Comments on: McDonald’s Eat-In Tax

By: fordsuperchick

fordsuperchick — Thu, 29 Jan 2009 21:23:04 +0000

I found out today (the hard way) that they are now also charging a “Take Out Tax”. I did not go through the driver thru but ordered something to take with me after I dined in.

What is up with this?

By: joe

joe — Mon, 15 Dec 2008 18:13:40 +0000

I live in Ohio, we get charged eat-in tax if you order to stay. If you order to go, you dont get charged tax. I went to TacoBell and got chaged take out tax the other day. its all confusing to me.

By: Vicki M

Vicki M — Tue, 29 Jul 2008 16:13:50 +0000

In NH there is no sales tax. I noticed it to. But you get taxed either way. It doesn’t matter if you eat in or take-out, it is still taxed. I asked about it at the drive-through, of course they couldn’t explain it, unless I wanted to go in and talk to a manager. When you go to a restaurant here you pay a meal tax. So if that is it what it is why don’t they just call it a meal tax? Strange!!!

By: John P

John P — Mon, 28 Jul 2008 16:17:14 +0000

I went to McDonalds this morning and only ordered coffee through the drive through. They charged me tax even though according to CA law if its a hot beverage like coffee then its exempt from sales tax. Starbucks does not charge tax if you order a coffee. McDonalds is unjustly charging people tax.

By: david sizemore

david sizemore — Wed, 30 Apr 2008 22:15:42 +0000

I just noticed for the first time a “take out tax” on my McDonald’s receipt (even though I ate in), and no sales tax. It was 11% of the food bill; food tax in AR is 5.5% and non-food tax is 8.5%, so at least in AR, that extra 5.5% is not just the state tax. Somebody else is dipping into our pockets, and who would be more likely than MaDonald’s. I think you’re on to something, Lazy Man.

By: Laura

Laura — Fri, 25 Apr 2008 09:30:45 +0000

In Australia, it states on the menu board eat in and take out are different prices, not due to tax but because the staff have to clean up after people.

By: Lazy Man

Lazy Man — Thu, 27 Mar 2008 00:14:01 +0000

I’m sorry if I confused everyone. For what it’s worth, I did NOT get charged any tax, state or otherwise the previous day I ordered it. So if it is state tax, maybe McDonald’s made the mistake of not charging me it then.

By: Joy

Joy — Wed, 26 Mar 2008 23:18:36 +0000

You guys are dumb there is no such thing as a scam McDonalds is running to get “eat in tax” from its customers. It is just the tax (yes sales tax most places have it). It is a state tax not a McDonalds tax.

By: NatalieMac

NatalieMac — Fri, 14 Mar 2008 19:03:47 +0000

In some states the state sales tax is a ‘luxury tax’ and is not charged on items that are deemed by the state to be necessities. Food and clothing, for example, wouldn’t be subject to state sales tax. However, some items are always luxuries, such as dining in a restuarant (yes, even if it’s McDonald’s) and buying soda pop, so those items are taxed.

Depending on your state, getting food to go in a restaurant may or may not be considered a luxury. Some states seem to think it’s the same as buying groceries if you get your food to go and don’t tax you, but if you stay in the restaurant and eat, then it’s a luxury, and you have to pay tax.

If you live in one of those states, you’ll notice that the cashier always has to know if your food is ‘for here’ or ‘to go’ before they give you your order total.

By: Greg C.

Greg C. — Wed, 12 Mar 2008 14:00:51 +0000

Like Dana I live in Ohio and had the same thoughts. We have “eat in” tax. When I lived in Maryland ALL fast food and restaurant was considered junk food and taxed at the non-grocery rate. Only grocery store non-junk food was exempt from the sales tax. Also on the drive through food in Ohio the “pop” ( junk food) is always taxed. My receipts always show the drinks itemized and with a sales tax that only applies to them. Then places like DE have no sales tax at all. This is a function of where you choose to live.

Also as far as I know, you are always responsible for tax and tip on “free” food at restaurants. I dont see how complaining about your state’s sales tax policies has anything to do with the business that just collects the taxes.

