Holiday Tipping Guide: Who to Tip and How Much

Holiday tipping is a thoughtful tradition that helps show appreciation for service providers who make your business life easier throughout the year. While it’s not mandatory, giving a holiday tip as a small business owner can be a wonderful way to express gratitude for the people who assist you regularly. 

Our holiday tipping guide for business owners will help you understand how much to tip, who to prioritize, and when a small gift might be more appropriate than cash. Whether it’s your cleaner, full-time nanny, electrician, or even your personal assistant, taking time to acknowledge a professional’s work can make the season even more special.

Determining How Much to Tip for the Holidays

The most basic — and arguably most important — decision you need to make for holiday tipping is how much tip to give. The right amount often depends on factors such as the type of service, your relationship with the person, and local customs. 

For people who regularly serve you, like your house cleaner or a babysitter, it’s customary to tip roughly one week’s pay. This practice recognizes the consistent effort and time they invest throughout the year. If your budget is tight, you can always adjust the amount to what feels comfortable. Even a smaller amount, such as $20-$50, or a thoughtful gift can make a big impact.

For less frequent service workers, consider tipping an amount that reflects the cost of one service. For instance, if a service typically costs $30, tipping that amount is a nice way to show appreciation. 

Ultimately, holiday tipping is a very personal decision, and it should be guided by your budget and the nature of the service provided. There aren’t any hard and fast rules, so use your judgment based on the service’s frequency, quality, and your relationship with the private service provider.

General Guidelines for Tipping

As a small business owner, determining how much to tip can feel overwhelming. But usually, it’s a good idea to just follow the same guidelines you’d use for personal tipping. 

Generally, how much you tip should be dictated by: 

• the quality and frequency of the service
• your relationship with the service provider
• where you live (amounts are usually higher in large cities)
• the frequency of the service or how long you have worked together
• your budget
• regional customs
• the type of establishment: deluxe vs. moderate

There’s also the question of whether to give cash, a gift, or both. Understandably, cash gifts are the most popular choice. But there are some professionals who shouldn’t accept cash, or you might feel obligated to give something a little less impersonal. For example, for your child’s nanny, you might want to give a gift from your child and some cash.

A heartfelt gift can be a nice touch, such as chocolate or an item you know the provider would like. Alternatively, you might opt for a gift and a small cash tip. 

There’s no “wrong answer,” really. Tipping is, at the end of the day, a personal gesture, so you’ll want to trust your personal judgment.

Prioritizing Your Holiday Tipping List

The holiday season can be expensive, so it’s wise to prioritize who gets a tip based on the impact they have on your daily life. Start by making a list of all the service providers you interact with regularly, like your cleaners, your delivery drivers, and other providers you rely on. From there, rank them according to how often you rely on their services and how essential their role is in your life. For example, your kids’ nanny or caregiver may be at the top of your list due to the significant impact they have on your family’s daily routine (and, ultimately, your business’s ability to operate smoothly).

Once you’ve identified who will receive a holiday tip, set a budget for how much you can afford. Don’t feel pressured to tip everyone the same amount; it’s okay to vary your holiday tips based on the frequency and importance of the service provided. The last thing you want is to go into debt to tip.

If your budget is limited, consider giving small gifts or heartfelt notes to those lower on your list. Even a little recognition can go a long way.

Tipping for Specific Services

Tipping for Delivery Drivers

Delivery drivers, such as those who bring food or groceries to your doorstep, work especially hard during the holiday season. Tipping these workers between 10-15% of the total bill is a thoughtful way to show your appreciation. You can also leave cash tips of $10-20 for package deliveries, especially if the delivery involves bad weather or heavy lifting. A small present, such as a box of chocolates or a handwritten thank-you note, can add a personal touch.

Tipping for Caregivers

If you rely on caregivers like nannies, babysitters, or senior care aides, a holiday tip is a great way to recognize their dedication. For nannies or full-time babysitters, consider a holiday bonus equal to one week’s pay, which is standard practice for showing appreciation. If they have provided exceptional service, you may want to add a small gift or a personal note to further express your gratitude.

Tipping for Staff (Cleaners, Maintenance, Landscaping)

During the end of the year holidays, showing appreciation for staff members who maintain and support your business space is a meaningful gesture. For cleaners, a tip equivalent to one cleaning session or around $20-$50 per person is a thoughtful way to acknowledge their hard work. Maintenance workers and landscapers also help keep operations running smoothly; consider tipping $20-$50 per worker or, if they’re directly employed, one week’s pay. These tips or small gifts can go a long way in expressing gratitude for their essential services throughout the year.

Tipping for Personal Assistants

Personal assistants often go above and beyond to keep a business running smoothly, handling tasks that save time and reduce stress for business owners. During the holiday season, a tip of one week’s pay is a common way to recognize their dedication and hard work. If a cash tip isn’t feasible, consider a personalized gift that reflects their interests or a meaningful token of appreciation. This gesture not only acknowledges their contributions but also strengthens the working relationship for the year ahead.

Gift-Giving vs. Tipping

There are times when a small gift may be more suitable than cash. If you know a service provider well, giving a personalized gift can feel more meaningful and thoughtful. For example, if you use a dog walker and they love reading, a gift card to a bookstore might be a great idea. 

The key is to choose a gift that reflects their interests or hobbies, which shows that you took the time to think about them.

Digital Tipping: How to Give a Digital Tip

In today’s digital world, many services are facilitated through apps, making digital tipping a convenient and often preferred option. For digital services like food delivery, ride-sharing, or even pet-sitting platforms, it’s common to leave a digital tip of 10-15% of the total bill. This can be done easily through the app or payment platform, ensuring that your tip reaches the service provider quickly and securely.

For digital services where online tipping isn’t an option, consider leaving a positive review or rating as an additional way to show appreciation. Many service providers rely on reviews to attract new customers, so a kind comment can be as valuable as a tip. 

The Importance of Holiday Tipping

Holiday tipping is more than just a seasonal gesture; it’s an opportunity to recognize the hard work of those who help make your life easier. By tipping your regular service providers, you acknowledge their dedication and help boost their spirits during a busy time of year. Even small gestures, like a $10 tip or a thoughtful gift, can brighten someone’s day and show that you value their contributions

Whether you choose to give a cash tip, a small present, or a personal note, the gesture itself shows appreciation and helps foster a positive relationship for the future.

Disclaimer: The content on this page is for information purposes only and does not constitute legal, tax, or accounting advice. If you have specific questions about any of these topics, seek the counsel of a licensed professional.