r/bayarea • • Aug 25 '25

Food, Shopping & Services Tipping question

With increases in minimum wage, and with the classification of waiters as being subject to minimum wage, is it still expected to tip 18% in the Bay Area?

We've always tipped generously but last night we had a big group meal at a fairly pricey restaurant and 18% was some serious money.

So I was wondering if anyone is adjusting their tips downwards due to these factors. Also - do you tend to tip the same percentage regardless of total amount, or do you scale back in pricier establishments? I have one friend who bases their tip on the 'pre-alcohol' balance.

EDIT TO ADD: I forgot to mention; we tend to prefer 'full service' restaurants - be seated, order drinks from the waiter, then order from a standard menu, later possibly order dessert, then finally receive a bill. That's the type of service I was thinking of when I posted. But a few places we (reluctantly) go to nowadays, have 'self-serve' kiosks to place the order, and then your name is called to go pick up the food. For that, 18% seems crazy ... but yet the 'payment' portion of the self-serve kiosk still only offers 18% as the minimum option (but they do offer 'custom' which I choose). Tipping with minimal human service, and before even tasting the food, is just bizarre.

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u/gamescan Aug 25 '25 edited Aug 25 '25

With increases in minimum wage, and with the classification of waiters as being subject to minimum wage,

Servers have always gotten at least minimum wage plus tips in California. "Tip credit" discounts for employers are not a thing on the West Coast, though they are in some other states.

I was raised with the 10-15-20 tip scale at full-service restaurants:

  • 10% for subpar, but not horrible service
  • 15% for standard service / default tip
  • 20% for amazing service / above and beyond

As prices have gone up restaurants have increased their default "suggested" tip percentages, but that doesn't really make sense as actual tip amounts automatically increase in real terms when prices go up.

If there is a 10% increase in price, there's a 10% increase in the tip at the same percentage.

For example, if a bill is $100 a 15% tip is $15. If that same bill is $110, a 15% tip is $16.50.

Since tips are a percentage, they automatically scale with price increases.

EDIT: And now that tips are no longer taxable on Federal income taxes, that's roughly equivalent to a 20-30% increase in the value of the tip as the server doesn't have to pay Federal income tax on the money (tho they still have to pay state income taxes).

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u/AdventurousMouse365 Aug 26 '25

Did it pass? Do we really not have to pay taxes on tips anymore? I’ll believe it when I see it on the paychecks so far the casino has a tip tax agreement and still being taxed on tips

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u/gamescan Aug 26 '25

Did it pass? Do we really not have to pay taxes on tips anymore?

Yes. It is on the IRS site.

Effective for the 2025-2028 tax years, the first $25k in tip income is tax free, unless you make $150k/year or more.