How a tip is calculated
A tip is a percentage of the pre-tax subtotal. The math is straightforward, but the choices around what percentage to use and which base to apply it to vary widely by country and even by city.
Tip = subtotal × (tip % / 100)Total = subtotal + tax + tipWhen splitting a bill among diners, the per-person total is simply:
Per person = (subtotal + tax + tip) / number of peopleA quick example
A meal subtotal of $80.00 with 8% sales tax and a 20% tip, split among four people:
- Tax:
80 × 0.08 = $6.40 - Tip:
80 × 0.20 = $16.00 - Total:
80 + 6.40 + 16.00 = $102.40 - Per person:
102.40 / 4 = $25.60
How much to tip — by country
| Country | Restaurant norm | Notes |
|---|---|---|
| United States | 18–22% | Servers are paid sub-minimum wage in most states; tipping is expected |
| Canada | 15–20% | Calculated on pre-tax subtotal; similar etiquette to the US |
| United Kingdom | 10–15% | Often included as 'optional service charge'; check the bill first |
| Germany / Austria | 5–10% | Round up or add a small amount; hand to the server, do not leave on the table |
| France | Optional | Service compris by law; leave a few coins as a courtesy |
| Italy | Optional | Coperto (cover charge) often replaces tipping; round up only |
| Japan | 0% | Tipping is considered rude in most contexts; do not tip |
| China (mainland) | 0% | Tipping is uncommon and sometimes refused; high-end international hotels are an exception |
| Thailand | 5–10% | Common in tourist-facing restaurants; rounding up is standard locally |
| Australia / New Zealand | 0–10% | Not expected at most restaurants; common only for exceptional service |
These ranges shift over time, and tipping norms have generally crept upward in the US since the pandemic — "tip prompts" on payment terminals now suggest 20%, 25%, and 30% in many quick-service settings where tipping was previously rare.
Tipping outside restaurants (US norms)
- Bartender: $1–2 per drink, or 15–20% of the tab.
- Taxi or rideshare: 10–15% of the fare, rounded up.
- Food delivery: 10–15% with a minimum of around $3–5.
- Hairdresser or barber: 15–20% of the service price.
- Hotel housekeeping: $2–5 per night, left daily.
- Hotel bellhop: $1–2 per bag.
- Coffee shop counter: optional; rounding up or $0.50–1 is generous.
Mental math shortcuts
- 10%: move the decimal one place left. $87.40 → $8.74.
- 15%: 10% + half of 10%. $87.40 → $8.74 + $4.37 = $13.11.
- 20%: 10% × 2. $87.40 → $17.48.
- Match the tax (US): in many states, doubling the sales tax gives a close-to-20% tip.
- Round up first: calculate on a round number ($90 instead of $87.40) for faster mental math, then add slightly.
Splitting bills fairly
The default is equal split, but two situations come up often:
- Itemized split: each person pays for what they ordered, plus a proportional share of tax and tip. Useful when one diner orders much more or much less than others.
- One person picks up the tip: a common compromise is to split the subtotal evenly but have one person cover the entire tip — works well when most diners ordered similar amounts.
For itemized splits, calculate each person's share of the subtotal, then multiply by (tax + tip) / subtotal to get their proportional add-on.
Frequently asked questions
Should I tip on pre-tax or post-tax?
Etiquette guides recommend pre-tax. In practice many people tip on the post-tax total because it is easier to read off the bill — the difference is usually only a few percent of the tip amount.
What about an automatic 'service charge'?
If the bill already includes a service charge of 15% or more (common in the UK, Europe, and some US restaurants for large parties), no additional tip is required. An extra 5% is appropriate only for exceptional service.
Do I tip on takeout or pickup?
It is not expected, but a 5–10% tip is appreciated, especially at small independent restaurants. Tipping is standard for delivery.
Do I tip on a discounted bill?
Yes, on the full pre-discount amount. The server did the same work regardless of your coupon, gift card, or happy-hour pricing.
Is it rude to leave less than 15%?
In the US, yes, except in cases of genuinely poor service. The convention reflects the fact that tipped staff often rely on tips to bring their effective hourly pay up to (or above) minimum wage.
Can I tip in cash even if I pay the bill by card?
Yes, and many servers prefer it — cash tips are immediate and avoid card-processing fees, and in some establishments tipped employees are pooled differently for card tips.