·· Everyday Money · Etiquette
How to Calculate a Tip in Canada
Multiply the pre-tax subtotal by your percentage — 15% standard, 18% good, 20% excellent. The pre-tax part is where most people quietly overpay.
Updated July 2026 · 7 min read · Canadian tipping customs
The Formula
On an $80 subtotal: $80 × 0.18 = $14.40. That's it. The only decision that materially changes the number is whether you use the subtotal or the total.
Tip Before Tax, Not After
Sales tax goes to the government, not your server. Tipping on the after-tax total means you're tipping on the tax too — a small leak that adds up. In Ontario, where HST is 13%, tipping post-tax inflates your tip by roughly 2% of the bill.
| $100 meal in Ontario | 18% tip | You pay |
|---|---|---|
| Tip on subtotal ($100) | $18.00 | $131.00 |
| Tip on total ($113) | $20.34 | $133.34 |
A $2.34 difference on one meal. Weekly, that's over $120 a year. Most card terminals default to calculating on the total — you have to choose the custom option to tip on the subtotal.
How Much to Tip, by Service
Customary Canadian ranges. All voluntary — adjust for service quality.
| Service | Customary tip | Notes |
|---|---|---|
| Sit-down restaurant | 15 – 20% | 15% adequate · 18% good · 20%+ excellent |
| Bar (per drink) | $1 – $2 | Or 15–20% on a tab |
| Buffet / self-serve | 10% | Staff still clear and refill |
| Takeout counter | 0 – 10% | Optional; 10% for large or complex orders |
| Food delivery | 10 – 15% | $5 minimum is common in bad weather |
| Taxi / rideshare | 10 – 15% | Round up for short trips |
| Hairdresser / barber | 15 – 20% | Tip the person who did the work |
| Hotel housekeeping | $2 – $5 per night | Leave daily — staff rotate |
| Movers | $20 – $60 per mover | Or 10–15% of the bill split among the crew |
Tipping in Canada Is Not Tipping in the US
This distinction matters, and most tipping advice online ignores it because it's written for an American audience.
In many US states, servers can legally be paid a sub-minimum tipped wage — sometimes just a few dollars an hour — with tips expected to make up the difference. That's the moral weight behind the American 20% norm.
Canada doesn't work that way. Servers here are paid at least the full provincial minimum wage. Ontario abolished its separate, lower liquor-server wage in 2022, so a server in Ontario earns the same $17.60 general minimum wage as anyone else (rising to $17.95 on October 1, 2026). Tipping remains a genuine and appreciated custom — but it tops up a legal wage rather than replacing one. See our Ontario minimum wage guide.
Tip Screens and "Tipflation"
Payment terminals now ask for tips in places that never asked before — bakeries, self-serve kiosks, retail counters — and the suggested buttons have crept upward, often starting at 18% or 20% where 15% used to be the default.
Two things worth knowing. First, those presets are set by the merchant, not by any standard — and they're frequently calculated on the after-tax total. Second, the "no tip" or custom option is always there, even when it's greyed out or tucked in a corner. For counter service with no table service, declining is entirely normal and no one is being short-changed.
Frequently Asked Questions
Multiply the pre-tax subtotal by your percentage. A 15% tip on $80 is $80 × 0.15 = $12.
Restaurants 15–20%, bars $1–2/drink, taxis 10–15%, delivery 10–15%, hairdressers 15–20%.
Before. Tipping 18% post-tax on a $100 Ontario meal costs $2.34 more than pre-tax.
No — customary but voluntary. Canadian servers earn at least full minimum wage; Ontario ended its lower server wage in 2022.
Optional. Nothing on a simple pickup is normal; 10% for a large or complicated order is generous.
Take 10% (move the decimal left one place), then add half again. $60 → $6 → $9.