Gen Z, or people aged 18-26 years old, are the least likely generation to tip, according to a recent survey by Bankrate. Only 35% of Gen Z respondents said they always tip when eating out at a sit-down restaurant, compared to 83% of baby boomers who said they always tip when dining out1. Gen Z is even less generous when it comes to hairdressers and barbers, with just 24% saying they add gratuity for haircuts and other styling. There are several reasons why Gen Z may be less inclined to tip. One reason could be lower incomes and overall lack of familiarity with tipping. Young adults may not be as familiar with tipping expectations and etiquette as older folks. Another reason could be that many young adults seem to have a social justice take on tipping. They believe that it’s not fair, and we shouldn’t be doing it. However, tipping is the lay of the land, so if you’re not tipping somewhere it’s expected (such as a sit-down restaurant), you’re hurting the individual worker, not the business.

Overall, the study noted a decline in tipping rates among Americans for all services. The percentage of adults who always leave a tip for restaurant servers, the most commonly tipped service, decreased by 10 percentage points in just two years, from 75% in 2021 to 65% in 2023. Similarly, the number of adults tipping hair stylists and barbers dropped from 63% to 53% during the same period.

The survey highlighted a perception among Americans that tipping culture has become excessive, with nearly 1 in 3 respondents believing it has gotten out of control in recent years. Older generations, despite being the best tippers, expressed the most frustration with the proliferation of tip screens in various establishments. Approximately 33% of Baby Boomers and Gen X people felt tipping culture had gone overboard, compared to 27% of Millennials and 22% of Gen Z people.

While Gen Z may be less likely to tip than other generations, this trend is part of a larger decline in tipping rates among Americans for all services. There are several reasons why Gen Z may be less inclined to tip, including lower incomes and overall lack of familiarity with tipping. However, it is important to note that many service employees rely on gratuities to make a decent living and that businesses should pay their employees better instead of relying on customers to bridge the gap with tips.

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