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
-
Virginia Tax Rebates 2025 Coming Soon? What to Know NowTax Rebates Given a historic 2025 gubernatorial race, tax policy will remain a key issue for Virginians in the months ahead.
-
What to Know Before Flying With Your PetFrom documentation and TSA screening to carrier rules and airport relief areas, here’s what to know before taking your pet on a flight.
-
What to Know Before Flying With Your Pet
From documentation and TSA screening to carrier rules and airport relief areas, here’s what to know before taking your pet on a flight.
-
This Is How a Lot of Law School Students Are CheatingGrowing numbers of students are falsely claiming a learning disability to score more time to take tests. This has real-world consequences in which fellow students, law firms and their clients pay the price.
-
My First $1 Million: Retired International Finance Director, 68, AtlantaEver wonder how someone who's made a million dollars or more did it? Kiplinger's My First $1 Million series uncovers the answers.
-
Student Loan Delinquencies Are Hurting Credit Scores — Even for Parents and GrandparentsMillions of borrowers are falling behind on student loan payments, triggering steep credit score drops. If you or your family carry student debt, here's what you need to know now.
-
Costco Offers Executive Members A New Shopping PerkCostco executive members can shop in store one hour earlier, starting on June 30.
-
Is Your Home Disaster-Ready? An Insurance Expert's Guide to Preparing for Storms and FiresHomeowners can take these steps to protect their properties from hurricanes, tornadoes, wildfires and hail, while also potentially reducing their insurance costs.
-
Beyond 401(k)s: How Millennials Are Ditching Gen X Retirement Strategies. Will It Pay Off?Sorry, Gen X, when it comes to saving for retirement, the younger generation views it differently.
-
A Financial Adviser's Defense of Annuities: They're Just MisunderstoodAnnuities can offer retirement income stability and security against market volatility, though some do have drawbacks. The key is to understand their features before buying.
