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
-
TaxAct Review: Pricing, Features and What to ExpectTaxAct offers basic tax prep tools with competitive pricing. Understand its features, limitations and how it compares to similar software.
-
GOP Eyes Taxes on Municipal Bond Interest: What You Need to KnowTax Reform If the tax status of muni bonds changes, the impact on regular investors and state and local governments could be significant.
-
Charitable Contributions: Five Frequently Asked QuestionsMake the most of your good intentions by understanding the ins and outs of charitable giving. A good starting point is knowing what's deductible and what isn't.
-
How to Delete Your 23andMe Data23andMe is pursuing a sale after filing for bankruptcy, leading many customers to look into deleting their data from the company.
-
Can You Be Fired for Going to Work When You're Contagious?What's an employer to do when an employee shows up at the office with a cold or the flu and spreads germs to co-workers?
-
10 Best High-Yield Savings Accounts to Grow Your Tax RefundIf you're getting a tax refund this year and want to grow it, here are the best high-yield savings accounts to make it happen.
-
Klarna Buy Now, Pay Later Is Coming to a Walmart Checkout Screen Near YouHow buy now, pay later options at Walmart could get easier after the retailer traded Affirm for Klarna.
-
United Club Lounge Access Just Got More ExpensiveUnited Airlines announced a new tiered membership scheme for United Club, which gets you into airport lounges.
-
Road Toll Scam Texts are Still Going Around. Here's What to Look Out ForScammers have been sending fake texts about E-ZPass for over a year. Know what to look out for and what to do.
-
ABLE Account: A Savings Tool to Empower People With DisabilitiesAn ABLE account can improve quality of life for individuals with a disability — it permits tax-free saving for ongoing expenses without jeopardizing benefits.
