The 5 most and least generous tipping states…
Americans could also be feeling “tip fatigue,” but most are still leaving gratuities for a vary of providers — and where they live seems to form how a lot they provide, according to a new report.
South Carolina tops the checklist, with an average tip charge of 20.71%, making it the only state to surpass the 20% threshold, according to a report from JIM, an AI-powered financial platform for small sellers. It broke down tipping conduct across all 50 states.
More than 89,068 verified tipping transactions from 6,214 lively retailers in 177 business classes throughout 2025 have been analyzed to decide the states with the very best and lowest average tip percentages, a news release indicated.
(*5*) said Ricardo Cici, chief growth officer at CloudWalk, the Brazilian fintech company behind JIM.
“What is changing is where tipping shows up and what it means economically. We are seeing meaningful tip dollars flowing into higher-value services beyond restaurants, which has real implications for small operators who rely on fast, fair access to their earnings,” Cici said in a assertion.
Here are the 5 most and least ‘generous’ states when it comes to tipping. ViDi Studio – stock.adobe.com
Rounding out the top 5 are Wisconsin at 19.15%, Connecticut at 18.43%, Maryland at 18.40% and Nevada at 16.88%.
On the other end of the spectrum, Oregon ranks as the least generous state at 13.10% — adopted by Virginia at 13.58%, New York at 13.72%, Alaska at 14.11% and Illinois at 14.37%.
The average tip share nationally is 15.46%, falling within the long-standing 15% to 20% cultural norm, according to the report.
“Americans still gravitate toward the 15% to 20% standard, regardless of industry,” Ricardo Cici, chief growth officer at the fintech company behind the AI-powered financial platform that made the report, said. MargJohnsonVA – stock.adobe.com
The average tip worth is $12.44, with higher-ticket providers such as car restore, transportation and specialised personal providers often producing bigger greenback quantities than restaurant tabs.
Barber and magnificence retailers rank among the very best for tip share at 17%, while sure personal providers, such as tattoo and pet care suppliers, pattern even increased, the report discovered.
Meanwhile, on a regular basis classes like eating places, fast food and transportation sometimes fall between 14% and 16%.
But specialists warning against deciphering state rankings as merely a measure of generosity.
“Before we label certain states as ‘more generous,’ we need to level the playing field and understand the wage structure behind the data,” said Jessica Hart, an MBA and California-based HR guide at Hart Consulting, who specializes in the alcohol industry.
The average tip worth is $12.44. Backcountry Media – stock.adobe.com
Hart, who wasn’t concerned in the analysis, factors to the federal tipped minimal wage of $2.13 per hour, which is still used in states such as South Carolina. Under federal law, employers in those states will pay employees $2.13 an hour as long as ideas convey them up to at least the usual minimal wage.
Other states, including Oregon, don’t permit a tipped minimal wage at all, requiring employers to pay the full state minimal wage before ideas.
“That difference dramatically influences consumer behavior,” Hart told Fox News Digital.
“When customers know — culturally or explicitly — that a server is earning $2.13 per hour, tipping becomes less of a reward for service and more of a wage subsidy. … The guest understands they are helping close a compensation gap,” she added. “In states where servers earn full minimum wage plus tips, gratuity feels more discretionary.”
“The guest understands they are helping close a compensation gap,” Jessica Hart, an MBA and California-based HR guide, said. SASITHORN – stock.adobe.com
California etiquette skilled Lisa Mirza Grotts told Fox News Digital that the psychology around tipping is shifting, particularly as digital fee screens immediate prospects to tip more than ever before.
“Tipping fatigue is real — not because people have become less generous, but because the social rules have blurred,” Grotts said.
During the COVID-19 pandemic, gratuities helped help employees who depended on them, Grotts said. “The crisis passed, but the digital prompts remained,” she famous.
“A tip is meant to acknowledge service — [it’s] not simply a screen that swivels around requesting 25%,” Grotts said. “Quite simply, a gratuity is a voluntary thank you.”
Inflation and rising menu costs also play a function, specialists say.
Even when tip percentages stay regular, increased payments imply increased ultimate totals, which shoppers are feeling at checkout.
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