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Tipping Rates Diverge Sharply by State as Trump Proposes Tax Exemption

Recent data highlights how a flat $2.13 federal wage leaves service workers dependent on tips in a climate of growing consumer fatigue

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Data: Toast; Map: Alex Fitzpatrick/Axios
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Overview

  • LendingTree found New Hampshire led states by tipping 16.07% of away-from-home food spending in 2023 while Utah, Mississippi and Idaho recorded rates below 5.1%.
  • Toast’s first-quarter 2025 report shows Delaware topping full-service restaurant tips at an average of 22.1%, with West Virginia and New Hampshire following at 21% or higher.
  • Full-service restaurant tipping edged up from 19.3% in the last quarter of 2024 to 19.4% in the first quarter of 2025, while quick-service restaurant tips remained steady at 15.8%.
  • A Bankrate survey finds 63% of Americans hold negative views of tipping, with many citing annoyance at pre-entered digital prompts and growing living costs.
  • President Donald Trump’s proposal to exempt tips from federal taxes has drawn support from labor unions and industry groups but faces criticism from economists over potential revenue losses.