The tipping point: Canadians fed up with tipping culture, and tips for tip earners.

You know the drill.

You tap your card, ready to pay for your morning coffee – when suddenly, the screen flashes a prompt: tip 18%, 20%, or 25%? You hesitate. You sweat. That little voice creeps in: I only ordered a coffee. But you smile and select a tip amount anyway – because you feel like you should. 

If this scenario feels familiar, you’re far from alone. In fact, 94% of Canadians say tipping has gotten out of hand. 

When a coffee trip becomes a guilt trip.

New research from H&R Block Canada shows Canadians are officially at a tipping point – literally. From fast food counters to full-service restaurants, gratuity expectations are creeping higher, and more people are wondering: when did tipping get so complicated?

While tipping used to be a way to show appreciation for great service, it now feels like every purchase – from a smoothie to a shampoo – is followed by a digital tip prompt. And people are noticing:

• 90% of Canadians feel tips are too high.

• 82% say tipping is expected in more places than ever before.

• On average, people say 9% is the “right” amount to tip – a far cry from what payment screens usually suggest.

What’s even more telling? Majority of Canadians (70%) have left a store or café feeling guilty – not because they did anything wrong, but because they didn’t tip enough (or at all). That’s a lot of emotional weight over a sandwich or latte.  

And with tip screens often popping up before you’ve received your order, a $4 coffee can suddenly turn into a small moral dilemma. 

Tap, tip, repeat: The rise of tipflation.

Once upon a time, tipping was a quiet “thank you” for exceptional service. Now? It’s a companion to an extensive array of transactions.

Whether you’re grabbing takeout, checking out a boutique, or using a self-service kiosk, the prompt to tip is right there. This growing phenomenon – known as tipflation – has Canadians rethinking everything.

• Nearly 60% say they’re tipping more than they were just a year ago.

• Almost 1 in 4 have been prompted to tip in places or situations that felt uncomfortable or unexpected. 

This sense of obligation is reshaping financial habits – sometimes at the expense of our budgets, and at a time when many are already feeling stretched. 

Tipping isn’t just a social pressure – it’s a tax factor too.

The conversation around tipping often focuses on social norms and etiquette – but there’s another layer to consider, especially for those who earn tips. 

Tips are considered taxable income in Canada. That means if you’re a server, ride share driver, salon worker or anyone else who receives gratuities, you’ll need to report them come tax time. 

Depending on how tips are received, they’re categorized differently:

• Controlled tips are distributed through an employer (e.g., added to a bill and paid on a paycheque).

• Direct tips are received straight from a customer (e.g., cash or card).

Either way, you’re expected to track and report them accurately. 

Check out this article to learn more: Declaring cash tips and earnings: what you need to know if you work in the service industry.

So… what’s the right thing to do?

There’s no perfect answer. But with 90% of Canadians saying tips have gotten too high, it’s clear a lot of us are questioning the same thing. 

At the end of the day, tipping is a personal choice. It should be about appreciation – not pressure. With the cost of living rising, it’s okay to be more intentional. 

Here are a few ways to take back control:

• Set monthly tipping budgets, just like groceries or takeout.

• Prioritize tipping for small businesses or exceptional service.

• Build tipping into your overall spending habits when eating out.

Being mindful doesn’t make you stingy – it makes you practical. 

You’re not cheap – you’re normal.

So, the next time that screen flashed 18%, 20%, or even 30% - don’t panic. You’re not the only one hesitating. Tipping culture is shifting fast, and we’re all just trying to keep up.

Tip what feels right. Be kind. Be smart. And most of all, know that wanting to take control of your money is totally normal – especially come tax time. 

Need help navigating tax season – whether you’re a tipper, a tip earner, or both?

File with confidence. H&R Block Tax Experts are here to help in-office or online, with options that work for every kind of filer, so no money is left on the table.