This guide covers the why, the typical amounts, and how sales tax, service charges and card payments fit in. When you're ready to do the sums, the US tip calculator works it out for you.
Why tips matter so much in the US
In the US, tips are part of how many service workers are paid. Under the federal Fair Labor Standards Act, an employer can pay a "tipped employee" a direct cash wage of as little as $2.13 an hour and count tips towards the rest of the $7.25 federal minimum wage. That lets the employer claim a "tip credit" of up to $5.12 an hour (US Department of Labor, Fact Sheet #15).
Some states require a higher cash wage than the federal minimum, so pay varies across the country (US Department of Labor). The upshot is the same for visitors: in restaurants and bars, the tip is an expected part of the cost, not a bonus for exceptional service.
Typical tip amounts
These ranges come from the Emily Post Institute, a long-running US etiquette organisation. Treat them as common practice, not rules:
| Service | Typical tip (Emily Post Institute) |
|---|---|
| Sit-down restaurant (table service) | 15–20% of the bill, before tax |
| Buffet | 10%, before tax |
| Bartender | $1–2 per drink, or 15–20% of the tab |
| Takeaway / takeout | No obligation; 10% for extra service or a large, complicated order |
| Food delivery | 10–15% of the bill |
| Taxi | 15–20% of the fare (at least $1), plus $2 for the first bag carried and $1 per additional bag |
| Hotel housekeeping | $2–5 per day, left daily |
| Bellhop / porter | $2 for the first bag, $1 per additional bag |
| Hotel concierge | No obligation for answering questions; $5–10 for booking tickets or restaurants |
| Valet parking | $2–5 when the car is returned to you |
| Hair salon | 15–20% |
Two details in that table are easy to miss:
- "Before tax." Emily Post's restaurant percentages are worked out on the bill before sales tax is added.
- Housekeeping "left daily". Housekeeping can change from day to day, so leave a little each morning instead of a lump sum at checkout.
Sales tax: why the total is higher than the menu
Most US states charge a sales tax, and local taxes can stack on top. According to the Tax Foundation, five states have no statewide sales tax: Alaska, Delaware, Montana, New Hampshire and Oregon. Alaska still allows local sales taxes (Tax Foundation, 2026 midyear rates).
If you're used to tax being included in shelf and menu prices, expect the final bill to be a little higher than the prices you saw. If you're tipping on the pre-tax amount, look for the subtotal line on the receipt.
Worked example
Say dinner for two comes to $80.00 before tax.
- 15% tip: $80.00 × 0.15 = $12.00
- 18% tip: $80.00 × 0.18 = $14.40
- 20% tip: $80.00 × 0.20 = $16.00
Add sales tax (whatever the local rate is) and the tip to get your total. The tip calculator does this and also splits the bill between people.
To see what that is in your own money, use the currency converters for AUD to USD, NZD to USD or GBP to USD.
Service charges are not the same as tips
Some restaurants add a fixed "service charge", especially for larger groups. Under US federal law, a compulsory service charge is not a tip. It belongs to the business, which may or may not pass it on to staff (US Department of Labor, Fact Sheet #15).
If your bill already includes a service charge, it's reasonable to ask the server whether a tip is still expected. Then you're not tipping twice by accident, or leaving nothing when staff were counting on it.
Tipping by card vs cash
You can usually add a tip when paying by card: on the screen, or on the paper slip before you sign. The Department of Labor notes that when tips are paid by credit card, an employer may deduct the card processing fee percentage from the tip before passing it on (Fact Sheet #15).
Cash is handy for small, per-item tips like bags, housekeeping and valet, so it's worth carrying a few small notes.
If a card terminal offers to charge you in your home currency instead of US dollars, the DCC checker shows the mark-up in that offer compared with the day's mid-market rate.
Is it the same in Canada?
Tipping is also common in Canada. See tipping in Canada for that country's page. To compare the US with other destinations, the tipping around the world guide covers each country in turn.
Before you go
The United States travel essentials page puts currency, time, weather and plugs in one place. If you're flying in from down under, the US plug adapter guide for Australia and NZ covers the adapter you'll need, and UK and Irish visitors can use the UK/Ireland version.
This is general information about common practice, not a rule. The ranges above are published by the Emily Post Institute; local customs and individual venues vary.
Quick answers
How much should I tip at a restaurant in the US?
The Emily Post Institute suggests 15–20% of the bill before tax for table service, and 10% at a buffet.
Do I have to tip for takeaway?
The Emily Post Institute says there's no obligation for takeout. It suggests 10% for extra service, like kerbside delivery, or a large, complicated order.
Why are US tips so high compared with home?
Federal law allows tipped workers to be paid a cash wage as low as $2.13 an hour, with tips making up the difference to the $7.25 minimum wage (US Department of Labor). Some states set higher wages.
Is a service charge the same as a tip?
No. Under federal law, a compulsory service charge isn't a tip and belongs to the business. If one has been added, ask whether a tip is still expected.
Do I tip on the amount before or after tax?
The Emily Post Institute's restaurant percentages are worked out on the pre-tax amount.
Which US states have no sales tax?
The Tax Foundation lists Alaska, Delaware, Montana, New Hampshire and Oregon as having no statewide sales tax. Alaska allows local sales taxes.
Sources
- US Department of Labor, Wage and Hour Division, "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)": https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa. Covers the $2.13 cash wage, $7.25 minimum, $5.12 maximum tip credit, compulsory service charges not being tips, the card-fee deduction, and state laws that may require more. The site blocks curl, but it was read via WebFetch.
- US Department of Labor, "Minimum Wages for Tipped Employees" (state table): https://www.dol.gov/agencies/whd/state/minimum-wage/tipped
- Emily Post Institute, "General Tipping Guide": https://emilypost.com/advice/general-tipping-guide. Covers every amount in the table, including "pre-tax" and "left daily".
- Tax Foundation, "2026 Sales Tax Rates, Midyear Update": https://taxfoundation.org/data/all/state/2026-sales-tax-rates-midyear/. Covers the five states with no statewide sales tax and Alaska's local taxes.
Related: All travel guides