The U.S. no longer issues denominations larger than $100, including $500, $1,000, $5,000, and $10,000 bills, but USA.gov says they are still legal tender and may still exist in circulation.
The Bureau of Engraving and Printing says older high-denomination notes are legal tender, though most remaining examples are held by collectors and numismatic dealers.
Practically speaking: don’t spend one for $500 unless it is damaged or fake. A genuine $500 bill is usually worth more than face value to collectors, depending on year, condition, seal color, serial number, and rarity. The common small-size version features President William McKinley.
We went to a dinner as a group and had a $500 bill. We tipped $40. We were happy we can be able to give our server something, but her reaction was the opposite. She told us she assumed we're going to give her at least $120. When we asked for the manager, she said she was just joking, but she wasn't smiling at all. Idk, but is $40 tip enough for $500 bill? I just feel like expecting $120 is not realistic.
~Lea Robertson