A guide to tipping in the United States: how much to give and to whom
Tipping often confuses visitors from countries outside the United States where tipping isn't common. Who do you have to tip and how much? Below, we share a guide on common tipping practices in the U.S.
Nova Credit is a cross-border credit bureau that allows newcomers to apply for U.S. credit cards, phone plans, and loans using their foreign credit history.
We and all of our authors strive to provide you with high-quality content. However, the written content on this website solely represents the views of the authors, unless otherwise specifically cited, but doesn’t represent professional financial or legal advice. As we cannot guarantee the accuracy or completeness of the published articles or sources referenced, please use the information at your own discretion.
Tipping often confuses visitors from countries outside the United States where tipping isn't common. Australians often don’t tip as much, for example, because the minimum wage in Australia is higher, at about $13 per hour. In the U.S., in contrast, the minimum wage for employees who also earn tips is $2.13 an hour. For those who don’t, it’s $7.25. Your tips will help make up for their low pay.
But who do you have to tip and how much? Below, we share a guide on common tipping practices in the U.S.
Are tips mandatory?
While tipping is generally not mandatory in most of the U.S., it is customary in many circumstances for service. However, note that if you see the words “gratuity included” on your bill, you’re not expected to pay a tip: as a service charge, automatic gratuity is mandatory.
You are typically expected to tip on the pretax amount rather than the full bill although the latter is a nice bonus. On a large bill, the difference can add up, especially in places where there is a high local sales tax.
Who should you tip?
As a general rule, you should tip anyone who works in the service sector—that is, any employee who provides you with a service that helps you. Servers work hard for the money and generally friendly and knowledgeable.
Examples of service providers who are usually tipped include:
Waiters
Bartenders
Hotel concierge and any other concierge worker
Doormen
Bellhops (people who bring your luggage to your hotel room)
Tour guides
Hairdressers or hairstylists
Manicurists
Food delivery people
Do note, however, that you shouldn’t offer tips to everyone. In some industries, workers aren’t allowed to accept gratuities. For example, government workers, educators, U.S. postal service mail carriers, flight attendants and certain fast-food workers aren't allowed to accept tips.
Over 100,000 recent newcomers trust Nova Credit
Subscribe to our newsletter for the latest tips and information on setting up life in the U.S.
How much should you tip at a bar or restaurant?
Generally, tipping 15% to 20% on top of the bill before sales tax is standard, with 25 percent given for exceptional service. If you’re paying with a credit card, you can leave the tip on the credit card.
If you’re just getting draft or bottle beer, $1 or $2 a drink is generally acceptable, but for fancier drinks, consider tipping 20% or $2-$3 per drink.
If you’re buying a morning coffee, the bill is usually gratuity free, although you may see a tip jar near the cash register and opt to throw in a couple of dollars as a gesture of thanks.
If you have food delivered, try to tip at least $5 (more if the weather is bad).
What about tipping taxi drivers, manicurists, hairdressers or bellhops?
For drivers, manicurists and hairdressers, 15 to 20% is typically deemed a reasonable tip. Bellhops should receive $1 -2 per bag they carry.
The takeaway
For more resources on how to navigate your new life in the U.S., visit Nova Credit’s resource library where you can learn about the immigration process.
Use your foreign credit history to start your U.S credit history
New to the U.S.? Check if you can use your country's credit history in the U.S. to apply for credit cards and start your U.S credit history using Nova Credit.
More from Nova Credit:
The ultimate guide to the F-1 visa
The ultimate guide to the H-1B visa
The ultimate guide to the J-1 visa
The ultimate guide to the L-1 visa
The ultimate guide to the O-1 visa
How to check your USCIS case status
How to build credit after moving to the US
How to get a social security card
How to get an apartment with no credit history
No credit check cell phone plans
How to immigrate to the United States