Working Out a Tip
Tip = Bill × Percentage ÷ 100
Total = Bill + Tip Each person = Total ÷ Number of people
The one judgement call is whether to tip on the pre-tax or post-tax amount. Tipping on the pre-tax figure is the traditional standard, since sales tax is not part of the service. The difference is small — on a $100 bill in an 8% tax area, a 20% tip is $20 pre-tax against $21.60 post-tax — and most people do not distinguish.
Mental Shortcuts
- 10% — move the decimal point one place left. On $85.40 that is $8.54.
- 20% — double the 10% figure: $17.08.
- 15% — 10% plus half of it: $8.54 + $4.27 = $12.81.
- 18% — 20% minus a tenth of the 20%: $17.08 − $1.71 = $15.37.
- Double the tax — in an area with about 8–9% sales tax, doubling the tax line gives roughly a 16–18% tip.
Customary Tipping in the United States
| Service | Customary tip |
|---|---|
| Restaurant, sit-down | 18–20% |
| Bar, per drink | $1–$2, or 15–20% on a tab |
| Coffee counter | Optional; $0.50–$1 |
| Food delivery | 15–20%, minimum $5 |
| Taxi or rideshare | 10–20% |
| Hairdresser or barber | 15–20% |
| Hotel housekeeping | $3–$5 per night |
| Hotel porter | $1–$2 per bag |
| Valet parking | $2–$5 on collection |
| Movers | $20–$50 each for a day's work |
Tipping norms in the U.S. have drifted upward: 15% was standard in the 1990s, 18% by the 2010s, and card terminals now commonly default to 20–25%. The default is a suggestion, not an obligation.
Why the U.S. Is Different
Federal law permits a tipped minimum wage of $2.13 an hour, provided tips bring the employee to the full minimum. In practice this makes tips the substance of a server's income rather than a bonus, which is why leaving nothing is treated so differently in America than elsewhere.
Several states — California, Washington, Oregon, Nevada, Minnesota, Montana, Alaska — require the full minimum wage before tips, and a number of cities have moved the same way.
Tipping Around the World
| Country | Restaurant norm | Notes |
|---|---|---|
| United States | 18–20% | Expected; wages depend on it |
| Canada | 15–20% | Similar to the U.S. |
| United Kingdom | 10–12.5% | Often added as a service charge |
| France | Round up | Service compris — service is included by law |
| Germany | 5–10% | Round up and state the total when paying |
| Italy | Round up | Coperto cover charge is common |
| Japan | None | Tipping can cause genuine offence |
| China | None | Not customary |
| Australia | Optional, ~10% | High minimum wage; tips are a bonus |
| UAE | 10–15% | Service charge often already added |
Watch for the Service Charge
Many restaurants add an automatic gratuity for large parties — typically 18–20% for six or more — and some add a service charge to every bill. Check the itemised total before adding a tip, or you will pay twice. Where a service charge is already included, any additional tip is genuinely optional.
Note also that a service charge is legally the restaurant's revenue in most jurisdictions, while a tip belongs to the staff. If you want the money to reach the server, cash is the surest route.
Splitting the Bill
Splitting evenly is simplest and usually fairest for a group that ate similarly. Where one person had considerably more — several drinks, a much more expensive dish — itemising is fairer, but the tip should still be calculated on the whole bill and divided in proportion to each share.
Rounding each person's share up to the next dollar is a common convenience: it makes the numbers easy and slightly increases the tip, which nobody objects to.
Frequently Asked Questions
Should I tip on tax?
Traditionally no, though the difference is a dollar or two on a typical bill. Set the tax percentage above and choose "pre-tax" if you want the stricter calculation.
What is a normal tip in 2026?
18–20% for sit-down restaurant service in the United States. Card terminals often suggest more; those defaults are set by the merchant, not by convention.
Do I tip on takeaway?
Not expected, though 10% is a common courtesy for a large or complicated order.
Should I tip if the service was poor?
In the U.S., reducing to 10–15% signals dissatisfaction more effectively than leaving nothing, which is more likely to be read as an oversight. Serious problems are better raised with the manager.