Legal Question in Tax Law in California

gratuity tax

what is gratuity tax?


Asked on 10/30/07, 6:03 pm

1 Answer from Attorneys

Jeb Burton The Burton Law Firm

Re: gratuity tax

Are you referring to a tax on gratuities (tips)? If so, that is what it is, basically sales tax on the gratuity amount. Restaurants who have a mandatory gratuity (such as on parties of 8 or more), are required to collect tax on the gratuity amount.

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Answered on 11/01/07, 2:59 pm


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