1. Austin and Texas Dining Sales Tax (8.25%)
When dining out in Austin, Texas, your restaurant bill is subject to an 8.25% sales tax. This includes Texas state sales tax (6.25%) and the City of Austin local tax (2.00%).
Mixed beverages in Texas are taxed under a separate gross receipts tax absorbed by the venue, meaning your receipt should reflect a clean 8.25% tax on food and non-alcoholic drinks.
2. Texas Tipped Minimum Wage ($2.13/hr) and Service Standards
Unlike California or Washington, Texas operates under federal tip credit regulations. The sub-minimum cash wage for tipped servers in Texas is $2.13 per hour, meaning servers depend directly on tips to earn a living.
For sit-down dining in Austin, 18% to 22% of the pre-tax amount is the standard benchmark for adequate to excellent table service. However, in Austin's booming food trailer and counter-service BBQ culture, tipping on pickup orders remains strictly optional.
3. Austin Pre-Tax Reference Table
Verify your tip using pre-tax numbers before the 8.25% sales tax is added:
- $20 Meal (Pre-Tax): 15% = $3.00 | 18% = $3.60 | 20% = $4.00 (Do not tip on $21.65 total)
- $40 Meal (Pre-Tax): 15% = $6.00 | 18% = $7.20 | 20% = $8.00 (Do not tip on $43.30 total)
- $80 Meal (Pre-Tax): 15% = $12.00 | 18% = $14.40 | 20% = $16.00 (Do not tip on $86.60 total)
- $150 Meal (Pre-Tax): 15% = $22.50 | 18% = $27.00 | 20% = $30.00 (Do not tip on $162.38 total)