Some people say we're suffering from “guilt tipping."1 Others call it “tipflation" or “tip creep."2 Whatever you call it, knowing when and how much to tip can be perplexing. Whether it's a waiter providing full-service dining or a quick carryout, tipping etiquette can be ambiguous. And these days, the rules seem to be constantly changing. We'll help guide you on when and how to tip.
What Is Tipping?
Tipping is the act of giving extra money to somebody who's providing you with a service. A tip is also called a gratuity. Historically, it's been done to thank someone for offering good service, but from an economic standpoint, many professions depend on receiving tips to make a living.
How Much Do People Usually Tip?
If you know you should tip but are uncertain what to tip, 20% is recommended.3
Note that people are tipping more often than they used to, in large part due to changes in technology.4 Payment apps and touch screens at the cash register have made it easy for business owners to set it up so that when you're paying for a service or product, you're automatically asked for a tip, often in amounts of 15%, 20% or 30%. There have been reports of requests for tips at places as varied as a mechanic and the grocery store.4
Tipping Rules By Service Industry
What can make tipping so complicated is that there are no hard rules for tipping. It's not like the law says you must tip. So people find themselves wondering if they need to tip in certain situations, and if so, how much should they tip? Many want to be a good person and tip if the situation requires it, and some may even want to overtip.
Again, there's no rule that says you have to tip for good service. But if you're looking for some guidelines, here are some tips on tipping.
How much to tip at restaurants
These days, 20% is considered the standard amount to give the server who brought your food. If you want to make their day and you're feeling extra generous, go with 25% or even more.5
How much to tip at bars
Generally, it's recommended that you tip $1 to $2 per drink. If you plan to order a lot of rounds, you may want to toss in $5 at the beginning of your stay just to be nice or to help keep the service humming along.3
How much to tip at hotels
This can get tricky if there are a lot of service elements to your stay. Some prefer to simply bring a wad of cash and dole it out as needed.
For instance, if you have a hotel porter handling your bags, $2 to $5 per bag is a good rule of thumb (the nicer the hotel, the more you give). If you're getting room service, consider giving 20% of the meal as a tip to the waitstaff. If gratuity is added to the room service bill, adding another 10% is a nice gesture.3
For housekeeping, it depends on whom they're cleaning up after. If it's just you and maybe one or two other people, $3 to $5 a day is ample. If you have a large family, you may want to go with $10 per day.3
How much to tip at coffee shops
Consider tipping 15% to 20% at coffee shops. You may want to add an extra $1 for the barista.6
How much to tip at hair or nail salons
If you feel the stylist or manicurist did a good job, 20% is suggested.3 Something to keep in mind: Good tips can be an effective way to help maintain a good relationship with a stylist or manicurist over time.
How much to tip for food delivery
15% to 20% is considered a standard and reasonable tip for food delivery drivers.3
How much to tip drivers
For drivers, consider tipping 10% to 20% of the fare. If you're on an airport shuttle—especially if the driver handles your bags—give the driver a few bucks per bag.3
How much to tip movers
It depends on how long they're at your home. If movers are at your place all day, you may want to give $40 to $80 to each person. If they're there for an hour, maybe give $10 per mover.7 The best way to approach this is to think about what you'd want to be tipped if you were in their shoes, moving your things around all day.
FAQs About Tipping
Tipping can get confusing, so here are some answers to tipping questions you may have.
Should I tip if the service is bad?
It's a judgment call on your part, but if you feel the service was bad due to no fault of the employee—maybe the establishment is short-staffed (a fault of management)—then you should likely still tip. Don't punish the employee. Tip the employee, and consider explaining your dissatisfaction to the manager.
What if I can't afford to tip?
Don't beat yourself up if you can't afford to tip. Everybody has their moments when they aren't flush with cash. If you feel really bad about it, you can go back later and give the employee a tip, or offer a bigger tip the next time you return.
Going forward, you may want to look at some budgeting basics and best practices to see if you can find a way to reduce some of your expenses—and start factoring tips into your expenses.
Should I tip in cash?
Money is money. There's nothing wrong with adding a gratuity to a debit or credit card, or tipping in cash.
That said, if you have cash available, that may be the better way to go for the person you're tipping. Frequently, people who get tipped with a credit or debit card won't actually see that money until the end of their pay period.8 But they can put cash in their pocket right away.
Some Final Thoughts on Tipping
If you're still wrestling with the question of how much to tip, remember this rule of thumb: Give people what you'd want to get if you were doing the same job. Though you're parting with your hard-earned money, you are getting something in return. In the world of tipping, the payoff can be seeing someone's face light up after you give a generous tip.
To help ensure you have enough funds to tip people the way you would want to be tipped, consider opening a high yield savings account or money market account that offers a competitive interest rate, while still keeping your money accessible.
Geoff Williams is a personal finance writer and author who tries to tip 20%, but fully admits to experiencing tipping anxiety on an almost daily basis.
READ MORE: 10 Tips for Building a Financial Cushion
Sources/references
1. Marks, Gene. 'Guilt tipping': is there any escape from the gratuitous rise in gratuities? The Guardian. March 19, 2023.
2. Picchi, Aimee. How "tipflation" and "tip creep" are sparking a backlash: "I don't feel obligated" to tip. CBS News. January 27, 2023.
3. Gillespie, Lane. The latest rules of tipping: How much to tip in 2023. Bankrate. June 15, 2023.
4. Chen, Brian X. Tech Is Allowing Businesses to Overcharge You in Tips. The New York Times. March 1, 2023.
5. Ballis, Stacey. The Only Tipping Guide You Will Ever Need. Food & Wine. November 4, 2022.
6. Yarborough, Kaitlyn. How Much Is Appropriate To Tip On Coffee? Southern Living. May 19, 2023.
7. Lutz, Amanda. How Much to Tip Professional Movers (2023). Architectural Digest. February 17, 2023.
8. Mahe, George. Ask George: Do restaurants and servers prefer cash tips? St. Louis Magazine. May 12, 2023.
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