How to work out a tip
Tip = base × tip % Per person = (bill + tip) ÷ people
The base is the amount you tip on. Most US etiquette guides say to tip on the pre-tax amount, because sales tax is not part of the service. Many people simply tip on the total because it is the number at the bottom of the check. The difference is small: on a $78.70 meal with $6.30 of tax, an 18% tip is $14.17 on the pre-tax amount and $15.30 on the $85.00 total.
A worked example
Four people share a check of $85.00 that includes $6.30 of sales tax. The pre-tax amount is $78.70. A 20% tip on that is 78.70 × 0.20 = $15.74. The total is $85.00 + $15.74 = $100.74, or $25.19 each (25.185, rounded up). If everyone rounds up to $26, the table pays $104 and the server gets $19.00, which is 24.1% of the pre-tax amount.
A quick mental method: move the decimal point one place to the left to get 10%, then double it for 20%. On $78.70 that is $7.87, doubled is $15.74. For 15%, add half of the 10% figure: $7.87 + $3.94 = $11.81.
Tipping by Service Type (USA)
In the US, tipped workers can be paid a cash wage as low as $2.13 an hour under federal law, with tips expected to make up the rest. That is why tips of 18% to 20% are the norm at sit-down restaurants and why 15% now reads as low. Rules differ by state; several states, including California, Washington and Minnesota, require the full minimum wage before tips.
| Service | Recommended | Exceptional |
|---|---|---|
| Restaurant (sit-down) | 18-20% | 25%+ |
| Restaurant (takeout) | 0-10% | 15% |
| Bar / Drinks | 15-20% or $1-2/drink | 20%+ |
| Taxi / Rideshare | 15-20% | 20%+ |
| Hotel porter | $2-5 per bag | $5+ |
| Hotel housekeeping | $2-5 per day | $5+ |
| Hair salon / barber | 15-20% | 25% |
| Food delivery | 15-20%, at least $3-5 | 25%+ |
| Tour guide | $5-10/person/day | $15+ |
| Coffee shop | $0.50-$1 | 15-20% |
Tablet screens at counters often suggest 20% or more for a coffee or a pastry. There is no rule that says you must tip for counter service. Tip where someone serves you at the table, delivers to your door, or does personal work like a haircut.
Tipping in the UK and Europe
United Kingdom. Many restaurants add a discretionary service charge, usually 12.5%, to the bill. It is optional: you can ask for it to be removed if the service was poor. Do not tip on top of it unless you want to. Where there is no service charge, 10% to 15% is normal at restaurants. Pubs do not expect tips at the bar. Since 1 October 2024 the Employment (Allocation of Tips) Act requires employers in England, Scotland and Wales to pass all tips and service charges to workers in full.
Europe. Service is included in prices across most of Europe and staff are paid at least the minimum wage, so tips are smaller. Rounding up is common: a €27.40 bill becomes €30 in Germany or Austria, and you say the amount you want to pay when you hand over the money. In France and Italy a few euros for a good meal is plenty. Check Italian bills for a coperto (cover charge) before adding anything.
Tipping by Country: What is Expected
Tipping customs vary enormously around the world. In some countries a tip is expected, in others it is unusual or can cause confusion. Use this guide before dining abroad.
| Country | Expected Tip | Notes |
|---|---|---|
| United States | 18-22% | Expected in restaurants; 15% considered low. 20% is standard. |
| Canada | 15-20% | Similar to USA. 15% minimum; 18-20% for good service. |
| United Kingdom | 10-15% | Not always expected. Check bill: a 12.5% service charge may be included. |
| Australia | 0-10% | Not obligatory. Round up or 10% for exceptional service. |
| Germany | 5-10% | Round up to nearest euro or add 5-10%. Say "Stimmt so" to keep change. |
| France | 0-5% | Service compris (included). Small tip appreciated but not required. |
| Italy | 0-10% | Coperto (cover charge) often added. Additional tip optional. |
| Spain | 5-10% | Round up or leave 5-10% for good service. Not obligatory. |
| Japan | 0% | Tipping is not part of the culture and can cause confusion. Service is included in the price. |
| China | 0% | Generally not expected. High-end tourist restaurants may accept tips. |
| South Korea | 0% | Tipping is not customary. May be refused. |
| India | 10% | Expected in restaurants. 10% standard; more in upscale venues. |
| Brazil | 10% | A 10% service charge (taxa de serviço) is usually added to the bill. |
| Mexico | 10-15% | Expected in tourist areas. 10% minimum; 15% for good service. |
| UAE / Dubai | 10-15% | Service charge may be included. Additional tip appreciated. |
| South Africa | 10-15% | 10% minimum; 15% standard. Important source of income for staff. |
| Sweden / Norway | 0-10% | Not expected. High wages mean tipping is optional. Round up is fine. |
| Netherlands | 5-10% | Round up or add 5-10% for good service. |
| Switzerland | 5% | Service usually included. Small tip appreciated. |
| Poland | 10% | 10% standard in restaurants. |
| Russia | 10% | 10% expected in restaurants, especially in cities. |
| Turkey | 10-15% | Expected in tourist areas. 10-15% typical. |
| Egypt | 10% | Baksheesh culture: small tips expected for many services. |
| Saudi Arabia | 0-10% | Not obligatory. Service charge often included in upscale venues. |
| Singapore | 0% | 10% service charge and 9% GST already added to bills. |
| Croatia | 10% | 10% standard; rounding up appreciated in cafes. |
No tax on tips: the 2025-2028 deduction
If you earn tips in the US, a new federal deduction applies for tax years 2025 through 2028. Workers in occupations that customarily received tips before 2025 can deduct up to $25,000 of qualified tips a year. It works whether you itemize or take the standard deduction.
The deduction shrinks once modified adjusted gross income passes $150,000 ($300,000 for married couples filing jointly). It falls by $100 for every $1,000 above that line, so it is gone for a single filer at $400,000 with the full $25,000 of tips. Married couples must file jointly to claim it. Tips are still subject to Social Security and Medicare tax, and to state income tax unless your state follows the federal rule.
Example: a server with $38,000 in wages and $22,000 in reported tips deducts the $22,000, so taxable income falls by that amount before the standard deduction. Only tips reported to the employer (on the W-2) or on the tax return count. Run your numbers through our income tax calculator with the deduction subtracted from income.