How Much Should You Tip a Cab Driver?

Written by nickel - 34 Comments

Quick question… What’s the going rate for tipping cab drivers?

I ask this because I recently had an odd interaction with a cab driver. I took a relatively short, very simple cab ride that resulted in a fare of just under $22. Since I only had $20 bills, I gave him two of them and asked for $14 in change and a receipt. He handed me the change and then just stared at me without giving me a receipt. When I again asked for a receipt, he sort of furrowed his brow, then dug one out and handed it to me.

Perhaps he was just an odd, somewhat anti-social guy, but I got the feeling that he was somehow unhappy with the transaction. But why? I had tipped him 20%. And it’s not like he had done anything extraordinary — I only had a couple of small bags, and I tossed them in the back seat myself. He didn’t even bother getting out of the car at either end of the trip. I’ve noodled around on the web a bit looking for an answer, and it seems that the going rate is somewhere in the neighborhood of 15%.

So that brings me back to my question… How much should you tip a cab driver?

Published on January 18th, 2008 - 34 Comments
Filed under: Travel
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Comments (scroll down to add your own):

Maybe he was just exceptionally bad at math?

I usually tip at least $2 for short trips (as in under $8). Then I tip 15-20% depending on whether the cabbie helped me with bags. I’ve never had anyone react to my standard or big tips, one way or the other.
Comment by Lily — Jan 18th 2008 @ 10:09 am
Maybe he was just irritated at having to produce a receipt?
Comment by Scott — Jan 18th 2008 @ 11:03 am
Scott: I don’t think the receipt was the problem, in that he just did what all cab drivers do… He simply handed me a blank, business-card like receipt. No fuss, no muss.

Comment by nickel — Jan 18th 2008 @ 11:25 am
The tip amount sounds fine, but some cabbies hate changing larger bills - I think they fear they’ll end up with too many $20s and no change for future riders. Sometimes I’ll tell them right away that I only have $20s.
Comment by CF — Jan 18th 2008 @ 12:24 pm
Why should I tip a cab driver? I get in the cab, am driven to where I need to be, and I get out of the cab. What, exactly, has the driver done that is deserving of a tip?

Sometimes, at airports, the driver will pick up my bag and place it into the trunk. I do not ask the driver to do this, in fact, I ask them NOT to do it. Let me handle it. Please.

Unless the driver does something to deliver superior service, I don’t believe any tip is warranted.
Comment by C. Ward — Jan 18th 2008 @ 12:26 pm
If I had a lot of bags I would consider tipping as much a $5. When you think about it, we tip a server 20% for brining food and drinks to our table. Cab drivers open doors, load/unload bags, and transport us safely our destination (of course, not all of them do all three things). If you find one that does it well, reward them for it.
Comment by Frugal Dad — Jan 18th 2008 @ 12:48 pm
I think you did fine in terms of tipping but I think he may have been irked because he didn’t want two twenties, it’d be hard for him to make change later.
Comment by jim — Jan 18th 2008 @ 1:41 pm
I think you may be being too hard on him. There’s a good chance he didn’t hear/understand your request for a receipt, especially if you was concentrating on how much change you asked for back. Then he was surprised when you didn’t get out of the car, which is why he looked at you. Then when you asked again, it registered that you already had ask him, plus cabbies tend to want these transactions to go as quickly as possible. Unless he made a specific comment, I’d give the guy a break.

That being said, I usually go with 15-20%.
Comment by KR — Jan 18th 2008 @ 2:04 pm
20% is more than fair. As others have stated, 15-20% is standard with just about any service (assuming it’s good service), including cabbies, hair stylists, manicurists, wait staff, etc.

Maybe your cabbie was having a bad day. Maybe his back hurt. Maybe he didn’t like your face. I wouldn’t worry about it or try to read his mind. You did well considering that you did all your own lifting. Don’t let the guy intimidate you or ruin your day. More than likely, it had nothing at all to do with you.

Cheers,
Marjorie
Comment by A Writer and Her Money — Jan 18th 2008 @ 2:41 pm
I echo Lily’s response. I give around $2 for small fares (under $10), for larger fares, I usually tip around 20%. In your case, I probably would have rounded up and given him $5, but it’s basically the same.
Comment by Jason — Jan 18th 2008 @ 3:31 pm
pbpbphttt! That’s not atypical. One time we tipped a cabby 20% and as we walked away he stood on the curb yelling invective at us. We made no special demands of him and were not carrying luggage.

