Americans Are Tired of Tipping

The survey found a wide range of frustrations:

41% say tipping culture is out of control. 41% believe businesses should pay employees better instead of relying on customer tips. 38% are annoyed by digital payment screens that prompt for a tip—often before service has even been rendered.

Younger Generations Tip Less—and Less Often

Generational differences in tipping behavior are significant. The survey shows that Gen Z and millennials are much less likely to tip consistently across industries.

Who always tips their hair stylist/barber?

Gen Z: 25% Millennials: 45% Gen X: 67% Boomers: 71%

Who always tips at sit-down restaurants?

Gen Z: 43% Millennials: 61% Gen X: 83% Boomers: 84%

Even the size of the tip varies:

Only 16% of Gen Z and 30% of millennials usually tip 20% or more at restaurants. That compares to 40% of Gen X and 49% of baby boomers.

Tip Screens May Be Hurting, Not Helping

Digital tip prompts may backfire.

27% of Americans say they tip less or not at all when confronted with preset tip suggestions. Only 11% say they tip more because of them.

Interestingly, older Americans are more irritated by tip screens:

Gen X: 45% annoyed Boomers: 44% Millennials: 35% Gen Z: 27%

Tip screens don’t make me more generous—they just make me mad.” – Survey respondent

Expert Insight: Tipping fatigue is real, but don’t expect it to disappear,” says Ted Rossman, senior industry analyst at Bankrate. “The rise of apps and payment terminals has made tipping more visible—and more frequent—than ever.”

Businesses are capitalizing on the moment. Rossman explains that tipping allows employers to increase pay without raising menu prices or wages directly, shifting the cost burden to the customer.

Final Thoughts: Where Do We Go From Here?

This survey captures a growing disconnect: Americans are frustrated by tipping, but the systems encouraging it are more entrenched than ever. The tipping backlash—especially among younger generations—could spark real changes in how workers are paid and how customers interact with service businesses.

Source:

Bankrate Tipping Survey 2025 – Press Release (PDF)

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