Oct 11, 2026
Canadians may be tipping less, and hospitality workers say they are feeling the difference.
A new survey found 67% of tipped Canadian hospitality workers said the amount they receive in tips has fallen over the past two years, up from 39% in 2024. In Ontario, that figure was 72%.
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The survey, conducted by Angus Reid on behalf of tip-management company Actual, polled 506 Canadian hospitality workers in August, including workers who receive tips as part of their compensation.
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The findings come as Canadians continue to cut back on discretionary spending, including restaurant visits.
Why are Canadians tipping less?
Restaurants Canada reported in September that 80% of Canadians were eating out less often because of the rising cost of living. Fewer restaurant visits mean fewer opportunities for those workers to earn tips.
But the way Canadians think about tipping may also be changing.
Bonnie Simpson, a professor of consumer behaviour at Western University, said her research suggests much of the shift is about where consumers are being asked to tip.
Restaurant servers, delivery drivers, hair salons and barbers were generally viewed as normal places to tip, she said, while retail stores, fast-food businesses and trades, such as mechanics and plumbers, were viewed as much less appropriate.
“When a request feels abnormal, people feel their freedom of choice is being threatened, and they push back,” Simpson told Money.ca.
That reaction can have consequences for businesses. In Simpson’s research, a tip prompt at a drive-through lowered customer satisfaction and intentions to return, while a prompt after table service did not have the same effect.
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What does the tipping shift mean for your wallet?
For consumers, understanding what the payment screen is actually asking of you can help keep tipping costs in check.
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A 20% tip on a $100 bill is $20. On a larger bill, the difference between suggested percentages can add up quickly.
But a percentage appearing on a payment terminal doesn’t necessarily mean that amount is expected. When a tip is voluntary, consumers can generally choose another amount or decline to tip.
“A prompt on a screen is a choice that the business made about its payment system,” Simpson said. “It should not be interpreted as a signal of what is expected of you as a consumer.”
Her advice is to decide how you want to approach tipping before reaching the payment screen, rather than allowing the prompt to make the decision for you.
It’s also important to distinguish between a voluntary tip and a mandatory service charge.
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The Canada Revenue Agency says a freely given tip is not subject to GST/HST, while a mandatory or suggested amount added to a customer’s bill as a service charge is subject to GST/HST. The CRA also notes that whether a voluntary tip is calculated before or after tax depends on the customer’s practice.
So before paying, check what has already been included and whether you’re looking at a voluntary gratuity or a charge imposed by the business.
How to tip smart
- Check the bill first. Make sure a gratuity or service charge hasn’t already been added.
- Look at the dollar amount. A 15%, 20% or 25% prompt can mean a significant difference on a large bill.
- Check the calculation. If you’re tipping a percentage, know whether it’s being calculated before or after tax.
- Make your decision before the prompt. Decide how you want to approach tipping before the payment screen presents its suggested amounts.
The goal is simple: know what’s already on the bill, understand what the tip prompt is asking and choose the amount that works for you.
Are Canadians turning against tipping?
The Actual survey found 43% of tipped workers rely on tips to cover essentials such as rent, groceries and bills. It also found 85% believe tip-division policies should be clearly and transparently communicated.
That doesn’t mean consumers are obligated to tip every time a payment terminal asks them to. But it does show why changes in tipping can have real consequences for workers who depend on tip income.
“I think it’s a misconception that Canadians are turning against tipping in general,” Simpson said. “Our results suggest that consumers are discerning and that they react to tip requests in places where they feel wrong.”
There’s no single tipping percentage that applies to every situation, and consumers are under no obligation to blindly follow terminal suggestions.
As automated prompts expand into non-traditional settings, taking a moment to make an intentional choice keeps you in control of your budget — ensuring you support workers where it counts without overspending where it doesn't.
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Steven Brennan is a freelance finance writer based in Vancouver, BC. He holds a BA and an MA from Maynooth University, Ireland. His work regularly appears at Canadian Mortgage Trends, Lowest Rates, Loans Canada and other Canadian and U.S. brands.
