Tipping in the USA

In the USA, tipping is not just a friendly gesture, but a crucial part of the wage structure for many workers in the service industry.

This system dates back to the early 20th Century and has developed into an implicit expectation for both consumers and employees in their everyday lives.

So when should you tip in the USA? And how much should you tip?

Read our guide to tipping in the USA below.

Why are tips so important in the USA?

Unlike in many other countries where service staff receive a basic wage that they can live on, wages are very low in many service jobs in the USA.

This means that employees such as waiters, bartenders and hotel staff rely heavily on tips to earn an adequate income.

The legislation allows a lower wage than the federal minimum wage for workers who receive tips, provided that the tips received ensure that the employee reaches the applicable minimum wage.

How much should you tip in the USA?

Tips are typically calculated as a percentage of the total bill, but the amounts may vary by more based on service quality and personal satisfaction.

It is common to tip between 15% and 20% of the bill, depending on the industry in which you are tipping.

Here you can see how much it is common to tip in different service trades.

Restaurants

In restaurants, it is customary to tip at least 15% of the bill.

At 15%, you have received what you ordered, but not much more than that. At 18-20%, you have received good service. For example, this could be that the waiter comes by your table to give you a water refill and to ask if everything is okay. A tip of more than 20% is typically given for excellent service.

Hotel service

When tipping porters and bellhops in hotels, it is common to tip USD 1-2 per piece of luggage. It is also normal to tip the cleaning staff, and here the amount is typically around USD 3-5 per room per day.

Taxi drivers

It is normal to tip taxi drivers 15-20% of the bill, however, a minimum of USD 2 per ride. This also applies when you use apps like Uber and Lyft.

How to tip?

Tipping can be done in many ways, and if you come from a country where tipping is not customary, it may feel unnatural.

A good suggestion is that you should always have a stack of dollar bills on you so that you can easily tip in cash when it is not possible in other ways.

When tipping in a taxi, the easiest way is to give cash directly to the driver. If you use apps such as Uber or Lyft, it is also possible to ‘tip’ via the app at the end of the ride.

When you have eaten in a restaurant or a café, there will often be an option on the payment terminal where you can choose to add a percentage that you want to tip (Read more about this below). If this option is not available, you can tip by either leaving cash on the table where you have eaten, or you can give the money directly to your waiter.

In bars, there will also be either an option to tip on the payment terminal, directly to the bartender or in a so-called ‘tipping jar’, which is a jar on the counter in which you can put cash.

Pre-suggested tips

When you eat at a restaurant or café, the technological development has meant that it has become more the rule than the exception that customers are presented with suggested tipping rates on the payment terminal. This may be helpful for you, so that you do not have to think too much about how much you ‘should’ tip.

In rarer cases, however, in addition to a standard percentage tip being added to the bill, extra tips may also be suggested on the payment terminal; sometimes of more than 20%. This may create confusion or put increased pressure on you to tip more than you want to, especially when the waiter is standing right next to you. However, this is completely voluntary, and you should tip what you find reasonable.

Be aware that it also says ‘sales tax’ on most bills. This should not be confused with tips, as ‘sales tax’ is just a percentage of the taxation on the bill.

What happens if you don’t tip in the USA?

In principle, nothing happens if you do not leave a tip in the USA. Tipping is not required by law, so there is nothing to stop you from not tipping.

However, remember that tipping is a big part of American service culture, and many Americans rely on the tips they earn to make ends meet. You should also be aware that some Americans will regard you as rude if you do not leave a tip. This may be managers, waiters or other service providers.

When should you not tip?

As a rule of thumb, it is a good idea to leave a tip when you are provided with a service in the USA, but there are exceptions where tipping is not typical.

The waiters who bring your food to your table typically expect a tip, but if you buy the food at a checkout or in a supermarket, tipping is not customary. This is also the case in some fast food restaurants, where you order and pick up the food at the checkout.

Sometimes tips are also already included in the final bill. Here, it will typically be stated as gratuity on the bill, and, in these cases, you do not need to leave any additional tip.

Do you still have to tip even if the service is bad?

No. You should not leave a tip in the USA if you experience poor service.

However, it depends a lot on where you get the service. If you receive poor service at, for example, a hairdresser, you do not have to tip, but it is a slightly more extraordinary situation if you experience poor service in a restaurant.

Even if you have received poor service in a restaurant, it is still common to leave a tip of around 10%. In fact, the money goes to the waiter, so if the food is cold or arrives very late, it is typically a mistake made in the kitchen and not the waiter’s fault. Here, you should bear in mind that the waiters are sometimes paid below the minimum wage, so, unless the waiter has provided you with poor service, tipping is still normal.

Do you also want to experience America?

Even though tipping may feel unnatural, it is a completely natural part of experiencing the local culture on a tour of the USA, and, after the first few times, it will become a completely natural part of the tour.

Are you ready to experience America’s unique culture?

We are ready to help you if you have any questions.

TourCompass – From tourist to traveller