Confused About When to Tip?

Key Takeaways

  • There are different expectations when it comes to tipping, depending on the service, and this can create some confusion.
  • While there are some situations in which you should always tip, there are others where it’s completely optional.
  • Read on for some guidelines to help you in day-to-day tipping situations.

Over the past few years, it’s become common to see tip jars at coffee shops. You may even frequent one that uses an iPad for credit card transactions, in which case you’re likely familiar with the suggested tip amounts listed next to the line where you sign your name with your finger. If you decline to add a tip, you may feel some level of guilt about it.

But what’s the expectation here? A recent money.com article discussed tipping etiquette, and it helps clear up some confusion. According to the etiquette expert in the article, purchasing coffee is a transaction and therefore doesn’t require a tip. Tipping in this situation is completely optional – perhaps the barista had your “usual” ready for you as soon as you walked in the door, or maybe there were two tip jars out, each labeled with a different TV show, song, or movie, and you felt like using your change to “vote” on your favorite. You may choose to do this on occasion, but you don’t need to feel obligated to tip every time you buy a cup of coffee.

Of course, there are situations where you always tip. You likely know that waitstaff are paid a very low hourly rate (a little over $2/hour). They rely on tips, with the rule of thumb being 15% to 20%, or a little more for great service. For food deliveries, you can expect to tip between 10% – 15%.

If you’re staying at a hotel and you ask the concierge a quick question or two, there’s no need to tip. However, if he or she sets up a nice dinner reservation for you or helps you locate tickets to a show, then it’s customary to tip $5 to $10.

For taxis, plan to tip between 15% – 20% of your fare. If you had luggage the driver helped you with, or if he or she had to wait for you or make a stop along the way, consider going with the higher end of that range.

The article does caution that not tipping when you should, because you’re feeling cheap or are struggling to pay for the service or meal, isn’t an option. If this is the case, then you’re going to want to consider alternatives that either don’t require tipping (public transportation instead of a taxi, for example), or are more budget-friendly (such as eating at a less expensive restaurant). So take into consideration whether you’re going to need to leave a tip, and look at that total expense to help you decide which route to go. Until next time, enjoy.

Gary has provided wealth management services to clients for over 30 years. He is credentialed in financial services with practical experience in all areas of finances and money. He is the author of Changing the Conversation, Wealth of Everything, and co-author of The Business Battlefield.

He is genuinely interested in getting to know the person in front of him. Who are they? What’s most important to them? Where do they want to go in life? Whether he’s advising clients, mentoring his team, or coaching entrepreneurs, Gary is always simplifying complexity and motivating others to take the next action that’s right for them.

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