How to Handle Auto-Gratuity Charges When Splitting

Restaurants add auto-gratuity for large parties — but how should you split it? Here's everything you need to know.

March 10, 2026

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You've just finished a group dinner for ten and the server brings the check. At the bottom, below the subtotal and the tax, there's a line: Auto-Gratuity (18%): $54.00. Someone at the table asks whether they still need to tip. Someone else asks whether the auto-gratuity is split equally or based on what each person ordered. A third person is already looking at the tip line on the credit card terminal and wondering the same thing.

Auto-gratuity is common and causes more confusion than it should. Here's exactly how it works and how to handle it when splitting a bill.

What Is Auto-Gratuity?

Auto-gratuity (also called mandatory gratuity or service gratuity) is a tip amount that the restaurant calculates and adds to the bill automatically — typically for parties of six or more. The most common rates are 18%, 20%, or occasionally 22%.

The restaurant's policy is usually printed on the menu. Some restaurants apply it for parties of six, others for eight or more. A few apply it across the board for all tables.

Importantly, auto-gratuity is legally a service charge in most jurisdictions — it's mandatory, not optional. The distinction matters for tax and income reporting purposes for the restaurant, though it has no practical effect on what you as the diner owe.

Do You Need to Tip on Top of Auto-Gratuity?

No — auto-gratuity replaces the standard tip. You are not expected to add another 20% on top of an existing 18% auto-gratuity. The purpose of auto-gratuity is to ensure servers receive fair compensation for the additional work involved in serving large parties, so the math has already been done for you.

Some diners choose to leave a small additional amount in cash if the service was exceptional. This is a gesture of appreciation, never an expectation.

The credit card terminal may still show a tip line after presenting a bill that already includes auto-gratuity. This is a common source of double-tipping. Always check whether gratuity has already been included before entering an amount on the terminal. If it has, enter zero or "no tip" — or ask the server to confirm.

How to Split Auto-Gratuity Fairly

Auto-gratuity is calculated on the full table's subtotal and added as a single line item. When splitting, you have two reasonable options:

Option 1: Split the auto-gratuity proportionally

Each person pays a share of the auto-gratuity equal to their proportion of the food subtotal. If you ordered $45 of food out of a $300 subtotal, you're responsible for 15% of the auto-gratuity. This is the fairest approach when orders varied significantly in price.

Option 2: Split the auto-gratuity equally

Divide the auto-gratuity dollar amount by the number of people and add it to each person's share. This is simpler and works fine when everyone ordered roughly the same amount.

Jig handles this automatically. When you upload a receipt that includes an auto-gratuity line item, the AI reads it as part of the bill. You can choose to split it proportionally based on each person's food total, or distribute it equally — whichever the group prefers.

What If the Auto-Gratuity Rate Seems High?

If you believe the auto-gratuity was applied in error — for example, your party was only five people and the policy is for six or more — you can politely ask the manager to review it. Most restaurants will correct a mistake.

If the rate is simply higher than you expected (22% at a higher-end restaurant, for example), it's worth knowing that the restaurant posted this policy on the menu. Check the menu and receipt for the stated rate before requesting a change.

Auto-Gratuity vs. Service Charge: Are They the Same?

Not always. Auto-gratuity is typically a percentage-based addition that functions as a pre-calculated tip and goes to service staff. A service charge is a more general fee that may go to the restaurant rather than directly to servers. The distinction matters if you care whether the money reaches the server — auto-gratuity almost always does, while service charges may be pooled or retained by the establishment.

For more on this distinction, see our guide on service charges vs. tips.

Quick Reference

Situation	What to do
Auto-gratuity already on bill	No additional tip required
Terminal still shows tip line	Enter $0 — gratuity already included
Splitting the auto-gratuity	Proportional or equal — either is acceptable
Auto-gratuity applied in error	Ask the manager politely to review