It’s just a scam to make you feel like a sh** so you’ll pony up some more.
Comment by vh — Jan 18th 2008 @ 5:51 pm
Tipping is a funny business. Why should someone get extra money just because they did their job? When I work my butt off by staying at the office for 14 hours, no one tips me. I’ve been “recognized” and given a promotion, AND had my pay cut at the same time. Tipping is an uniquely American thing, which has spread to other cultures that deal w/ American tourists. TIPS, by the way, TIPS was a way To Insure Prompt Service. I don’t know about you, but too many people think they are entitled to something when they don’t. When that happens, I make a point NOT to give them a tip. When a person genuinely does a good job, then yes, I would tip. It’s a cultural and personal thing. Do what makes you feel good. I tip 15% when I go to restaurants, my parents 10%, and some of my friends tell me they never tip at all when they go to certain restaurants. I mean, when was the last time you feel compelled to tip the minimum wage McDonald’s guy that cleans the table and dumps your trash? But when we sit in a “restaurant”, we’re suddenly compelled to give them money for doing that? Give me a break.
Comment by Alex — Jan 18th 2008 @ 6:17 pm
I am in Vegas right now, taking many, many cab rides. I round up and add a dollar, usually. One guy was very funny and chatty so I gave him a bit more (the fare was only $5 anyway). But I’ve had several that chat on their phones the entire time, which I consider rude and unprofessional. To me, that is lousy service, so I don’t tip them much at all.
Comment by lauraloops — Jan 18th 2008 @ 9:16 pm
Why tip someone for a job I’m capable of doing myself? I can deliver food. I can drive a taxi. I can, and do, cut my own hair. I did however, tip my urologist, because I am unable to pulverize my own kidney stones.
Comment by Dwight Schrute — Jan 19th 2008 @ 3:14 am
I think 15%-20% is enough. I only take cabs in the US once or twice a year, at the most, and I don’t understand why tips are required at all. In other countries I have been to where usually the fares are $1-$2, it is standard to count the coins they give back to make sure they didn’t shortchange you. Why is the US such an outlier here? One thing they all have in common is they are the scum of the earth. I think cabbies are the most worthless, dishonest people I have dealt with - and it’s the same all over the world.
Comment by Frugal Bachelor — Jan 19th 2008 @ 6:32 am
Speaking of tips–this is only slightly off-topic, I hope–has anyone else noticed restaurant servers changing amounts charged to give themselves a larger tip?

This has now happened to me three times. And I don’t think I’m a chintzy tipper…I never leave less than 15%, even if the service is mediocre, but the amount is usually 20%. This last episode, which I just noticed on the Visa bill, made me so mad I’m complaining to Visa and sending copies of the complaint and the receipt (which I happened to still have) to the restaurant manager.
Comment by vh — Jan 19th 2008 @ 11:37 am
I don’t like to tip them anything. They are usually jerks and don’t deserve a tip.

I’ve had the same problem as well with reciepts. When I do ask for one, they give me a blank ticket and I have to fill it out myself.
Comment by Mike — Jan 19th 2008 @ 11:38 am
Discussions like this make me so glad I live in Australia, where I’m not expected to use 20% of my spending money topping up the wages of underpaid service industry workers. Employers pay them less because tips are considered part of their pay, but it never makes the prices cheaper. Here we pay people properly and tip only for exceptional service. I don’t know anyone who’s ever tipped a taxi driver, because taxis are already so expensive. We usually leave some sort of tip for excellent service at a restaurant, but it’s not expected.
Comment by chosha — Jan 19th 2008 @ 12:40 pm
It may have been both the “large” bills and asking for a receipt. I once had a cabbie hand me several of the blank receipts when I asked for one. It turned out to be a blessing in disguise because other cabbies on the same trip (NYC) claimed they were out.
Comment by Penny — Jan 19th 2008 @ 1:26 pm
I usually round up to the next dollar, as long as the end amount on the fare is lower than .40. If it’s above that, I round so they get a dollar and change. I usually take short trips ($6-8), so I think that’s quite fair. If a cabbie is particularly helpful, or doesn’t need any directions, I might tip an extra dollar. Though, in my city there is currently a fuel surcharge ($1-2, depending on the week and gas price), so I sometimes don’t tip — because when you think about it, if their car gets, say, 20 miles to the gallon, and the cabbie does short trips in the city, they’re making probably about $8-10 more per gallon, and that more than covers the higher charge of gas.
Comment by Shana — Jan 19th 2008 @ 11:04 pm
A cabbie once told me he didn’t have change to give which would’ve resulted in about a 25% tip. Fortunately, I had the exact amount after using all my small bills and coins. Worked out well for me cause I didn’t have anything small enough for a tip.
Comment by Don — Jan 20th 2008 @ 1:22 am
It’s really interesting that I ran across this post today. My husband and I have been talking about cabbing expenses. I start work at five in the morning, we don’t have a car, the buses don’t run that early, and my lungs aren’t very good. My fare, including that stupid fuel charge, is usually between five and six bucks. I tend to give them ten dollars. My husband had told me that I was overtipping but I said that I didn’t think so. And the thing is that a lot of these cab drivers are RUDE or whine when I tell them where I need to go.

