A tip is a percent of the bill you enter
Enter the amount you are tipping on — usually the food and drink total after discounts, before cash you intend to leave. The tip is that bill times the percent you choose, rounded half up to the nearest cent. The total is the bill plus that tip.
The IRS describes tips as amounts customers leave for service in Publication 531. This page does not decide what is taxable or what a workplace must report.
Splitting the total
If more than one person pays, each share is the total divided by the number of people, then rounded half up to a cent. Three people splitting a $59.00 total each show $19.67. Those three amounts add to $59.01, not $59.00. The extra cent is a rounding leftover, not an added fee.
A very small bill can produce a $0.00 tip after rounding — 20% of $0.01 is $0.002, which becomes $0.00.
Example
A $50.00 bill at 18% is a $9.00 tip and a $59.00 total. The same bill split three ways is $19.67 each.
Limits
Service charges printed on a check are not optional tips. Tax, delivery fees and automatic gratuity are not added here. Use the discount calculator if you still need to apply a percent off the menu price.
Frequently asked questions
Should I tip on tax?
This tool tips on whatever number you enter. Some people tip on the pre-tax
subtotal; others use the total on the check. Enter the amount you mean.
Why can the per-person amounts not add up?
A cent does not
always divide evenly. We disclose the leftover instead of inventing who pays
it.
Are bill amounts sent to analytics?
No. Only the calculator identifier may be sent. The bill, percent and total
stay in this browser.
Sources & review
- Publication 531, Reporting Tip Income — Internal Revenue Service
- Tip Recordkeeping and Reporting — Internal Revenue Service
Last reviewed: . The formula is reproduced above so you can check the math independently.
Educational estimate only. Not tax, payroll or service-charge advice. Restaurant rules and IRS tip reporting can differ.