Tipping in Ontario is in decline at faster rate than anywhere in Canada

Tipping culture in Ontario might be on the way out, according to a new study looking into tipping habits across Canada.

Tip management and hospitality platform Actual, in partnership with Angus Reid, has released its The State of Tipping in Canada 2026 Report, which called on over 500 tipped and non-tipped hospitality workers across Canada to paint a picture of tipping culture in the country.

According to the report, tips are declining nationwide, with 67 per cent of respondents saying that their tips have decreased over the past two years.

However, it was Ontario where that decline was felt the hardest, with 72 per cent of hospitality workers polled in the province saying their tips have gone down during the same two-year period.

Actual

The report also touches on the growing demands of employees for transparency into employers' tipping policies, with 85 per cent of respondents agreeing that tip division policies "should be clear and transparent for both employees and customers." While this figure dipped slightly from the 91 per cent recorded in 2024, it still speaks to the concerns of employees who feel they are not getting their fair share of collected tips.

Ontario limits employers to only claiming part of a tip pool if they perform the same tasks as tipped staff. Other provinces are now following suit, with Nova Scotia introducing new rules in September requiring employers to inform employees of tip pooling policies and to keep all tips on file.

Legislation has created more confidence among Ontario workers, with 85.7 per cent of respondents in the province saying they know how tips are divided in their workplace.

While figures in Ontario may be more pronounced than other provinces, the struggle of tipped hospitality workers isn't bound by provincial borders. 

Almost half of the respondents from across Canada say they rely on tips to cover essentials like groceries and rent, with 43 per cent of employees saying they require tips to make ends meet. In Ontario, this figure rises to 45.7 per cent.

Employees felt strongly that patrons of Ontario businesses do not understand the importance of tipping, with 41.1 per cent of respondents in the province agreeing with that statement.

What's your stance on tipping? Let us know in the comments.