Tip Calculator
Enter the bill, tap a tip percentage, split between any number of people.
How much to tip in the U.S. (current norms)
| Service | Typical tip |
|---|---|
| Sit-down restaurant | 18–20% (15% floor for weak service) |
| Bar | $1–$2 per drink, or 18–20% on a tab |
| Food delivery | 15–20%, $3–$5 minimum |
| Takeout counter | 0–10%, optional |
| Rideshare / taxi | 10–20% |
| Hair / salon / barber | 15–20% |
| Hotel housekeeping | $2–$5 per night, left daily |
| Movers, valet, bellhop | $5–$20 per person / $2–$5 per bag or car |
The math
Two quick mental tricks: 20% is the bill’s digits shifted once, doubled ($68.50 → $6.85 → $13.70). For 18%, take 20% and knock off a tenth of it.
Pre-tax or post-tax?
Etiquette convention says the tip is figured on the pre-tax subtotal; most people in practice tip on the after-tax total because it’s the number on the bottom of the receipt. On a $68.50 bill with 9% tax, the 18% difference is about $1.11 — pick a lane and don’t stress it. (Enter whichever amount you prefer above.)
Worked example
Dinner for two comes to $68.50. An 18% tip is $12.33, total $80.83, or $40.42 each. Bumping to 20% costs just 69¢ more per person.
The norms table above is etiquette, not law — nobody is required to tip. What happens to a tip after you leave it, though, is set by federal rules, and that part is worth knowing.
Where your tip actually goes
Under the Fair Labor Standards Act a restaurant may pay a tipped employee a cash wage as low as $2.13 an hour and count tips toward the rest of the $7.25 federal minimum — a “tip credit” of up to $5.12 an hour (29 CFR 531.59). So in many states your tip is not a bonus on top of a wage; it is most of the wage. Some states require a higher cash wage or ban the tip credit entirely, which is why the same tip is worth different things in different places.
A server works 30 hours at the $2.13 cash wage: the employer pays $63.90. The federal minimum for those hours is $217.50, so tips must cover $153.60. If the server only collects $120 in tips that week, the employer must pay the $33.60 difference — the credit can never exceed the tips actually received.
- The restaurant cannot keep it. Section 3(m)(2)(B) of the FLSA bars an employer from keeping employees’ tips for any purpose, whether or not it takes a tip credit, and managers and supervisors may not take a share of other employees’ tips (29 CFR 531.52(b)). A manager may keep only a tip given for service they personally and solely provided.
- Card tips are tips. An amount you write on the card slip is a tip the employer transfers to the employee on your instructions (29 CFR 531.53) — not restaurant revenue.
- Tip pools must pay out by payday. If the employer collects and redistributes tips, it must fully distribute them no later than the regular payday for that workweek (29 CFR 531.54(b)(2)). A restaurant using the tip credit can only pool among employees who customarily receive tips, such as servers and bussers; one paying the full minimum wage may also include cooks and dishwashers (531.54(c)–(d)).
- A service charge is not a tip. A compulsory charge — the “18% gratuity for parties of 6+” line — is part of the restaurant’s gross receipts, even if it chooses to pass some of it to staff (29 CFR 531.55). If you want a specific person to get the money, a voluntary tip is the only form the law reserves for them.
On the server’s side: tips and tax in 2026
For tax years 2025 through 2028, workers in occupations that customarily received tips can deduct up to $25,000 of qualified tips on their federal income tax return (P.L. 119-21). It is an income-tax deduction only — Social Security and Medicare are still owed on every tip — and the 2026 Form W-4 worksheet limits it to total income under $150,000 ($300,000 married filing jointly). Mandatory service charges do not count as qualified tips. Our guide to reading a pay stub covers how to get the deduction reflected in each paycheck instead of waiting for a refund.
Frequently asked questions
Is 15% still an acceptable tip?
It reads as the floor for adequate table service today — the mainstream norm has settled at 18–20%. For counter service or takeout, smaller tips (or none) remain socially fine.
Should I tip on the discounted amount or the original bill?
On the original, pre-discount amount. A coupon or gift card reduces what you pay the restaurant, not the work the server did.
Do I still tip if a service charge or "gratuity included" line appears?
A mandatory service charge or auto-gratuity (common for parties of 6+) normally replaces the tip, so nothing more is expected. Know what it is, though: under federal rules a compulsory charge is not a tip but part of the restaurant’s receipts (29 CFR 531.55), and the restaurant decides how much, if any, reaches the staff. If you want your server to get something specific, ask how the charge is shared or leave a voluntary tip on top.
How do card tips reach the server?
Through payroll. A tip added on a card slip counts as the employee’s tip, which the employer transfers on the customer’s instructions (29 CFR 531.53), and the employer may not keep any of it (FLSA section 3(m)(2)(B)). Where tips are pooled, they must be paid out no later than the regular payday for that week. Cash reaches the server the same night, which is why some people prefer it.
Does my tip count toward the server’s minimum wage?
Often, yes. Federal law lets an employer pay a cash wage of $2.13 an hour and count up to $5.12 an hour of tips toward the $7.25 minimum (29 CFR 531.59). If tips fall short, the employer must make up the difference. Several states require a higher cash wage or do not allow the tip credit at all.
Official sources
Every rate and threshold on this page comes from the issuing agency. Verify anything here against the primary source:
- eCFR — 29 CFR Part 531, Subpart D (Tipped Employees) — 531.52 employers and managers may not keep tips; 531.53 card tips are tips; 531.54 tip pools paid out by the regular payday; 531.55 service charges are not tips; 531.59 the $2.13 cash wage and the tip credit
- U.S. Code — 29 U.S.C. 203 (definitions, including 203(m) tips) — 203(m)(2)(A) the tip credit and 203(m)(2)(B) the ban on employers keeping tips
- IRS Form W-4 (2026) — the Step 4(b) worksheet line for qualified tips (up to $25,000) and its $150,000 / $300,000 total-income gate
Last reviewed: 2026-10-02 · Report an issue