Despite a year of pricing pressure and a majority of Americans holding a negative view of tipping, there are still parts of the country where people are comparatively big tippers. Or at least they are when it comes to ordering food via a delivery app.
A June 2024 survey by Toast, the all-in-one digital platform built for restaurants, showed the best and worst states for tipping when ordering food through take-out using a credit card or digital payment in select U.S. cities. Cash tips and transactions without tips are not included in the analysis. Not surprisingly, tips took a slight dip in the second quarter of 2024 compared to earlier in the year, dropping a tenth of a percent across the board.
Although many reasons for the drop may exist, from inflation and the high cost of living, tipflation may also play a part. A recent survey by Bankrate suggests two-thirds of Americans now hold a negative view of tipping. What’s more, the number of people who always leave a tip is declining in just the last two years. Our separate story looks at the worst tippers.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Average tips across the U.S.
Total tips averaged 18.8% in the second quarter of 2024, compared to 18.9% early in 2024 with average full-service restaurant tips dipping to 19.3% and average quick-service restaurant tips dropping to 15.9%.
Delaware was again the best state overall for tipping, with a total average tipping percentage of 21.5% in 2024. However, this number dipped from 22.5% earlier in the year. California is once again at the bottom of the list for overall tips, averaging 17.3%, a slight dip from an average of 17.4% in the first quarter of 2024.
Which states tip the most and the least
According to the June 2024 Toast survey, these are the states that tip the most and the least.
| HIGHEST TIPS | LOWEST TIPS |
| 1. Delaware - 21.5% | California - 17.3% |
| 2. West Virginia - 20.5% | Washington - 17.8% |
| 3. Indiana - 20.4% | Nevada - 18.1 % |
| 4. New Hampshire - 20.4% | Florida - 18.2% |
| 5. Kentucky - 20.3% | Louisana - 18.4% |
Origins of tipping
Tipping dates back to the Roman era, and before that to medieval Europe, when visitors to homes would leave tips for servants who provided good service. The actual word “tip” dates to the 17th century, when London coffee houses and taverns would put out signs saying, "To Insure Promptitude" alongside boxes or bowls where customers could leave an extra coin if they wanted faster service.
In America, tipping was almost nonexistent before the Civil War. In the mid-1800s, wealthy Americans, visiting Europe, brought the practice to the U.S., where they were eager to mimic European customs. But it took root as a business strategy during the reconstruction period, according to Restaurant Business, when hospitality companies encouraged customers to leave tips for freed slaves who were paid low wages.
As recently as last month, tipping took center stage as both former President Trump and Vice President Harris called for the elimination of taxes on tips. And, reform efforts are underway in the 43 states where workers who rely on tips earn subminimum wages as low as $2.13 an hour.
Why tip?
Tipping is not usually mandatory. However, for years, people have complained that they feel they must tip for nearly everything, as more and more people feel it is becoming an obligation rather than a choice — to tip or not to tip?
For a majority of servers and bartenders in America, tips make up a substantial part of their income. Hairdressers, ride share workers, valet parking attendants, food delivery workers, are only a few of the many workers who also rely on tips for income.
However, roughly 66% of U.S. adults have a negative view about tipping, according to the Bankrate survey. Most people, or 41%, also believe that businesses should pay employees better rather than relying so much on tips, and many (30%) feel that the tipping culture has gotten out of control. But if you’re someone who works in an industry that relies on tips, you may argue that tips help pay the rent in an inflated economy.
While the debate rages on, at least when it comes to having your delivery order brought to your door, many people still opt to tip.
Related Content
-
Stock Market Today: Dow Logs Longest Losing Streak Since AprilThe November Producer Price Index showed that inflation remains a tough beast to tame.
-
Why Uber Stock Is Volatile After GM's Cruise AnnouncementUber stock is swinging this week following news that General Motors is restructuring its Cruise unit. Here's what you need to know.
-
I Won’t Be Handing Out Gift Cards This Christmas. Here’s WhyGift cards are usually considered a safe bet at Christmas, but in these strained times, how can you be sure your gift won't go to waste?
-
Quicken Launches New Tool to Protect Your Financial Documents: Is it Worth It?If you're looking for a secure place to store your financial documents, Quicken's LifeHub offers you an easy and affordable way to do so.
-
CPI Report Casts Doubt on Rate Cuts in 2025: What the Experts Are Saying About InflationCPI November Consumer Price Index data sealed the deal for a December rate cut, but the outlook for next year is less certain.
-
Quiz: Test Your Financial LiteracyTry your hand at these three questions designed to gauge your knowledge of the ABCs of personal finance. In a survey, only 43% of Americans answered correctly.
-
How to Get the Maximum Social Security Check in 2025
The maximum Social Security check is $5,108 in 2025, up from $4,873 in 2024. Even if you don't qualify for the maximum monthly benefit, you can still increase your payments.
-
The Best Ways to Use Your Year-End Bonus (and the Worst)'National Lampoon's Christmas Vacation' shouldn't be anyone's go-to for financial advice, but it does remind us how not to spend a holiday bonus.
-
Never Talk About Money? For Women, That Can Spell DisasterHow can you plan for retirement when your husband holds the purse strings and talking about money is taboo? Help is at hand for this common problem for women.
-
How to Guard Against Identity Theft in 2025Scammers are getting better at impersonating legitimate businesses.
