How much should you tip?
Tipping customs in the United States and Canada are similar, and tips make up a large part of many service workers' income — in most U.S. states, restaurant servers can be paid a lower "tipped minimum wage." Here is a current guide to common situations:
| Service | Typical tip (U.S. & Canada) |
|---|---|
| Sit-down restaurant | 18%–20% (15% for basic service; 20%+ for excellent service) |
| Bar | $1–$2 per drink or 15%–20% of the tab |
| Food delivery | 15%–20%, at least $3–$5; more in bad weather or for long distances |
| Takeout / counter service | Optional; 0%–10% |
| Taxi or rideshare | 15%–20% |
| Hair stylist, barber, nail salon | 15%–20% |
| Hotel housekeeping | $3–$5 per night (more for suites) |
| Valet | $3–$5 when your car is returned |
| Movers | $20–$50 per mover, or 5%–10% of the bill |
Should you tip on the pre-tax or after-tax amount?
Etiquette experts generally say to tip on the pre-tax total, since tax is not part of the service. Enter the tax shown on your receipt above and the calculator will compute the tip on the pre-tax amount. In Canada, where HST can be 13%–15%, this makes a noticeable difference. Many card terminals calculate the suggested tip on the after-tax total.
Splitting the bill fairly
Splitting evenly is easiest when everyone ordered similarly. If orders were very different, have each person pay for their own items and add the same tip percentage. Use the rounding option to round each share up to a whole dollar — handy when paying cash.
Tip quick math
To figure 20% in your head, move the decimal one place left to get 10% and double it: on a $47 bill, 10% is $4.70, so 20% is $9.40. For 15%, add half of the 10% amount ($4.70 + $2.35 = $7.05).
Are tips taxable?
For workers, tips are income. In the U.S., tipped employees must report tips to their employer, and a federal deduction for qualified tips (up to $25,000 per year, for tax years 2025 through 2028) can reduce income tax on tip income for eligible workers. In Canada, tips are taxable income that must be reported to the CRA.