3 places people say they never tip amid 'tipflation': ‘It’s out of control’ (2024)

Some Americans are becoming stingier with their tipping habits.

As living costs continue to soar, cash-strapped consumers are opting out of gratuities for hair stylists, waitstaff, rideshare drivers and other service workers.The percentage of Americans who always tip their server is steadily declining, for example, down to 65% this year from 77% in 2019, according to a recent Bankrate survey of more than 2,000 adults.

Many also feel added pressure to tip amid the rise of automatic tipping prompts on self-service kiosks and apps, NerdWallet's consumer budgeting report found.

As of June, non-restaurant employees in leisure and hospitality jobs — workers who wouldn't historically collect tips — made an average of $1.25 per hour in tips in June, up 30% from four years ago, according to payroll provider Gusto.

Amid the "tipflation" debate, where are consumers tipping the least, or skipping gratuity altogether? To find out, CNBC Make It asked three New Yorkers which services they never tip on — and what etiquette experts recommend in each scenario.

Saad Kabir, a recruitment coordinator at New York City Public Schools, says he "always" tips at least 20% when he dines out, as he believes servers deserve the added compensation for delivering food and bussing tables.

But with takeout orders, he's more inclined to skip the tip. "If I'm going to go and pick up the food myself, I can't [tip]," the 25-year-old says.

An etiquette expert's take: There are several factors you should consider before skimping on gratuities for a takeout order, including how big the order is and how long it took to prepare, says Thomas Farley, an etiquette expert known as Mister Manners.

If it's fast food or you're grabbing a pre-packaged item from a shelf, Farley says you don't need to tip. But in other cases, especially if the order is for more than one person, you should leave at least a 10-15% gratuity.

Some people might not tip Uber or Lyft Drivers on principle — or because the fare is expensive — but for Haley Truchan, the reason is far simpler: She forgets.

"That's something I should tip 20% on, but I'm bad at tipping on Ubers because it's an extra added step," the investment consultant explains. "Once I get to my location, I don't always remember to log back into the Uber app and tip."

Tipping, in general, has gotten "out of control" in the U.S., the 24-year-old adds, especially in New York, which is already one of the most expensive cities in the country. "I like to save money as much as I can living in Manhattan."

An etiquette expert's take: When you're paying for a taxi or rideshare, you're paying the price of convenience, and your tip should reflect that, says Farley. Even if the cost of the ride is higher than you anticipated, $3 to $5 is standard, he says, or around 20% of the total cost, whichever is higher.

If Yonas Haile encounters a rude worker or feels pressured to tip, he's more inclined to skip the gratuity.

"I never tip on bad service," says Haile, a small business consultant. "I also don't feel comfortable tipping when someone is expecting it too much ... or if someone is forcing the tip and talking about it."

An etiquette expert's take: If you felt the service was subpar, you can tip less than you normally would, but don't skip a tip entirely unless the experience was "truly dreadful," Diane Gottsman, founder of The Protocol School of Texas and a nationally-recognized etiquette expert, says.

What's more, "letting the company or worker know of your dissatisfaction, or that you're unhappy with their attitude, is within your right as a customer," Gottsman adds. "It's important to have a good experience if you're going out and spending money."

Take your business to the next level: Register for CNBC's freeSmall Business Playbook virtual eventon August 2 at 1 p.m. ET to learn from premier experts and entrepreneurs how you can beat inflation, hire top talent and get access to capital.

DON'T MISS: Want to be smarter and more successful with your money, work & life?Sign up for our new newsletter!

Check out:

Etiquette expert: The No. 1 place people still tip 20%—even though they don't have to

The No. 1 place where Americans forget to tip but should 'always' leave at least $3, from an etiquette expert