in our free newsletter.

Thousands benefit from our email every week.

  • Discounts and special offers
  • Subscriber-only articles and interviews
  • Breaking news and trending topics

Already a subscriber?

By signing up, you accept Moneywise's Terms of Use, Subscription Agreement, and Privacy Policy.

Not interested ?

The most generous tippers

Women are more likely to tip than men for most services, the survey found. Only 46% of men tip their hairstylist compared to 60% of women. At a sit-down restaurant, 70% of women tip compared to 60% of men.

Midwesterners and Northeasterners are the best tippers overall. At sit-down restaurants, 77% of Midwesterners say they always tip, compared to 67% in the Northeast, 61% in the South and 61% in the West.

Meet Your Retirement Goals Effortlessly

The road to retirement may seem long, but with WiserAdvisor, you can find a trusted partner to guide you every step of the way

WiserAdvisor matches you with vetted financial advisors that offer personalized advice to help you to make the right choices, invest wisely, and secure the retirement you've always dreamed of. Start planning early, and get your retirement mapped out today.

Get Started

Tips make up for low wages

Many service employees rely on gratuities to make a decent living. The federal Fair Labor Standards Act requires a minimum wage for tipped employees of only $2.13 an hour, although most states have higher minimum wages. California requires employers to pay tipped employees at least $15.50 an hour and Washington sets the minimum at $15.74, but those are at the high end. Arkansas’ minimum is a super low $2.63.

Two-in-five, or 41% of American adults, feel that instead of relying on tips, businesses should pay their employees a decent wage, according to the Bankrate survey.

Cost of living plays a role

As people grapple with the increased cost of living, tipping is a generally declining courtesy, according to the survey. The percentage of people who tipped their server in a sit-down restaurant, for example, fell from 75% in 2021 to 65% in 2023. Hairdressers and barbers saw less cash in the tip jar in that same period, with tip frequency dropping from 63% to 53%.

Most everyone felt the pain of climbing costs during the pandemic. According to the consumer price index for cities across the U.S., the price of all items went up 3% on average from June 2022 to June 2023, including food, shelter costs and utilities. Full-service meals went up an average of 6.2% and haircuts and other personal care services went up 5%.

How to get a free $40 to invest in your future

An app called Acorns automatically rounds up purchases made on your credit or debit card to the nearest dollar and places the excess "change" into a smart investment portfolio. Acorns offers a $20 welcome bonus, immediately from your first investment.

Get $20

Consumers annoyed by prompts to tip more

Almost one-in-three American adults said they thought tipping had gotten out of control and around the same number were annoyed by pre-entered tipping prompts, according to the Bankrate survey. About 18% responded that the suggested tip amounts made them tip less or not at all.

Inflation and general economic unease seem to be making Americans stingier with their tipping habits, yet we’re confronted with more invitations to tip than ever,” Bankrate Senior Industry Analyst Ted Rossman said. “It’s a fascinating issue with few clear answers. There is one apparent certainty, though: Tipping doesn’t seem likely to leave American society anytime soon.”

Certain services get the most tips

When people do open their wallets wider, it’s usually for hairdressers, waitstaff and food delivery people. Around 65% of respondents said they always tip waitstaff at a sit-down restaurant, while 53% said their hairdressers or barbers are sure to get a tip and 50% always tip food delivery people. The least likely to get tipped are plumbers, electricians and other repair workers and furniture and appliance delivery workers.

Only 44% of survey respondents said they tip at least 20% when dining at a sit-down restaurant.

Sponsored

Follow These Steps if you Want to Retire Early

Secure your financial future with a tailored plan to maximize investments, navigate taxes, and retire comfortably.

Zoe Financial is an online platform that can match you with a network of vetted fiduciary advisors who are evaluated based on their credentials, education, experience, and pricing. The best part? - there is no fee to find an advisor.

About the Author

Kerry Gold

Kerry Gold

Freelance Contributor

Kerry Gold is a long-time journalist. Based in Vancouver, she's written a weekly real estate and urban issues column for the Globe and Mail for the past 15 years. She is the author and co-author of several books, and several investigative pieces for the Walrus and other publications. Prior to her freelance career, she was an entertainment reporter and music critic for the Vancouver Sun.

What to Read Next

Disclaimer

The content provided on Moneywise is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter.