More than 65% of Americans Hate Tipping. Follow These 3 Rules to Avoid Overspending, Feeling Guilty and Ripped Off. "Would you like to leave a tip today?" Not really...
By Jason Feifer Edited by Mark Klekas
Key Takeaways
- Nearly two out of three Americans now have a negative view of tipping.
- Experts have coined a new term, "tipflation."
- Workers aren't as resentful as you might think if you leave a small or no tip for a small service.
Are you being asked to tip everywhere these days, from convenience stores to oil changes?
Experts are calling it "tipflation" — and it's causing a lot of confusion for consumers. People are wondering: How much do they tip now? And who do they tip? What level of service warrants a tip?
Don't worry: Here are three simple rules that can help you be appropriate, be kind, and not overspend.
Rule #1: You don't have to tip everyone
Investor Codie Sanchez was recently prompted to tip at an airport terminal. "Is it just me, or is tipping getting out of control?" she tweeted.
The answer: Yes, it is out of control — and more than 65% of Americans now have a negative view of tipping.
Experts debate why we've reached this crazy moment. Some say it's the post-pandemic economy, where wages haven't kept up with inflation. Others say it's driven by tablets, where more transactions happen on screens programmed to prompt for tips.
Whatever the case, service workers are benefitting: They're pulling in 42% more in tips than they did roughly three years ago, according to a study by the payroll service provider Gusto. That's undeniably good, given how traditionally low their pay is.
But that doesn't mean you must tip everyone.
Etiquette experts generally agree: Even in an era of tipflation, tipping is still primarily meant for people who are paid a "service rate" — that is, their employers pay them significantly below minimum wage, because these workers' income will be driven primarily by tips. This generally includes servers and bartenders.
Tipping is also very appropriate for people who provide helpful, often labor-intensive work — like movers, furniture delivery people, masseuses, nail salon technicians, and so on. Baristas are an interesting middle ground; they told Food and Wine that, while tips are of course appreciated, they don't often expect a tip unless the customer's order was complicated.
Then there's roughly everyone else. Tip if you'd like. Give holiday gifts to people you work with all year, like nannies or doormen. But there's no expectation to tip at convenience stores, airport kiosks, for professional services, vehicle inspections, or for the many other transactions you're prompted to list for these days.
Rule #2: Don't feel pressure to overdo it.
When you pay at a kiosk, and it asks if you'd like to tip, it often offers three options. The first one might be 20%. The next, 22%. And the last one, 25%.
This might feel crazy — but it's psychology at work. "Research shows the more you ask for, the more you are going to get," Cornell University professor Michael Lynn told CBS News.
But etiquette experts agree: Do not feel pressured to pay more, just because a machine suggests it.
Related: 'Tip Culture Is Getting Insane': Starbucks Customers Furious Over Company's New Tipping System
Every expert and tipping guide will have slightly different numbers, and they can start to look hyper-specific. Bankrate, for example, suggests 15 – 20% for massages but 18 – 20% for facials.
That level of specificity can feel overwhelming, so don't worry about nailing the math. Generally speaking, if you want to tip for good service, anywhere from 10 – 20% is appropriate for complex jobs — and a dollar is still fine for a beer at a bar.
Rule #3: Don't hold it against the workers.
Consumers are rightly frustrated by all the tip requests. But they're taking it out on servers.
When presented with tip suggestions on a screen, 18% of Americans said they tip less, according to that Bankrate study. Only 9% say they tip more. And of course, there's no way to quantify how many Americans judge or silently sneer at a worker as they awkwardly stand behind the counter.
Related: A Unionized Apple Store Wants Customers to Start Leaving Tips for Employees
That's not fair. Remember, service workers didn't create or implement the software, and likely had nothing to do with the pre-set tip percentages.
They're just doing an honest day's work and would surely appreciate a little more money in their pocket.