By: brittdreams

brittdreams — Tue, 11 Mar 2008 22:44:00 +0000

You actually didn’t have to buy a drink, that was what was in the fine print. All you had to do was ask for a burrito and they should’ve given you one (at least, that was the rule in GA).

By: Elliott Russell

Elliott Russell — Tue, 11 Mar 2008 02:33:14 +0000

it bothers me that they don’t let you know. I’m sure if they did that many people would not bother to stay.

Just think, when you goto to a nice place you Tip the workers, now when you goto a a cheap place you get to tip the company :S

By: Dana

Dana — Sun, 09 Mar 2008 22:33:42 +0000

Here in Ohio there is no sales tax for food, or I should say items considered food by the state government (blatant junk is Right Out). Part of the tax code is that if you pick up food from a restaurant and take it home, you are considered as doing the same thing as grocery shopping, so you owe no tax. But if you sit down in the restaurant and eat then you are considered as doing something non-essential to acquire food, so you owe an eat-in tax.

I don’t know if you have a similar system in California but it’s worth looking into.

By: Ron

Ron — Sun, 09 Mar 2008 03:16:09 +0000

Lazy Man,

That was nothing more than the “Fat Tax” you have proposed in another post. :)

By: Odnal

Odnal — Sun, 09 Mar 2008 01:20:00 +0000

I’ve been confused by that same thing before. McDonalds probably has restaurants in every county of the entire country, so from a software perspective, McDonalds point-of-sale system has to be capable of working with any obscure tax rates out there. Presumably, somewhere, there is a location that charges different tax rates for dining in than for take out. For nearly everybody, there is no difference, but they have to be able to accommodate for when it does happen.

‘Eat in tax’ versus ‘take out tax’ is just how they chose to display it. From a consumer perspective, there is a better way to show that…

By: Amanda

Amanda — Sat, 08 Mar 2008 21:10:10 +0000

Just wanted to echo what the others have said… I worked at McD’s in high school and that’s jut your standard tax. I don’t remember what the drive thru receipt says instead of “eat in” but it is the same amount of tax.

We had people start fights with us daily over the “eat in” tax and always had to show them that the drive thru people got charged the same percentage.

By: Jay

Jay — Sat, 08 Mar 2008 07:02:20 +0000

In CA you pay tax on food “eaten in” a restaurant, but no tax on take-out. Been that way for over a decade. Some restaurants offering both services become lax about how they ring it up, classic example (on a local TV news show) was 2 Starbucks which were across from each other, one charged [correctly], the other didn’t. Obviously not well enforced in places like that.

By: girlrobot

girlrobot — Sat, 08 Mar 2008 02:07:02 +0000

you really need to correct this post because it’s not true. that tax is just the regular sales tax and the to go is just for the food handlers to know how to pack your food. i know you said you did not notice it before but next time you get your food to go, why don’t you scan the receipt and show us if there’s not a “to go” tax instead….which is the exact same as the eat in tax. in other words…it’s just the SALES TAX!

By: budgets are sexy

budgets are sexy — Sat, 08 Mar 2008 00:23:33 +0000

whatever it’s for, that’s one bogus naming convention. but hey, it makes for a great post right? that snazzy little receipt pic was enough to reel me in :)

By: Ryuko

Ryuko — Fri, 07 Mar 2008 20:57:07 +0000

AJ, I’m sure the “accident” was an advertising scheme from a particularly zealous restaraunt ;). Now that you’ve tasted it free, will you go back and buy one? ;)

Taxes are extremely complex. Also, if you’ve never worked at a restaurant, receipts make a bit more sense to the employees than the customers. As far as the store itself charging extra for dine-in (or anything on those lines), they would be required to increase the price of the actual item (i.e., when you call the airline and they say “prices may be lower online”). They don’t have the power to levy a tax, and all it takes is one tax-smart government official to see a receipt and the company is done for — so I doubt most places – especially large chains – will brave such an atrocity. No, this time you CAN blame the government. And Canada. (why not? they can’t fight back)