How Much Should I Tip?

History of Tipping

The term "TIP" is commonly believed to stand for "To Insure Promptness" or "To Insure Performance," suggesting that tipping encourages better service. This phrase is often cited, but it's likely a backronym created after the word "tip" was already in use. The actual practice of tipping has its origins in 17th-century England, where it was customary to give money to servants or workers as a reward for good service. Over time, the term "tip" became closely associated with this practice, spreading across various sectors and regions.

Initially, tipping was more of a social custom, primarily in the hospitality sector, where it served as a means of ensuring that workers, often underpaid, could earn a decent living. In many parts of the world, the practice of tipping evolved into a significant aspect of the service economy, particularly in the United States. By the 19th century, tipping had firmly taken root in American culture, especially within restaurants, bars, and hotels, where it became a critical component of workers' income.

Over time, tipping has become a subject of ongoing debate, especially in the United States, where it is argued that the reliance on tips subsidizes low wages and creates income instability for workers. This issue has led to discussions about eliminating tipping altogether, with proponents advocating for fair, livable wages for service industry employees. Despite this, tipping remains deeply embedded in American culture, though practices and expectations continue to evolve.

The practice of tipping, once primarily associated with the hospitality industry, has now extended into sectors like ride-sharing, food delivery, and personal care services, adding to the complexity and confusion around when and how much to tip. This expansion has sparked debates and uncertainty, as the expectation to tip in these new areas becomes more common. Historically, tipping was introduced as a way to supplement low wages, especially for servers who often earn less than minimum wage. It's worth noting that a minimum wage job used to afford a person a one-bedroom apartment on their own, but today, it often doesn't cover even a quarter of the rent. This financial gap makes tipping essential for many workers who rely on these additional earnings to make ends meet. Understanding the origins of tipping helps shed light on how it has evolved into a widespread, yet sometimes contentious, practice across various industries.

Standard Tipping Practices

Originally confined to the hospitality industry, tipping has now spread to various sectors, including delivery services, ride-sharing, and personal grooming. In the U.S., the standard tipping rate has increased from 15% to 20%, reflecting both inflation and changing societal expectations. This shift has also led to a broader acceptance of tipping in situations where it was previously uncommon, such as in coffee shops and for curbside takeout orders.

Holiday tipping, once a widespread practice, involved giving service providers an amount equivalent to one week of service. This was especially common for those who provided regular services, such as mail carriers, garbage collectors, and newspaper deliverers. However, with the rise of internet bookings with companies and less personalized services with a new person each time, this practice has become less common and now only applies to year-round in-home service employees.

Despite the spread of tipping, it is not always required or expected, especially in situations where a service charge is included or where the interaction is brief. However, tipping is generally appreciated for exceptional service, special requests, or last-minute needs. In these situations, a tip is a tangible way to show gratitude and ensure continued high-quality service.

The increased frequency of tipping prompts—especially with the constant use of credit cards—can make the process stressful and confusing. Digital payment platforms often include automatic tipping suggestions, which can pressure customers to tip more than they might have intended. This has led to debates about the appropriateness of these prompts and whether they detract from the original purpose of tipping, which was to reward excellent service rather than meet a preset expectation.

Cultural Differences in Tipping

Tipping practices vary widely around the world, often reflecting local customs and societal norms. In the United States, tipping is deeply ingrained in the service industry, with 15-20% being the norm in restaurants. This practice is driven by the understanding that service workers, such as waitstaff, rely heavily on tips to supplement their income, as their base wages are often low.

In contrast, many European countries include a service charge in the bill, making additional tips optional or less common. For instance, in France, a service charge ("service compris") is typically included in the bill, and while rounding up the amount or leaving small change is appreciated, it is not expected. In Italy, a similar practice exists, with a "coperto" or cover charge often included in the bill, which compensates the waitstaff.

In countries like Japan and South Korea, tipping can even be seen as an insult, as good service is considered standard and not something that should be rewarded with extra money. In these cultures, the focus is on providing excellent service as a matter of pride and professionalism, rather than as a means to earn additional income. As a result, tipping is not only unnecessary but may be perceived as demeaning or offensive.

Traveling can be challenging when it comes to tipping, as the expectations differ significantly depending on the region. For example, in countries like Canada and Mexico, tipping practices closely mirror those in the United States, with similar percentages expected for various services. However, in Australia and New Zealand, tipping is less common, and service workers are generally paid higher wages, reducing the reliance on tips. Understanding these cultural nuances is crucial to ensure that you show respect and appreciation without inadvertently offending anyone.

How to Calculate a Tip

Tips are calculated based on the subtotal (before taxes) and are separate from delivery and service fees. It's important to note that tips should not be calculated on the total amount, which includes taxes, as this can lead to over-tipping. Always check if gratuity is already included in the bill, especially in countries or establishments where service charges are common. This practice helps ensure that you're not double-tipping, which can be unnecessary and costly.

To calculate a 20% tip, a simple and effective method is to move the decimal point one place to the left on the subtotal and then multiply that number by two. For instance, if your subtotal is $50.00, moving the decimal gives you $5.00, and multiplying by two results in a $10.00 tip. This method is particularly useful in situations where you're in a hurry or when the bill amount is easy to calculate.

Additionally, some people prefer to round up their tips to the nearest whole number, especially if the service was exceptional. For example, if the calculated tip is $9.80, rounding up to $10 can be a nice gesture of appreciation. However, it's essential to consider your budget and tipping norms in the specific context when deciding how much to tip.

