A tailgate for a vehicle has a supplemental tailgate that retracts within the tailgate and is extendable therefrom in order to provide bed extender, box extender and step assist functions. The supplemental tailgate includes a pivotable molding, which mounts on a movable frame portion, and a latching assembly. When pivoted, the pivotable molding releases the latching assembly, allowing the supplemental tailgate to be moved to various extended positions. When the supplemental tailgate is in its stowed position, the pivotable molding may be aligned with the top surface of the tailgate in order to provide an esthetically pleasing appearance and provide paint scratch resistance. When the movable frame portion is in an essentially fully extended position, it may be rotated relative to the tailgate in order to provide the box extender and assist step functions.