Are you a cheapskate? A new study reveals where and how much you should be tipping (2024)

Only half of restaurant tippers fall within the gratuity sweet spot of 16 to 20 percent, according to a new report by CreditCards.com.

The study, a survey conducted last month, examined tipping behavior at restaurants, hotels, coffee shops and hair salons. It sampled 1,002 adults who used cash, credit or debit cards.

It found that the most generous tippers in the U.S. are Republican men who live in the Northeast and use a credit or debit card. They generally tip at a median of 20 percent when dining at a sit-down restaurant.

On the other hand, it said, women tip a median of 16 percent, while Democrats, Southerners and cash users tip a median of 15 percent.

"People now see 15 percent as a floor rather than a ceiling when it comes to tipping. The truth is that the median was about 18 percent. So, it's somewhere between 15 and 20," Matt Schulz, senior industry analyst at CreditCards.com, said Monday on CNBC's "Squawk Box."

"It's really all about income," Schulz said. "The more cash you have, the more likely you are to plunk a little more down at the table at the end of the night."

The survey found that 27 percent of hotel customers always tip their housekeeper, 29 percent who visit coffee shops always tip, and 67 percent always tip their hair stylist and barber.

Men tend to be more generous restaurant tippers than women, but women are better when it comes to hotel housekeeping, baristas and hair stylists.

"My general rule of thumb is if it is a business you are going to go to and you're going to spend time there, and a person you're going to see on a regular basis, when in doubt give a tip," Schulz said.

How apps change tipping habits

The report also found payment apps like Square prompt users to tip in scenarios where they might not otherwise. Ride-hailing services Uber and Lyft are part of a trend where it has gotten easier to tip, Schulz said.

A personal or emotional connection also might influence someone's tip.

"Everybody has been in a situation where they're rummaging through their pockets to find a couple of singles to tip somebody. And there has been certainly situations where you ended up not tipping somebody because you didn't have the cash," Schulz said.

The phone survey, which was conducted by Princeton Survey Research Associates International, had a margin of sampling error of plus or minus 3.7 percentage points.

CreditCards.com offers price comparisons for credit cards.

Are you a cheapskate? A new study reveals where and how much you should be tipping (2024)

FAQs

When not to tip? ›

Sometimes the act of tipping is not about you, but who or what you represent. This could be your employer, your own company brand, civic or religious organizations, community affiliations, boards that you serve on and other entities that would claim you as their own,” Horning says.

What are the arguments for tipping? ›

By maintaining a tipping system, restaurants can attract a pool of skilled and dedicated employees who are motivated to provide exceptional service to customers. This, in turn, can contribute to a positive experience for patrons and ultimately benefit the restaurant's reputation and bottom line.

What is the most common tipping percentage in the US? ›

Industry insider: common consensus says 15-20% is considered a normal tip, but honestly any amount less than 20% is considered a bad tip.

Do you need to tip at coffee shops? ›

You don't always have to tip

The same goes for coffee shops or other quick-service places where you might be faced with the dreaded tablet screen. This is where common sense comes in handy, Gottsman says. But humanity is important too, she adds — if you're feeling generous, go ahead and leave a tip.

What is the golden rule of tipping? ›

By then, tipping was enshrined, as etiquette guides gave consumers advice on how much to tip, starting at a quarter, then rising over the years to 10%, and finally to our current 15% to 20%.

Where is it disrespectful to tip? ›

Whilst in much of Asia tipping is not expected, tipping is actually considered rude in the following countries: Japan. China. South Korea.

Why do Americans tip so much? ›

But there's actually a legitimate reason why Americans continue to tip more than Europeans. In the 1960s, the U.S. Congress decided to a so-called “tipping credit,” which meant that the employer could pay the employee under the minimum wage if they earn tips.

Is tipping on the decline? ›

Seven out of 10 Americans reporting tipping less than they used to and tipped below etiquette expectations at just 12.9 percent. Poor service and concerns about saving money were the top reasons for the decline in tipping.

Why are people against tipping? ›

The first backlashes against tipping

As soon as tipping began to spread in America, so did opposition to it. Journalists in the late 19th and early 20th century frequently described tipping as un-American, and the tip itself as something bestowed upon a social inferior, which flew in the face of democratic values.

Which states tip the most? ›

California residents tip the most, averaging 22.69%. Illinois residents tip the least, averaging 14.22%. By age, Millennials tend to be the best tippers in the country, averaging 18.18% at tip time.

What is a good tip for a hairdresser? ›

How much should you tip your hairdresser? We asked three etiquette experts, two salon professionals and a certified financial planner. Most of these experts suggest leaving 15% to 20%, depending on the service and your satisfaction. Going with 20% is nice for the stylist and you because that math is pretty simple.

How often do people not tip? ›

It seems many Americans disagree. Almost 1 in 5, 18%, of people tip less than 15% for an average meal at a sit-down restaurant — and an additional 2% tip nothing at all, according to a Pew Research Center survey, which polled 11,945 U.S. adults. More than a third, 37%, said 15% is their standard tip.

Do you tip at Starbucks? ›

"While tipping at Starbucks isn't mandatory, it remains a powerful way to show appreciation for the hard work and personalized service baristas provide," Stavridis says. "As a former barista, I can say that every tip, big or small, was appreciated and made a difference in my day."

What happens if you don't tip in America? ›

In America, tipping is optional in name only.

Legally it's voluntary but if you slink out of a restaurant without leaving a gratuity of between 20 and 25 per cent, you're likely to be chased by a waiter demanding to know why.

Should you tip hotel drivers? ›

Even though it's a "courtesy" shuttle, "courtesy" can go both ways. But, how do you know much to tip the hotel shuttle driver? Offer your driver one or two dollars per bag or person.

When can you skip tipping? ›

As a blanket rule, you don't need to tip anyone who earns a salary or performs a trade. That means you don't have to tip doctors, lawyers, teachers, plumbers or cable technicians.

What is the no tips rule? ›

Printer friendly version. Labor Code Section 351 prohibits employers and their agents from sharing in or keeping any portion of a gratuity left for or given to one or more employees by a patron.

What is the least you should tip? ›

Even if the service is poor, it's recommended you leave at least 10 percent. * Check your tab carefully because some places add a gratuity to the bill. You may or may not want to supplement that. For the wait staff at sit-down restaurants, the tip should be 15 percent to 20 percent of the pretax bill.

Is it OK if I don't tip? ›

“It's up to the discretion of the customer," and it's not strictly necessary to tip in a fast food or quick service restaurant. That's very different from service at a sit-down restaurant, she notes, where the expectation is still that patrons should leave a tip of between 15% and 20% of their bill.

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