And now, I find out that I HAVE been overtipping. Maybe I’ll start paying less…
Comment by Misa — Jan 20th 2008 @ 1:53 am
Interestingly enough, I was in Las Vegas a few weeks back and the cabbie was pulling a bit of a tipping scheme.

He asked where we were from, and once we told him, said people from where we were from didn’t tip well.

It was a ploy for us to say, not true, we do tip well. And seemingly buck the trend and give him a big tip.

Watch out for stuff like that…tips can be their livelihood, but at your expense.
Comment by Colin — Jan 20th 2008 @ 8:12 pm
I have friends in the industry, and I can tell you two things: 1) you tipped enough, and 2) the driver you had is probably illiterate and was afraid you were asking him to WRITE a receipt. Note that other commenters mentioned often being given blank receipts by drivers, which they had to fill out themselves. Illiteracy in quite common among taxi drivers. Before you folks assume someone is being rude to you, take a moment to remember that there are millions of adults in America (yes millions) who don’t have basic reading and writing skills. Sometimes (gasp!) it’s NOT all about you!
Comment by Lynn — Jan 21st 2008 @ 11:13 pm
Lynn: Actually, I always assumed that they were trying to do people a favor by giving them a blank receipt that can be filled out for reimbursement of whatever amount they wish. Not that I would claim more than I paid, but I’m sure that there are those among us who would.

Comment by nickel — Jan 21st 2008 @ 11:17 pm
To those up in arms about tipping:

There is an attitude that a tip is some kind of undeserved bonus, when it is actually part of, not in addition to, the price you are paying for the service.

Would it be a better world if Olive Garden, instead of expecting tips, simply charged an additional, non-negotiable 15% premium on your meal and passed that amount to the wait staff? Maybe. But then you would lose the discretion that allows you to reward exceptional service and penalize poor service.

We don’t tip McDonald’s employees, because their customer service practices and pricing structure has evolved in such a way that the fixed prices of their meals produce the revenue necessary to compensate employees without relying on tips.

There is certainly room to debate the practicality and economic efficiency of the gratuity system, but the “I’m a computer programmer and no one pays me tips!” argument ignores the real issue, which is that employees will be compensated one way or another.

That being said, if the whole world quit tipping, hourly wages, and thus meal prices, would rise to compensate. Also: in a world that tips, those who tip are paying they way of those who do not.
Comment by Matt Schonert — Jan 22nd 2008 @ 12:27 pm
Lynn: Is it nickel’s fault that a person doing business in an predominantly English-speaking society can’t communicate well with his clients? A person living in the States who lacks English skills and business etiquette should expect to be misunderstood in social and business situations.

We can be understanding toward those who lack basic literacy without faulting the customer for being taken aback by the driver’s forgivable, but nevertheless odd, behavior.
Comment by Jon — Jan 22nd 2008 @ 2:29 pm
I just started working as a limo driver in Vegas. A 20% tip is fine. Some clients are great and tip more - some are from other countries or areas that just do not tip as well as others. It is very true. With them 10% is a huge deal. I have no way of taking credit cards or printing reciepts. We run into all kinds of people during our shift. We never know if the person will be mad, sad, or glad. Your guy was probably just tired. At the end of the night all I have are $20’s and a dirty car to clean. Then I walk to my car and hope not to get mugged. I take my own money (change) to work that I get on the way in each day. Sometimes people jump out and don’t pay. I get paid $0 per hour. My take (without tip) is about $10 commission of the $40 to $60 fare. The airport takes $5 for every pickup we take. And the company had to raise the fuel surcharge to $4 because gas is so freaking high - drivers get none of that. I have to wait 1 to 3 hours to get one fare. So far I have averaged about $80 total for a 9 hr shift and that is including tips. Do you see all the cab and limo drivers lined up at the hotels and airports? How long do you think they have to sit in line until they get to you? There are rules we have to follow - we cannot go out and get business - we have to wait for you to start the conversation. Whatever tip you give your driver is about 1/2 of what they make every 50 minutes. Please don’t put your own bags into my car - I have to pay for the scratches made on the rear bumper when it is dragged in - plus the exercise is welcome after I have sat in my car for an hour or two waiting to reach you. My only chance of making a decent living is if someone goes to a strip bar and I get $20 extra if they are not busy that night. Or I get some happy drunks that tip me $50. I am looking for a new job.
Comment by CT — Feb 8th 2008 @ 4:09 am
this one is for alex. who thinks tipping is not neccessary, news flash, the standard minimum wage for servers in the United States is 2.13 an hour, this hardly accounts for taxes let alone income. servers make they’re living off what is left on the table, and nothing more. many times they share those tips with the hosts/bartender/kitchen. in Europe all tips are included in the price of the meal. i think that should be the case here. when someone gives you good service, tip them (20% for adequate service). 15% is below standard. get with the times
Comment by chad — Feb 20th 2008 @ 1:26 pm
Chad: I’m curious as to why you think “15% is below standard”? It sounds like you think we should be tipping more. Why? Just guessing here, but perhaps you’re thinking of inflation… But wouldn’t inflation be accounted for by the fact that restaurant bills are higher, so the tips at a given percentage point are likewise higher? Or do you mean something else?

