You always tip the delivery dude who brings your curry noodles. And of course you leave a gratuity in restaurants, adding a few extra bucks when the server really knocks it out of the park. But lately, even ordering a latte or a burrito bowl requires facing a tip screen, and sometimes you don’t even interact with a human at all! No one wants to appear cheap, but getting guilted into tipping at a self-checkout? No thanks.
How much to tip is a common dilemma, and it probably has you wondering how others deal with it where they live. Well, we happen to have the answer, and according to a new report by the payment app JIM, some states are definitely more generous than others. Ahead, we break down the findings of JIM’s Generosity Index to learn which states tip lavishly—and which ones cheap out after the Uber drives away.
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How did the report determine which states are the most and least generous with tips?
The report looked at nearly 90,000 point-of-sale tipping transactions at 6,214 businesses in all 50 states in 2025. Because JIM’s payment software is used primarily by small businesses and entrepreneurs, these merchants all had less than $100,000 in annual gross sales. From this proprietary data, JIM calculated the five states with the highest tipping percentage and the five with the lowest.
Which states are total cheapskates?
If you think you know which states have the skimpiest tippers, think again. There’s no real pattern to their locations, which span from the Pacific Northwest (and even farther!) all the way to the Northeast and Mid-Atlantic.
Here are the five states that made the bottom five, coming in with the lowest average tip percentage:
- Oregon: 13.10%
- Virginia: 13.58%.
- New York: 13.72%
- Alaska: 14.11%
- Illinois: 14.37%
Which states are the most generous tippers?
The most generous states are sprinkled around the country too. Behold, the states where residents open their wallets with abandon! The top spot’s average tip even exceeded the 20% “great tip” threshold, which is quite a feat.
Here are the five states with the best tippers, according to JIM’s data:
- South Carolina: 20.71%
- Wisconsin: 19.15%
- Connecticut: 18.43%
- Maryland: 18.40%
- Nevada: 16.88%
Is there more to the story?
Yes. While it’s fun to compare what our neighbors are doing around the country, there are solid reasons why some tippers are more generous. For one thing, wages for tipped employees vary a lot, with some states (like South Carolina) paying just $2.13 an hour, which is the federal minimum wage for tipped workers.
This rock-bottom number likely prompts tippers in the Palmetto State to tip at a high level to make up for the low base pay. But in other states, such as California and Oregon, employers are required to pay tipped workers that state’s minimum wage, which means these baristas already make $15 to $17 an hour—so tips might become an afterthought.
Beyond the wide pay and tipping discrepancies that exist between the states, there’s definitely something else going on with gratuities. Namely, we’re darn tired of it, and the feeling has an official name: tipping fatigue. In fact, a 2025 report from the consumer financial services company Bankrate found that 63% of Americans have a negative opinion of tipping.
How much do Americans tip in general?
According to JIM’s 2025 Generosity Index, the average tip for Americans is 15.46%, which is in line with the generally accepted range of 15% to 20%. Barbers and salons enjoy the highest tip percentage, at 17%, which makes perfect sense given the personalized care they provide (haircuts, color touch-ups, gossip sessions).
The average tip amount in the U.S. last year was $12.44, though car repairs and other specialized services garnered more than $20 per visit thanks to their higher overall totals. But for the most part, the average tipping point for many common services, like car rides and cafe food, lands between 14% and 16%, while more individualized transactions (think piercings, tattoos or a home repair for your wonky dishwasher) are a bit higher.
How much should you tip?
So how much is right? And when is tipping a must—or just a maybe? While tipping is embedded in American culture, not every transaction requires the customary 15% to 20% gratuity. Your best bet is to gauge the effort that went into the service you received and also remember that tipping is very much about context.
For example, it’s probably fine to skip the tip when grabbing a premade sandwich from the deli. But if your longtime hairdresser goes out of his way to squeeze you in before an important event, be generous with your dollars. Got a favorite local coffee shop you love to visit? Toss some extra singles in their jar. As for that Uber driver who smoked and sped through your neighborhood when you (nicely!) asked him not to, you’re well within your rights to leave him less.
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Reader’s Digest has published hundreds of etiquette stories that help readers navigate communication in a changing world. We regularly cover topics such as the best messages to send for any occasion, polite habits that aren’t as polite as they seem, email and texting etiquette, business etiquette, tipping etiquette, travel etiquette and more. We’re committed to producing high-quality content by writers with expertise and experience in their field in consultation with relevant, qualified experts. We rely on reputable primary sources, including government and professional organizations and academic institutions as well as our writers’ personal experiences where appropriate. We verify all facts and data, back them with credible sourcing and revisit them over time to ensure they remain accurate and up to date. Read more about our team, our contributors and our editorial policies.
Sources:
- Businesswire: “JIM’s 2025 Generosity Index Reveals How Americans Have Become More Selective With Their Tipping”
- Bankrate: “Survey: ‘Out of Control,’ ‘Pay Employees Better’ And Other Things Americans Say About Tipping
- U.S. Department of Labor: “Minimum Wages for Tipped Employees”
The post Do You Live in a Cheapskate State? A New Report Says These States Give the Smallest Tips appeared first on Reader's Digest.
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