Tipping and service charges in New York City

Newcomers from countries where service is included in the price often notice that:

• Tips are expected in many sit-down restaurants and bars, and payment screens often suggest a tip before you pay.
• Menu prices do not include sales tax, and the tip comes on top of both.
• Some bills include a "service charge" or a fee whose purpose is not obvious, which raises the question of whether you still need to tip.
• Tipping also comes up for other services, such as hairdressers, delivery workers and some building staff.

In New York's hospitality industry, employers are allowed to pay tipped workers a lower cash wage and count part of their tips towards the minimum wage (a tip credit). In New York City, food service workers can be paid a cash wage of $11.35 an hour, with a tip credit of $5.65, against the regular minimum wage of $17.00 (rates shown by the New York State Department of Labor for 2026 and 1 January 2027). Tips therefore make up a real part of many workers' pay.

New York law protects those tips: an employer or its agent may not demand, accept or keep any part of a tip left for an employee. A charge added to a bill beyond the price of food, drink and other listed services is presumed to be a tip and must go to the employees who served you, unless the business clearly tells you it is not a gratuity.

There is no legal tipping rate, and customs vary by type of business, neighborhood and situation. Counter service, takeaway and self-service places differ from full-service restaurants, and many people adjust a tip for the quality of service. Practices also change over time, for example with card readers that suggest amounts. If you are unsure, it is fine to ask a colleague or friend what is usual for a particular service.