How Much Should You Tip? A Quick Guide by Service Level and State Sales Tax
Tipping norms and sales tax rates both vary widely across the US. Here's a quick reference for how much to tip, when to calculate it, and how state sales tax factors into your total bill.
Splitting a restaurant bill shouldn't require a spreadsheet, but between variable tipping norms and inconsistent sales tax rates across the US, it's easy to either under-tip or miscalculate the total. Here's a quick reference.
What's a Standard Tip Percentage?
There's no single "correct" tip percentage, but general US restaurant norms look roughly like this:
- **15%** — Considered the baseline for adequate, no-frills service
- **18%** — A common default for good service, and often the pre-selected option on payment terminals
- **20%** — Standard for great service
- **25%+** — Reserved for exceptional service, or often used for smaller bills where a flat minimum tip feels more appropriate
Some venues (large parties, banquets, room service) automatically add a service charge — check your bill before adding a tip on top of an already-included gratuity.
Should You Tip Before or After Tax?
Most US tipping etiquette guides calculate the tip on the **pre-tax** bill amount, not the total after sales tax is added. Tipping on the post-tax total isn't wrong — it's just slightly more generous, since sales tax has nothing to do with the service you received.
Sales Tax Varies More Than You'd Expect
Unlike many countries with a single national VAT rate, US sales tax is set at the state (and often city/county) level, which means it varies enormously:
- Five states — **Alaska, Delaware, Montana, New Hampshire, and Oregon** — have no statewide sales tax at all
- California has one of the highest statewide base rates, around 7.25%
- Many states layer additional local or county taxes on top of the state rate, so the same product can cost different amounts in different neighborhoods of the same state
Splitting the Bill Fairly
An even split (dividing the total by the number of people) works well for shared meals where everyone ordered roughly the same amount. If one person ordered a $40 entrée and another had just a salad, consider itemizing the split rather than dividing evenly — it avoids resentment and keeps things fair.
Worked Example
An $85 dinner bill, split between 2 people, with an 18% tip and 8.875% New York sales tax:
- Tip: $85 × 18% = $15.30
- Sales tax: $85 × 8.875% = $7.54
- Total: $85.00 + $15.30 + $7.54 = **$107.84**
- Per person: **$53.92**
Try the calculator
Enter your bill amount, choose a tip percentage or pick your state's sales tax rate, and split the total between any number of people instantly with our Tip & Sales Tax Calculator.
Try the calculator
Calculate the perfect tip, add sales tax, and split the bill between any number of people. Works for restaurants, hotels, and any service.