Tipping at the Drive-Thru? Here’s How Much Americans Are Really Leaving

If you hate seeing a digital tipping screen at the coffee shop, you’re certainly not alone. Americans are reevaluating their approach to gratuity amid rising costs and tighter budgets, and some consumers might be reconsidering exactly where to tip — and how much. 

Americans spent $77.6 billion on tips in 2023, as based on the U.S. Department of Agriculture (USDA)’s most recent data. That’s according to LendingTree’s latest financial report, which analyzes highlights exactly how much Americans might be tipping on their next takeout order.

Of course, it all depends on the setting: Americans typically tip an average of 15.02% at full-service establishments, according to this study, while people are more likely to tip 6.75% at limited-service or self-service venues (such as fast-casual restaurants, cafes, and bars). 

Many consumers are carefully treading into an uncertain economic environment. Egg prices skyrocketed during the avian flu outbreak earlier this year, which forced some shoppers to carefully consider alternatives.

Meanwhile, the looming threat of tariffs on imported foods are making many Americans cost-averse and thus, keeping a tighter grip on their wallets. Last month, economists estimated that President Donald Trump’s tariffs could cost the average family a whopping $5,000 extra in price hikes. American tipping culture — and the increased prevalence of tipping opportunities — may add further fuel to the anxieties that everyday folks are facing. 

In the report, LendingTree focused exclusively on establishments where food is purchased to be consumed away from home, such as fast-food spots, cocktail bars, and vending machines. (Purchases at convenience stores and home-delivery food services were not included in the study.) The research team analyzed the USDA’s National Food Expenditure Series’ most recent data sets, particularly those that included food spending with and without tax and tip. 

Researchers then estimated the sales tax by using each state’s local tax rates and deducted that figure from the overall spending data. They regarded the remaining amount as the money spent on tips and calculated the percentage of total dining expenses allocated to tips. 

Here’s exactly how each state lines up.

This East Coast state has the best tippers

Some states are somewhat more likely to leave a tip than others. New Hampshire ranks first for the highest percentage of spending on tips. People in this Northeastern state typically dedicate 16.07% of their overall food expenditures to gratuity. Not far behind, residents of the District of Columbia allocate 12.65% of all out-of-home food spending to that tip. 

Other states spend closer to 5% on tipping

On the other end of the spectrum, diners in Utah tend to allocate less money for gratuity. Residents of the Beehive State set aside a mere 4.09% of their overall spending for tips, while diners in Mississippi allocate closer to 5%. Not far behind, Idaho residents typically spend 5.10% of their total bill on gratuity. 

Americans are dining out more these days

Meanwhile, Americans are increasingly opting for quick takeout dinners. LendingTree compares data from 2000, when the average American spent roughly half of their total food budget on restaurants. The USDA’s latest data from 2023 indicates that this share of overall spending has surged to 55.7%. 

Notably, this data also dipped slightly during the onset of the COVID-19 pandemic. In 2019, around 53% of Americans’ food budgets were spent on dining out, which fell to 48.3% in 2020. 

These states can’t resist takeaway

Across the country, diners in the District of Columbia spend the most on dining out. Per capita, residents of the nation’s capital spend an astonishing $10,291 on eating out each year. Meanwhile, residents of Nevada, Hawaii, and California also spend the most (per capita) on meals from restaurants and bars. 

In recent years, diners in Illinois have also chosen to order meals away from home. In 2000, residents spent 42.4% of their food budget on eating out—a percentage that gradually increased to 55.9% in 2023.