How Much Should You Tip? A Complete Tipping Guide (2026)

Updated October 2026 · 4 min read

In the United States, tipping is not just a courtesy — it is the primary source of income for millions of service workers. Restaurant servers typically earn a federal tipped minimum wage of $2.13/hour, with the expectation that tips will bring total earnings to at least the regular minimum. Knowing when and how much to tip matters.

Standard US Tip Percentages by Service

How to Calculate a 20% Tip in Your Head

1. Find 10% by moving the decimal one place left ($74.00 becomes $7.40)
2. Double it for 20% ($7.40 x 2 = $14.80)
3. Add to the bill: $74.00 + $14.80 = $88.80

For 15%: take 10% and add half. 10% of $74 = $7.40, half = $3.70, total tip = $11.10.

Should You Tip on Pre-Tax or Post-Tax?

Technically, tipping on the pre-tax amount is more correct — the server did not provide the state's tax collection service. In practice, on a $60 bill with 8% tax, the difference between tipping 20% on $60 vs $64.80 is less than $1. Most people tip on the total shown on the receipt, and either approach is fine.

Tipping Outside the United States

• Japan: Tipping is considered rude — service is included in the price
• Australia / New Zealand: Optional, 10% at most; service wages are significantly higher
• UK / Europe: 10-12% if a service charge is not already included on the bill
• UAE: 10-15% in restaurants; not expected everywhere but appreciated
• China: Not customary; upscale international hotels are an exception

Splitting the Bill Correctly

Calculate the tip on the full bill first, then divide the combined total (bill + tip) by the number of people. Splitting individual shares first and adding tip percentage separately leads to rounding errors that can leave the server slightly short.