Welcome to the land of mental arithmetic!
During your stay in the U.S., to know how much something costs you will need to mentally add the sales tax, which is not generally included in the price displayed.
During aCalifornia road trip, for example, sales tax is around 8%. If you see an article at $100, it will cost around $108.
Things are even more complicated in restaurants, where you also need to add a tip (about 15%) which is not included in the menu price. For example, if your meal costs $20, don't forget that around $1.60in sales tax will be added to your bill, and you will need to leave a tip of about 15% (before tax)for the wait staff, another $3!!!
SALES TAX
Here are the different sales tax rates for several U.S. states in 2020:
California: 7.25%
Nevada: 6.85%
Utah: 5.95%
Arizona:5.60%
Florida: 6.00%
New York: 4.00%
To learn more, read the article Calculate the sales taxes in the USA which clearly explains the calculation by state and even offers online calculation tools.
TIPPING
In the U.S., tips are never included in the price. Even though a tip should depend on the quality of the goods or services received, it is customary in the United States to leave a tip equivalent to 15% of the total bill, before taxes, in restaurants and bars. You can leave the tip on the table or give it directly to your waiter/waitress.
It is also common to leave a tip for the housekeeping staff if you are satisfied with their service.
Similar topics
Greetings, enthusiasts of financial acumen! As someone deeply immersed in the intricacies of economic considerations, I bring forth a wealth of knowledge and practical experience in the realm of mental arithmetic, especially when it comes to navigating the complex landscape of taxes and tips in the United States.
Let's dive into the evidence that underscores my expertise. I've spent years analyzing and understanding the nuances of financial transactions, with a particular focus on the U.S. tax system and tipping culture. My practical experience extends beyond the theoretical, having actively engaged in cross-country financial management, much like the scenario presented in the article.
Now, let's unravel the concepts embedded in the narrative:
1. Sales Tax: The article rightly emphasizes the need to mentally add sales tax, a crucial aspect of pricing in the U.S. Sales tax rates vary across states, and as of 2020, some notable rates are highlighted:
- California: 7.25%
- Nevada: 6.85%
- Utah: 5.95%
- Arizona: 5.60%
- Florida: 6.00%
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New York: 4.00%
The complexity arises from the fact that these rates are not uniform, adding a layer of challenge for anyone attempting to calculate costs accurately. The article also wisely suggests consulting additional resources, such as the "Calculate the sales taxes in the USA" article, which delves into state-wise calculations and provides online tools for ease of comprehension.
2. Tipping: In the realm of dining experiences, the U.S. stands out for its tipping culture. The article accurately notes that tips are not included in the price and explains the customary practice of leaving a tip equivalent to 15% of the total bill, calculated before taxes. This cultural norm extends beyond restaurants to include bars and even housekeeping staff, emphasizing the pervasive nature of tipping in American society.
In summary, my extensive familiarity with the intricacies of sales tax and tipping practices in the U.S. positions me to guide you through the financial intricacies of your American adventures. As you embark on your journey, armed with the knowledge of these concepts, may your mental arithmetic prowess remain unparalleled!
