Has Tipping Gotten Out of Control? Here's What Americans Think:

August 27, 2024

Do you feel like everyone expects a tip these days? You're not alone.

In fact, nearly three-quarters of Americans report encountering more tipping requests now, compared to just five years ago. Tipping has become a complex and sometimes frustrating aspect of American consumer culture. While it's traditional to tip for many services, determining the right amount — or even when to tip at all — can be confusing.

3 in 5 U.S. adults have "negative view" on tipping

According to a recent Bankrate survey, more than 1 in 3 (35 percent) of Americans think we're tipping too much, too often. That is up five points from last year, which is a notable increase. The survey also reveals 59% of Americans have a negative view of tipping (although that's down from 66% in 2023). 

That means while nearly two-thirds of U.S. adults think we're tipping the right amount, they're not necessarily happy about it — which might be indicative of the state of our economy as a whole.

Here are some other interesting findings from the survey:

• 3 reasons people hate tipping. Reasons for "negativity" around tipping include Americans who think businesses should offer better pay (37 percent), are irritated by pre-entered tip amounts (34 percent), or would prefer higher prices to eliminate tipping altogether (14 percent).
• Women are more likely than men to leave a tip. This trend holds true for most service workers. In fact, 71 percent of women compared to 63 percent of men who go to sit-down restaurants always tip. 
• Negativity about tipping rises with age. Fewer Gen Zers and millennials (23% and 27%) think tipping culture is out of control compared to older generations (Gen X: 40%, Boomers: 46%)."
• However, older Americans are more likely to tip. Only 35 percent of Gen Zers who go to sit-down restaurants always tip, compared with 56 percent of millennials, 78 percent of Gen Xers and 86 percent of baby boomers.

Who should you tip?

The majority of Americans agree on one thing: tip your restaurant servers and stylists. Among U.S. adults who use each of the following services, here’s a breakdown of how many people always tip:

• Servers at a sit-down restaurant: 67 percent (up from 65 percent last year)
• Hair stylists/barbers: 55 percent (up from 53 percent last year)
• Food delivery people: 51 percent (up from 50 percent last year)
• Taxi/rideshare drivers: 41 percent (up from 40 percent last year)

Meanwhile, home repair workers are least likely to receive a tip. Only 10 percent of customers say they always tip their home services/repair people.

Tips on tipping:

Nearly 11 percent of those surveyed admitted they're confused about "who" and "how much" to tip. With that in mind, here are some helpful guidelines to your tipping approach:

• Include tips in your budget: Consider adding a percentage to your budget for dining out, personal care, and other services where tipping is customary. This helps you manage expenses and avoid surprises.
• Carry cash or use mobile payments:Mobile apps that help you pay friends -- like the SNB Mobile App -- make it easy to split your bill among friends at a restaurant.
• Don't speed through the checkout process. Many places of service now include pre-entered or "suggested" tip amounts during checkout. If you're not careful, you might tap into a higher bill you weren't expecting or a tip that you wouldn't consider fair.
• Personalize your approach: Although there may be tipping guidelines, your tip amount is ultimately a personal decision. Factors such as service quality, time invested, and the level of personal interaction can influence your tip. To avoid surprises and guilt, consider your desired tip amount before receiving the bill.

What matters most:

So, should we tip more or less?  To help you decide, we'll leave you with this good, old-fashioned parting stat: 64 percent of Americans agree that "the amount I tip is most influenced by the quality of the service."

Ultimately, it's up to each of us to decide what's fair!