tipping

US tipping culture has been met with criticism since its very origin leading back to the Civil War, when employers refused to pay their newly freed Black workers, and instead had them rely on tips.

Unfortunately we are still having the same conversation today. Companies continue to not pay their workers a livable wage, thus forcing them to rely on the generosity of customers…many of whom are also trying to make their own money stretch a little further in tenuous economic times.

But now, there’s also the “tipflation” pressure that customers feel every time they visit coffee shops, auto repair spots, retail stores, and even medical offices, and are presented with not-so-subtle urges to tip upwards of 35%.

This was the frustration felt by reporter and self acclaimed “good tipper” Billy Binion, who wrote on X that “Tipping culture is out of control…20% for someone to make eye contact & hand me a muffin is crazy. Restaurants widely suggesting people tip 30% now is kookoo bananas. At this rate we'll soon be tipping the price of the meal. Make it stop.”

Tipping at coffee shops seemed to be Binion's major gripe, who added, “I always feel like a sociopath when I select "no tip" after buying, say, a $7 coffee. I should not feel that way. Someone took my money for a drink I already paid too much for, poured liquid in a cup, and handed it to me. Why is a tip merited there? What are we doing here?”

However, he also argued that POS systems routinely starting their minimum suggested tip at 20% and going all the way up to a suggested 35% was out of line, and quipped “I'm not tipping a third of the price unless you defeat Gordon Ramsay in hand-to-hand combat. And I'd still have to think about it.”

Of course, we know that it doesn't simply boil down to greed and laziness…at least not on the tipped employees part. Service workers are struggling to get by on wages that do not adapt to match inflation. Not to mention tipping is how employers offset their own rising costs so that they don’t have to increase their wages.

Many customers are very aware of this and tip more than they think they should on this principle alone.

“Most workers who accept tips aren't earning a substantial amount. I believe that giving a generous tip is a great way to express gratitude and show appreciation. Nobody ever feels too appreciated,” one person commented.

“Understand your frustration and think the whole process is out of hand. On the other side in Texas wait staff only make around $2.15 per hour. To live they need to make it up in tips.”

To this point: according to Indeed, the average hourly wage for a barista in the US is around $15.55- $20 per hour. Even working full time, that’s around $3200 a month, before taxes. But a) roughly 35% of baristas actually work full-time hours to maybe earn that much, and b) $3200 isn’t nothing, but in these times…it’s not a lot, either.

Really, the issue comes down to customers seeing tips as a “thank you” for exceptional service, when in reality, companies use it as wage replacement. This leads to service workers appearing to expect tips, even when they don’t go above and beyond (thus putting on an air of entitlement) as well as frustrated customers just like Binion. It feels safe to assume that neither service employees nor customers are truly in the wrong here, but the system as a whole.

As of July 4, 2025, a "No Tax on Tips" provision has been signed into law as part of Donald Trump’s “Big Beautiful Bill,” meaning employees who receive tips can deduct up to $25,000 in tips from their income subject to federal income tax starting January 1, 2026.

While many servers have positively responded to the bill passing, it’s also met with criticism. Main arguments include that many tipped workers already don’t make enough to pay federal income tax, that employers are still allowed to avoid raising their wages, and that it will likely set off an expansion of tip requests. So we might anticipate a few more online rants.

- YouTube youtu.be

Tipping culture is clearly in a state of fluctuation, but Real Simple has a great general guideline for most common tipping scenarios:

Restaurants: Between 15% (average) and 20% (good service) of the taxed total. And always make sure to include tip when divvying the bill in a group

Bars: $1 for a beer and $2 for a cocktail. 20% for especially good service or if you ordered a snack.

Takeout/delivery: $3-$5 , though it’s a nice gesture to leave more when there is inclement weather

Baristas: It’s nice to round up to the nearest dollar, but not necessary. Similarly if the barista has had a special order, given latte art, or been especially friendly, tip %20.

Taxis/Rideshares: 15-20% for taxes. $1-$2 for Rideshare.

Hotels: $2-$3 a day for housekeeping each day (since different workers come each day). For the bellhop: $2 for the first bag, plus $1 for each additional bag. Between $5-$15—or up to 20 percent of the ticket price—to the concierge if they helped with your trip.

Tour guides: 10-20%

Spas/Beauty Services: 20%

Coat check: $1 per coat and $2 for a larger bag.

Valet: $2 to $5