How much should you tip in the US? And another money rule travellers should know

The US is similar to New Zealand in many ways, but when it comes to money there are some differences worth noting.

OPINION

Every time I travel to America, I go unprepared for culture shock. Unlike “obviously” foreign countries with different languages and customs, religions and politics, the US is just similar enough to Aotearoa to trick one into thinking things will be similar; something that, ironically, makes the differences all the more jarring.

Two such differences continue to catch me out, and a recent trip to Utah was no exception.

Seeking refuge from the bitter, snowy cold, I had ducked into a coffee shop in Park City’s historic Main Street, eager for a hot drink.

After joining the long queue, I counted out the exact change for a Lavender Earl Grey tea and, once at the counter, placed my order. However, I was quickly tripped up by the first difference; the price on the menu did not include tax, meaning I was a dollar or so short.

This isn’t unusual; most prices displayed on clothing tags, restaurant menus or pamphlets don’t include tax. Allegedly, this is to offer consumers transparency about the exact cost of an item, before tax influences the total.

For me, however, it is something that often causes me confusion when reviewing a cafe bill or shopping receipt. Fumbling with my now-insufficient coins and notes, I grabbed my credit card, only to encounter a second hitch.

After tapping in the amount, the gentleman behind the counter swivelled the card reader towards me but after tapping my card, I wasn’t shown an “Approved” sign but instead a tip screen with buttons for 20 per cent, 0 per cent or “Custom”. Flustered, I didn’t want to navigate a custom option and feared judgment for tipping nothing.

However, 20 per cent felt like a stretch for what was essentially putting a teabag in a cup of boiling water. Perhaps not if the server had been especially helpful or I received my drink in record time. But they had not and I was yet to even receive the service one typically “tips” in response to.

Nonetheless, I pressed the 20 per cent button, but felt far from happy about it. Less because of the amount or concept of supporting workers who rely on tips, but the lack of choice about it.

I’m not alone in the frustration. Since Covid-19, dozens of articles have called out “tipflation”, “tip creep” or “guilt tipping”, which describe the increased pressure to tip more in more circumstances. The phenomenon began during the pandemic when people tipped more than the standard 15 per cent to thank essential workers such as restaurant workers and food delivery workers.

Yet, the worst of the pandemic ended and tipflation has allegedly continued thanks to the rising use of card machines, which can be set to automatically ask for certain (high) tip amounts. While one has to “opt in” to use a tip jar, one must intentionally opt out of a digital payment system screen.

Something that can prompt feelings of shame, according to lifestyle and etiquette expert Elaine Swann.

“When they turn that device around, it’s this glaring thing, and people feel shamed into tipping,” Swann told CNBC.

As a result, 60 per cent of people in the US claim they are tipping more than ever, according to online finance company LendingTree.

However, Swann said people didn’t have to succumb to the pressure of tipping if they didn’t want to. This, as any visitor to the US knows, is easier said than done. Especially if you want to avoid being the “obnoxious tourist”.

For those who want a middle-of-the-road solution, there is a simpler way, and one that means your server gets the tip immediately and a cut isn’t taken by the POS machine company — cash.

Simply carry cash and even if you pay for something using a card, you can tip into the jars that typically sit beside cash registers. Plus, a bunch of $1 and $5 notes allows you to quickly and easily tip in other situations, such as a bellman carrying your bags to a hotel room or a tour guide walking you around a city.