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A tip is a great way to show appreciation, especially as we trudge deeper into the holiday season. Learn how to be generous without leaving yourself broke.
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Tipping has been in the news a lot lately, thanks in large part to the general sense of outrage that’s grown around it. According to Pew Research, a whopping 72% of Americans believe that tipping is now expected in more places and situations than it was just five years ago.
I’m of two minds in this debate. I believe in paying for excellent service, and I want the people who cut my hair, deliver my DoorDash orders, and wait on me in restaurants to be able to pad their savings accounts, pay their bills, and get ahead in life. But like many people, I am a bit annoyed that I’m now asked to tip on an iPad when I walk to the counter to buy a cup of drip coffee that requires no fancy magic by a well-trained barista.
Tipping is a part of American life, and if your default these days is to skip the tip, you do so at your own peril. For example, as reported by The New York Times recently, DoorDash has been testing a screen in its app that warns customers who don’t tip that their orders may take longer to arrive. And this makes sense — why would a delivery driver prioritize dropping off your sushi order if you skipped the tip?
Let’s take a closer look at tipping and discuss how to tip enough (and to the right people) without unduly impacting your personal finances.
What’s a good tip amount for different situations?
The expected tip varies based on the level and type of service you’re receiving. Here are some common examples of when a tip is required, as well as how much to tip. And note that if you visit less-wealthy parts of the world that are tourist hot spots for Americans, tipping is also extremely important (especially in local currency, if possible).
Food service
If you’re eating in a sit-down restaurant, and having your drinks, meal, and dessert brought to you by a server, yes, you absolutely need to tip (I hope I don’t need to say this). In this instance, a tip of 15% to 20% is just fine. The same goes for getting a drink in a bar (but you could opt for a tip of $1-$2 per drink).
For food delivery, aim for 10% to 15% of the bill. And for food delivery apps like DoorDash, 100% of the tip goes to the driver. I often tip higher if the weather is awful, too.
If you’re picking up takeout or getting a simple cup of drip coffee, I’d err on the side of not tipping. If the barista created a fancy frozen drink for you, however, maybe tuck $1 in the tip jar on the counter.
Traveling
Did a hotel porter muscle your bags up to your room for you? Give them $1-$2 per bag hauled. It’s also nice to leave a few dollars per day for hotel housekeeping.
If you use taxis or ride-hailing services, tipping is a great way to show your appreciation (along with that five-star rating). Just like restaurant service, 15%-20% is a good target to aim for.
Valet parking is another service it’s nice to tip for. Give the valet $2-$5 when you get your car back.
Personal services
If you’re getting your hair cut or a manicure, tipping is a wonderful way to show your appreciation for a job well done. Note that the tips might be pooled and split between everyone who helped you (for example, the person who washes your hair as well as the stylist), and tip 15% to 20% of the cost of your treatment.
If you’re getting a massage, make sure you tip the massage therapist too. And yes, 15%-20% is appropriate here as well.
Some professionals don’t work for tips — or the tip is included
If you’re working with a professional who earns a salary (as opposed to hourly pay that may be well below minimum wage, in the case of restaurant staff), you don’t have to tip. It might be a bit awkward if you try tacking a tip onto the fee your accountant charges for filing your tax return, for example. If you appreciate the work they’ve done, you can certainly send a card or perhaps a gift.
Going back to restaurant service, it’s a good idea to review your bill carefully, as in some cases, a tip will be included, and you don’t need to add extra (but you certainly can if you feel the service went above and beyond). This is often the case when you’re dining out with a larger party (such as six or more people), and it makes sense — servers spend a lot more time and energy waiting on big groups of diners, and shouldn’t have to worry that they’ll be undertipped or stiffed altogether.
Use tipping to show how much you appreciate the person
The holiday season is a great time to put more gusto into your tips. If someone makes your life easier by delivering your dinner when it’s snowing, or gives you a fantastic updo for your company’s holiday party, show your appreciation. Giving can even make you happy — according to the American Psychological Association, studies have shown that behaving generously toward others causes greater interaction between the parts of our brains associated with pleasure and processing social information.
So take tipping seriously, and if you’re fortunate enough to be paid well without relying on the generosity of those you help with your work, be grateful.
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