Tipping for services has always presented unique challenges. Digital tipping—a service that allows customers to tip using a point-of-sale system rather than cash—has exacerbated tipping fatigue and overall tipping confusion. And an uptick in digital payments—the total value of digital payments is expected to reach $4.36 trillion this year and continue to grow at an average rate of 11.8% thruough 2027, according to Statista—only adds to the complexity.

As we move further away from cash, are consumers keeping up with expectations? Are new digital tipping options and peer-to-peer services using POS systems adding confusion or convenience? Our 2023 digital tipping survey attempts to answer some of these questions and understand where Americans’ tipping habits stand in 2023.

Key Takeaways

  • Most people tip when it’s expected—95% of respondents said they tip at least sometimes, with 76% saying they tip always or often.
  • The majority of respondents say they tip an average of 11% to 20%.
  • Most people tip more when they leave a digital tip. Nearly 65% of people tip at least 11% more when they tip digitally versus with cash.
  • One in three people feel pressured to tip, while 18% feel uncomfortable about tipping.
  • Forty percent of people don’t think food truck workers should ask for tips, while 38% think tips shouldn’t be solicited at fast-casual restaurants.
  • Quality of service affects tip amount the most (72%), followed by personal budget (56%).

How Do Americans Tip in 2023?

In general, customers aren’t leaving service workers hanging. Most people reported always tipping, and 95% of people report tipping at least sometimes.

People aged 59 and older were the most likely to report that they always tip. Over 60% of people aged 59 to 77 reported always tipping, compared to only 33% of respondents aged 27 to 42. However, respondents 27 to 42 were the most likely of any age group to report tipping more than 25%.

Male respondents were slightly more likely to report always tipping—45% compared with 39% of female respondents. Nearly 40% of respondents who did not select a gender report always tipping.)

Americans tip 16% on average

Over half (57%) of respondents reported tipping an average between 11% and 20% of the price of a service, with a minority tipping more or less than that. Respondents between ages 27 and 42 were most likely to report tipping more than 25% on average, though that amount is rare among all age groups.

Men are about twice as likely as women to tip between 21% and 25%, while women are most likely to tip between 11% and 20%.

Quality of service has the biggest impact on tipping

Over 70% of respondents reported that the quality of service they receive impacts how much they choose to tip. Respondents’ personal budgets, wait times and level of complexity of the order make up the majority of other factors. Men (49%) are more likely than women (38%) to factor in wait time; and men (56%) are more likely than women (45%) to factor in complexity.

What impacts the amount of a tip varies quite a bit across age groups. Younger respondents, aged 18 to 26, are the most likely to say nothing impacts how they’ll tip, and the least likely to let wait times, quality of service or their personal budgets impact their tip. Respondents aged 59 to 77 are the most likely to set their tip based on the quality of service, with 86% saying it’s a factor in how much they tip.

32% tip more now than they did before the pandemic

The increased awareness in recent years around working conditions and pay for service workers has likely impacted how some people feel about tipping. About a third (32%) of respondents reported tipping more now than before the Covid-19 pandemic.

Another 28% tip less and 37% tip about the same now as before the pandemic.

32% tip less now than they did before inflation increased in 2021

The annual inflation rate of 8.2% in 2022 hit Americans hard in a lot of areas, but they’re split on whether it’s affected their tipping habits. About a third (32%) of respondents reported tipping less now than they did before recent price increases, while 27% tip more and 37% tip the same as before.

Americans Tip Nearly 15% More When Tipping Digitally

A vast majority of respondents (64%) reported leaving a tip at least 11% higher when they tip digitally compared with tipping in cash. It’s possible that buyers don’t feel the impact of a tip as much when selecting a tip amount on a screen versus pulling cash out of their wallet. Or they might simply be restrained to the amount of cash they have on hand when tipping in cash.

How Do People Feel About Tipping?

People feel a range of emotions about tipping. On average, respondents are about as likely to report negative feelings, such as pressure, discomfort and confusion, as positive feelings, such as happiness, excitement and gratitude.

Those responses hold across gender for the most part, though men are more likely than average to feel positive emotions about tipping while women are less likely than average to feel positive emotions.

Respondents aged 43 to 77 are much less likely than average to report feeling any strong emotions about tipping, and more likely to feel content or calm.

Services People Are Most Likely To Tip For

Across ages and genders, respondents were most likely to report tipping servers when they eat at a sit-down restaurant and least likely to report tipping movers (though the survey didn’t specify whether they use these services and don’t tip or simply don’t use the services). Men were more likely to report tipping for every service compared with women, except salons and spas.

Where Do People Think They Shouldn’t Be Expected To Tip?

Respondents on average were most likely to say they don’t think food truck workers should ask for tips, with fast-casual restaurants and picking up take-out food a close second and third—suggesting many diners associate tipping with table service, not food service in general.

Although men reported being more likely to tip and tipping more on average, they were also more likely than women to say service workers in most categories shouldn’t ask for tips.

Respondents aged 59 to 77 were far more likely than average (36%) to say child care workers shouldn’t ask for tips. Respondents aged 27 to 44—the most likely to be raising young children—were the least likely to hold that belief, with just 25% saying child care workers shouldn’t ask for tips.

Conclusion

People who work in service professions will be pleased to see that most Americans report tipping most of the time. They might be less heartened to learn that the economic and social upheavals of the past three years have done little to impact how customers feel about tipping.

One in three people are tipping more now than they did before the pandemic, but that leaves a majority who are tipping less or the same. And nearly three-quarters of customers still set their tip amounts based on the quality of service as well as factors outside of a service worker’s direct control, showing that many Americans have been unmoved by the cultural conversation about the working conditions for service workers and the inequitable minimum wage many service workers are subject to.

Digital tipping methods seem to encourage customers to leave higher tips, so making these more available and convenient anywhere workers accept tips could help increase their income

Methodology

To understand average American tipping culture and habits, Forbes Advisor commissioned a survey of 2,000 Americans by market research company OnePoll, in accordance with the Market Research Society’s code of conduct. The margin of error is +/- 2.2 points with 95% confidence. The OnePoll research team is a member of the MRS and has corporate membership with the American Association for Public Opinion Research (AAPOR).

Statista: https://www.statista.com/outlook/dmo/fintech/digital-payments/worldwide
Inflation rate https://www.statista.com/statistics/273418/unadjusted-monthly-inflation-rate-in-the-us/