Tip vs gratuity
For most people the words mean the same thing. Where it matters is the automatic gratuity, a service charge the business adds for you.
Last checked September 2026
A tip and a gratuity are both a thank-you for service. In casual use they are interchangeable. The important distinction is voluntary versus automatic: a tip you choose, while an automatic gratuity or service charge is added to the bill and you are expected to pay it.
The everyday meaning
Ask for the tip or the gratuity and you mean the same thing: the extra you leave on top of the price for good service. Menus, receipts, and card readers use both words for the voluntary amount.
The automatic gratuity
The word gratuity also names the service charge a business adds itself, often 18 to 20% for a large party, a banquet, or room service. Despite the name it is not optional, and it is the tip. Do not add another 20% on top unless the service was exceptional and you want to.
- Did you decide the amount? That is a voluntary tip.
- Was it printed on the bill before you paid? That is an automatic gratuity or service charge.
- Both on the same check? Pay the printed one; the extra line is optional.
A service charge is not always the staff's
A service charge is not guaranteed to reach your server the way a tip does. Some houses distribute it, some keep part of it for operations. If you want to be sure the person who served you gets something, a little cash in hand is the reliable route.
See it on a real check
The restaurant tip calculator reads $0 extra when an auto-gratuity is already on the bill, and lets you add a small amount only if you choose. For the ranges by job, browse all services.
This is US customary guidance, not legal advice. Local rules on service charges vary.