Short answer
Yes. Giving a tip is a lawful act of generosity, and in places like the US, where workers' pay depends on tips, it is part of treating people fairly. Receiving tips is halal too, as a gift for lawful work, as long as you follow your employer's rules on sharing them.
Giving a tip is permitted and, as kindness to a worker, rewarded. A tip is a gift (hiba) and is halal for the worker, unless his employer has lawfully required tips to be pooled or forbidden them. Tips received for haram work, such as serving alcohol, are not halal.
The four schools agree on this.
Explanation
Generosity in dealings is part of the Sunnah. When the Prophet ﷺ bought a pair of trousers, he told the man weighing out the payment, "Weigh, and give more." He used to accept gifts and give something back in return. A tip is this kind of generosity: more than the bill requires, given freely. Allah loves those who do good (2:195).
When tipping is expected. In the US, many servers, drivers and delivery workers are paid a low base wage on the understanding that customers will tip. Islamic law gives weight to custom: what is customary is treated almost like an agreed term. So where tipping is the norm, you should normally tip, and leaving nothing can wrong the worker.
Receiving tips:
- Tips for lawful work are halal for you.
- If your contract says tips are pooled or shared, follow it, since you agreed to it.
- Public officials, and employees whose employers forbid gifts, must not take them. The Prophet ﷺ rebuked a zakat collector who kept gifts he was given while doing his job.
- Tips earned from haram work, such as serving alcohol, take the ruling of that work.
Give with a good intention and without showing off. The four schools agree that a tip is a lawful gift.
The evidence
Quran, Surah Al-Baqara 2:195
وَأَنفِقُوا۟ فِى سَبِيلِ ٱللَّهِ وَلَا تُلْقُوا۟ بِأَيْدِيكُمْ إِلَى ٱلتَّهْلُكَةِ ۛ وَأَحْسِنُوٓا۟ ۛ إِنَّ ٱللَّهَ يُحِبُّ ٱلْمُحْسِنِينَ ﴿١٩٥﴾
And spend in the way of Allah and do not throw [yourselves] with your [own] hands into destruction [by refraining]. And do good; indeed, Allah loves the doers of good.
Doing more than is required is loved by Allah.
Quran, Surah An-Nahl 16:90
۞ إِنَّ ٱللَّهَ يَأْمُرُ بِٱلْعَدْلِ وَٱلْإِحْسَٰنِ وَإِيتَآئِ ذِى ٱلْقُرْبَىٰ وَيَنْهَىٰ عَنِ ٱلْفَحْشَآءِ وَٱلْمُنكَرِ وَٱلْبَغْىِ ۚ يَعِظُكُمْ لَعَلَّكُمْ تَذَكَّرُونَ ﴿٩٠﴾
Indeed, Allah orders justice and good conduct and giving to relatives and forbids immorality and bad conduct and oppression. He admonishes you that perhaps you will be reminded.
Fairness to workers and generosity are both commanded.
Sunan Abi Dawud 3336
Graded sahih... فقال له رسول الله صلى الله عليه وسلم زن وأرجح ...
"The Messenger of Allah said to him: Weigh, and give more."
Paying more than is strictly owed is from the Sunnah.
Sahih al-Bukhari 2585
Sahih... يقبل الهدية ويثيب عليها ...
"He used to accept gifts and give something in return for them."
Gifts, including a tip, are lawful to give and receive.
Sahih al-Bukhari 7174
Sahih... فهلا جلس في بيت أبيه وأمه فينظر أيهدى له أم لا ...
"Why did he not sit in the house of his father and mother and see whether he would be given gifts or not?"
Officials may not take gifts that come only because of their position.
Where the ruling is recorded
- al-Ashbah wa al-Nazair (Ibn Nujaym), The sixth principle: custom is given authority. What is customary carries the weight of an agreed term.
- al-Hidaya, Kitab al-Hiba. The rules of gifts, under which a tip falls.
This answer is pending review by the scholars on our team. Quran translation by Sahih International. Hadith Arabic from the standard editions of the six books and the Muwatta, with gradings as recorded there; the English is our own rendering. Spotted a mistake? Tell us.