Canadians are tipping way less and this province is seeing the sharpest decline
It might come as no surprise, but Canadians are tipping way less lately.
Even last year, Daily Hive reported that many Canadians were sick of suggested tip prompts when paying at restaurants, cafes and food establishments.
Now, a new report from Actual, a tip management and hospitality financial operations company, shows just how much tipping has declined across the country.
The State of Tipping in Canada 2026 Report, conducted in partnership with research institute Angus Reid, surveyed over 500 tipped and non-tipped hospitality workers across Canada. The report looked at how much workers rely on tips, why tip payments may be declining, and what the evolving landscape means for the hospitality industry.
According to the report, 67 per cent of tipped workers say the amount they receive in tips has decreased over the past two years.
“For an industry where tip payments make up a meaningful part of take-home pay, a two-year decline of this size affects real people’s ability to cover real bills,” the report states.
For the many people working in the service industry, tips aren’t simply extra spending money.
Whether they’re serving tables at a restaurant, clearing tables at a bar, carrying luggage to hotel rooms, or providing another customer-facing service, gratuities can make up an important part of a worker’s income and even help cover everyday expenses.
Every little bit counts, especially for those earning around minimum wage, which went up across Canada this year. In Ontario, for example, the general minimum wage rose Oct. 1 from $17.60 to $17.95 an hour. It may not sound like a huge chunk of change, but those extra dollars from tips can add up quickly and go far.
The report found that 43 per cent of Canadian tipped workers rely on tips to cover essential expenses such as rent, groceries, and bills. And that number climbs even higher in B.C. and Atlantic Canada, where 51 per cent of workers say they rely on tips to cover essential expenses.
But one province in particular has seen the biggest drop in tips.
According to the report, Ontario workers report the sharpest decline in tips, with 72 per cent saying their tips have decreased over the past two years — the highest percentage of any province.
Actual
These findings come as Canadians continue to rethink tipping culture, especially today when even 25 to 30 per cent prompts have popped up in everyday transactions.
But despite the growing number of Canadians with “tip fatigue,” hospitality workers aren’t ready to say goodbye to tipping altogether.
In fact, 76 per cent of workers say tipping incentivizes better service, while just 6 per cent say it hurts service. Meanwhile, 62 per cent of workers believe tips should be tied to the quality of service they provide, rather than being calculated as a percentage of the total bill.
The report also found a significant disconnect between customers and hospitality workers when it comes to the impacts of tipping.
Only 15 per cent of hospitality workers believe customers understand the financial impact of not leaving a tip, while 41 per cent say customers understand little or nothing about it.
For some workers, tips can make a real difference in whether they stay in the industry.
According to the report, 61 per cent of workers say the tips they’ve earned have influenced their decision to stick with their job. Among front-line and server workers, that number jumps to 74 per cent.
You can read the full State of Tipping in Canada 2026 Report online.