Decode Hidden Sales Tax and Tipping Expectations

Budgeting requires factoring in two universal expenses that rarely appear on advertised price tags: sales tax and gratuity. Posted prices in retail shops, grocery stores, and menus do not include state or local sales tax, which ranges from 0% in states like Oregon and Delaware to over 10% in major metropolitan areas. Be prepared for your final receipt to show a higher total than what was displayed on the shelf.

In sit-down restaurants with table service, tipping is deeply embedded in the service economy. Standard practice entails leaving between 18% and 22% of the pre-tax bill for good service. If you order at a counter or self-serve kiosk, a tip prompt may appear on the payment screen; while optional at counter-service joints, tipping at full-service sit-down venues, bars, and for taxi drivers is customary and expected.