How to Calculate a Tip: 4 Easy Methods, a Tip Chart and Examples

Calculating a tip comes down to one multiplication: the bill times the tip percentage. Most people don't want to do that multiplication at a table with a pen and a small receipt, though, so this guide covers four ways to get the number, from a two-second mental trick to the exact formula. We'll also cover the parts that cause real confusion: whether to tip on the amount before or after tax, how to split a tip among friends, what to do with automatic gratuities, coupons and comped items, and how much is customary for different services in the United States.

If you only need the answer: take 10% by moving the decimal point one place to the left, then double it for 20%. On a $64.00 bill, 10% is $6.40 and 20% is $12.80. For 15%, add half of the 10% figure ($6.40 + $3.20 = $9.60). For 18%, take 20% and subtract a fifth of the 10% figure ($12.80 − $1.28 = $11.52). Our tip calculator does all of this, adds sales tax if you need it, and splits the total among any number of people.

Calculate the tip on a $64 bill →

The tip formula

Every tip method is a shortcut for the same formula: tip = bill × (tip percentage ÷ 100). The total you pay is bill + tip, plus any sales tax. Written with decimals, an 18% tip is the bill × 0.18 and a 20% tip is the bill × 0.20. On a $48.00 bill, an 18% tip is 48 × 0.18 = $8.64, for a total of $56.64 before tax.

A faster way to get the total in one step is to multiply by 1 plus the tip rate. For a 20% tip the total is the bill × 1.20; for 18%, the bill × 1.18. On the same $48.00 bill: 48 × 1.18 = $56.64. Calculator apps on phones handle this in one line, and it avoids the step where people forget to add the tip back to the bill.

The chart below shows the tip at five common percentages for bills from $10 to $200. Bills between rows scale proportionally: the tip on $90 is the $40 tip plus the $50 tip.

Method 1: Move the decimal (the 10% trick)

Ten percent of any number is that number with the decimal point moved one place to the left. $42.50 becomes $4.25; $118.00 becomes $11.80; $9.60 becomes $0.96. Once you have 10%, almost every common tip is one quick step away. 20% is double it. 15% is 10% plus half of 10%. 25% is 20% plus half of 10% (or a quarter of the bill). 30% is triple it.

Rounding makes this even faster. On a $42.50 bill, 10% is $4.25, which you can round to $4.25 or $4.50. Doubling gives $8.50 to $9.00, comfortably 20%. Tipping on a rounded-up bill is the common habit, and it errs toward the server, which is the side most people prefer to err on.

18% takes one more step because it isn't a simple multiple of 10%. The cleanest route is 20% minus 2%, where 2% is the 10% figure divided by five. On $75.00: 10% is $7.50, 20% is $15.00, 2% is $1.50, so 18% is $13.50. Alternatively, 18% is 10% + 8%, but 8% is harder to see at a glance, so most people stick with the subtraction.

Method 2: Double the sales tax

In places where the sales tax rate is close to 9% or 10%, doubling the tax line on the receipt gives a tip of about 18% to 20% with no math beyond a single doubling. In New York City, where the combined rate is 8.875%, doubling the tax gives 17.75% of the subtotal. In Chicago, at 10.25%, doubling gives 20.5%. The trick is popular because the tax is already printed on the receipt and tied to the pre-tax subtotal, which is what etiquette guides say to tip on.

It works poorly where sales tax is low. In Florida the average combined rate is about 7%, so doubling gives a 14% tip. In states without a sales tax, such as Oregon or Delaware, there's nothing to double. Many places also charge a higher rate on restaurant meals than on general purchases, which nudges the result up. The table shows what doubling the tax actually gives in several places, using the average combined general sales tax rate for each state.

Method 3: Use the exact percentage

For anything you need to be exact about, such as a large group dinner, a catering bill or an expense report with a tipping policy, multiply by the decimal. 18% is 0.18, 20% is 0.20, 22% is 0.22. On a $236.80 catering order at 18%: 236.80 × 0.18 = $42.62, total $279.42 before tax.

The exact method also works in reverse. If you left a tip and want to know what percentage it was, divide the tip by the bill and multiply by 100. A $15.00 tip on a $68.00 bill is 15 ÷ 68 = 0.2206, or about 22%. That's useful when reconciling receipts or when someone asks whether a group's pooled tip was enough. Our percentage calculator does both directions if you'd rather not divide by hand.

Work out what percentage you tipped →

Method 4: Round the total

Some people skip the percentage and pick a total instead: add roughly 20%, then round the total up to a whole dollar or a multiple of five. On a $37.40 bill, 20% is about $7.50, which makes $44.90, so you write $45.00 as the total. The tip ends up at $7.60, or 20.3%. This method keeps your card statement tidy and is common with bartenders and at counters, where a round total is easier for everyone.

The risk is that rounding to the nearest $5 can swing the effective tip a lot on small bills. On a $12 bill, rounding a 20% total of $14.40 up to $15 is a 25% tip; rounding down to $14 is under 17%. On small bills, round to the dollar instead, or apply a minimum tip of $1 to $2 for table service.

Tip on the amount before or after tax?

Etiquette guides, including Emily Post's, say the tip is calculated on the pre-tax subtotal. Sales tax goes to the state, not to the restaurant, so there's no service reason to tip on it. In practice, many people tip on the final total because it's the biggest number on the receipt and the one the tip line sits under. Both are accepted; tipping on the subtotal is correct, and tipping on the total is generous.

The difference is small but grows with the bill. At New York City's 8.875% rate, a 20% tip on a $100 subtotal is $20.00; on the after-tax total of $108.88 it's $21.78, a difference of $1.78. On a $250 dinner the difference is about $4.44. The table shows several bill sizes. Our tip calculator has a 'Tip on' setting so you can see both: enter the pre-tax subtotal as the bill, add your sales tax rate, then switch between 'Pre-tax subtotal' and 'Total after tax'.

Compare tipping before and after tax →

How to split the bill and the tip

The simplest split is even: add the subtotal, tax and tip, then divide by the number of people. A $186.40 subtotal in New York City has $16.54 of tax at 8.875%. A 20% tip on the pre-tax subtotal is $37.28. The total is $240.22, which is $60.06 each for four people. Each person can round up to the next dollar so the server isn't short-changed by rounding.

An even split feels unfair when orders differ a lot, such as one person ordering a steak and a cocktail while another orders soup. In that case, split by item: each person adds up their own dishes, then applies the same tax rate and tip percentage to their own subtotal. Shared items, like appetizers or a bottle of wine, are divided evenly among those who shared them before the percentages are applied. The table shows an itemized split for three diners at the same 8.875% tax and 20% tip.

When a group pays with several cards, tell the server up front how to divide the check. Many restaurant systems can split by seat or by item. If each card gets its own tip line, each person should tip on their own share of the subtotal so the total tip still comes to the agreed percentage. If one person pays and is reimbursed, make sure the tip is included in what others pay back; the most common way a group under-tips is by splitting the bill and forgetting the tip.

Split a $186.40 bill four ways →

How much to tip in the US

Tipping norms are customs, not rules, and they vary by region and by establishment. For table service at a sit-down restaurant, 18% to 20% of the pre-tax bill is standard across most of the US, with 15% for service that was noticeably poor and 22% to 25% or more for excellent service, large or demanding groups, or long stays at a table. In many states, tipped restaurant workers are paid a cash wage below the regular minimum wage, with tips expected to make up the difference, which is why the restaurant tip carries more weight than tips elsewhere.

At a bar, $1 to $2 per drink or 18% to 20% of the tab is typical. For takeout and counter service, tipping is optional; 10% or a dollar or two is common for larger or complicated orders. For food delivery, 15% to 20% with a minimum of a few dollars, more in bad weather or for long distances. For taxis and rideshares, 15% to 20%. For hair, nail and spa services, 15% to 20% of the service price, given to each person who served you if more than one did. Hotel housekeeping is usually $3 to $5 per night, left daily because staff may change. Movers often get $20 to $40 per person for a half-day job, more for a full day or heavy items.

Tip screens at coffee shops and retail counters often start at 18% or 20%. Those suggestions are set by the business, not by custom, and choosing a lower amount or 'No tip' for a counter purchase is within normal etiquette. For sit-down service, look at whether the suggested percentages are calculated on the subtotal or on the total including tax; some systems use the total, which raises the effective tip by the tax rate.

Automatic gratuity and service charges

Many restaurants add an automatic gratuity of 18% to 20% for parties of six or more. Check the receipt before tipping again: if the line says 'gratuity' or 'service charge' and the amount looks like 18% to 20% of the subtotal, the tip is already included. Adding another 20% on top doubles the tip. If service was exceptional, adding a few extra dollars is a kind gesture, but it isn't expected.

A service charge is not legally the same as a tip. The IRS treats a mandatory charge set by the business as regular wages that the business may distribute as it chooses, not as a tip. A tip has to be voluntary, with the customer deciding the amount. That distinction matters for workers: the 2025–2028 federal tax deduction for tips covers voluntary tips only, so mandatory service charges don't qualify. Some restaurants now add 'kitchen appreciation', 'wellness' or 'living wage' surcharges of 3% to 5%. Those usually don't go to your server; you're still expected to tip normally, and you can ask the restaurant how the surcharge is used.

Tipping with coupons, discounts and comped items

When a meal is discounted, tip on the price before the discount. The server did the same work for a half-price entrée as a full-price one. If you use a $25-off coupon on a $90 dinner, the bill shows $65, but a 20% tip on the original $90 is $18, not the $13 you'd get on $65. The same applies to comped dishes, gift cards and loyalty points: tip on what the meal would have cost.

Prepaid deals work the same way. Many restaurant deal vouchers state in the fine print that the tip should be based on the full value of the meal. Buffets are the main exception. Since you serve yourself, 10% is typical, with more if staff refill drinks and clear plates often.

Tipping when you're paying in cash

With cash, the main hazard is coins and change. Round the tip up to a whole dollar or the nearest $5 total, and either leave the tip on the table or tell the server to keep the change when you hand over the payment. Saying 'keep the change' on a bill paid with a $100 note for a $62 check gives a $38 tip, a 61% tip that's probably not what you meant. Say instead how much change you'd like back.

For card payments, write both the tip and the total on the slip, and make sure they add up. Payment systems often process the total you write, and a mismatch can lead to an adjustment you didn't intend. Keep the customer copy until the charge posts.

If you receive tips: how they're taxed

Tips are taxable income. Employees are required to report cash tips of $20 or more in a month to their employer, which then withholds income tax and Social Security and Medicare tax on them. Card tips are recorded by the employer automatically. Tips paid in an employer's tip pool are reported by whoever ends up receiving them.

For tax years 2025 through 2028, workers in occupations on the Treasury's list of tipped occupations can deduct up to $25,000 of qualified tips from federal taxable income. The deduction phases out above $150,000 of modified adjusted gross income ($300,000 for joint filers). It reduces federal income tax only. Tips are still subject to Social Security and Medicare tax, and to state income tax in most states. Our guide to the tips deduction covers eligibility, the occupation list and how the new W-2 reporting works, and our income tax calculator has a tips field that applies the cap automatically.

See how much the tips deduction saves →

Common tip calculation mistakes

The most common mistakes are tipping twice when an automatic gratuity is already on the bill, forgetting to add the tip back to the bill when splitting, tipping on the discounted price instead of the original, and using the tax-doubling trick in a low-tax state where it only produces 12% to 14%. Another is reading a tip screen's '20%' as a percentage of the subtotal when the system is calculating it on the total including tax.

On large bills, small percentage differences add up. Between 18% and 22% on a $400 group dinner, the tip moves from $72 to $88. When a group is deciding together, agree on the percentage and whether it's calculated before or after tax, then let one person run the numbers in a calculator and share the per-person amount.

Do the math in one step

The tip calculator handles every case covered here: pick a percentage, add sales tax if you want to see the full total, choose whether the tip is calculated on the pre-tax subtotal or the after-tax total, and split by any number of people. If you're working out a tip from a receipt that only shows the total, the sales tax calculator's reverse mode will separate the tax from the subtotal first.

Open the tip calculator →