Being generous with tips is essential: anyone who has worked in food service, housekeeping, driving, or bartending in the U.S. knows tips are a crucial part of a service worker’s income. Some estimates show that about 15% of servers live in poverty, compared to around 7% of the general workforce, making tips vital for those in the industry.
Under federal law, employers can pay tipped workers as little as $2.13 an hour, expecting that tips will bring them up to at least minimum wage. Tips make up such a significant portion of a server’s income that, according to FiveThirtyEight, a server in Washington, D.C., needs to serve six customers per hour just to reach minimum wage, assuming each customer tips at least 15%.
Still, if you’re trying to watch your own budget, it can be tricky to find the balance between over-tipping and under-tipping. While tipping has traditionally been viewed as an “optional” reward for good service, many people disagree, and there’s no set standard on how much to tip — or if you should tip at all.
Those who’ve worked in the service industry know the expectations: “Customers expect good service,” says Matt Schulz of CreditCards.com. “Smile, be attentive, be professional, be proactive. If you do your job well, most Americans will be generous when it is time to leave the tip.”
Still, what constitutes good service can be subjective. As the Bitchy Waiter puts it, “No, you don’t have to tip. It is not required by law to leave your server any money. However, in this country, when you go out to eat in a restaurant where someone is serving you, there is a social contract and obligation that implies you will be providing some sort of financial compensation… If you don’t want to tip, then you can be counted among the small group of people who choose to be assholes.”
So, how should you determine your tipping amount? Here’s a guide to tipping in every common situation — without overspending.
Winners of the best tip jar go to @fiascogelato! #FeastInTheEast pic.twitter.com/j78h6L2HZv
— Calgary Food Trucks (@yycfoodtrucks) October 26, 2014
Here’s how much most Americans tip
A recent report from CreditCards.com reveals that tipping in the U.S. generally falls between 15% and 20%. The report shows that men, Republicans, and people from the Northeast tend to tip around 20%, while women, Democrats, cash payers, and Southerners tip a bit less.
A server at a high-end restaurant suggested to CreditCards.com that men might tip more when aiming to impress someone. However, Michael Lynn, a professor at Cornell University, noted that other studies indicate there’s actually no significant difference in tipping habits between men and women.
No matter the factors of gender, political views, or region, tipping habits usually boil down to one key element: “Your tipping tendencies largely come down to income,” Schulz said. “That’s certainly not the only factor, but generally, the more money you have, the more likely you are to leave a little extra on the table at the end of the night. After all, it’s easier to tip a few extra bucks when you’ve got the money to spare.”
The survey further found that people earning $75,000 or more tend to tip both more often and more generously. Those using “plastic” also tend to tip more, as Michael McCall, a consumer behavior professor at Michigan State University, explained to CreditCards.com: “when you pay with a card, your brain doesn’t see it as real money, so it’s not as painful.”
For a precise guide on how much you should tip, continue reading.
