Money Matters - Is Tipping out of Control?

 Nearly 9 in 10 Americans think tipping culture has gotten out of control, according to WalletHub’s 2025 Tipping Survey, released today. The survey asked when people believe they should have to tip, whether they feel pressured to do so, how they think gratuities should be split, and more. You can find highlights from the survey below.

Key Findings:

• Tipping Point: Nearly 9 in 10 Americans think tipping culture has gotten out of control.
  
• Passing the Buck: Nearly 3 in 5 Americans think businesses are replacing employee salaries with customer tips.
  
• Service Fee Ban: 83% of people think automatic service charges should be banned.
  
• Tax the Tips: More than 1 in 4 Americans think tips should be taxed (as they are now).
  
• Tip Suggestion Effect: Nearly 3 in 10 Americans tip less when they’re presented with a tip suggestion screen.
  
• Rate, Don’t Tip: 40% of people believe tipping should be replaced by an instant employee rating system so businesses can decide how much to pay their staff.
  
   

“Almost 9 in 10 people think tipping culture is out of control, according to a new WalletHub survey, and 83% of people think automatic service charges should be banned. Most people want to be generous, but they don’t want to be nudged or forced into generosity at every turn, especially when gratuity was truly optional in the past. You also have to remember that money is tight for most of us, thanks to inflation, high debt levels and stock market volatility. Not having enough money to make ends meet puts a natural limit on people’s ability to tip, and excessive tip requests can feel like taunting. What people really want is for businesses to pay their own staff, rather than passing the buck to customers. WalletHub’s survey found that 40% of people believe tipping should be replaced by employee ratings that influence what businesses pay workers.”    

- John Kiernan, WalletHub Editor



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