Services That Require a Tip

Understanding which services require a tip and the appropriate amount to give can be essential to ensuring you show appreciation while avoiding over-tipping. For example, if the owner of a business provides you the service, a tip is not expected, but a yearly gift is nice. Below is a detailed list of common services where tipping is customary.

• Dining and Beverage Services
• Restaurant Server: 20% of the bill.
• Restaurant Server (Unlimited Soup and Salad only): 30% of the bill.
• Buffet Busser: 10% of the total bill.
• Bartender: $1 per beer, $2 per drink, or 20% of the total tab.
• Coffee Shop Barista: $1 per drink prepared.
• Catering Staff: 20% of the bill.
• Coat Check Attendant: $2 per item when retrieving them.
• Restroom Attendant: $1 per visit.
• Food Delivery: 10% of the order total, with a minimum of $5.
• Grocery Delivery: 10% of the order total, with a minimum of $5.
• Takeout: No tip required. 10% for exceptional service.
• Curbside Takeout: No tip required. 10% for exceptional service.
• Grocery Pickup: No tip required. $5 for exceptional service.
• Restaurant Host: No tip is required, but consider $20 for special requests.
• Cashiers That Prepare or Serve Your Order: No tip required. 10% for exceptional service.
• Cashiers: No tip is necessary.
• Hotel Services
• Valet: $5 when retrieving your car.
• Bellhop: $2 per bag they handle.
• Doorman: $2 if they assist with hailing a cab or carrying luggage.
• Hotel Housekeeping: $5 per night of your stay.
• Hotel Extra Towels/Toiletries: $5 for the extra service.
• Concierge: $10 for arranging reservations or providing detailed assistance.
• Butler: 10% of the room rate per night.
• Room Service: 20% of the bill.
• Check-in Clerk: No tip required, but consider $20 for special requests.
• Transportation Services
• Taxi/Uber Driver: 15% of the total fare.
• Limo Driver: 20% of the total fare.
• Hotel/Airport Shuttle: $5 per person using the service.
• Tour Guide: $10 per person for their service.
• Skycap: $2 per bag they assist with.
• Airport Wheelchair Pusher: $5 for their assistance.
• Dry-cleaning Delivery: 10% of the total bill.
• Furniture Delivery: $10 per person, $20 if installing.
• Movers: $20 per mover, plus $10 per furniture item assembled.
• Personal Care Services
• Hair, Nails, Makeup: 20% of the total cost.
• Masseuse/Facial/Spa: 20% of the total cost.
• Tattoo/Piercing: 20% of the total cost.
• Car Detailer: 20% of the total cost.
• House Cleaners: $20 in total per cleaning session.
• Pet Groomer: 10% of the total cost.
• Car Wash Attendant: $5 for their service.
• Wedding/Party DJ: 20% of their total fee.
• Wedding/Funeral Pastor: $100

• In-Home Services
• Year-round in-home employees don't require a tip but do expect to receive a yearly holiday gift in an amount equivalent to one week of service.
• Babysitter
• Nanny
• Butler
• Chef
• Caretaker
• House Keeper
• Dog Walker
• Landscaper
• Gardener
• Pool Cleaner

Services That Do Not Require a Tip

While tipping is customary in many situations, there are services where tipping is not expected or necessary. Below is a list of services where tipping is generally not required, but is accepted.

• Medical Cosmetic Services
• Laser Treatment
• Botox/Filler Injector
• Microneedling
• Cool Sculpting
• Chemical Peel
• Property Services
• Electrician
• Plumber
• Painter
• Architect
• Contractor
• Window Washer
• Tree Trimmer
• Pest Control
• Real Estate Agent
• Mail/Package Delivery
• Garbage Collection
• Professional Services
• Dry Cleaner
• Tailor/Seamstress
• Mechanic
• Window Tinter
• Photographer
• Lawyer
• Accountant
• Doctor
• Teacher/Tutor
• Personal Trainer
• Physical Therapist
• Therapist
• Web Services
• Retail Salespeople
• Bank Teller
• Pharmacist
• Restaurant Cook
• Clerk
• Home Depot Loading Assistant
• AutoZone Employees (installing windshield wipers, batteries, etc.)

Q&A Section

What is the standard tipping percentage in the U.S.?

The standard tipping percentage in the U.S. is typically 15-20% of the pre-tax bill, depending on the level of service received.

How does tipping vary across different cultures?

Tipping customs vary widely; in the U.S., it’s common and expected, while in countries like Japan, it’s often considered rude.

Should you tip for takeout orders?

Tipping for takeout is not mandatory, but a small tip is appreciated, especially if the order involves special requests or large quantities.

What are the tipping expectations in Europe?

In Europe, tipping is usually included in the service charge, making additional tipping optional, although rounding up the bill is a common practice.

Is tipping mandatory in restaurants?

In the U.S., tipping in restaurants is generally expected, but in some countries, service charges are included, making additional tips optional.

Final Thoughts

Tipping is a complex practice influenced by cultural norms, economic factors, and personal preferences. While it can be a way to show appreciation for good service, it can also create pressure and confusion, especially when tipping expectations vary widely. Understanding the history and cultural significance of tipping can help you navigate this practice with confidence, whether you're dining out in your hometown or traveling abroad. As tipping continues to evolve, it's essential to stay informed about current norms and practices to ensure that your actions align with both local customs and your personal values.