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Americans over the ubiquity of tipping these days, but that hasn't stopped them from giving generously to reward good service.
Consumers spent an estimated $77.6 billion on tips for food purchased at restaurants, bars and other eateries in 2023, according to a new by LendingTree. The analysis, which draws on the most recent government data available, gives readers a snapshot of how much Americans tip and in which states they tip the most.
Perhaps not surprisingly, LendingTree found that tipping rates tend to be higher in states where people eat out more. LendingTree also looked at which Americans around the country drop the biggest tips.
New Hampshire residents are the No. 1 tippers in the country, according to the LendingTree study. On average, they leave a gratuity of 16.07% of spending on food away from home — falling within the standard range of 15% to 20% tips at restaurants. New Hampshire's average tipping rate is four times that of the nation's lowest tipping state, which is Utah at 4.09%.
But that's not to say Utah residents are stingy. As LendingTree points out, average tipping rates hinge on how much people in each state spend on food outside the home — that includes full-service restaurants as well as fast-food place and even vending machines. In other words, not all food that's consumed outside the home is purchased at establishments where tipping is common.
"If people in one state tend to dine at full-service restaurants far more often than those in another state, it stands to reason their overall percentage spent on tips would be higher," LendingTree Chief Consumer Financial Analyst Matt Schulz wrote in the study.
Tipping in the service industry has recently come into focus with the "No Tax on Tips" — a provision baked into the GOP spending bill that would for workers who earn less than $160,000.
If passed, "No Tax on Tips" could offer relief to the 4 million people in the U.S. who work in tipped occupations, about 2.5% of all U.S. workers, to the Yale Budget Lab.
