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Which U.S. states tip most? A new study breaks down gratuity rates across the country. - CBS News

Published 1 day ago2 minute read

By

Mary Cunningham

Reporter, MoneyWatch

Mary Cunningham is a reporter for CBS MoneyWatch. Before joining the business and finance vertical, she worked at "60 Minutes," CBSNews.com and CBS News 24/7 as part of the CBS News Associate Program.

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/ CBS News

  • Nevada: $6,752
  • Hawaii: $6,628
  • California: $5,072
  • Massachusetts: $4,626
  • Colorado: $4,579
  • New York: $4,424
  • Rhode Island: $4,412
  • New Hampshire: $4,224
  • Washington: $4,182
  • With the federal minimum wage for tipped workers set at $2.13 an hour, many workers in service jobs such as waiters, hairdressers and bartenders lean heavily on tips to subsidize their income. Even with tips, they still may not reach the standard minimum wage of $7.25, in which case employers are required to step in and make up the difference, accoriding to the Fair Labor Standards Act.

    Tipping in the service industry has recently come into focus with the "No Tax on Tips" — a provision baked into the GOP spending bill that would remove federal taxes from tips for workers who earn less than $160,000. 

    If passed, "No Tax on Tips" could offer relief to the 4 million people in the U.S. who work in tipped occupations, about 2.5% of all U.S. workers, according to the Yale Budget Lab. 

    Mary Cunningham

    Mary Cunningham is a reporter for CBS MoneyWatch. Before joining the business and finance vertical, she worked at "60 Minutes," CBSNews.com and CBS News 24/7 as part of the CBS News Associate Program.

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