Tipping & Tax 

 

Tipping

 

Tipping in the US is extermely important, especially at restaurants, but some people will also tip for other services such as a haircut or a bellhop at a hotel

 

Waiters and waitresses are paid less than minimum wage and are expected to make the rest of their wages through tip 

 

The standard is 15% of the bill, but for groups of 6 or more it increases to 20% 

 

Some restaurants may include tip automatically, so make sure to check the bill!

 

Sales Tax

 

Sales tax is not included on any prices, so when shopping or eating out, the price you see is before the tax is included

 

Sales Tax in Texas is 8.25%

 

There are other additional taxes on certain goods such as the per-gallon tax on gasoline/petrol and the per-package tax on cigarettes

 

Generally, food for consumption and preparation at home are not taxed (althugh some still are), neither is prescription medicine

 

Income Tax 

 

The law on income tax in the U.S. is very complicated. If you would like to see more details this is the wikipedia link. 

 

Income taxes are decided by Marginal Tax Rates and Income Brakets. 

[Based on what most EPs are earning, the highest applicable bracket would be 25%]

 

You decrease the amount of taxes you pay after accounting for tax deductions and credits