More Americans—Especially Younger Ones—Turn Sour on Tipping

Tipping is leaving a number of Americans, especially GenZers, in an unhappy place.

The practice can be a prickly topic, and it’s getting under the skin of more consumers. As many as 41% of Americans recently surveyed feel that tipping culture has gotten out of control, up from 35% last year, according to a new report from Bankrate. Annoyance with pre-entered tip screens on electronic payment systems, which have become seemingly ubiquitous, is at 38%, up from 34% last year, the report said.

“We’re being asked to tip in all kinds of unconventional settings,” said Ted Rossman, senior industry analyst with Bankrate. “We’re being asked for tips at pick-your-own strawberry farms. Some people have reported being asked for tips at doctors’ offices. Some of this is pretty crazy.”

About two-thirds of Americans have at least one negative view about tipping and are of the opinion that businesses should pay their employees better rather than leave them to rely on tips. Congress is considering a budget proposal that could mean a tax break for some workers who earn tips.

“Businesses are hesitant to raise prices more than they already have but they are also looking for ways to funnel more money to their workers without having to foot the bill,” Rossman said. “So tipping has become kind of hidden surcharge of sorts.”

Tipping Levels Among Younger Consumers ‘Phenomenally Low’

Younger Americas are less inclined to tip frequently, according to Bankrate. The report said 25% of GenZers and 45% of Millennials, for example, always tip their hair stylist or barber, compared to 67% of GenXers and 71% of Baby boomers.

At sit-down restaurants, 43% of GenZers and 61% of Millennials said they always tip for service, versus 83% of GenXers and 84% of Boomers. Those attitudes can be partly attributed to younger people generally having less money, according to Rossman, but many also believe the practice is unfair to workers.

“These levels seem phenomenally low among the younger consumers,” Rossman said. “Tipping is part of the American way of life—it’s not going away anytime soon, as much as we may grumble about it.”

While more people are complaining about the practice, according to Bankrate, the percentage of Americans who always tip has stabilized after years of decline. 

“Overall, fewer people are tipping now than they were in 2021,” Rossman said. “But we have reversed some of the declines.”

The Bankrate report was based on a survey of nearly 2,300 adults conducted in late April.