Americans might be feeling a bit of “tipping fatigue,” but most still tip for various services. A recent report indicates that the amount people tip can be influenced by their location.
According to a study by JIM, a financial platform using AI for small businesses, South Carolina takes the lead with an average tip rate of 20.71%, making it the only state to exceed the 20% mark. This analysis looked into tipping habits across all 50 states.
The study evaluated over 89,000 verified tip transactions from 6,200 active merchants in 177 sectors during 2025 to determine which states had the highest and lowest average tipping rates.
“While tipping practices are changing, one constant remains: most Americans prefer the 15% to 20% standard, no matter the industry,” said Ricardo Sisi, chief growth officer at Cloudwalk, the company behind JIM. He added that the landscape of tipping is changing, with more significant tips seen in areas outside restaurants, which impacts small businesses that depend on quick revenue turnover.
Wisconsin follows South Carolina in the top five states with an average tip rate of 19.15%, then Connecticut with 18.43%, Maryland at 18.40%, and Nevada at 16.88%.
On the other hand, Oregon ranks the lowest for tipping at just 13.10%, with Virginia at 13.58%, New York at 13.72%, Alaska at 14.11%, and Illinois at 14.37%.
Nationally, the average tip rate stands at 15.46%, which is right in line with the cultural norm. Typically, tips average about $12.44, although higher value services like car repairs and personal services often see more substantial tips than restaurant bills.
Barbers and beauty professionals generally receive about 17%, which is notably higher than tipping rates in more common categories like restaurants, fast food, and transportation, which hover between 14% and 16%.
However, experts caution against labeling states based purely on these tipping figures. Jessica Hart, a human resources consultant, notes that to fully understand the data, we must consider pay structures.
For instance, in some states like South Carolina, the tipped minimum wage can be as low as $2.13 per hour, allowing employers to pay less as long as tips make up the difference. Conversely, states such as Oregon do not permit a tipped minimum wage and must pay the full minimum wage.
Hart emphasizes that these wage policies deeply affect consumer behavior. When customers know that servers earn as little as $2.13 an hour, tips may feel more like a necessary supplement rather than purely a reward for service. In contrast, in states with full minimum wages plus tips, tipping appears more discretionary.
California etiquette expert Lisa Mirza Grotz suggests that changing attitudes around tipping stem partly from the digital payment systems that increasingly ask customers for tips. “Tipping fatigue is real, not because people are meaner, but because the social norms have blurred,” she explained. People found that tips were crucial during the pandemic, and even though conditions have improved, the expectation lingers.
She also pointed out that higher menu prices can affect tip amounts. Even if the percentage stays the same, customers will probably pay more simply because the bills are higher.
So, tipping is about showing appreciation—not just responding to a screen that seeks higher percentages. Consumers should understand that tipping is a personal gesture of thanks.
Experts agree that inflation and rising prices are also playing roles in this dynamic. A stable tipping percentage can still lead to higher costs for consumers when they check out.
