Server Tip OutHow Much Do Servers Tip Out? Normal Percentages by Role
This guide is general information written by a server, for servers. It isn't legal advice. Rules change, so check IRS.gov or talk to a tax preparer about your own situation.
- Most full-service servers tip out about 2%–4% of sales, or roughly 15%–30% of their tips, split between bussers, the bar, runners and sometimes hosts.
- Restaurants use one of two systems: a percentage of your sales or a percentage of your tips.
- At a typical 20% tip average, 3% of sales works out to about 15% of your tips.
- Under federal law, owners can't keep your tips and managers can't take a share of the tip pool.
"How much do you tip out?" is one of the first questions anyone asks when they start at a new restaurant, and the honest answer is that every house is different. But there are normal ranges, and once you know them you can tell whether your tip-out is typical or out of line.
Typical tip-out percentages by role
These are the ranges restaurant payroll and scheduling companies most often publish for full-service restaurants:
| Who you tip out | % of sales | % of your tips |
|---|---|---|
| Bussers | 1%–2.5% of total sales | 10%–30% |
| Bartender (service bar) | 5%–10% of alcohol sales, or 1%–2% of total sales | 10%–20% |
| Food runners | 1%–3% of food sales | 5%–10% |
| Hosts | 0.5%–1% of total sales | 3%–5% |
Not every restaurant tips out every role. Some don't tip out hosts at all, and some combine bussers and runners into one support role.
Tip-out on sales vs. tip-out on tips
Percentage of tips
You hand over a set share of what you actually made. If you made $300 and tip out 15%, you give $45 and keep $255. A bad night means a smaller tip-out, so the risk is shared.
Percentage of sales
You tip out based on what you sold, no matter how well your tables tipped. If you sold $2,000 and tip out 3%, you owe $60. If your tables tipped 20% ($400), that's 15% of your tips. If they tipped 12% ($240), that same $60 is 25% of your tips. That's why a big top that stiffs you hurts more under a sales-based system.
Convert sales % to tips %
Divide your sales tip-out percentage by your tip average:
| Tip-out on sales | If you average 15% tips | If you average 18% | If you average 20% |
|---|---|---|---|
| 2% | 13.3% of tips | 11.1% of tips | 10% of tips |
| 3% | 20% of tips | 16.7% of tips | 15% of tips |
| 4% | 26.7% of tips | 22.2% of tips | 20% of tips |
| 5% | 33.3% of tips | 27.8% of tips | 25% of tips |
The tip-out calculator does this for you: switch it to Tip-Out on Sales % and it shows what your tip-out works out to as a percentage of your actual tips.
Is my tip-out too high?
A few signs it's worth asking questions:
- Your total tip-out regularly takes more than about a third of your tips.
- You're tipping out a role that didn't work your shift.
- A manager, supervisor or owner is getting part of the pool.
- Nobody can tell you in writing what the percentages are.
Under the federal Fair Labor Standards Act, tips belong to employees. Employers can't keep any part of them, and managers and supervisors can't take a share of a tip pool. States can add their own rules, so for anything that looks off, check your state labor department's website or the U.S. Department of Labor's tip fact sheet in the sources below.
Tip-outs and taxes
You only pay tax on the tips you keep after tip-out, so your tip-out lowers your taxable tips. Write down what you tipped out each shift. Our guide to how to calculate taxes on tips walks through the rest.
See what your tip-out really costs you
Enter your sales, tips, hours and tip-out rate. You'll see your tip-out in dollars, as a share of your tips, and your real hourly rate.
Frequently asked questions
How much do servers usually tip out?
Most full-service servers tip out about 2% to 4% of their sales, or around 15% to 30% of their tips, split among bussers, bartenders, runners and sometimes hosts. Every restaurant sets its own rate.
Is 3% of sales a normal tip-out?
Yes. Around 3% of sales is common. If you average 20% tips, it works out to about 15% of your tips.
How much should a server tip out the bartender?
Common ranges are 5% to 10% of your alcohol sales, about 1% to 2% of total sales, or 10% to 20% of your tips.
Can my manager take part of the tip pool?
No. Under federal law, employers can't keep employees' tips, and managers and supervisors can't receive tips from a tip pool. Some states have stricter rules.
Do I pay taxes on the money I tip out?
No. You report and pay tax only on the tips you keep. The people you tip out report what they receive.