A recent survey by WalletHub suggests that an escalating tipping culture has left nearly 90% of Americans frustrated, a significant upturn from the roughly 75% who expressed similar sentiments just a year ago. The survey assessed the public sentiment around the custom of rewarding service providers with extra cash, painting a picture of pervasive irritation and confusion surrounding when and how much aditional money to give.

Analyst Chip Lupo from WalletHub articulates the issue to Food & Wine saying, "In the traditional sense, tipping was mostly confined to sit-down restaurants, bars, and hair salons. It's vastly different now, basically everywhere we look there is a place you are expected to leave a tip. This ubiquity is fueling growing frustration as individuals struggle to determine which services warrant a tip, and how much."

If the survey results serve as any indicator, it is evident that Americans are growing weary of the constant onslaught of tipping opportunities.

The survey also discovered social pressure to be a compelling factor, with more than half confessing they tip from a sense of social obligation rather than to reward excellent service.

Inflation and rapidly rising grocery prices have further added to the changing landscape of America's tipping culture, as some 60% of respondents assert businesses are starting to offset or supplement employee income with tips. An interesting statistic, given that the federal base pay for tipped employees stands at a scant $2.13.

That said, 83% of respondents believe that automatic service charges should be axed, and nearly a third admit to leaving a smaller tip when faced with a prompt on a digital tipping screen.

Critiquing the changing norms, Lupo elucidates, "The essence of leaving a tip is for exceptional personal service. It seems remiss to extend this habit to a cup of coffee handed off a counter or a takeout bag passed through a drive-thru window. The survey participants expressed frustration with these invasive tipping screens and said they might avoid leaving a tip or reduce the amount they give."

Interestingly, almost half the respondents would prefer to replace tipping altogether with an employee rating system. Still unsure when it's appropriate to tip? Lupo advises tipping for services, especially at restaurants and hair salons, in addition to showing monetary gratitude to hotel staff, rideshare and taxi drivers, as well as housemaids.  

The survey participants also explored taxation on tips, potentially a hot button issue, with over 25% stating that tips should continue to be taxed as income. This despite the tax breaks vowed by ex-President Donald Trump on gratuities. Lupo cautions that eliminating such a tax could potentially introduce a myriad of problems and queries about taxable income in the service industry.

As Lupo clarifies, "While 'no tax on tips' sounds attractive, the potential consequences of such a policy need to be carefully examined."

Roughly 200 participants took part in this online survey, with normalization of results by gender and income to mirror national demographics. Responses were gathered over a four-day period in early February of this year. The future of tipping remains uncertain and largely a question of personal judgment.