Two-Thirds of Canadians (67%) Say it’s Time to Abolish Tips, Reveals New H&R Block Canada Study
89% resent businesses that prompt for unwarranted tips and 41% actively avoid ‘tip pushing’ businesses; H&R Block points to shifts around how tips are taxed
CALGARY, Alberta, March 17, 2026 (GLOBE NEWSWIRE) -- While nearly one in three (31%) Canadians have worked in a gratuity-based job at some point*, a new 2026 survey commissioned by H&R Block reveals that Canadians say enough is enough when it comes to tipping in Canada. Two-thirds of Canadians (67%) say Canada should abolish tipping culture. A whopping 93% say they feel annoyed when a card payment machine prompts for a tip or gratuity for services or purchases where tipping hasn’t previously been expected, with 93% saying that tipping is out of hand and is applied to goods and services they don’t think warrant tipping. H&R Block also points to how tipping via digital payment systems often shifts how income is declared for tax purposes.
Canadians resent – and even boycott – brands and business based on tip prompts: A vast majority of Canadians (89%) say they resent businesses with tip prompts for payments they don’t think warrant a tip. More than four in ten (41%) have avoided going to places that they know have tip prompts at cash out, such as coffee shops, convenience stores, fast food, or self-serve counters.
Canadians rebel against tip culture, increasingly choosing to skip the tip: In 2025, more than half (57%) of Canadians said they felt awkward skipping the tip prompt so tended to leave a tip anyway. H&R Block’s survey in 2026 reveals that Canadians have taken a dramatically different (and emboldened) stance against tipping. Nearly two-thirds (65%) of Canadians say that tipping over the last year they feel less awkward in opting for the ‘no tip’ option when promoted, with 67% increasingly opting for the ‘no tip’ option. Overall, 89% think the tipping percentage amounts have become too high, with 79% saying they tend to enter their own choice of tip amount versus using the prompted percentage amounts where possible.
H&R Block points to key shifts and tax implications with tips that are paid through business owners and employers versus direct to employees: A 2025 survey by H&R Block Canada revealed that while most Canadians (84%) know that tips are considered taxable income, nearly half (47%) assume people aren’t actually declaring all tips on their taxes. However, the increased use of card machines has evolved the tax dynamic around tipping culture. When businesses or employers use card machines to add a tip, the tip amount is paid to the employer. This means tips can be treated the same way as the rest of the income on a paycheque, with relevant deductions, including tax, Employment Insurance (EI), or Canada Pension Plan (CPP) amounts having already been deducted before it hits the employee’s pay stub and included in T4s.
“The tax mechanics of gratuities have evolved over time, particularly through point-of-sale systems that prompt tips,” said Yannick Lemay, Tax Expert at H&R Block Canada. “In years past, it may be that you left some cash on the table for your server at the end of your meal, and that server had to claim their tips voluntarily on their tax returns. Whereas today, when you pay for your meal, or various other services, electronically and add a tip, there are instances where tips are treated as income by the employer and taxed as such - meaning, income tax on tips might be deducted by the employer before employees receive it as part of their paycheque. This can cause all sorts of confusion come tax time.”
Gratuities for gig workers through digital marketplace platforms: Nearly one in five Canadians (17%) worked in the gig economy in the past year, often through digital gig marketplace platforms where users can opt to pay a tip through the platform app, such as for rideshare drivers and food delivery services. The tip income is typically collected through the marketplace platform operator, such as Uber, and then redistributed to the gig worker as part of their compensation. However, gig workers are typically considered self-employed from a tax perspective, so it’s then incumbent on the gig worker to declare their full income – including tips – when it comes time to file their taxes.
More than half of Canadians identify as ‘frugal tippers’: Overall, 57% of Canadians say they’re frugal tippers and tend to opt for the lower tip option and/or only tip for exceptional service. This compares to 36% who self-identify as a generous tipper and tend to opt for the higher tip amount and/or tip for most services.
Most Canadians feel that tipping lets employers off the hook to pay employees’ full wage: In 2025, a similar H&R Block survey revealed that 88% of Canadians felt that tipping culture has become a means for employers to pay their staff less. Furthermore, 91% said that Canada should have less of a tipping and gratuity culture as employers should cover their employees’ full wages.
Many Canadians get a tax refund, but understanding how to declare your tips, claim credits, deductions, and benefits you’re eligible for is key: Tracking all tips and keeping your receipts for business expenses you may be able to claim back is key, such as transportation, tech devices, training costs, tools or uniforms. Contributing to tax-friendly savings plans such as Registered Retirement Savings Plans (RRSPs) and Tax-Free Savings Accounts is also a great way to reduce your taxable income and plan for your future financial well-being.
Don’t procrastinate filing your taxes and risk leaving money on the table: The key thing is don’t procrastinate. There are hundreds of tax credits and benefits to navigate to ensure you get your maximum refund, for which you need to gather your necessary tax documents. Consulting a tax professional can also help maximize deductions and minimize tax liability while staying compliant with Canada Revenue Agency (CRA) regulations.
“All tips are considered taxable income, by law, regardless of whether your employer includes any tip amount on your T4 slip, and there can be significant repercussions with the CRA for not declaring all income,” said Yannick Lemay. “But the good news is that filing your taxes puts money back in your pocket for a majority of Canadians. We helped around 70% of our clients get a refund last year, and while we too are in the service industry, we don’t accept tips, we’re more focused on giving them. Tax tips, that is.
About the 2026 survey
These findings are from a survey conducted by H&R Block from Feb. 19-23, 2026, among a representative sample of 1545 Canadians who are members of the Angus Reid Forum. For comparison purposes only, a probability sample of this size would carry a margin of error of +/-2.53 percentage points, 19 times out of 20. In some cases, data is rebased to exclude respondents the question did not apply to.
About the 2025 survey
These findings are from a survey conducted by H&R Block from February 12-13, 2025, among a representative sample of 1,469 Canadians. The survey was conducted in English and French. For comparison purposes only, a probability sample of this size would carry a margin of error of +/-2.53 percentage points, 19 times out of 20.
About H&R Block Canada: A trusted partner of Canadians for over 60 years, H&R Block Canada is the market leader in assisted tax preparation. Serving almost 1,000 office locations across the country that includes a network of Canadian franchise business owners H&R Block's team of Tax Experts use the latest in technological advances combined with real-world expertise to help people file taxes in office, file remotely, or use our award-winning tax software, named moneyGenius.ca’s Best Tax Software two years in a row. H&R Block Canada can support in the preparation of personal, small business, corporate, U.S., rental, and estate taxes. H&R Block's comprehensive education program, Tax Academy, ensures our Tax Experts continually update their skills. Learn more at www.hrblock.ca or 1-800-HRBLOCK.
For more information, contact: H&R Block c/o Ketchum: hrblockmediainquiries@ketchum.com
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