Tipping for large groups: the auto-grat rule in 2026.
Most US restaurants apply an 18–20% auto-gratuity for parties of six or more. Below: where that threshold comes from, three worked examples (including a share-based split), and the edge cases that come up at every birthday dinner.
18–20% auto-gratuity for parties of 6+ is the customary US rule in 2026, usually applied to the pre-tax subtotal and disclosed on the menu or website.
Read the bill before adding more. If the service was unusual — a complicated split, a celebration, a long table — a 2–4% top-up in cash to the server is the modern thank-you.
The number, and where it comes from
The 18–20% figure is the convergence of regulation and etiquette. The Emily Post Institute lists 18–20% as the recommended auto-grat for parties of six or more, the same range it has held since 2018. The IRS draws a sharper line: Revenue Ruling 2012-18, in effect since 2014, classifies any mandatory party-size charge as a service charge, not a tip — which means the restaurant pays payroll tax on it and the server receives it as wages, not as a tip-pool draw. The practical consequence: it is paid out through payroll rather than handed over like a cash tip, and how much of it reaches the server depends on house policy and state law. Disclosure rules come from state and local consumer-protection law rather than the IRS, which is why reputable restaurants print the threshold and percentage on the menu. Thresholds vary — six is the most common, eight is common too — and that variation is the source of most confusion.
Three worked examples
Example 1 — Party of 8, 20% auto-grat
Example 2 — Share-based split, $180 / 5 with uneven orders
Each person's share is (their subtotal ÷ group subtotal) × group total. Alex's coffee subsidizes nobody.
Example 3 — Party of 12, one separate check
The auto-grat is calculated on the combined party size, not per check. Splitting checks does not avoid it.
Edge cases
The threshold varies by region
Six is the modal threshold across the US, but it isn't universal. Some restaurants — particularly in tourist-heavy areas like Las Vegas — set the line as low as four or five; many others set it at eight, and plenty of casual chains never add one at all. Cruise lines typically add an automatic gratuity to every bar and restaurant check regardless of party size. Always read the bottom of the menu or the restaurant's website: the threshold and percentage are almost always printed there. Auto-gratuity, explained covers why.
Auto-grat should be disclosed up front
Under IRS Rev. Rul. 2012-18, a charge the customer can't freely choose is a service charge, not a tip — that's a tax classification, not a disclosure law. Disclosure expectations come from state and local consumer-protection rules, and the norm is a small line at the bottom of the menu: "An 18% gratuity will be added to parties of 6 or more." If a charge appears that wasn't disclosed anywhere, or your party is below the stated threshold, it is reasonable to ask the manager to review it — most will adjust it rather than argue.
Do kids count toward the party size?
Usually yes — most policies count every seated guest, including children, because the server is still taking their orders and clearing their plates. Some restaurants exclude infants in high chairs or count only adults. The policy is the restaurant's own, so if a baby tipped your party from five to six, it's fair to ask how they count.
Are separate checks cheaper than one check?
No. The gratuity is triggered by the size of the party at the table, not the number of checks, so splitting into individual checks normally applies the same percentage to each one (see Example 3). Separate checks just mean more work for the server.
Splitting the auto-grat among guests
The cleanest way: divide the post-grat, post-tax total by the head count. Each person pays an even share that already includes their share of the auto-grat. The messier way: one person picks up the bill on a card and the others Venmo back. In that case, the bill-payer should screenshot the receipt with the auto-grat line visible before the request goes out, because otherwise three people in the group will assume the auto-grat is the tip line and try to add 20% more.
The birthday person
If you're hosting, you cover the birthday person's meal and tip on their portion. Don't subtract their food from the subtotal before calculating tip — the server worked the whole table. If the kitchen sent out a comped dessert, tip on it as if you'd ordered it. The total cost of hosting a birthday dinner for one is the full per-person share for two: theirs and your top-up to cover them.
Bad service on a big party
Large parties are a server's worst-case-scenario shift: separate checks, kids, allergy modifications, a slow kitchen, and a tip that's already locked in at the auto-grat rate. If the service was genuinely bad, the move is to talk to the manager — not to fight the auto-grat. Most managers will negotiate the auto-grat down to 15% or remove it entirely for a real complaint, but the conversation has to happen at the table or before the card runs. A bad Yelp review the next morning doesn't get money back to anyone, including the next big party that walks in.
Cash vs. card top-up
If you want to add to the auto-grat, do it in cash, handed to the server. The auto-grat is a service charge that the restaurant routes through payroll; a card top-up usually rides the same rail and is processed the same way. A cash top-up handed to the server is pocketed under house tip-out rules — bussers and runners take their share — and the server gets the rest end-of-shift, untaxed at the point of transaction.
What changes the answer
Push the effective tip up if…
- Your party kept the table past the kitchen's last seating.
- The server handled split checks for 6+ without complaint.
- Someone in the party had an allergy and the kitchen made substitutions.
- The server brought out a birthday dessert or candle without being asked.
The auto-grat is the right number when…
- Service was attentive and the kitchen kept pace.
- The party arrived close to on time and ordered without major modifications.
- The check came out promptly when asked.
Mini calculator — pre-filled at 20%
Type the bill, drag the percentage, set the party size. Defaults to 20% — the typical US auto-grat rate. For uneven orders, use the share-split math in Example 2 above.
Need the auto-grat broken out with tax and an optional extra tip? Use the auto-gratuity calculator. Need a blank slate? The homepage calculator opens with no preset. For sit-down tipping outside of large parties, see the restaurant page.
FAQ
When does auto-gratuity kick in?
Most US restaurants apply 18–20% auto-gratuity for parties of six or more. The threshold drops to four in parts of Las Vegas and rises to eight at some Southern chains. The menu must disclose it.
How do I split a bill when people ordered unevenly?
Use a share-based split: each person pays for what they ordered plus a proportional share of tax and tip. Even split is faster; share split is fairer when one person had a salad and another had steak — see Example 2 above for the math.
Should I tip on top of an auto-gratuity?
You do not have to. The 18–20% auto-grat is the tip. Add cash on top only for exceptional service or a difficult party — 2–4% effective is the modern thank-you.
Do children count toward the party size for auto-gratuity?
Usually yes — most restaurants count every seated guest, including children. Some exclude infants or count only adults; the policy is the restaurant's own, so ask if it matters.
Is it cheaper to ask for separate checks when there is an auto-gratuity?
No. The auto-gratuity is triggered by the size of the party, not the number of checks, so the same percentage is normally applied to every check.