Tipping in the USA: A Guide for Australians
Not sure how much to tip in America? Here’s a simple guide to navigating the US tipping culture — and why it pays to carry US dollars before you fly.
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In the United States, tipping isn't just a polite gesture — it's an essential part of the service industry. For many hospitality workers, tips make up a significant portion of their income, and in some states, minimum wage laws assume tips will supplement base pay.
This can feel very different for Australians, who are used to staff being paid a standard wage regardless of gratuity. As a result, many Aussies find tipping in the US confusing or awkward — especially when it's unclear whether it's required or how much is appropriate.
Understanding the expectations upfront can help you avoid embarrassing moments or unintended offence during your trip.
Before your trip, make sure you’ve sorted your travel money — the easiest way is to exchange AUD to USD online with 0% commission and collect it from the airport before you fly.
Where and when you’re expected to tip
Tipping practices vary, but here are the most common scenarios where a gratuity is expected — and how much you should plan to leave.
- Restaurants: 15–20% of the pre-tax bill is standard for table service. Some bills may include a "gratuity" automatically, especially for larger groups — check before tipping extra.
- Bars: Tip $1–2 per drink or 15% of your tab.
- Taxis and Uber/Lyft: 10–15% is customary for drivers.
- Hotels: Tip $1–2 per bag for porters, $2–5 per night for housekeeping, and $5 for valet parking.
- Other Services: Hairdressers, tour guides, spa therapists, and others often expect tips of 10–20%.
Plan ahead and factor these tips into your travel budget to avoid surprises.
How to tip: Card or cash?
Paying tips in the USA can vary — and knowing when to use cash or card can help you avoid stress and extra fees.
In restaurants, you’ll usually be given the option to add a tip on the card terminal or receipt. However, for other services — especially taxis, hotel staff, and small businesses — cash is the preferred (or only) method.
That’s why it’s a smart move to carry small denominations in USD. Tipping with a card might work in major cities, but cash gives you flexibility and avoids foreign card transaction fees.
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Budgeting for tips: How much cash should you take?
While every trip is different, here’s a rough guide to estimate your tipping budget:
- Short city stay (3–5 days): Budget around USD $50–100 in tips.
- Longer holiday (1–2 weeks): Plan for USD $100–200, depending on how often you dine out or use services like taxis and tours.
- Family or luxury travel: Add more for additional services like luggage handling, valet parking, or guided experiences.
Be sure to bring a portion of your budget in small cash denominations to make tipping seamless.
With Prosegur Change, you can order your USD online and pick it up at the airport — trusted by Prosegur with 30+ years of experience in global travel money services.
Common mistakes Aussies make with tipping in the US
Avoid awkward situations and unnecessary costs with these simple reminders:
- Thinking tipping is optional: In the US, it’s expected and part of the service model.
- Tipping too little or too much: Know the standard rates to avoid embarrassment.
- Not carrying any cash: Not everyone accepts card tips.
- Assuming it will be added automatically: Always check the bill before walking away.
A little preparation goes a long way when it comes to showing appreciation and staying within your travel budget.
Still unsure? Here are some of the most common questions Australians have about tipping in America.
Questions Aussies often have about tipping in the US
While technically optional, tipping is expected in most service situations and considered rude if skipped without reason.
Yes, but it’s uncommon. If service is truly poor, speak with a manager first — they may resolve the issue or remove the tip suggestion.
Try to carry small bills for everyday tips. In many cases, especially outside major cities, cash is still the easiest way to tip.
It’s not required, but it’s becoming more common to leave a small tip for counter service — around $1–2 if you feel the service was helpful.
Final tips for a smooth (and polite) experience
Tipping in the US doesn’t have to be confusing. With a bit of preparation and the right amount of USD in hand, you’ll be able to navigate American tipping culture confidently — and politely.
Reserve your USD online with Prosegur Change and enjoy 0% commission, excellent rates and airport pick-up before your flight. Trusted by Prosegur with 30+ years of experience, we make it easy for you to travel well-prepared.
