Calculate exact sales tax for any restaurant bill — with state-specific rates, item category adjustments, and a revenue estimation mode to plan your tax liability.
Tax Amount
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Total Due
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Monthly Tax Owed
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Annual Tax Liability
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Set Aside Per Day
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to cover your sales tax obligation
Single Bill mode calculates the tax on an individual check. Revenue Estimate mode projects your total sales tax liability over a month, quarter, or year.
Sales tax on restaurant meals is collected by the business on behalf of the state, county, and sometimes city government. The restaurant adds tax to the customer’s bill at the point of sale, holds the collected tax in a separate account, and remits it to the taxing authority on a monthly or quarterly schedule.
The combined tax rate you charge depends on where your restaurant is located. It’s the sum of your state base rate plus any local taxes. In states like Colorado, which has over 700 taxing jurisdictions, two restaurants ten miles apart can have materially different rates. Getting the rate wrong — even by a fraction — compounds over thousands of transactions into a liability that comes out of your pocket.
Every state handles restaurant sales tax differently. Five states — Alaska, Delaware, Montana, New Hampshire, and Oregon — charge no general sales tax, but some still tax restaurant meals specifically (New Hampshire charges 8.5% on prepared food). Six states charge a higher rate on restaurant meals than on other taxable goods (Connecticut, DC, Maine, New Hampshire, Rhode Island, Vermont). The table below shows the effective tax rate on restaurant food in key states.
| State | Restaurant Tax Rate | Local Tax? | Notes |
|---|---|---|---|
| Alabama | 4% | Yes | Groceries at reduced 2% state rate; heavy local taxes |
| Alaska | 0% | Yes | No state tax; local boroughs may charge up to 7.5% |
| California | 7.25% | Yes | Highest state base rate; combined can reach 10.75% |
| Colorado | 2.9% | Yes | 700+ local jurisdictions; combined varies 4-11% |
| Connecticut | 7.35% | No | Meals surcharge adds 1% on top of 6.35% general rate |
| Delaware | 0% | No | No sales tax at any level |
| Florida | 6% | Yes | Groceries exempt; prepared food taxed at full rate |
| Illinois | 6.25% | Yes | Groceries exempt at state level since Jan 2026; local taxes remain |
| Louisiana | 5% | Yes | Rate increased Jan 2025; combined can exceed 12% |
| Maine | 8% | No | Meals taxed at 8% (higher than 5.5% general rate) |
| Maryland | 6% | No | Alcohol by the drink taxed at 9% |
| Massachusetts | 6.25% | Yes | Up to 0.75% local meals excise; combined up to 7% |
| New Hampshire | 8.5% | No | No general sales tax; 8.5% Meals & Rooms Tax on restaurant food |
| New York | 4% | Yes | NYC combined 8.875%; groceries exempt, prepared food taxed |
| Oregon | 0% | No | No sales tax; some cities have local prepared food tax |
| Rhode Island | 8% | No | Meals taxed at 8% (7% general + 1% meals tax) |
| Tennessee | 7% | Yes | Groceries at reduced 4% state rate; prepared food full 7% |
| Texas | 6.25% | Yes | Max combined 8.25%; groceries exempt |
| Vermont | 9% | Yes | Meals taxed at 9% (6% general + 3% meals tax) |
| Washington | 6.5% | Yes | Combined up to 10.5%; groceries exempt |
| Washington DC | 10% | No | Restaurant meals taxed at 10%; general rate 6.5% |
This table covers the most common states for restaurant operators. Use the state dropdown in the calculator above to see the base rate for all 50 states. Always verify your combined rate (state + local) with your state’s department of revenue, as local rates change frequently.
Most states tax prepared restaurant food but exempt or reduce the rate on groceries. The tricky part is the definition of “prepared food” — it varies by state. In some jurisdictions, food is considered “prepared” if it’s heated, served with utensils, or sold as a combination plate. A deli sandwich might be taxable if heated but exempt if served cold. If your restaurant also sells packaged goods or retail items, you may need separate tax categories in your POS for each type.
Most states tax alcohol at the same sales tax rate as prepared food, but many also layer on separate excise taxes and per-unit taxes on beer, wine, and spirits. Some states tax on-premise consumption (drinks served at a bar) differently from off-premise (bottle shop). If your restaurant has a bar program, check whether your state applies an additional alcohol-specific tax on top of the standard sales tax rate.
Some states exempt takeout food from sales tax or tax it at a lower rate — the idea being that it’s closer to a grocery purchase than a restaurant meal. Delivery adds another layer: delivery fees themselves may or may not be taxable depending on the state. When orders come through third-party platforms like DoorDash or Uber Eats, the platform typically collects and remits sales tax on behalf of the restaurant, but you’re still responsible for verifying the correct rate is being applied.
Voluntary tips left by customers are not subject to sales tax in any state. However, mandatory service charges — the 18-20% gratuity often added to large parties or banquet events — are taxable in most states because they’re treated as part of the sale price, not a gift to the server. If your restaurant adds automatic gratuity, confirm with your state whether it needs to be included in the taxable amount. Getting this wrong is one of the most common restaurant tax mistakes.
Your POS system should have separate tax categories for each type of item you sell — at minimum, one for prepared food and one for alcohol if your state taxes them differently. Here’s how to verify your setup:
If you use Menubly for your online menu and ordering, tax settings apply automatically to every order placed through your digital menu — no manual calculation needed.
Multiply the pre-tax bill subtotal by your combined tax rate (state + local). For example, a $85 meal in a location with 8.25% combined tax: $85 × 0.0825 = $7.01 in tax, for a total of $92.01. Use the calculator above to do this automatically with your state's rate pre-filled.
In 45 states and DC, yes — prepared food sold by restaurants is subject to sales tax. Five states (Alaska, Delaware, Montana, New Hampshire, Oregon) have no statewide sales tax, though New Hampshire charges a 9% meals tax and some Alaska boroughs levy local taxes. The rate ranges from under 3% to over 10% depending on your location.
It depends on the state. Some states tax takeout food at the same rate as dine-in. Others exempt it or tax it at a lower rate because it's treated more like a grocery purchase. In states that distinguish between the two, the key factor is usually whether the food is "prepared" (heated, served with utensils, or combined into a meal) — not where the customer eats it.
Yes. Alcohol served at restaurants is subject to sales tax in all states that levy sales tax. Many states also apply additional excise taxes on beer, wine, and spirits. In some jurisdictions, the total tax on an alcoholic drink can be significantly higher than the tax on a food item at the same restaurant.
Voluntary tips are not subject to sales tax. However, mandatory service charges — the automatic gratuity added to large-party checks — are taxable in most states because they're considered part of the sale price. If you add auto-gratuity, make sure your POS includes it in the taxable amount. Use our Restaurant Tip Calculator for tip-related calculations.
Five states have no statewide sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. However, this doesn't always mean zero tax on restaurant meals. New Hampshire charges a 9% meals and rooms tax, and some Alaska boroughs charge local sales tax. Delaware and Oregon have no sales tax at any level.
Set aside the full amount of tax you collect — it's not your money. Use the Revenue Estimate mode in this calculator to see your daily set-aside amount based on your monthly revenue. A restaurant doing $50,000/month in revenue at an 8% combined rate collects roughly $4,000/month in sales tax — that's about $133/day that should go into a separate account, not your operating cash flow.
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