Comment by nickel — Feb 20th 2008 @ 1:35 pm
nickel,

i’m sorry to go on a rant, but alex’s comment really offended me as a previous server. according to the new york times the current us average tip rate based on a survey is 18%. when i was serving tables I never complained about anything 18% & above. 15% seems low by comparison. 10% is never welcomed by any server. i think it could be due to inflation, cost of living and so on. again servers make 2.13 an hour (even with inflation the federal minimum wage for servers hasn’t changed since the 80’s) in most states. i know of some servers who can’t even pay they’re federal taxes at that rate and end up owing at the end of the year. when you consider servers tip an andditional 2-5% of the bill to other employees the servers aren’t walking away with as much money as you might think. i know the price of dining out has spiked due to inflation but not as much as cost of living in my opinion.

Alex made it sound like servers don’t do a whole lot but they were very hard for their money. 1 tip on a table can make or break an entire shift of work. i don’t think most people understand what a tough industry service is
Comment by chad — Feb 20th 2008 @ 2:23 pm
Chad,

Tipping is not a requirement or it wouldn’t be a tip, it would just be part of the original price. It is ENTIRELY up to the patron. If you’re offended, I don’t really care. I have had jobs that suck to and I never got extra money…nor was I payed well. If the servor is unhappy with 15% then do something other than pick up a plate and set it on my table.
Comment by H_Roarke — Feb 20th 2008 @ 6:05 pm
I tip the standard 15%.

Some people say that is too little because of inflation, but they are forgetting that the tip is a percentage of the overall cost. Therefore, if the cost rises the tip also rises even though it’s still 15%.

I believe tipping 20% is too much and, overall, tipping has gotten out-of-hand. Raising your tip from 15% to 20% is a 33.3% increase!

In addition, I don’t tip if the person serving me does a poor job (this has only happened once).

Also, when the service you are paying for adds a “service charge”, that is the tip; there’s no need for you to tip if you are charged a “service charge”
Comment by John — Mar 1st 2008 @ 12:59 pm
Tipping is an individual thing. As a cabbie, I find that most of my tips exceed 20%. Some people, however, don’t tip at all. Those people don’t get my card with my cell number, either. Others go with the standard 10-15%. That’s entirely up to the individual.

But try to bear a few things in mind. I pay $485.00 a week - in advance - just for the privilege of driving my cab. I pay for my own gas, my own maintainance and repairs, including a set of tires about every 7-9 months, and in the event of an at-fault accident I have a $1,500.00 deductible.

Fortunately, I have other income, or frankly I wouldn’t do it. There’s no way I could support my family solely by driving a cab. I don’t know how people do -I’d have to work 70 hours a week, and pray that business (and my luck) was good. I do it to keep a car available, and meet the gap between survivor benefits my kids receive and what they need. And it gives me the flexibility to be home when my kids need me, since I make my own hours.

I keep my cab clean, I know the city well, and I’m a very competent driver. I’m also pleasant - if you are. People pay me well for that. And people who are obnoxious and think I owe them something walk. Bear in mind I deal with a night time crowd, so I have leeway there. I can also have them arrested on a PI for being a pain-in-the-butt. But I have never had to do that - instead, I’ve driven back to return property they left in the cab, I’ve walked them up stairs when I was afraid they were too sloshed not to fall - I’ve even gone to great lengths to find out where they live when THEY couldn’t tell me.

We earn our tips. If your cabbie sucks, by all means feel free to skip the tip. But seriously, if they were that bad you owe it to everyone else to call the company with their cab number and complain. And bear in mind, most of you couldn’t do this job. We provide a valuable service - from airport service to rescuing people when their car stalls on the highway to getting you home when you party too hard. We get you to work when your car breaks down, and we let you - a complete stranger - into our vehicles. Some of you don’t even pay the fare. I get ripped off about 6 times a year. But I still don’t ask for payment upfront on most trips(even though dispatch encourages us to) because I think it’s rude and I believe that most people are honest. And most of you are

But I’d like to make one other suggestion - if you no longer need a cab after you place the call, please cancel your request. Another expense we deal with is when we waste our time (which is money) and our gas driving to pick up someone who isn’t there or no longer wants a cab. Like the time call for the airport I wasted 45 minutes and 15 miles of driving on. Thanks
Comment by Michelle — May 12th 2008 @ 11:09 am