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Understanding Restaurant Tipping
What is Tipping?
Tipping, also called gratuity, is a voluntary sum of money given to service workers in addition to the base price of a service. In the United States, tipping is deeply ingrained in the service industry culture, particularly in restaurants, bars, and cafes.
The practice originated in 18th-century England and became widespread in the US during the post-Civil War era. Today, many service workers receive a lower base wage with the expectation that tips will supplement their income to reach or exceed minimum wage.
Standard tipping rates: In US restaurants, the typical tip range is 15-20% of the pre-tax bill amount. This standard has evolved over time, with 15% being considered the baseline for adequate service, 18-20% for good service, and 25% or more for exceptional service.
Why Tipping Matters
In many states, restaurant servers are paid a "tipped minimum wage" that can be as low as $2.13 per hour (federal tipped minimum), significantly below the standard minimum wage. Tips are not just appreciation—they're a crucial part of servers' income.
Economic impact: Servers typically must "tip out" a percentage of their tips to support staff including bussers, bartenders, and hosts. This means they don't keep 100% of their tips. When customers don't tip or tip poorly, it directly affects not just the server but the entire restaurant team.
Social expectations: Tipping is considered a social obligation in the US. Failing to tip appropriately (except in cases of truly poor service) is viewed as socially unacceptable and can be seen as taking advantage of workers who depend on tips for their livelihood.
Tipping Guidelines by Service Type
Bill Splitting Best Practices
When dining with a group, splitting the bill can be complex. Here are best practices to ensure fairness and proper tipping:
- •Equal split: Divide total bill + tip evenly among all diners. This works best when everyone ordered similarly-priced items.
- •Itemized split: Each person pays for their own items plus their share of tip and tax. More fair when there's a large price difference between orders.
- •Calculate tip on pre-split amount: Always calculate the tip percentage on the total bill before splitting, not on individual portions.
- •Round up: When splitting, round up your share to the nearest dollar to ensure the server receives full tip amount.
- •Use payment apps: Apps like Venmo, Cash App, or Splitwise make splitting bills easier and more accurate.
Tip Before or After Tax?
There's ongoing debate about whether to calculate tips on the pre-tax or post-tax amount. Here's what you need to know:
Traditionally, etiquette experts recommend calculating tips on the pre-tax amount since sales tax isn't part of the service cost. This method results in a slightly lower tip.
Example: $100 bill + $8.50 tax = $108.50 total. 18% tip on $100 = $18.00 (not $19.53).
Many people now calculate on the total including tax for simplicity, especially since most payment terminals show suggested tips based on the total. This is perfectly acceptable and increasingly common.
Quick tip: In high-tax areas (8-10% sales tax), the difference between pre-tax and post-tax tipping can be $1-3 on a typical $100 bill.
Bottom line: Either method is acceptable. Choose what feels right to you, but be consistent. Most importantly, tip fairly based on service quality.
Tipping Around the World
Tipping customs vary dramatically by country. Understanding these differences is crucial for international travelers:
15-20% standard, tipping expected in most service industries
5-10% or round up, service charge often included
No tipping (can be considered offensive), excellent service included
Optional 10% for exceptional service, not expected
10-15% if service charge not included
10% standard, often included in bill
Always research local customs before traveling. What's generous in one country might be insulting in another.
Quick Reference: Tip Amounts
| Bill Amount | 15% Tip | 18% Tip | 20% Tip | Total (20%) |
|---|---|---|---|---|
| $20 | $3.00 | $3.60 | $4.00 | $24.00 |
| $50 | $7.50 | $9.00 | $10.00 | $60.00 |
| $75 | $11.25 | $13.50 | $15.00 | $90.00 |
| $100 | $15.00 | $18.00 | $20.00 | $120.00 |
| $150 | $22.50 | $27.00 | $30.00 | $180.00 |
| $200 | $30.00 | $36.00 | $40.00 | $240.00 |
Frequently Asked Questions
What is the standard tip percentage in restaurants?
In the United States, the standard tip percentage for restaurant service is 15-20%. For good service, 18% is typical, while 20% is for great service. Exceptional service may warrant 25% or more. Poor service may receive 10-12%, though it's customary to tip at least 15% unless service was truly inadequate.
Should I calculate tip before or after tax?
Traditionally, tips should be calculated on the pre-tax amount of your bill. However, many people calculate on the total including tax for simplicity. Our tip calculator offers both options so you can choose based on your preference. Calculating before tax typically results in a slightly lower tip amount.
How do I split a bill with a tip among friends?
To split a bill with tip: 1) Enter the total bill amount, 2) Select your desired tip percentage, 3) Enter the number of people splitting the bill. Our calculator automatically divides the total (bill + tip) by the number of people to show how much each person should pay. It also shows the tip amount per person.
What are the tipping customs for different service levels?
Tipping customs by service quality: Poor service (10-12%), Fair service (15%), Good service (18%), Great service (20%), Excellent service (25%+). These percentages are guidelines for US restaurants. Factors affecting tip amount include attentiveness, food quality, order accuracy, and overall dining experience.
Do I need to tip on takeout orders?
Tipping on takeout orders is optional but appreciated. A common practice is to tip 10% for takeout, as staff still prepare and package your order. For delivery, 15-20% is standard. During busy times or for large orders, consider tipping more. Some people tip a flat $2-5 regardless of order size for takeout.
Is tipping mandatory in the United States?
While tipping is not legally mandatory in most US restaurants, it is strongly expected and considered part of dining culture. Many servers earn below minimum wage and rely on tips for their income. Some restaurants include an automatic gratuity (usually 18-20%) for large parties. Always check your bill to see if gratuity has already been added.
How much should I tip for delivery services?
For food delivery services, a standard tip is 15-20% of the order total, with a minimum of $3-5 even for small orders. Consider tipping more for bad weather, long distances, or large/complex orders. For services like UberEats, DoorDash, or GrubHub, you can adjust the tip after delivery based on service quality.
Can I adjust my tip after seeing the service?
Yes, you should adjust your tip based on service quality. Start with the standard 18-20% in mind, then increase for exceptional service or decrease for poor service. If service was truly unacceptable (not just slow due to busyness), you can tip less, but consider speaking with a manager about the issues. Never withhold tips for kitchen errors beyond the server's control.