Tipping In America: A Guide to American Tipping Customs

One aspect of the travel experience that often surprises travelers is the local attitude toward tipping. In some countries, it's an everyday practice, while in others, it's a cultural faux pas. Then there are those countries where tipping falls somewhere in between, leaving you wondering what's expected.

In this guide, we'll walk you through the tipping etiquette of America to help you navigate your visit smoothly. Additionally, we'll offer valuable tips on how to get USD in cash in America, so you can focus on soaking up the sights, sounds, and flavors without the stress of financial hiccups.

Is Tipping Expected in America?

Tipping in America is a deep cultural practice that is expected in many businesses and institutions. The culture of tipping in America is quite unique, and can lead to confusion and anxiety among visitors. Just as a general rule of thumb, consider tipping 15% to 20%.

Tipping in Restaurants, Bars, and Cafes

When dining out in America, you have some discretion to tip what you think is appropriate for the quality of service. It is acceptable to tip 15% of the bill. For stellar service, tipping 25% and up will brighten the day of your server. There are cultural debates in America about how much to tip for bad service. While some say that you should always tip 20% to support wait staff ("and not be a cheapskate"), others will argue that you can leave a tip below 15% if you were very dissatisfied with your service. Overall, American service tends to be cheerful and attentive, so tipping 15% to 20% should be the norm during your trip.

When visiting bars and cafes, tipping is customary at around 15% at sit down places. However, there are exceptions for shops that sell fast food or takeaway drinks. It is becoming more common for these shops to ask for tips at the checkout screen even though the staff did not conduct wait service other than take your order at the cashier. While there is a debate around this, it is not uncommon to leave little or no tip, especially if no service (only food/drink) was involved.

Nafinia Putra on Unsplash

Do You Tip Hotel Staff in America?

For hotel staff in America, tipping is expected by service staff. While it is uncommon to tip the front desk at check-in, you should tip a few dollars (around $2 to $5) when a porter handles you bags, a valet driver parks your car, or a housekeeper cleans your room.

Tipping Taxis and Tour Guides in America

For taxi drivers in America, tipping is common. Rideshare services, which allow you to leave tips within your smartphone app, have come to dominate this industry. You can follow the on-screen suggestions, although the 15% to 20% tip has been a historic benchmark.

Tour guides in America will expect a small tip for walking or driving tours, especially if the tour was informative and enjoyable. It is not a hard and fast rule, since you may have booked an all-inclusive tour with an online tour service (like TripAdvisor). It may be best to look at the guidelines in the tour description. Even if it is not expected, 15% to 20% will certainly be appreciated.

Practical Tips for Tipping in America

By following these tips, you'll optimize your cash transactions in America, minimize fees, and enjoy a smoother travel experience:

1. Withdraw Cash With a Travel Debit Card: Choose a travel debit card without international transaction fees that allows you to hold local currency and withdraw cash like a local. These cards typically offer fee-free ATM withdrawal allowances, making them a convenient and cost-effective option for accessing cash while traveling in America.
2. Stay Within Fee-Free Allowances: Many travel debit cards provide fee-free ATM withdrawal allowances per month. To avoid additional fees, try to stay within this allowance when withdrawing cash.
3. Opt for Local Currency Transactions: When making purchases or withdrawing cash in America, you'll be prompted to pay in USD or your home currency. Always choose to pay in the local currency (USD) rather than your home currency to avoid dynamic currency conversion (DCC) fees. DCC will result in terrible exchange rates and additional charges, so opting for local currency transactions ensures you get the best exchange rate.
4. Avoid Credit Card Cash Advances: Steer clear of using credit cards for cash withdrawals, as they incur cash advance fees and higher interest rates (APR). Cash advance APR is also higher than purchase APR.

Recommended Travel Cards for Fee-Free Cash Withdrawals Abroad

Compare the best travel debit cards without international transaction fees for your trip to America:

Wise Multi-Currency Account

With the Wise Account, convert currency at the mid-market exchange rate. Spend, hold, and convert between dozens of currencies with your debit card and never be asked to do a dynamic currency conversion. The only fees that they charge you for using ATMs abroad will come at 1.75% per withdrawal — and only after you've exceeded your $100 monthly withdrawal limit.

The Wise Account is available in the US, Canada, EU/EEA, the UK, Japan, Australia, New Zealand, and several other countries and territories.

N26

Available for EU and EEA residents to open, an N26 account will never charge foreign transaction fees. All Euro ATM withdrawals are fee-free, giving you free rein to travel the Eurozone. Outside of the Eurozone, ATM withdrawals cost 1.7% per withdrawal.

Starling Bank

The Starling Bank card is an excellent option in the UK for foreign travel. In addition to no foreign transaction fees, Starling Bank does not charge foreign ATM withdrawal fees. You might only be charged a third-party fee, just as you would in the UK.