Tip Calculator

In the United States, 18–20% is the working norm for sit-down restaurant service, with 20% now the common default in cities. Counter service, coffee and takeaway carry no obligation, although prompted tip screens have made 10–15% common. Bars run at roughly $1–$2 a drink or 20% on a tab; food delivery is usually 15–20% with a floor of about $5, and rideshare 10–15%.

Hairdressers, barbers and personal services sit at 15–20%. Hotel housekeeping is typically $3–$5 a night left daily rather than at checkout, since staff rotate.

Either is defensible, and the difference is small. Sales tax is not part of the service, so tipping on the pre-tax subtotal is the strictly logical choice. In practice most people tip on the total, and on a $100 bill in an 8% tax state the gap is $1.60 at a 20% tip.

The more consequential question is what to do with discounts. If a coupon halves the bill, the server did the same work — tip on what the bill would have been, not the discounted total.

There are three honest ways to split, and choosing the wrong one is where the friction comes from. An even split is fastest and fine when orders are comparable. An itemised split is fairest when they are not — one person on tap water should not subsidise a table's wine.

A proportional split is the compromise: everyone pays for what they ordered plus the same percentage on top for tax and tip. That keeps the fairness of itemising without the arithmetic argument, and it is what this calculator produces when you split the total.

Large parties — commonly six or more — are often charged an automatic gratuity, typically 18–20%, which must be disclosed on the menu. If it appears on your bill, no further tip is required, though rounding up for exceptional service is normal.

A "service charge" is legally different from a tip: it belongs to the business, not the staff, and may or may not be distributed. If a bill carries a service charge and you want the server to receive something directly, ask whether it is passed on, and tip in cash if it is not.

Federal law permits a tipped minimum cash wage of $2.13 an hour, provided tips bring the employee to the full minimum wage. Several states — California, Washington, Oregon, Nevada, Minnesota, Montana and Alaska among them — require the full state minimum before tips, which is why tipping norms feel less obligatory there.

Where the tip credit applies, tips are not a bonus for good service; they are the wage. That is the reason the American floor sits near 15% rather than the 5–10% common in countries where hospitality staff are paid a full wage.