The short answer
- Sit-down restaurants: 15% to 20% of the bill before tax.
- Tip = bill × tip rate. Total = bill + tax + tip.
- To split, divide the total by the number of people.
How to work out a tip
Multiply the bill by the tip rate as a decimal. In your head, it is easiest to start from 10%: move the decimal point one place to the left.
| Tip | On $50 | On $100 |
|---|---|---|
| 15% | $7.50 | $15.00 |
| 18% | $9.00 | $18.00 |
| 20% | $10.00 | $20.00 |
| 22% | $11.00 | $22.00 |
| 25% | $12.50 | $25.00 |
- 20%: find 10% and double it.
- 15%: find 10% and add half of it again.
- 18%: find 20% and take off a tenth of the 20% figure.
Before or after tax?
The Emily Post Institute suggests working out restaurant tips on the bill before tax. Many people tip on the total for simplicity, which adds a little. On an $80 bill with $6.60 of tax, an 18% tip is $14.40 before tax or $15.59 after it.
- 18% of $80
- $14.40
- Total
- $101.00
- 18% of $86.60
- $15.59
- Total
- $102.19
The sales tax calculator shows the tax rate where you are if it is not printed on the check.
Splitting the bill
- Tip: 20% of $150$30.00
- Total: $150 + $12 + $30$192.00
- Each: $192 ÷ 4$48.00
An even split is simplest. If one person ordered far more, it is fairer for each to pay their own items plus their share of tax and tip, at the same tip rate. Many restaurants will split a check by seat if you ask before ordering.
Rounding up
Rounding each share up to a whole dollar makes paying easier and adds a little to the tip. A $64.50 bill with $5.50 tax and a 20% tip comes to $82.90, or $27.63 each for three people. If each pays $28, the tip rises from $12.90 to $14.00.
How much to tip
These are common US guidelines, from the Emily Post Institute’s tipping guide. They are customs, not rules, and they vary by region.
| Service | Usual tip |
|---|---|
| Sit-down restaurant | 15% to 20% of the bill before tax |
| Buffet | 10% |
| Bartender | $1 to $2 a drink, or 15% to 20% of the tab |
| Takeout | Optional; about 10% for a large order or curbside service |
| Food delivery | 10% to 15% of the bill; $2 to $5 for pizza |
| Taxi | 15% to 20% of the fare |
| Hair stylist or barber | 15% to 20% |
| Hotel housekeeping | $2 to $5 a night, left daily |
| Valet parking | $2 to $5 when the car comes back |
| Coffee shop counter | Optional |
Service charges and automatic gratuity
Some restaurants add a service charge, often 18% to 20% for groups of six or more. Read the bill before you tip so you don’t pay twice. A service charge is set by the restaurant and is not legally a tip: it may go to staff, partly to the business, or toward wages. If you want to be sure your server benefits, ask, or leave a little extra in cash.
Tip screens and counter service
Payment tablets at coffee shops, food trucks and stores often suggest 18%, 20% or 25%, sometimes worked out on the total after tax. Those are prompts, not prices. Where you order and pick up at a counter, a tip is optional; leaving a dollar or rounding up is generous, and choosing “no tip” is acceptable. Check whether the suggested amounts are percentages of the bill before or after tax before you tap.
When service is poor
If something went wrong, think about who caused it. A slow kitchen or a missing ingredient is rarely the server’s fault. Many people still leave at least 10% and speak to a manager about real problems, which is more likely to get them fixed than a missing tip.
Why tips matter to servers
Under the Fair Labor Standards Act, employers can pay tipped employees a cash wage of just $2.13 an hour and count tips toward the rest of the $7.25 federal minimum wage. If tips fall short, the employer must make up the difference. Several states, including California, require the full state minimum wage before tips. In much of the country, though, tips are most of a server’s pay.
No tax on tips for workers
For tax years 2025 to 2028, people who earn tips in jobs that customarily received tips can deduct up to $25,000 of qualified tips a year from their federal taxable income. Cash and card tips both count, as do tips shared through a tip pool, if they are reported on a Form W-2, Form 1099 or Form 4137.
- The deduction shrinks by $100 for each $1,000 of modified AGI above $150,000 ($300,000 on a joint return).
- You need a Social Security number on the return, and married couples must file jointly.
- You can claim it whether or not you itemize.
- Tips are still subject to Social Security and Medicare, and to state tax where the state taxes them.
The federal income tax calculator includes the tips deduction, and the overtime calculator covers the matching deduction for overtime.