Determining Sales Price
Different areas of a restaurant or bar may have sales tax included in the price or listed out as a separate item.
Sales Tax Included
If you include sales tax in the price, you must notify your customers in writing. You can do this by posting a sign or placing a statement on your menu that “all prices include sales tax.”
Sales in the Restaurant
When prepared food and drinks are sold in a restaurant, show the sales tax as a separate item on the total bill.
Drink Sales in Bar Area
When drinks are sold in the bar area of a restaurant, you may include sales tax in the price of the drink. This makes paying for drinks easier. You must notify customers that sales tax is included in the price.
When sales tax is included in the price of drinks in the bar area of a restaurant, you must track bar sales separately (on a separate register) from restaurant sales. Handle sales tax the same for all bar sales.
Local Sales Taxes
Some cities and counties have local sales and use taxes. If you are located in or make sales into an area with a local tax, you may owe local sales and use tax. For more information, see Local Sales and Use Taxes.
To determine the sales tax rate, use the location where the product is received by the customer, typically your business or a delivery address. You can use our Sales Tax Rate Map or Sales Tax Rate Calculator to help you determine the sales tax rate.
Note: The map and rate calculator do not include special local taxes.
For more information, see: