Tipping in the USA: How Much, When and How?

Tipping in the USA is not an optional bonus but a fixed part of many service workers' income. In restaurants with table service, 15 to 20 percent of the pre-tax bill is customary, and in big cities such as New York 20 percent is the standard. At a bar you give USD 1 to 2 per drink, in a taxi or with Uber and Lyft 15 to 20 percent, and housekeeping a few dollars per night. Always check the bill before adding anything: if it says "Gratuity included" or lists a "Service Charge", a surcharge is already part of the total.

Our overview Traveling to the USA for the First Time gives the rules of thumb. This guide goes further: it explains why the system works the way it does, how to add a tip on card receipts and tablet checkouts, how to spot hidden surcharges, and what to do at a business dinner or in a group. All amounts are guidelines as of November 2026, not legal requirements.

Why are tips part of the wage in the USA?

The reason lies in US labor law. The federal minimum wage under the Fair Labor Standards Act (FLSA) is USD 7.25 per hour. For employees who regularly receive more than USD 30 a month in tips ("tipped employees"), employers may count part of the tips toward that minimum wage. This tip credit can be up to USD 5.12 at federal level, so the employer only has to pay a cash wage of USD 2.13 per hour. If wages plus tips do not reach at least USD 7.25 per hour, the employer must make up the difference. This is set out in the US Department of Labor's overview (as of July 1, 2026).

For your server, this means your tip is not an extra but pays for a large part of their working time. Leaving no tip at all effectively cuts the pay of the person who served you.

Federal law and the states: is the wage the same everywhere?

No. USD 2.13 is only the federal floor. Many states have higher minimum wages and their own rules for tipped jobs:

• No tip credit: In Alaska, California, Minnesota, Montana, Nevada, Oregon and Washington, the full state minimum wage must be paid before tips.
• Reduced tip credit: Many other states allow a tip credit but require a higher cash wage than USD 2.13.
• Federal floor: Some states stay at the USD 2.13 cash wage.
• Cities with their own rules: In Washington, D.C., the cash wage for tipped workers has been USD 10.30 since July 1, 2026, according to the Department of Labor, i.e. 56 percent of the regular minimum wage of USD 18.40. Chicago also has its own, higher rates.

For you as a guest, this changes little. Even in states without a tip credit, such as California, servers expect a tip, and customs are similar nationwide.

Does "No Tax on Tips" change anything for guests?

Under the "One Big Beautiful Bill Act", workers in customarily tipped occupations may deduct up to USD 25,000 in tips per year from their federal income tax for tax years 2025 to 2028 (IRS). The rule only affects the workers' tax returns. It does not change what you pay or the customary tip amount. One detail is worth knowing: only voluntary tips qualify. Mandatory charges such as an automatic gratuity do not count as tips for tax purposes.

How much do you tip where? The overview

The figures below are based on the recommendations of the Emily Post Institute, a well-known US authority on etiquette, and on the guide of the official tourism organization New York City Tourism + Conventions. Where New York is higher, this is noted.

Tipping is not a legal obligation; the figures describe what is customary. For excellent service, people give more.

Restaurants: how much is appropriate?

Table service is the benchmark. Around 15 percent signals decent but unremarkable service, 18 to 20 percent is normal in cities, and more than 20 percent expresses special satisfaction. In the USA the check usually arrives without asking, often with a friendly "No rush". You pay at the table: put cash or your card in the folder, the server processes it and brings back the receipt on which you add the tip.

Hotels: housekeeping, bellhop and concierge

For housekeeping, leave the tip daily rather than on departure day. Shifts change, and this way the money reaches the person who cleaned your room that day. Place the bills visibly on the pillow or desk with a note saying "Housekeeping – thank you" so it is clear the money was not forgotten. Many hotels now clean only on request. If you skip daily cleaning, the daily tip falls away, and an amount for the final cleaning at the end of your stay is appropriate.

The bellhop is tipped when the luggage arrives in your room. With room service, check the bill: a service charge is often already included.

