Restaurant tax and tipping in MA, OR, NY, NH and AZ: what the check adds

The price on a US menu is rarely the price you pay. Tax is added at the end, and in most places you add a tip on top. The rules differ by state, sometimes by city. This guide covers five states, Massachusetts, Oregon, New York, New Hampshire and Arizona, so you know what to expect when the check arrives. Rates change, so use the figures here as a guide and look up the current rate if you are budgeting closely.

How much tax is added to a restaurant check?

State	What is charged	Typical rate	Notes
Massachusetts	Meals tax	6.25 percent, 7 percent where the local option applies	Check whether your town has adopted the local option
Oregon	None	0	No state or city sales tax on meals
New York	Sales tax	State plus local, varies by county	New York City's combined rate is widely published as 8.875 percent
New Hampshire	Meals and Rooms Tax	8.5 percent	No general sales tax otherwise
Arizona	Transaction Privilege Tax	State 5.6 percent plus county and city	Total depends on the city

These are guides, not quotes. Look at the receipt: tax is usually a separate line near the bottom.

Why is there no tax in Oregon?

Oregon has no general sales tax and does not add a tax to restaurant meals, so the menu price is what you pay before any tip. Check the town's website if you are in a smaller place. Visitors from states with sales tax are often pleasantly surprised, and Oregon restaurants build the cost of tax and wages into their menu prices.

Is the tax on the check or included in the menu price?

In all five states, the tax is added at the end, not included in the menu price. Some bars and cafes show tax-inclusive prices for a drink or a lunch special, but this is not the rule. Online ordering pages usually show tax at checkout. If you are comparing prices between a state with no tax and one with tax, add the tax before you decide.

How much should you tip?

Across the five states the custom is much the same as in the rest of the United States: 18 to 20 percent of the pre-tax total at a table-service restaurant, a few dollars for a bartender per round or 15 to 20 percent of the tab, and optional tips at counter-service places and coffee shops. Our US-wide tipping guide covers the full range.

The reason tips matter varies by state:

• Oregon: employers must pay servers the full minimum wage before tips, with no tip credit. Tipping is still customary, but your tip is on top of a regular wage.
• Massachusetts: tipped workers can be paid a lower service rate, with tips making up the difference.
• New York: food service workers can be paid a lower cash wage plus a tip credit, with the amounts differing between downstate and the rest of the state.
• New Hampshire: employers may pay tipped workers a lower cash wage, so tips are a major part of income.
• Arizona: employers may use a tip credit of up to 3 dollars an hour.

In every case, if a worker's tips do not reach the full minimum wage, the employer must make up the difference. Your tip is still a meaningful part of a server's income and is normally expected.

Is tip calculated before or after tax?

Many people tip on the pre-tax total, and etiquette guides support this. Others tip on the full total, which is simpler. The difference is small. Use whichever method you prefer.

What about service charges and automatic gratuities?

Some restaurants add a service charge or an automatic gratuity, usually for larger parties. Read the check before adding a tip, so you do not tip twice. In Massachusetts, a service charge has to be passed on to the serving staff, while a separate house or administrative fee may be kept by the restaurant, so a line labeled as a fee does not tell you where the money goes. If you are unsure, ask your server. In New York, mandatory charges are generally taxed, while voluntary tips are not.

What about counter service and food carts?

A tip jar or a screen asking for a tip at a coffee shop, cart or counter is common in all five states. Tipping is optional. Many people leave a dollar or two for a friendly service or a larger order, and nothing for a simple pickup. You are not required to tip on a takeout order, though many people leave something for a large one.

Do surcharges exist?

Some restaurants add a credit card surcharge or a charge for wages or health care. Rules differ by state; Massachusetts, for example, is reported to prohibit card surcharges, so check the state Attorney General. A charge for wages or health care should be shown on the menu or website before you order. If you see a surprise charge on the check, ask the restaurant to explain it politely. Our US-wide guide to menu prices covers hidden fees in more detail.

How do you budget for a meal?

A quick way to budget: take the menu total, add the tax for the state, then add the tip as a share of the menu total. Oregon adds no tax, so a meal there costs less before the tip than the same meal in the other states. Remember that drinks and desserts count as part of the menu total.

Where do you check current rates?

Each state's Department of Revenue publishes current rates, and city websites list local options. If a restaurant seems to charge more tax than you expect, check the rate for its town, since it may be a county or city with a local add-on. On Mosey you can rate the places you eat and the dishes you order, which helps you remember where the whole experience was worth the price.

More guides to read next:

• Eating out with food allergies in the US: what the law covers
• How much to tip in the US: restaurants, bars, cafés and delivery
• How to tell a good restaurant from a tourist trap in the US

More in the US food guides and the ranked lists of places.