American Tipping Culture Under Pressure as Dissent Rises, Especially Among Younger Generations

A growing sentiment of discontent is challenging the long-standing norms of tipping in the United States, according to a recent national survey. Data released from Bankrate’s annual Tipping Survey, conducted from April 23-25, 2025, indicates a notable increase in the number of Americans who perceive the country’s tipping culture as having become excessive.

The survey found that 41% of respondents held this view, a significant rise from 35% just one year prior. This growing unease extends beyond a simple feeling of excess, with approximately two-thirds of all Americans surveyed expressing at least one negative sentiment regarding tipping practices. A prominent sentiment among these respondents is the belief that businesses should take greater responsibility for their employees’ compensation by paying higher wages directly, rather than relying on customer tips to supplement income.

Generational Divide in Tipping Habits

The Bankrate report also highlights a distinct divergence in tipping habits across different age demographics, revealing that younger generations tend to tip less frequently than their older counterparts. This generational gap is evident across various service sectors.

For instance, when it comes to tipping hair stylists or barbers, the survey data shows a stark contrast: only 25% of Gen Zers reported consistently tipping for these services, compared to 45% of Millennials. In sharp contrast, 67% of Gen Xers and a substantial 71% of Baby Boomers reported consistently tipping their hair professionals. This suggests a significant shift in expected practices or financial priorities among younger adults.

Similarly, the data on tipping at sit-down restaurants, traditionally a stronghold of American tipping culture, reveals a similar pattern. The survey indicated that 43% of Gen Zers and 61% of Millennials reported always tipping when dining in. This lags significantly behind older generations, with 83% of Gen Xers and 84% of Baby Boomers reporting that they consistently tip in sit-down restaurant settings.

Understanding the Shift

The reasons behind this evolving perspective and behavior are multifaceted. Economic factors, such as inflation and the rising cost of living, may contribute to consumers feeling more pressure on their personal finances, leading them to re-evaluate discretionary spending like tips. Simultaneously, there has been a perceived expansion of where tipping is expected, often referred to as “tip creep” or “tip fatigue,” with requests appearing in unexpected retail or service environments.

Younger generations, having come of age during periods of economic uncertainty and with potentially higher student loan debt, may approach tipping differently than those who established financial habits in earlier decades. Their comfort with digital payment systems also sometimes integrates pre-set tipping options, which can influence decisions, though the Bankrate data suggests a general trend towards less frequent tipping among these groups in traditional scenarios.

Furthermore, the conversation around fair wages and worker compensation has gained prominence, particularly among younger demographics. The sentiment that businesses, rather than consumers, should bear the primary responsibility for paying a living wage appears to resonate strongly with many, aligning with the survey finding that a significant portion believes businesses should pay higher wages instead of depending on tips.

Implications for Businesses and Workers

The findings of the Bankrate survey carry potential implications for both businesses and service industry workers. For businesses, a decline in consistent tipping could necessitate a re-evaluation of compensation structures, potentially leading to increased menu prices to fund higher base wages, implementing service charges, or exploring alternative payment models. For workers who rely heavily on tips, particularly in sectors like restaurants and personal care services, these changing consumer attitudes and behaviors could impact their overall income stability.

The ongoing debate surrounding tipping culture reflects broader discussions about wage fairness, consumer expectations, and the economic dynamics of the service industry in the United States. As younger generations become a larger part of the consumer base, their preferences and attitudes are likely to continue shaping the future landscape of compensation and customer interaction in service-based economies.