You're probably tipping all wrong - here's what experts recommend

Tipping used to come up only when you were at the salon or sitting down to a meal wondering how much to order so you could both stretch your restaurant budget and make sure the server gets the extra cash they deserve. But, now, it seems that tipping is everywhere. According to a Bankrate 2025 survey, 63% of Americans hold at least one negative view of tipping culture, and most of us have no idea when we should actually tip.

As Cody Schuiteboer, president and CEO of Best Interest Financial says, the question often comes down to, "Am I buying something tangible, or am I just paying to relieve guilt because some screen told me I should?" He adds that consumers may be spending up to $150 in unnecessary tips annually.

Wondering how to navigate the seemingly constant changes in tipping culture? Here's what the experts say you need to know now.

1. Always tip at restaurants

It probably doesn't come as a surprise that tipping at restaurants is expected. This is one place where you should never skip the tip, and Schuiteboer recommends that people go into a restaurant dining experience budgeting for the tip.

"I recommend people to leave themselves a little bit of budget space in order to tip well where it is deserved," says Schuiteboer, adding that those employees are relying on tips while performing a discretionary service.

2. Consider tipping at coffee shops

Coffee shops are often the place you'll hear people complain about. They wonder why they're paying an extra dollar or more when it's just coffee. But Schuiteboer and Melanie Musson, finance expert at Clearsurance.com, both agree that it's a good thing to consider tipping at a coffee shop.

"This is a bit of a gray zone: for regular drip coffee no tips are required, but for any special drink, for a barista knowing your order, or for a smaller coffee shop, a tip is a good choice to make," says Schuiteboer.

Musson adds, "A tip per drink is appropriate. For example, you might tip $1 per drink. If you're picking up four drinks, tip $4."

3. Tip on auto services, only if they went above and beyond

You might see a tip screen pop up when you pick up your car from the mechanic, but you don't necessarily need to tip, particularly if it was a standard oil change. Schuiteboer explains, "The labor was calculated in price already and included into the itemized invoice with a corresponding markup."

However, he says that an exception is if you'd like to tip cash to a mechanic who went out of their way to help you, whether it was squeezing you into a packed schedule or meeting you roadside to get you back up and running. "This is when it's a discretionary service, and $10-$20 there will be well-spent," says Schuiteboer.

4. Don't tip on retail purchases

Anything that's a retail purchase does not need a tip, even if the option to add one appears. This includes movie tickets and airport newsstands. "An airport newsstand selling you a magazine and a bottle of water is a regular retail purchase," says Schuiteboer. "Tip screens in the airport newsstands are a classic example of tip creep."

5. Don't feel pressured by the tip options

Have you ever looked at a tip screen and seen options for 20%, 22%, and 25%, and wondered what happened to 10%, 15%, and 20%? No, you didn't miss some cultural reckoning on tips. This is just someone who decided to see if they could get a bit more for their employees (or themselves).

"Please keep in mind that 25% presets on iPads are purely a merchant decision, and not some moral test to pass," says Schuiteboer.

6. Don't get caught in the double tip trap

Before you tip on a restaurant meal, make sure you're not going to pay 20%...on a number that already includes the 20%. Depending on where you are or the size of your party, some restaurants will include gratuity in the bill. If you're not careful, you could end up double-tipping (though, especially with a big party, the server may deserve every penny!).

7. Don't tip fee-based professionals

There are actually situations where tipping can be seen as unethical. Schuiteboer explains that lawyers, accountants, doctors, and other professionals who work on a set fee should not receive tips since they've already accounted for their full payment. If you feel they went above and beyond, simply write them a note or write a public review.

However, Musson notes that you can give professionals like teachers cash gifts at the holidays or end of year. This isn't a tip necessarily, but an acknowledgment of their hard work.

8. There's an exception to fee-based professionals and tipping

Schuiteboer notes that plumbers and tradespeople can be an exception to the no-tipping for fee-based professionals rule. "Tipping is not expected, but giving 10 to 20 dollars to the crew as a gratitude for performing emergency work or a hard job is a nice gesture."

9. Eer on the side of tipping when you can

No one wants to feel guilty because they didn't tip. And, in most questionable "Do I or don't I?" cases, the tip is probably just a few dollars, whether it's a tip screen that pops up after you've been handed a cookie or the option to leave a little cash on a bar after ordering a glass of wine. In those situations, err on the side of a tip. You'll feel better for it, and the employee on the other side will always appreciate it.

Bottom line

Looking ahead, the One Big Beautiful Bill Act's "no tax on tips" provision for 2026 means that those looking for a way to make extra money could benefit more from looking into tipped work. There won't be tax on tips, and you'll keep more money in your wallet at the end of the day. And, if you're on the other end of the spectrum, wondering whether this means you'll pay more for the same services, rest assured that consumers won't pay more.