If you are visiting the United States, tipping can feel like a pop quiz. In many countries the price on the menu is the price you pay. Here, the bill often leaves room for an extra amount that goes to the person who served you. This guide covers the custom, the reason behind it, and practical snags like card-reader screens and service charges. Everything below describes common practice, not law, and habits vary by city, venue and person.
Tipping is a custom, not a law
No federal law requires a customer to tip. The custom exists largely because of how some jobs are paid. Under federal rules, an employer of a tipped worker may pay a lower cash wage and count part of the tips toward the minimum wage. The U.S. Department of Labor lists the federal minimum cash wage for tipped employees at $2.13 per hour, with a maximum tip credit of $5.12, in its table last revised July 1, 2026 (DOL tipped minimum wage table).
That does not mean a server earns only $2.13. Cash wage plus tips must reach the full $7.25 federal minimum, and the employer must make up any shortfall. Many states also require a higher cash wage, and some states require the full state minimum wage before tips: Alaska, California, Minnesota, Nevada, Oregon and Washington, plus Montana for larger businesses (DOL table). So pay structures differ by state, which is one reason local habits differ too.
Common tipping ranges (typical practice, never a rule)
There is no official U.S. tipping standard. These ranges reflect commonly reported practice, not a government source. Locals tip more or less; it is fine to ask a host what feels normal.
| Service | What many people do |
|---|---|
| Sit-down restaurant | About 15% to 20% of the bill for table service |
| Bar | Often $1 to $2 per drink, or about 15% to 20% of a larger tab |
| Cafe or counter service | Optional; some leave small change or a dollar |
| Hotel housekeeping and bellhops | A few dollars per night or per bag is common |
| Rideshare and taxi | About 10% to 20%, or rounding up |
| Food delivery | Often about 10% to 20%, sometimes more in bad weather |
| Salon or barber | About 15% to 20% |
Before or after sales tax? A worked example
Sales tax varies by state and city (see USA.gov state taxes), and is usually added to the bill on top of menu prices. Many people tip on the pre-tax amount; others use the total. Either is a personal choice.
- Food and drinks: $80.00.
- Sales tax at an example 8%: $6.40, so the bill is $86.40. Try your own rate in the sales tax calculator.
- A tip of 18% on $80.00 is $14.40. On $86.40 it is about $15.55. The difference is about $1.15.
- Total paid on the pre-tax method: $100.80.
Suggested-tip screens on card readers
Many card readers show buttons such as 18%, 20% and 25%, plus "custom" and "no tip." Some screens calculate on the pre-tax amount and some on the total, and it is not always labeled; compare the dollar amount with your receipt. If the screen offers "no tip" or a custom amount, the buttons are only suggestions. If a screen will not let you finish paying without adding something, the IRS treats that amount as a mandatory charge, not a tip (IRS). You can ask staff about it.
Automatic gratuity and service charges
Some bills already include an extra line, often for larger groups, called gratuity, service charge or similar. Look at the itemized receipt before you add anything. The IRS notes that mandatory service charges added to a bill are not tips, and a voluntary extra payment on top of one is a tip. Suggested tip percentages printed on a receipt are not a service charge if you can still pick any amount or leave the line blank (IRS tip recordkeeping and reporting). If unsure, politely ask staff.
Cash vs. card, and foreign cards
- Cash: handy for hotel staff and small tips; carry a few $1 and $5 bills.
- Card: at restaurants you usually add the tip on the receipt or the reader before the payment is finalized.
- Foreign card: the tip is added to the charge in U.S. dollars. If asked to pay in your home currency, the converted amount may use a different exchange rate and fees than your card issuer would apply; your issuer can tell you its foreign-transaction terms.
When a tip is usually not expected
Tips are generally not expected at fast-food counters or in most retail stores. Do not offer tips to government employees, such as immigration, customs or other officials; ethics rules generally prohibit them from accepting gifts (5 CFR 2635 subpart B, U.S. Office of Government Ethics). Not leaving a tip in these places is normal and nothing to feel bad about.
Plan tips into your trip budget
Tips add up. A simple habit is to add roughly 15% to 20% to restaurant and taxi or rideshare estimates, then track real spending in the budget tracker. The currency converter shows the total in your home currency.
Frequently asked questions
Is tipping required by law in the U.S.?
No. Tipping is a custom, not a legal duty for customers. Employers must follow wage laws, and many states set higher cash wages for tipped workers than the federal $2.13 per hour.
What if a service charge is already on my bill?
The bill already includes an extra charge, and many people add nothing or a small amount. A mandatory service charge is not a tip under IRS guidance, so a voluntary extra amount is up to you.
This guide is general information about common U.S. customs and federal wage rules as of October 2026, not legal, tax or financial advice. Tipping practices vary by place and person, and state wage rules change; check the linked official sources for current figures. Last reviewed: 2026-10-13.
Written by the CentDaily editorial team with AI assistance; facts checked against the official sources listed in this guide and in the Sources box below. General information, not legal, tax or financial advice.