How Do Taxes and Gratuities Impact the Final Cost of Your Wedding Venue and Vendor Services?
Plus, what you can do to avoid having these expenses catch you by surprise.
Planning a clear and achievable budget for your wedding is a tall task, as many couples have no idea how much each individual element of their big day should cost. However, with a bit of patience, research, and time, it's both a possible and necessary undertaking. Many couples make the mistake of not considering whether their budget allocations should include tax and gratuity, only to later regret this oversight. Instead of being caught in a bind of having not set aside the appropriate funds for these critical elements, here's what you need to know.
Know your local tax rates.
As each city and state has different tax regulations, you'll want to know your local rates so you can budget accordingly. What most couples will do is plan their budget prior to hiring any vendors and include tax in each line item's cost. This is usually the easiest way to track and stay within budget.
Ask your vendors to include tax as a line item in their quotes.
Most wedding vendors and venues will include tax as a line item in your contract, but not all will include this in a quote. To save the time of going back and forth about tax after you've received a quote, go ahead and ask your vendor to quote tax when they send their initial proposal.
Plan your gratuities and budget for them in advance.
There are plenty of reasons to plan a clear and accurate budget from the start of wedding planning, and not having any unexpected surprises is one of those reasons. You know you'll end up tipping many of your vendors, so you may want to budget a range at the start of the planning and wait until the month or week of your wedding to determine the specifics based on the experience you've had with each vendor.