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Need to know / USA

A guide to tipping in America

So, you innocently think that that's the cost of your no cream iced caramel soya latte frappe. Think again.

Tipping, wherever you are in the world, can be awkward and confusing. In America, the awkwardness is turned up to eleven, especially for outsiders.

Here’s our quick guide to tipping and tax in the States. Which will hopefully spare you a few blushes when popping into town on your summer camp days off.

How much should you tip in the USA?

Everything in America is bigger, right? The cars, the national parks, and the tips. Whatever you’re used to tipping, you probably need to add on a few more percent in the States. Different places come with different tipping expectations but as a rule, 20% tip for good service will keep you off the naughty list.
Stick with these general rules for tipping and save yourself those post-meal, pre-payment sweats:

  • Restaurant: at least 18%.
  • Table-service coffee shop: a few dollars or round up the order.
  • Bar: at least $1 for every drink you order.
  • Counter-service coffee shop: tipping is optional.
  • In a takeaway: tipping is optional.
  • Taxi drivers: at least 10% of fare or a few dollars for short journeys.

Some places will include a suggested tip on the bill, which is great if you’ve completely forgotten how to work out percentages. Which let’s face it, yup.

Why is tipping so expensive in the USA?

For travellers not accustomed to a tipping culture, it can feel odd handing over ‘extra’ dollars voluntarily, but American service is an art form. Staff work hard and many don’t get paid above minimum wage – with tips helping to top up their pay. So, try not to think of it as an expensive extra. Think of it as a charge for the sunny-side-up service you’ve just received, which, to save us all the pain of doing quick maths, should have been included in the bill in the first place.

What happens if you don’t tip in the USA?

We don’t know. We always tip. It’s the right thing to do. Maybe you go onto a ‘No Dine List’ which prohibits your entry into all diners. Or, the next time you dine, you get 18% less of the food. Either way, for a few extra bucks, we’re not willing to find out.

Is service charge the same as a tip?

Oh no young grasshopper, it is not. Some restaurants might stick a service charge of between 10% and 20% on the bill, often for larger groups, to cover operational costs. Weirdly, this may not go directly to the servers.

What is service tax in the USA?

We know what you’re thinking, shouldn’t this section come with a content warning? Things are about to get sexy. Service tax, also known as sales tax, is money added to the sale of goods and services. It varies between states. It will likely be between 2.9% and 7.25%. But most states will include a sales tax onto the subtotal of your bill.

Right, that’s enough tips about tips. Tipping in America can be confusing but there’s no need to fear it. Accept it. Embrace it. Become the tip. One day, after Summer Camp, you might be working in a New York bar and be swimming in tips (whilst explaining the above to dollar-shy out-of-towners).

A person's belonging beside a lake in the sun

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"Things are about to get sexy. Service tax, also known as sales tax, is money added to the sale of goods and services."

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