Tip Calculator

Standard Tip Percentages

Tipping norms vary by service type and country. In the United States, the following ranges are widely accepted:

• Sit-down restaurants: 18–20% for standard service; 25% or more for excellent service
• Bar service: $1–2 per drink, or 15–20% of the tab
• Food delivery: 15–20% of the order total; minimum $3–5 for small orders
• Taxi and rideshare: 15–20%
• Hotel housekeeping: $2–5 per night, left daily
• Hair and beauty services: 15–20%

Example: a dinner bill of $87.50 with four people. A 20% tip is $87.50 × 0.20 = $17.50, making the total $105.00. Split four ways, each person pays $26.25.

Tipping on Pre-Tax vs. Post-Tax Amount

There is no universal rule, but tipping on the pre-tax subtotal is the more common practice in the US and is considered acceptable etiquette. Tipping on the post-tax total results in a slightly higher tip: on a $100 pre-tax bill with 8% sales tax, the difference is 20% of $8 = $1.60. Either approach is fine; the key is choosing a percentage that reflects the quality of service you received.

Some restaurants automatically add a gratuity (often 18–20%) for large parties, typically six or more guests. Check your bill before adding an additional tip — the line labeled "tip" on the credit card slip may already be factored in as a suggested amount above the mandatory gratuity.

IRS Rules for Tipped Workers

In the US, tips are taxable income for the recipient. Workers who receive more than $20 in tips in a calendar month must report them to their employer, who then withholds income tax, Social Security, and Medicare. Employers report allocated tips on Form W-2. As a customer, you have no filing obligation, but understanding that tips form a substantial portion of service workers' taxable income is useful context for tipping decisions.