NYC Restaurant Tax & Tip Calculator
Add New York City’s 8.875% sales tax and a tip to any restaurant bill, tip before or after tax, and split the total evenly between diners.
On: tip on food and drinks only. Off: tip on the total including the 8.875% tax.
| Food & Drinks Subtotal | $85.00 |
| NYC Sales Tax (8.875%) | $7.54 |
| Server Tip (20% Pre-Tax) | +$17.00 |
| Grand Total | $109.54 |
NYC Restaurant Tax: What Is Taxed
NYS Department of Taxation and Finance rules, checked September 27, 2026
- NYS Department of Taxation and Finance: Sales by Restaurants, Taverns, and Similar Establishments (TB-ST-806)(opens in a new tab)
- NYS Department of Taxation and Finance: Publication 718, Sales and Use Tax Rates by Jurisdiction(opens in a new tab) · Effective March 1, 2025
New York State’s restaurant bulletin sets which food, drinks, and charges are taxable; the rate is the combined New York City sales tax.
| Charge | Sales tax | Note |
|---|---|---|
| Food and drink eaten at the restaurant | 8.875% | Hot or cold, including tables in a food court |
| Takeout: heated food, sandwiches, made-to-order food and drinks | 8.875% | Taxed even when eaten elsewhere |
| Takeout sold as a grocery store sells it | None | Unheated, same form and packaging (a bag of chips, a carton of milk) |
| Delivery fee charged by the restaurant | 8.875% | Part of the taxable food charge |
| Service charge, corkage fee, cover charge, drink minimum | 8.875% | Any charge not identified as a gratuity |
| Tip you choose to leave | None | Voluntary gratuities are never taxed |
| Mandatory gratuity | None | Only if shown separately, called a tip or gratuity, and all paid to staff |
When taxable and tax-free items are sold together for one price, such as a combo meal, the whole price is taxed. A restaurant’s own coupon lowers the price before tax.
How to Calculate Tax and Tip on a Restaurant Bill
The formula and two worked bills at today’s rate
Dinner for two, $85, 20% tip
Tax is $7.54 and the tip on the pre-tax subtotal is $17.00, for $109.54, or $54.77 each. Tipping on the total with tax instead makes it $111.05.
Table of four, $240, 22% tip
Tax is $21.30 and the tip $52.80: $314.10, or $78.53 per person.
A quick check at the table
Doubling the tax line on a New York City receipt gives 17.75% of the pre-tax subtotal, a fast way to size a tip. The calculator’s presets run from 15% to 25%; tipping is voluntary and the amount is your choice.
Groceries and most other shopping follow different rules; the NYC sales tax calculator covers them, including the clothing exemption.
NYC Restaurant Tax and Tip Questions
Restaurant meals in New York City are charged the regular 8.875% sales tax: 4% New York State, 4.5% New York City, and 0.375% MCTD. There is no separate meal tax.
Yes, for heated food, sandwiches, drinks poured to order, and anything made for you. Takeout items sold unheated in the same form and packaging as a grocery store sells them, like a bag of chips or a dozen bagels, are not taxed.
No. A tip you choose to leave is not taxed. A mandatory gratuity is also tax-free, but only when it is shown separately, labelled as a tip or gratuity, and paid in full to the staff. A service charge that does not meet those conditions is taxed.
Tipping is voluntary, so it is your choice; the tax itself is not a charge for service. On an $85 bill, a 20% tip is $17.00 on the pre-tax subtotal and $18.51 on the total with tax.
A delivery fee charged by the restaurant for taxable food is taxed at 8.875%, the same as the food.