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5d ago

U.S. Tipping Rates Rise Slightly as Trump Proposes Tax Exemption for Gratuities

A Bankrate survey finds 63 percent of Americans now hold negative views of tipping culture.

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Data: Toast; Map: Alex Fitzpatrick/Axios
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Overview

  • Full-service restaurant gratuities rose slightly to 19.4 percent in the first quarter of 2025, up from 19.3 percent in late 2024, according to Toast.
  • Delaware diners lead the nation with an average tip of 22.1 percent at full-service establishments; West Virginia and New Hampshire also top 21 percent.
  • California and Washington report the lowest full-service tipping averages at 17.3 and 17.8 percent, respectively.
  • Pre-entered tip suggestions are fueling customer fatigue, with 38 percent of diners finding them annoying and 27 percent tipping less when presented with preset options.
  • President Trump’s proposal to exempt tips from federal income tax has drawn backing from some labor unions and critique from economists over potential revenue impacts.