Why is the tip calculated on the tax as well?!



Please don't spread mis-information!

Tips are calculated on the pre-tax value of the meal.


Doesn't matter, can just adjust the tip rate for the same effect since they are both multiplicative.
If tax is included in the price, then you're likely to figure out how much you want to tip after tax has been applied.
How people think about tips varies wildly between cultures, for example, we most often don't tip at all where I live, because service personnel's salaries are included in the price.


can just adjust the tip rate for the same effect since they are both multiplicative.

Not sure what you mean by 'adjust'. It's not the same effect, you misunderstand perhaps - here in the U.S. we don't tip on the tax (it is not included in the price), but I get your point about cultures.


You can base the tip off either with or without tax. Doesn't matter. Just tip a different percentage based on whether tax is already included or not.

If you are feeling generous and you tip twice as much, then it doesn't matter which order you apply tax/tip in, the received tip will double, period. Whether the tip is taxed or not, you still end up with a multiplier to the tax-less price no matter how you change places on things, it just doesn't matter.

However, if you want to tip an absolute value, like $5, then you would need to think about whether you have to increase that to $6.25 in order to make sure that the received tip is $5 (assuming 25% tax)


It does matter, since we're talking about a particular
percentage tip here, and what that means. It's not an exercise in
calculating percentages!

Twice as much as what? You're making v little sense (to me, anyway)
at this point. If you mean 'twice as much tip as what you were paying
before', then this is simply circular logic: 'if you pay twice as much tip, the tip will
double'. What's your point?

Whether the tip is taxed or not

Oh, I think you're misunderstanding the premise ... The tip is never
taxed on the bill. When you get the bill, you see the price of the
meal, the tax, and the total. The question is, if you say you tip 15%,
is that on the total or the price of the meal?

If you're unfamiliar with the etiquette, you might think you need to
calculate 15% of the total. That is what this lesson is doing.
But actually, it only needs to be calculated on the pre-tax amount.

Note: It is possible that there is a 'service charge' or tip included on
the bill, say if you have a large party or something. In that case,
too, whatever percentage service charge the restaurant says they will
apply to large parties, it should only be applied to the pre-tax total.
The tax is also calculated on the same pre-tax total.

This I'm sure you realize, as it's just math: if you were going to
apply tax to total of meal + tip, or tip to total of meal + tax, the
order would most certainly matter, assuming the tip and tax rates are


If tax is 25%, then 12% of the total is the same as 15% of the meal. Which you use is arbitrary, you just have to pick one when you communicate.

It's like specifying a temperature in Fahrenheit or using Celsius. The numeric values change, the described action is the same, does not matter which you use, they do the same thing, they are just different ways to communicate.
If you are given a temperature in F, that does not mean that you must use Fahrenheit in your program, you can convert it first. Same as that you can convert between before and after tax and use whichever you want.

So would you say that temperatures are not measured in Celsius? Because they are mesured in Farenheit? It doesn't matter, you can do either.


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