💰 How to Navigate Today's Tipping Culture and Rules (AARP Article)

[Winter2025VA]

FROM THE ARTICLE.

The New Rules of Tipping.

Gratuity prompts are popping up everywhere. Here’s how to navigate today’s norms.

By Cameron Huddleston, AARP. Published December 16, 2025.

If you’re feeling pressured to tip at more and more places and in higher amounts, you have plenty of company.

Two-thirds of consumers report a sense of obligation to tip when prompted at checkout to add a certain percentage to their tab, according to a September survey by Popmenu, a restaurant technology platform. And 3 in 4 Americans say tipping is expected at more places than in the past, a 2023 Pew Research Center survey found.

USE LINK BELOW TO READ THE ARTICLE.

https://www.aarp.org/money/personal-finance/navigate-tipping-culture-rules/

[Karyn8]

 This article should visit the custom of what to tip in light of their new tax exempt status. 15% seems adequate since the recipient doesn't pay tax on tips which started this year.

[WebWiseWoman]

Keeping in mind that many states still tax tip income, so we should all check our state tax laws and keep that in mind regarding tip amount, imo...

[Karyn8]

 I thought all states have no tax on tips after the Big Beautiful tax Bill

"Tipped workers in the U.S. could see significant changes to their taxes after Congress approved President Trump's legislative agenda on Thursday. This week, the GOP-controlled Senate and House narrowly passed the One Big Beautiful Bill Act — a massive spending and tax package that creates limited and temporary tax exemptions for tips, among other tax cuts."

[WebWiseWoman]

The new law actually isn't "no tax on tips" per se; it provides:

• Federal Income Tax Deduction: Eligible employees and self-employed individuals can claim an "above-the-line" deduction for up to $25,000 in qualified tips.
• Payroll Taxes Still Apply: Tips are still subject to federal Social Security and Medicare (FICA) taxes, which employers must continue to withhold and remit.
• State and Local Taxes: Depending on the state, tips may still be subject to state and local income taxes.
• Income Limits: The deduction begins to phase out for taxpayers with a modified adjusted gross income (MAGI) over $150,000 (single filers) or $300,000 (married couples filing jointly).

hth

[Karyn8]

 Thanks for the clarification