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Have you ever wondered if you tipped too much or too little after ordering a meal or getting a haircut? When tipping expectations vary from situation to situation, it can be easy to second-guess the amount you give or whether you needed to tip at all.
From restaurants to ridesharing, knowing when and how much to tip can vary widely depending on the service, location, and personal preference. And as digital payment screens with suggested tip amounts become more common, we might even feel compelled to tip everywhere, which can lead to tipping fatigue.
Ahead, we’ll go over a few common scenarios where tipping is expected, along with the generally accepted amounts. The goal here isn’t to avoid tipping or to tip as little as possible. It’s to help you make informed decisions when it comes to tipping, so you can reward exceptional service without going over budget.
Expenses like dining out, beauty care, or ridesharing can take up a large portion of your monthly budget. When planning your spending, it’s important to account for gratuity by creating a few personal tipping rules.
For example, you might decide that at the sit-down restaurant you go to for celebrations, you’ll give 20%-25%, but when you grab a to-go sandwich at the local deli, you’ll only tip a couple of dollars in cash for great service. By sticking to a few simple rules like these, you could avoid those awkward moments of indecision when it comes time to pay the bill.
Besides what your budget allows, tipping generally depends on the experience, location, and service you receive. And while there’s no gold standard for tipping, you might consider the following guidelines next time you add gratuity to a bill.
The one place where tipping is a non-negotiable is at a sit-down restaurant. It’s important to remember that many servers and bartenders rely on tips as part of their compensation.
Typically, the tip is a percentage of the pre-tax total, and it could range from a standard 15% for acceptable service up to 20% or more for an exceptional dining experience. But before adding a tip, take a look to see if an automatic gratuity has already been applied to the bill. When you’re dining with a large group or paying the tab for an event, like a formal reception, it’s not uncommon for restaurants or venues to add an automatic gratuity.
If you’re just grabbing a quick drink at a cocktail bar before a night out with friends, consider using a flat amount like $1 per beer or $2 per cocktail. You might also want to consider carrying cash, particularly in small bills, so you don’t have to worry about miscalculating percentages.
Ordering a hot meal or a full bag of groceries when you don’t have time to cook or head to the market can be convenient. Whether you’re ordering from a local restaurant or using a third-party app to have food delivered, make sure you allocate at least $5 for the driver. But you may want to tip more if there’s bad weather or if they’re handling a particularly large order.
Keep in mind that grocery delivery drivers may often have to act as a personal shopper and put in more effort to help you find specific items, so tipping anywhere from 15%-20% of the total order is generally recommended.
When you book a hair, beauty, or nail appointment well in advance, you should make room in your budget for gratuity ahead of each service. In addition to the 15% to 20% gratuity given to each stylist or technician, you might want to set aside enough cash to tip any assistants who help prep, shampoo, or style you.
If you receive a facial or massage at an all-inclusive spa or resort, tipping might already be rolled into the total cost of the service and therefore not expected (or even allowed). It’s a good idea to ask about the tipping policy when you book your service.
Whether it’s a work trip or family vacation, travel always requires planning ahead, and this includes building out your tipping budget. From small bed & breakfasts to luxury resorts, the hotel staff are responsible for ensuring your stay is smooth and enjoyable. And rewarding their hard work can go a long way toward receiving personalized attention.
How much you should tip depends on who you’re interacting with. Consider these general guidelines:
Helpful tip: Because hotel shift schedules vary, you might not interact with the same staff member daily. So, it can be a smart idea to keep cash on hand so you can tip them right away instead of waiting for the end of your stay.
If you rely on rideshares or taxis to get around or use them while traveling, remember to include the tip when estimating your budget. This is especially helpful since the cost of fares, surge pricing, and gratuities can add up quickly.
As a general rule, you should tip taxi and rideshare drivers around 15% of the fare, but if the driver helps with multiple bags or navigates a complicated pickup/drop off, you might consider tipping closer to 20%.
How much should you tip movers? Whether you’re relocating across town or across the country, moving expenses can add up quickly, that’s why it’s important to allocate funds for tipping into your moving budget. And while there isn’t a clear rule on how much to tip your movers, anywhere from 10%-20% of the final bill is recommended.
But perhaps even more important than how much you tip is remembering to tip each crew or individual mover separately. For example, if the crew that loads your belongings onto the truck is different from the crew at your destination, then you’ll want to make sure to tip them both. In this situation, handing out cash at the end of the day would be appropriate.
In addition to spreading good cheer, the holidays are a perfect time to show your appreciation to those who consistently helped you over the year by giving out a seasonal “bonus.”
From dogwalkers and babysitters to personal trainers and house cleaners, make a list of everyone whose services you use regularly and for how long you’ve used them to help determine who you should tip.
When deciding how much to give, consider using the “up to” method. For example, depending on your budget, you might give a housecleaner up to the cost of one visit, while a babysitter might receive up to one session’s or one week’s pay.
And if you live in an urban area or a big city and want to give a “thank you” to your apartment building staff, cash is often recommended. There are no hard-and-fast rules here: The suggested amounts can vary widely depending on the type of apartment building you live in and the staff member’s position.
For instance, staff working in luxury apartment buildings tend to see bigger year-end tips on average, as they provide high-level concierge service to tenants (e.g., hailing cabs, delivering dry cleaning, arranging repairs, etc.).
But generally speaking, you may consider these broad ranges as a starting point:
If the idea of gifting cash feels impersonal during the holidays, adding a handwritten card or note is a great way to show how much you appreciate someone’s help all year.
Generally, it’s important to understand that not every payment screen requires a tip, especially in self-service situations. And don’t forget to check your receipt for automatic gratuity or service fees—ask how that charge is distributed before adding more.
If you have any international travel plans coming up, make sure you research local tipping customs before you sit down to your first post-flight meal. In some countries, tipping may be modest, included in the bill, or even considered rude, so understanding expectations is key to avoiding any confusion.
If a situation where tipping may not be expected, there are other ways you can thank someone for their hard work and exceptional service without having to add an extra line in your budget.
For example, you stop by a small gallery to pick up a housewarming gift for a friend. While leaving a tip isn’t customary in this situation, you can leave a positive review or share a picture of your purchase online. This way, the artist feels appreciated for their craft, and your review can potentially help bring them new customers.
Bottom line: With some simple planning and a few personal tipping rules, you can show appreciation for excellent service while staying within the limits you’ve set for yourself.
This article is for informational purposes only and is not a substitute for individualized professional advice. Articles on this website were commissioned and approved by Marcus by Goldman Sachs®, but may not reflect the institutional opinions of The Goldman Sachs Group, Inc., Goldman Sachs Bank USA, Goldman Sachs & Co. LLC or any of their affiliates, subsidiaries or divisions. Information and opinions expressed in this article are as of the date of this material only and subject to change without notice. You are not permitted to publish, transmit, or otherwise reproduce this information, in whole or in part, in any format without the express written consent of Goldman Sachs. This foregoing restriction includes, without limitation, using, extracting, downloading or retrieving this information, in whole or in part, to train or finetune a machine learning or artificial intelligence system.
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