Taxi, Uber and Lyft

In big cities you often pay by card on the screen in the back of the taxi. It suggests percentage levels that you can accept or replace with your own amount. With Uber and Lyft, you tip in the app after the ride. You do not have to do it immediately: the apps allow it for some time afterwards, and each service states the deadline. Rating the driver and tipping are separate steps. If the driver helps with heavy suitcases, USD 1 to 2 per bag extra is customary.

Bars and nightlife

At the bar, give USD 1 to 2 per drink, at the higher end for elaborate cocktails. If you run a tab, you leave your card and add 15 to 20 percent of the total when closing it. With bottle service in clubs, a service charge is often already on the bill; the IRS cites it as a typical example.

Hair salon, spa and beauty

At the hairdresser, nail salon, massage or facial, 15 to 20 percent is customary, 20 percent in New York. If several people looked after you, for example for washing and cutting, split the tip. Many salons offer separate fields at the register or on the terminal. Hotel spas may already list a service charge on the bill, in which case no further tip is needed.

City tours, tour guides and excursions

For guided tours, 10 to 20 percent of the tour price is customary. For a day tour costing USD 90 per person, that means USD 9 to 18. On bus tours, the guide and the driver are often tipped separately. With package deals, check the documents to see whether tips are already included.

Valet parking and food delivery

For valet parking, give USD 2 to 5 when the car is brought back; the parking fee itself is separate. Delivery apps usually ask for the tip when you place the order. In New York 20 percent is customary; for large orders, bad weather or many stairs, a little extra is a nice gesture.

How do I tip when paying by card?

Many restaurants process payment in two steps: first the bill amount, then the tip on the receipt. Here is how it works:

1. Check the bill: Look at tax, subtotal and possible lines such as "Gratuity" or "Service Charge".
2. Hand over the card: Put your card in the check folder. The server returns two slips, the "Merchant Copy" for the restaurant and the "Customer Copy" for you.
3. Add the tip: On the merchant copy, write the amount on the "Tip" or "Gratuity" line and the sum on the "Total" line.
4. Sign: Sign the merchant copy and leave it in the folder. Take the customer copy with you, ideally with the amounts filled in as well.
5. Check your statement: At first only the bill amount may appear on your account. The final amount including the tip is often posted a few days later. Compare it with your receipt.

Increasingly, servers bring a handheld terminal to the table instead. There you select a percentage, enter your own amount via "Custom Tip" or choose "No Tip". If you prefer to tip in cash, pay the bill by card, choose "No Tip" and leave the bills on the table. If the terminal asks whether to charge in euros or US dollars, choose US dollars. Our guide Paying in the USA explains why.

Tip screens at the counter: do I have to tip?

Not necessarily. Tablet checkouts in cafés, bakeries, food trucks or self-service shops often display suggestions such as 18, 20 and 25 percent. In the USA this is discussed as "tipflation" or "tip creep". According to a Pew Research Center survey of nearly 12,000 adults, 72 percent of Americans say tipping is now expected in more places than five years earlier. 40 percent oppose businesses suggesting tip amounts, while only 24 percent favor it. While 92 percent always or often tip at sit-down restaurants, only a quarter do so at coffee shops.

For travelers this means: at a counter without table service, tipping is optional. Choosing "No Tip" or "Skip" is not a faux pas. If you want to give something, one or two dollars via "Custom" is often more fitting than a preset percentage.

Tip: Read tip screens calmly. The suggestions are sometimes calculated on the amount after tax and start at levels above the usual ranges. "Custom" keeps you in control.

Service charge and "gratuity included": what is already paid?

Some bills already include a surcharge. In that case no additional tip, or only a small one, is needed. Look out for these terms:

• "Gratuity included", "auto-gratuity": a tip is already built in, often for groups.
• "Service charge", "service fee": a mandatory charge set by the house. It often replaces the tip, but does not necessarily go in full to the staff.
• "Surcharge", "kitchen appreciation fee" or similar: businesses use these to cover kitchen wages or operating costs, for example. Whether such a charge replaces the tip is not uniform, so ask.
• "Suggested gratuity": just a calculation aid at the bottom of the bill; nothing has been charged.

