If you grumble silently every time you’re faced with the tip screen after tapping your card, phone or smartwatch at a checkout, you’re not alone. In a clear sign that fatigue is hitting home, nearly half of respondents to a new survey said they don’t interrupt as much as they used to.
You can even say that we have reached the peak. (Sorry, sorry.)
Tipping goes beyond giving a few bucks to the bartender or bellhop. The increased adoption of technologies such as PayPal and Square and the rise of the contactless payment epidemic mean that the dreaded tablet tip screen is now accompanied by an ever-expanding menu of activities. But it appears that customer frustration, along with ongoing concerns about inflation and affordability, is reducing public pressure to tip.
While nearly two-thirds of respondents to a survey by restaurant technology provider Popmenu reported feeling pressured to leave a tip even when service was poor, 44% also said they left less tips this year compared to last.
These include 35% who receive less money at restaurants, 24% who have combined their tips for grocery deliveries, and 19% each who have reduced money for taxis or rides, hotel reservations and car repair services. And 18% said their stylist or barber cut their hair when it came to tipping this year.
At the same time, one-third of respondents said they’ve seen restaurants hike tip prices, contributing to what Brendan Sweeney, Popmenu’s founder and CEO, calls “emergency fatigue.”
“This is combined with customers who have little money that can be used due to the increase in the cost of food, energy and other needs,” he said in a statement released by the news.
Of all people, 59% of people said they felt responsible for learning, down from 66% six months ago.
Popmenu’s data confirms this dynamic concept. It found that the percentage of people who tip 20% to restaurant staff has dropped by 4 percentage points since the September 2025 survey. The number who tip their drivers 20% has dropped by 8 percentage points over the same period.
Service workers were caught in the middle
As tipped workers face these trends, they also face new tax breaks that may be less than their definition might suggest.
In response to President Donald Trump’s 2024 campaign promise to eliminate taxes on tips, the One Big Beautiful Bill passed by Congress last July included a “no tax on tips” provision. The IRS promulgated, and then changed, the definition of what professions and roles qualify. (You can check the full list of those who are eligible here.)
Although the nonpartisan Urban-Brookings Tax Policy Center estimates an average benefit of nearly $1,400 for eligible employees who are offered the tips, its experts question the policy’s effectiveness.
“It would be much easier – and less feasible and less risky – to continue receiving tax tips as regular income,” they wrote, noting that unscrupulous employers may game the current system. “Employers may simply reduce the wages of workers, making a profit for themselves.”
Some researchers have been more blunt in their assessment. A report by the Economic Policy Institute found that most tipped workers won’t see close to four figures.
“The majority of workers, including the majority of workers who have been given advice, will not benefit at all from this policy,” concluded the left group.
The phrase “no tax on tips” is an oversimplification. There is a $25,000 cap on the amount of eligible tip income, and the income-based exit threshold kicks in at $150,000 for single filers ($300,000 for married joint filers). Deductions exclude tip benefits from all taxes; employees are still required to make payroll contributions that support Social Security and Medicare. They may also owe federal income tax, depending on where they live and work.
In addition, the deduction — like other new tax breaks included in OBBBA — is a temporary feature, set to expire after 2028 unless Congress extends it. And because the benefit is classified as a deduction instead of a tax credit, the 37% of trusted employees who don’t earn enough to pay federal income taxes will see no benefit at all.
More from Mali:
No Tax on Tips: How to Withdraw Up to $25K of Your Income
From Baristas to Organizers, These 68 Jobs Are Eligible for a ‘Tip Tax’
From New Deductions to Big Refunds, Here Are the 8 Biggest Tax Changes in 2026
