Americans may be feeling “tip fatigue,” but most are still leaving gratuities for a range of services — and where they live appears to shape how much they give, according to a new report.
South Carolina tops the list, with an average tip rate 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 behavior across all 50 states.
More than 89,068 verified tipping transactions from 6,214 active merchants in 177 business categories throughout 2025 were analyzed to determine the states with the highest and lowest average tip percentages, a news release indicated.
AMERICANS ARE FED UP WITH TIPPING CULTURE, YET MANY STILL SHELL OUT 20% AT RESTAURANTS
“Tipping behavior is evolving, but one thing is consistent. Americans still gravitate toward the 15% to 20% standard, regardless of industry,” 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 statement.
Rounding out the top five 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% — followed by Virginia at 13.58%, New York at 13.72%, Alaska at 14.11% and Illinois at 14.37%.
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The average tip percentage nationally is 15.46%, falling within the long-standing 15% to 20% cultural norm, according to the report.
The average tip value is $12.44, with higher-ticket services such as car repair, transportation and specialized personal services often generating larger dollar amounts than restaurant tabs.
Barber and beauty shops rank among the highest for tip percentage at 17%, while certain personal services, such as tattoo and pet care providers, trend even higher, the report found.
Meanwhile, everyday categories like restaurants, fast food and transportation typically fall between 14% and 16%.
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But experts caution against interpreting state rankings as simply 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 consultant at Hart Consulting, who specializes in the alcohol industry.
Hart, who wasn’t involved in the analysis, points to the federal tipped minimum wage of $2.13 per hour, which is still used in states such as South Carolina. Under federal law, employers in those states can pay workers $2.13 an hour as long as tips bring them up to at least the standard minimum wage.
Other states, including Oregon, do not allow a tipped minimum wage at all, requiring employers to pay the full state minimum wage before tips.
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“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.”
California etiquette expert Lisa Mirza Grotts told Fox News Digital that the psychology around tipping is shifting, especially as digital payment screens prompt customers to tip more than ever before.
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“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 support workers who depended on them, Grotts said. “The crisis passed, but the digital prompts remained,” she noted.
“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 prices also play a role, experts say.
Even when tip percentages remain steady, higher bills mean higher final totals, which consumers are feeling at checkout.
