How Much to Tip at Restaurants in Canada

Patio season is in full swing, and if your restaurant bills have been climbing, you’re not alone. Dining out has become more expensive for two main reasons: inflation and rising tip expectations—often called “tip-flation.”

An Angus Reid survey from early 2023 found that 62% of Canadians report being asked for larger tips in recent years. Where tipping once commonly began around 10%, many payment terminals now suggest 18% to 25%, making tip increases more visible at the point of payment.

Higher tipping expectations are changing behaviour: 42% of Canadians said increased tipping costs are keeping them from dining out, according to the same Angus Reid poll. But tipping is just one factor. Supply chain disruptions, climate impacts on agriculture, labour shortages and rising fuel prices have pushed food costs higher nationwide. Restaurants pass those increases to patrons through more expensive menu items, so the final bill—tax and tip included—can feel substantially higher than in previous years.

During the early stages of the COVID-19 pandemic many patrons tipped more generously—often to support struggling restaurant staff. Restaurants Canada has estimated thousands of closures since March 2020, illustrating how fragile the sector has been.

That generosity has had staying power. The share of diners tipping 20% or more rose from 8% in 2016 to 21% in 2023, according to Angus Reid. Meanwhile, tipping below 14% at sit-down restaurants fell from 44% in 2016 to 23% in 2023. These shifts mean many Canadians are already tipping more than they did before the pandemic, and with overall dining costs increasing, “tip fatigue” is becoming common.

How are Canada’s restaurants doing?

Restaurants Canada reports that many member businesses still face financial strain. A member survey showed that one-fifth of establishments that received a Canada Emergency Business Account (CEBA) loan may not be able to repay it by the Dec. 31, 2023 deadline. Statistics Canada found that roughly 79% of food services and drinking places received CEBA support during the pandemic—an indication of how many operators relied on government aid to survive closures and lockdowns.

How much should you tip in Canada?

There’s no single answer. The appropriate tip depends on the type of establishment, the service quality, your budget and your personal approach to gratuities. Many Canadians follow customary practices, while others adapt to personal circumstances.

Some people, like Toronto videographer Matthew Massey, tip 10% to 13% at sit-down restaurants unless service is exceptional. Massey notes that suggested tip levels on terminals have crept upward, and he typically tips an amount similar to the local sales tax—13% HST in Ontario. Raised expectations and higher meal prices make tipping feel more burdensome for those on tighter budgets.

Others, including the author of this piece, usually tip 18% to 20% for sit-down dining and reserve eating out for weekends or special occasions because the total cost has risen. For many diners, tipping is also a way to help front-of-house staff reach a living wage; in Toronto the estimated living wage is higher than the provincial minimum, and that difference factors into how some patrons decide what to leave.

What is the minimum wage for servers?

In most provinces servers are paid at the standard provincial minimum wage—Quebec being an exception in prior practice. Historically, many servers earned a lower “tipping wage” and relied on tips to make up the difference. Minimum-wage laws and labour changes in recent years have shifted that model, but tipping remains an important part of many service workers’ income.

What is the customary tip amount in Canada?

Customary tipping varies, but many Canadians consider 15% to be a baseline for satisfactory service, while 20% is common when service exceeds expectations. Civility expert Lewena Bayer of Civility Experts says 10% can feel insulting for sit-down dining and recommends at least 15% for decent service. Still, she stresses that tipping should be optional and reflect genuine appreciation rather than pressure from preset terminal prompts.

Bayer also notes that price inflation contributes to the sense that tips have increased automatically—if your $17 burger is now $24, the tip amount will naturally grow with the bill. That can be frustrating when the suggested tip percentage appears to rise independently of menu prices.

What does poor tipping etiquette look like?

You should feel empowered to set the tip amount to what you can afford and what you think is fair. If a payment terminal lists higher suggested percentages, it’s acceptable to choose a lower percentage if that better matches your budget or experience. Before dining out, budget for both tax and tip. If you’re taking guests out and can’t afford to tip appropriately, consider dining at home instead.

Also, avoid treating servers poorly over tipping disputes. Rude comments, gestures like throwing cash on the table, or hostile remarks create an unpleasant experience and are inappropriate. For groups, check whether a gratuity has already been added for larger parties to avoid double-tipping.

Should you tip on takeout and delivery?

Takeout and counter service present different expectations. When a machine prompts for a tip on a coffee or small pickup order, leaving a modest amount—such as a loonie or a couple of quarters—is reasonable if that’s what you can afford. Automatic 18% prompts for quick counter pickups can feel excessive to many customers.

Delivery drivers typically receive the tips left on delivery platforms or directly to them. Delivery fees often go to the platform, while platforms like DoorDash and Uber Eats state that drivers receive 100% of tips; drivers still cover expenses such as fuel, insurance and vehicle maintenance, which is why many patrons continue to tip delivery workers despite platform service fees.

Why some restaurants ban tipping

Some restaurants have moved away from tipping entirely and adopted a “hospitality-included” model. Then and Now, an Asian-fusion restaurant in Toronto, opened in February 2023 without any tip prompts on its point-of-sale machines. Owner-operator Eric Y. Wang argues that guests shouldn’t be asked to subsidize staff wages—and that tipping can create unequal pay between front-of-house and back-of-house staff.

Wang says that tipping can affect how servers treat customers, and even lead to bias: servers may subconsciously expect lower tips from guests who look or sound different. By removing tipping and paying staff a living wage—Then and Now pays at least the certified Ontario living wage—he aims to make service equitable and provide stable, predictable income for employees.

Other establishments, such as Richmond Station in Toronto, have also shifted to hospitality-included pay. Richmond Station’s owners eliminated tipping after seeing that direct cash tips complicated staff eligibility for pandemic wage subsidies and prevented employees from receiving predictable earnings during lockdowns.

A server at Richmond Station in Toronto, Ont., shows guests a bottle of wine. Photo by Sarish Verma, courtesy of Richmond Station.

Where does your tip go?

Tips do not always end up exclusively in a server’s pocket. Many restaurants use tipping pools to distribute gratuities among front-of-house and kitchen staff. Rules about tip pools vary by province. In Ontario, the Employment Standards Act indicates that tip-pool arrangements cannot be enforced under the ESA in a rigid way and that employers may, in some cases, redistribute tips as part of a required tip pool. Participation in such a pool can be a condition of employment, but the specifics often depend on local regulations and employer policies.

There are also troubling reports of employers improperly taking part of employees’ tips. These situations have led to disputes and complaints to labour boards, though proving improper practices can be challenging.

Bottom line: plan ahead and tip thoughtfully

When dining out, factor tax and tip into your budget so the final cost doesn’t come as a surprise. If service was excellent, consider tipping above 15% to acknowledge the experience. If your budget is tight or the service was only fair, it’s reasonable to tip accordingly.

Changing industry models—whether tipping, hospitality-included pricing, or improved base wages—are shaping how Canadians pay for service. What matters most is treating service workers respectfully and making tipping choices that align with your values and financial situation.

What are your thoughts on tipping in Canada—how much you tip and when you choose to tip? Share your views in the comments below.