The Worst Tipping State Is On The West Coast ... Again

California is the nation's economic powerhouse, representing 14.5% of total GDP, according to 2025 data shared by Visual Capitalist. If California was its own country, it would have the fourth- or fifth-greatest GDP in the world. This is thanks to the powerful combo of agricultural activity, Silicon Valley, and Hollywood's TV and movie industry. With all this wealth, you would naturally expect big, fat tips from patrons when they grab their morning coffee or go out to eat. Actually, the opposite is true: California ranks as the lowest-tipping state.

This revelation comes from Toast, which reported that on average, tips in the Golden State represent 17.2% of the customer's bill. This is based on data from Q4 of 2025, and it has remained the same since the previous quarter.

Delaware, on the other hand, has the nation's highest average tipping rate at 21.8%, so this appears to be somewhat of a West Coast-versus-East Coast thing. The surrounding West Coast states rank slightly higher than California, with Oregon and Arizona at 19.1% and Nevada at 18.3%. The Upper East Coast has a concentration of states that tip closer to an average of 20%; Maryland and Connecticut, for example, both averaged 19.2%.

California is a wealthy state, but it's also a very expensive state. According to data from World Population Review, it has the second-highest cost of living in the U.S., right after Hawaii. After paying $90 for a bag of groceries and several thousand dollars in rent, Cali residents might feel resistant to tapping the 25% tip option (which may soon be the new normal) for their $20 avocado toast and $7 latte. It's not just fancy brunches, either; California is also home to the most expensive fast food. Frustration over the increasing cost of living and suggested tip amounts doesn't make one feel particularly generous, even if an establishment provides generous service.

The Golden State also has one of the country's highest minimum wages at $16.90, and in California, tips can't be considered part of the minimum wage. While it's nice that restaurant workers have a higher guaranteed base pay, the business must take on increased labor costs. Profit margins are already incredibly thin within the industry, so this might incentivize eateries to increase their menu pricing. Customers aware of the state's comparatively high minimum wage and its tip credit law may also not feel pressure to tip as much.

While on the surface, it feels ironic that California has the lowest average tip percentage, it actually makes a lot of sense. There are plenty of arguments for abolishing tips, so it's possible that we may see more gratuity-free restaurants in low-tipping states.