The IRS makes it clear: automatic gratuities are service charges, not tips. A genuine tip is voluntary, and the customer determines the amount. The IRS also notes that some employers keep a portion of service charges. If in doubt, ask politely: "Does the service charge go to the staff?"

Some states add their own rules. In California, restaurants may only levy mandatory charges if they are clearly and conspicuously displayed, with their purpose, on the menu or wherever prices are shown (law SB 478, amended by SB 1524). A variable surcharge that only appears on the bill is not allowed.

Watch out for paying twice: A common mistake is a bill with gratuity already included and an empty tip line on the card slip anyway. Writing another 20 percent there means paying twice.

Group surcharges: what applies from six guests?

Many restaurants automatically add a gratuity for larger groups. The threshold, often six or eight guests, and the percentage are usually printed on the menu. For a group of eight with a pre-tax bill of USD 400 and an 18 percent gratuity, USD 72 appears on the bill. An additional tip is then only customary for exceptional service. If the group wants to pay separately ("separate checks"), it is best to say so when ordering.

Tip before or after tax?

By US etiquette, you calculate the tip on the pre-tax amount. Both the Emily Post Institute and NYC Tourism recommend this. In practice the difference is small, and tipping on the total is not wrong.

A worked example from New York, where sales tax is 8.875 percent:

Calculated on the post-tax amount, the tip would be USD 17.42, i.e. USD 1.42 more. For mental arithmetic in New York, you can double the tax: 2 × 7.10 gives USD 14.20, just under 18 percent.

When do you tip less or nothing?

A tip remains a reward for service. Giving less or nothing is reasonable in these cases:

• Charge already included: if a gratuity or a service charge that explicitly goes to staff is on the bill, no further tip is needed.
• Self-service: at fast-food outlets, counters without table service and vending machines, tipping is optional.
• No-tipping restaurants: some places operate with "no tipping" or "hospitality included". They have higher prices or a surcharge, usually noted on the menu or bill.
• Poor service: reduce to 10 to 15 percent rather than zero, and raise problems directly, if necessary with the manager. Servers often cannot help a slow kitchen.

Tips have no place in dealings with authorities. Never offer money to officers at the border, at airport security or to the police.

How does tipping work at a business meal?

At a business meal in the USA, whoever invited usually pays, tip included. As a guest you do not leave your own tip. If you are the host, expect 18 to 20 percent in big cities and pay discreetly, for example by handing your card to the server in advance.

For your expense report you usually need two receipts: the itemized receipt listing all food and drinks and the signed card slip showing the tip. How much tip your company reimburses and how the costs are treated for German tax purposes is a matter for your travel policy and your tax advisor. At banquets and corporate events, a service charge is customary; the IRS cites the "banquet event fee" as a typical example. More customs for business appointments are covered in our USA business travel guide.

Are there regional differences in tipping?

The ranges apply nationwide, but expectations vary:

• Big cities: in New York, 20 percent is the standard, and housekeeping is also set higher (USD 5–10 per day). More about the city in our guide to New York City.
• States without a tip credit: in California, Washington or Oregon, the full minimum wage applies, yet tipping is still customary. In California, mandatory charges must also be shown on the menu. More on the West Coast in the California road trip.
• Tax rate: because sales tax varies by location, so does the difference between tipping before and after tax.

Cash or card for tips?

In restaurants, taxis and apps, card tips are convenient. For housekeeping, bellhops, valet and coat check, however, you need small bills. Plan a supply of 1- and 5-dollar bills. An example: five hotel nights at USD 4 housekeeping per night, valet twice at USD 3 each and two suitcases at check-in add up to around USD 30 in small bills. How much cash makes sense overall is covered in our guide Paying in the USA.

Next steps

Before tipping comes entry. Our Visa Check shows in a few minutes whether ESTA is enough or a visa is needed, and ESTA or Visa explains the differences. We are happy to help with visa applications, Global Entry or individual questions; see all our services. This article provides non-binding guidance on customs. Decisions on entry and stay rest solely with the US authorities.