Living and Tipping in America

Mon 08 May 2017

The USA is famed for its tipping culture. Its widely recognised as one of the more confusing aspects of living in the USA. Read on for insight on customs around tipping, why its important and when to do it.

Why tipping matters

The USA is well-known for confusing visitors with its tipping culture. When, where and how much to tip can vary wildly between states.

Tipping is an entrenched part of living in the USA. It’s not mandatory, yet is a prevailing part of the culture. Often, tips make up a substantial part of people’s incomes. The concept proves difficult for visitors who may not always know when, where or how much to tip.

There are lots of different reasons to leave a tip. Some people tip to show their appreciation for the service they received or to supplement the service provider’s income. Others like to build a good rapport with the establishment. Some people even tip just to show off. In most cases however, tipping is expected.

Why tip?

In some places in the USA, tipping is so common that it’d be considered rude not to leave a tip. The practice is a key feature of American business, with tips often supplementing incomes and becoming an important part of rewarding good customer service.

Minimum wage varies across each of the states of America, with wages for employees like bartenders and waitresses being some of the lowest. It’s because of this that tips are welcomed; an extra gratuity helps to make up for lower pay.

Tipping is also considered a way to ensure that servers continue to place value on excellent customer service.

Top Tipping Tips

How much to tip really depends on where you are, and what service you have received. Tipping etiquette varies depending on the establishment and service. For example, if you’re in an American bar, you should add a dollar per drink when you buy a drink at the bar.

For larger groups or in tourist centres, you may see the phrase ‘gratuity included’ on the bill; these are probably the only cases where gratuity would be automatically included. In most cases, refraining from providing a tip probably won’t go down well.

If you visit the hairdresser or barber, giving the person who washed your hair a few dollars would be expected. Whereas if you take a taxi somewhere, it’s expected that you tip the driver around 10% of the total fare. At airports, porters, or skycaps, will often help you with your bags; you should give them a dollar or two.

In restaurants, 15% - 25% of the total bill is considered normal. On average, more expensive restaurants and bars may expect tips nearer the higher end. There are a few places in the USA where tipping is not required. This includes gas stations, which are self-service and grocery stores, where tipping isn’t expected.

To tip or not to tip

Not tipping is for the brave, but there is no obligation to tip where service has been bad. If you decide not to tip due to poor customer service, expect to receive a gracious response from the manager. It is considered rude to not leave a tip where the service or quality has been of a good standard.

So, consider your tips carefully. When you go out, keep some dollar notes in your purse or wallet that you can easily reach for to provide a tip. Shrugging your shoulders and saying you don’t have change, will not cut it in the USA.