Tipping is a local convention rather than a rate, and the range runs from a mandatory fifth of the bill to a gesture that will be refused. In the United States 15 to 20 per cent is standard for table service and forms part of the server’s income; across most of Europe rounding up or adding 5 to 10 per cent is generous; in Japan tipping is not practised and attempting it causes confusion rather than pleasure.
The arithmetic never changes: multiply the bill by the percentage and divide by a hundred. What changes is the percentage, the base it applies to, and whether anything has already been added.
What is the customary range?
A working guide for table service, which is the situation people ask about most. Treat these as the middle of a range rather than a rule, and check locally where the amount matters.
| Where | Table service | Notes |
|---|---|---|
| United States | 15–20% | Part of the server’s income; 18% is a common default |
| Canada | 15–20% | Similar to the US, often prompted on the card machine |
| United Kingdom | 10–12.5% | Frequently added as an optional service charge |
| France | Rounding up | Service is included by law; a few euros for good service |
| Germany | 5–10% | Round up and state the total when paying |
| Netherlands | Rounding up | Service is included; small extra for good service |
| Italy | 0–10% | A cover charge is common and is not a tip |
| Japan | None | Not practised, and can be declined |
| Australia | 0–10% | Not expected; wages do not depend on it |
Should the tip be calculated on the tax?
On the pre-tax subtotal, strictly, because sales tax is money collected for the state and not service you received. In practice most people in the United States tip on the total because the difference is small and the arithmetic is easier.
On a $84.50 bill at 18 per cent the tip is $15.21 and the total is $99.71. If that $84.50 already includes eight per cent sales tax, the pre-tax subtotal is $78.24 and the same percentage on that is $14.08 — a difference of $1.13. Small enough to ignore on one meal, and not on a corporate expense policy that has to be consistent.
What does "service included" actually mean?
That a charge has already been added to the bill, and tipping again is optional rather than expected. The wording varies and the distinctions matter.
- Service charge. A percentage added by the restaurant, usually 12.5 per cent in the UK. It is optional in most cases and can be asked to be removed.
- Coperto or cover charge. An Italian per-person charge for bread, linen and the table. It is not a tip and does not reach the server as one.
- Gratuity, added automatically. Common for large parties. Adding a further tip on top duplicates it, which is the most frequent overpayment on a group bill.
- Service compris. French for service included, and it is a legal requirement rather than a policy. Anything further is a small cash gesture.
How do you split a bill fairly?
The percentage applies to the whole bill and the split applies afterwards, which keeps the tip proportional to what was eaten rather than to who is paying attention. The $84.50 bill at 18 per cent split two ways is $49.86 each, with $7.61 of that being tip.
Uneven splits are where groups get it wrong. If one person had a $40 main and another had a $12 salad, splitting the total evenly transfers money between them; splitting by item and applying the same tip percentage to each does not. The second is more work and is the only version that is actually fair.
Cash for the tip and card for the bill is worth knowing about in places where card tips are pooled or processed slowly. It is a small courtesy and costs nothing.
Is tipping changing?
Card terminals have made prompts far more common, and the suggested percentages on them tend to sit above the historical norm — often starting at 20 per cent in places where 15 was standard. Counter-service prompts have spread the practice to transactions that never carried a tip at all.
The prompt is a default, not a rate. It is set by whoever configured the terminal, and there is no obligation to accept it.
Questions people ask
What is the fast mental version of 20 per cent? Move the decimal one place left for 10 per cent, then double it. On $84.50 that is $8.45, doubled to $16.90. For 18 per cent, take the 20 per cent figure and subtract a tenth of it.
Do I tip on a discounted bill? On the pre-discount amount, by convention, because the work was the same. A voucher that halves the bill does not halve the service.
What about delivery and taxis? Delivery usually attracts a smaller percentage or a flat amount, and taxis are commonly rounded up. Both vary more by city than by country.
Is a tip taxable income? For the recipient, in most jurisdictions, yes — reported and taxed like other earnings. It is not a gift in a tax sense.
Get the convention right first and the percentage second. The tip calculator handles the split and the rounding, the percentage calculator covers the pre-tax version of the same sum, and if the bill arrived in another currency, litres to gallons is a reminder that the units on holiday are rarely the ones you left home with.