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Has Toronto's tipping culture reached a tipping point?

With inflation putting pressure on household budgets, Canadians are reassessing everyday expenses, including tipping, a long-standing practice now facing growing scrutiny.
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Customers are presented with a tip option screen at a restaurant in Toronto, on Wednesday, Aug. 20, 2025.

As the cost of living continues to climb, many Canadians are starting to question long-standing habits, including tipping.

A recent study by H&R Block Canada found that 67 per cent of Canadians believe it’s time to abolish tipping, while more than 90 per cent say they feel annoyed when payment machines prompt them to tip for services where gratuities were not traditionally expected.

The findings reflect changes in consumer attitudes, as affordability becomes a growing concern across the country.

Residents in downtown Toronto shared a range of perspectives, reflecting both financial demands and the importance of tipping for service workers.

For Bert Felonia, tipping remains something he tries to maintain, though rising costs are making it harder to do so consistently. He says he still gives when he can, especially when service stands out, but believes the system itself could be improved. 

“Sometimes, if I have extra, I still tip depending on the service,” Felonia said. “Usually around 15 to 18 per cent. But maybe it’s better to increase wages and keep tipping optional so it’s fair.”

The desire to maintain a balance between generosity and affordability also motivated Brian Suse, who views tipping as a personal decision rather than an expectation. He says the choice to tip should ultimately depend on an individual’s financial situation. 

“It depends on who serves me,” Suse said. “If you don’t have much money, you can still give a little to help others. I don’t think tipping should be removed; it should come from the person.”

For Lita Lim, tipping is less about obligation and more about personal values. Despite rising living costs, she says she continues to give what she can, while also supporting the idea of better wages for workers. 

“I always give,” Lim said. “Even if I don’t have much, I still give, not because I have to, but from the heart.”

Others pointed to the nature of service work itself as a reason tipping should continue.

Geline Suarez emphasized that gratuities are a way to recognize the effort of workers in industries like restaurants and transportation. 

“People in restaurants or taxi drivers work hard. They deserve it,” Suarez said.

At the same time, some residents believe tipping alone is not enough to address broader concerns about fair compensation.

Loreta Wilson said that while tipping is important, it should not replace proper wages. She believes both can coexist to better support workers.

“They are also earning, so we should give something, especially if the service is good,” Wilson said. “But it would be better if wages were increased so everyone benefits.”

Still, not everyone is comfortable with how tipping culture is evolving, particularly with digital prompts and automatic gratuities.

Teresa de Asis said these changes have made her more cautious about spending, especially when tips are added in situations where they were not expected before. 

“Sometimes restaurants already include a 10 per cent tip, even for takeout,” de Asis said. “Because of that, I don’t go out as much anymore, I just cook at home to save money.”

For Eduardo Garcia, tipping has become so normalized that it now feels less like a choice and more like an expectation. He says social pressure often plays a role in whether people give. 

“Sometimes they automatically ask for a tip,” Garcia said. “If you don’t give, you feel embarrassed or sorry. For me, it’s already part of the culture, so I still give.”

As tipping prompts appear in more places, many Canadians are reconsidering when and where gratuities are appropriate.

While some continue to view tipping as a meaningful way to support workers, others are calling for systemic changes, such as higher wages, to reduce reliance on customer generosity.