Even though I had visited the US before moving to live in Seattle, it took me a long time to understand how to tip for all the different services we use in our lives.
The pandemic also altered those rules when it locked us down in our homes.
In the Australia, the minimum wage is $19.84 per hour.
In the some parts of the US, the minimum wage is as low as $7.25 per hour.
It varies in different states. In Washington state it is about $13.50 per hour.
I would not call minimum wage in the US a living wage.
Service workers in the US rely on tips for that reason. You are below the poverty line if you are working for minimum wage only, for 40 hours a week.
When I left Australia in early 2015, you would only tip if service was exceptional. That tip would not be more than 10% and max out at $50.
People told me all sorts of things when I came to the US and most of it was cheap and didn’t take into account the fact that it wasn’t about buyers saving money but about workers getting a decent wage by supplementing minimum wage with tips.
This is how I tip in the US:
| Service | Quality | Tip (%) |
| > 15 mins (higher spend) | Poor (rare) | 15% |
| Good | 20% | |
| Exceptional | 21-30% | |
| < 15 mins (lower spend) | Poor | 10% Min: $10 |
| Good | 20% | |
| Exceptional | 21-35% |
One thing that has change in the pandemic is that I will tip a minimum of $10 to all delivery people. After speaking to many of them about what it costs them to pick something up and bring it to you, they make a loss if you are tipping in single digits. This is from a combination of using their own cars, living outside of urban areas so they have to drive here and fuel. You will also notice food apps like DoorDash do not optimise to save on fuel but to prioritise customers getting food fast and in queued order. Drivers can be sent from neighbourhood A to B and back to A for deliveries from the same restaurant.
These are some of the services you should tip for:
- Restaurants and bars;
- Hairdressers and beauty services;
- All spa services;
- Delivery services;
- Take away food and coffee;
- Packers and movers;
- Cleaners;
- Concierges;
- Room service;
- Car share services, taxis and private limousines; and
- Valets and porters.
Do not tip:
- Government officials, police, TSA and other gov workers;
- Store or supermarket workers;
- Tech support, Apple Geniuses and Internet service/installer people;
- Security guards; and
- Priests and other religious roles.
This list is not exhaustive.
Keep in mind that the cost of food, drink and most services is very low and they come with the expectation of tips. That is not a bad expectation. I would rather it operated like other countries but it doesn’t and Americans just know how to tip. Well, most do.
Don’t be cheap. Act socially.
Damana Madden 
Nice work explaining it. The only thing I wonder is how purchasing power compares between the two salaries. I always see items like groceries and clothes are a lot cheaper in the US so would that explain some of the difference between the two minimum wages?
Tips are built in to the system. The prices are still not equivalent if you add tips and minimum wage and counter in cost of living because they are based on the price of the product or service being given. Lower end restaurants will pay less gross to a server than fine dining.