Money & Costs

US State Sales Tax (0%–10.25%) & Tipping Etiquette (18%–22%) Explained

Why shelf and menu prices in the United States never include state/local sales tax, which 5 states charge 0% sales tax, and exact tipping benchmarks for restaurants, bars, hotels, and rideshares.

Last reviewed: · Prices in US Dollars ($ USD) are approximate and for orientation only.

Why US Prices Exclude Sales Tax (And the 5 Tax-Free States)

Unlike European or Asian VAT, sales tax in the United States is set independently by each state, county, and city, so stores and restaurants display pre-tax prices and add tax at the register. Combined rates average 8.875% in New York City, 9.5% in Los Angeles, 8.625% in San Francisco, 10.25% in Chicago, 8.375% in Las Vegas, and 7.0% in Miami. Five states charge 0% statewide sales tax: Oregon, Delaware, Montana, New Hampshire, and Alaska (some Alaskan towns levy local tax).

Restaurant Tipping Benchmarks (18%–22% Pre-Tax)

At full-service sit-down restaurants, diners, and steakhouses, servers rely on tips for the majority of their income. Standard tipping is 18% to 20% of the PRE-TAX subtotal for good service, and 22%+ for exceptional service. Always check the bottom of your check before tipping: many restaurants in NYC, Miami Beach, and Las Vegas automatically include an 18%–20% 'Service Charge', 'Auto-Gratuity', or 'Hospitality Fee' (especially for international tables or groups of 5+). If it is already included, you do not need to tip a second time.

Bars, Counter Service, Hotels & Rideshares

At bars, tip $1 to $2 per beer/wine or $2 to $3 per craft cocktail. At counter-service cafés and fast-casual spots where an iPad screen flips around asking for 18%–25%, tipping is optional ($0 to 10% or $1 for a barista drink). For hotels, tip bellhops $2–$5 per bag, housekeeping $3–$5 per night left on the pillow/desk, valet parking $3–$5 on pickup, and taxi/Uber/Lyft drivers 15%–20%.

Key Takeaways & US Travel Tips

  • Verify current entry rules on official U.S. government portals (esta.cbp.dhs.gov, nps.gov, recreation.gov).
  • Use our interactive US Sales Tax & Tipping Calculator ($), National Parks Pass Calculator ($80), and Amtrak Rail Calculator.
  • Save offline maps and our printable American English & Dietary Allergy Show-Cards before departure.

Official sources & further reading

Rules, prices and schedules change. Confirm details here before you travel: