New study finds over two-thirds of Canadians want to abolish tipping culture

A new survey by H&R Block Canada suggests that people are fed up with tipping and would rather see employers pay servers better wages.

The study found that 67 per cent surveyed — two out of every three people — say it’s time to abolish tipping.

The report says 30 per cent of Canadians support a strong tip culture, and nearly one in three Canadians have directly worked in a gratuity-based job at some point.

Many Canadians feel that tipping lets employers “off the hook” to pay employees a full wage, with 91 per cent of the survey believing that Canada should have less of a tipping and gratuity culture as employers should cover their employees’ wages.

Around 94 per cent feel that tipping is out of hand, especially with digital payment prompts.

Nearly nine in 10 people resent being asked to tip where it’s not expected and 65 per cent say they feel less awkward skipping tips.

The report also notes digital tips are increasingly treated as taxable income through employers or platforms, while 47 per cent assume people are not actually declaring them on their taxes.

“It’s important to emphasize that tips are considered taxable income, by law, even if your employer does not include any tip amount on your T4 slip,” said Yannick Lemay, Tax Expert at H&R Block Canada in a statement. “Not only are there numerous deductions, benefits and credits you can leverage, there are tax-friendly ways to use your tips to invest in your professional growth and well-being and bolster your savings.”

The survey says Canadians feel 9 per cent is the “tipping sweet spot” as the overall average across the industry, with some differences depending on the service.

For example, the report says people feel restaurant servers should be given a 13 per cent tip, compared to tour guides, hotel housekeeping staff deserving of a seven per cent tip.

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