that tipping on the total bill, including tax, is a more generous and thoughtful practice. While the extra amount may be small, it can make a big difference to service workers who often rely heavily on tips to supplement low base wages.
Tipping on the total bill may also be more straightforward, especially when using payment apps or tip suggestions built into credit card machines. These often calculate percentages based on the total, not the subtotal. If you’re in a hurry or unsure how to adjust for tax, tipping on the total can be the simplest and most generous solution.
Additionally, tipping on the total can show appreciation for the overall dining experience. After all, the server still had to manage your table, handle your bill, and often assist with questions about prices or policies—even if part of the charge includes tax or additional fees.
Other Considerations
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Service Charges: If your bill includes a service charge or automatic gratuity (often for large parties), check whether this already covers the tip. If it does, you’re not required to leave more—though you can if the service exceeded expectations.
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Takeout Orders: Tipping expectations for takeout are more flexible. While a small tip is appreciated, it’s usually not expected at the same level as dine-in service unless the staff went above and beyond.
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Local Customs: Tipping norms vary by country. In some places, tipping is minimal or not expected at all. Always research local customs if you’re dining abroad.
Conclusion
So, should you tip on the subtotal or the total? The answer depends on your tipping philosophy and how generous you want to be. Tipping on the subtotal is perfectly acceptable and commonly practiced. However, tipping on the total is a more generous gesture and may be appreciated more by your server. Ultimately, the most important thing is that you leave a fair and thoughtful tip that reflects the service you received—and that you understand why you’re tipping in the first place.
