Tipping, Payments and Sales Tax
This handy guide will help you when eating out, taking taxis, making purchases and showing appreciation for hotel staff.
Payments
While credit cards and mobile payments are widely accepted for purchase of goods and services, most businesses in New York City, such as restaurants, bars, cafés, retail shops, grocery stores and many mobile vendors, are required to accept cash. There are exclusions for stadiums, arenas and select large entertainment venues.
Credit or debit cards and mobile wallets remain the fastest and most widely used payment methods throughout New York City. Since credit card surcharges are legal under state law, you may be charged 3–5% of the transaction when using a credit card.
A few things to know:
Businesses cannot charge higher prices or impose a surcharge on customers who pay with cash.
Businesses may refuse bills larger than $20.
Some businesses may round cash transactions to the nearest five cents when making change, as permitted by law.
Many service providers accept digital tips through apps like Venmo, Zelle or Cash App, often by displaying a QR code.
These payment methods may require a US bank account or phone number.
If you would like to tip but cannot use a digital payment app, cash is always appreciated.
Tipping
New York City’s hospitality professionals help make every visitor’s experience memorable. Treating workers such as hotel staff, restaurant employees, drivers, guides and those in retail with courtesy and respect helps ensure a welcoming experience for everyone.
Since many such workers usually have gratuity factored into their wages, tipping, while not mandatory, is customary and expected. Be sure to show appreciation for the help you receive—and, when possible, tip in cash. The only exception is for restaurants that implement a no-tipping policy; they either add on a service or administrative charge or they raise their prices and use the overage to pay their workers a higher hourly rate (the policy will typically be indicated on the menu or bill). In lieu of that, here’s a guide to how much you should tip, generally pegged to percentages rather than flat numbers:
Sit-down dining establishments/restaurants: A 20% tip on the pre-tax bill is the standard for table service. If service was exceptional, some guests choose to leave more. Check your bill first too: some restaurants—particularly for larger parties (often six or more)—automatically include a gratuity or service charge.
Counter-service coffee shops and cafés: Tipping is optional for simple counter service, but a barista will appreciate $1 or more for handcrafted drinks. A prompt at the point of service will likely be recommended for 18–22% gratuity on the pre-tax bill, but you can typically select a dollar amount instead of a percentage. You can always override the tip; it is not mandatory.
Takeout: While optional, 5–10% is common for takeout orders.
Delivery: 20% is customary, especially for larger or more complex orders.
Bars: Tip $1–$2 per drink, or 18–20% if paying a tab.
Hotels:
Doorman (hailing a taxi): $2–$5
Bellhop: $1–$2 per bag
Housekeeping: $5–$10 per day
Taxis and rideshares: 15–20% of the fare is standard.
Hair salons, nail salons and spas: 20% of the service cost is customary. Service providers may prefer person-to-person digital payments if cash is not available. There may be a discount offered (typically 5–10%) for payment of services rendered in cash.
Tour guides and other service staff: 10–20% of the cost of the tour or service.
Coat-check attendants: $1–$2 per item.
Sales Tax
While price tags may display one number, they typically don’t include tax. The sales tax on most goods and services in New York City is 8.875%, though certain goods are exempt, and the tax is not applied to clothing and footwear purchases that are under $110.