Tipping in the US

If you’re new to the US or are just starting to pay for your own trips to restaurants and other places, tipping can be pretty confusing. It’s voluntary and has no set rules. It also varies quite a lot depending on the kind of place you’re at. At some places, you don’t need to pay a tip, while in others you’ll get annoyed looks if you don’t. Here’s a general guide on the tipping customs in the US.

Why Pay a Tip?

Good question. It’s more of a historical relic than any practical need. Many countries don’t have tipping customs at all. In the US, tipping started as a custom from England (from back in the Tudor period) that later caught on overseas in the early 20th century.

Tipping is also pretty controversial. In theory, it’s there so that workers are more motivated to give better service. But Cornell University did an analysis in 2001 of 14 studies (involving a total of 2645 dining parties at 21 different restaurants) and found that the relationship between the tip and the quality of service was weak, too weak for the waiter or waitress to notice effectively. Instead, the size of the tip is often influenced by other arbitrary factors, like physical appearance, that can easily lead to discrimination.

Then there’s the social pressure aspect of tipping. People may feel pressured to pay a decent tip even when the service was subpar. It could be out of guilt (tipped workers can be paid less legally, making them dependent on tips to make up for the loss) or because the payment method is visible to other customers (like with tablet registers).

General Tipping Customs

Even though tipping is needlessly complex, it’s here to stay for now. So here’s where and how much you should tip:

  • Fast food/fast-casual chain restaurants: no tip necessary
  • Casual dining restaurants: 15-20%
  • Buffets: about 10%
  • Takeout order (any restaurant): no tip necessary
  • Food delivery: 10-15%
  • Specialty food shops (like bakeries, dessert shops…): no tip necessary
  • Coffee/tea/smoothie chain shops: no tip necessary
  • Bartenders and baristas: about $1 per drink
  • Cocktail bars: 15-20%
  • Hotels: less than $5 per night
  • Hotel staff: $1-4
  • Valet parking: $1-2
  • Taxi drivers: 15-20%
  • Public transportation: no tip necessary
  • Private transportation services with luggage handling: less than $1 per piece of luggage
  • Courtesy driver services (like from a car dealership): $1-5
  • Car washes (hand-washed): $1-5
  • Barbers/hairstylists: 15-20%
  • Manicurists: 15-20%
  • Spas: 15-20%
  • Government employees: no tip ALLOWED (it’s illegal for them to collect tips since it can be seen as bribery)

Other Things to Remember About Tipping

You can alter the amount depending on the quality of service you get. The absolute worst tip you can give, in my opinion, is $0.01. That shows that you didn’t forget to tip and that you thought the service was downright rude or hostile.

For the amounts listed as percentage, use the pre-tax amount. First it doesn’t make much of a difference anyway whether it’s pre-tax or not. Second there’s really no good reason why you need to pay a tip on a government-mandated tax.

Some places that don’t need tips might have a tip jar next to the register. You don’t need to put a tip in it, though the owner would appreciate it if you did.

Another thing to check before you tip is if a tip has already been included on your receipt (it can be listed as “gratuity”). Also note that a “service fee” or “service charge” is not the same as a tip, and you should pay a tip in addition to it. But don’t include it in the tip calculation.

Sources

https://www.consumerreports.org/tipping/is-it-time-to-rethink-the-rules-of-tipping-etiquette/

https://www.usatoday.com/story/money/2015/06/14/much-tip-depends/71137254/

https://www.rd.com/advice/saving-money/how-much-to-tip/

https://en.wikipedia.org/wiki/Gratuity

https://scholarship.sha.cornell.edu/cgi/viewcontent.cgi?article=1110&context=articles

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