Canadians got real about what tip percentage they think is fair and it's nowhere near 18%

Tipping in Canada has become a hot topic, and according to a new survey, most Canadians are over it.

With the cost of living continuing to rise, people are feeling the pressure to tip more — and they're not happy about it. While payment machines now nudge people toward tips of 18% or more, Canadians say their ideal tip is nowhere near that.

A new survey conducted last month by H&R Block Canada reveals that a staggering 94% of Canadians think tipping culture has gotten out of hand, and 90% believe gratuities are just too high.

So what do people actually think is fair? So what do people actually think is fair? According to the survey, when asked what they believe is an appropriate tip for various services, Canadians landed on an average of just 9%. That's well below the 18-25% range that has long been considered the norm at restaurants across the country.

Even for restaurant servers — who are typically tipped the most — Canadians say a reasonable tip would be closer to 13%. For bartenders and hair stylists, they pegged 10% as fair, while food delivery drivers landed at 9%, and taxi or rideshare drivers at 8%.

Meanwhile, Canadians think 8% is an appropriate tip for spa and salon technicians, and just 7% for hotel housekeepers, valet attendants and tour guides.

It's not just about the percentages, though. People are also frustrated by how often they're being asked to tip. The survey found that nearly all Canadians (94%) are annoyed by tip prompts on payment machines, especially for services where tipping wasn't previously expected.

But even though it bugs them, more than half (57%) admit they still leave a tip anyway because they feel awkward skipping it.

Beyond the frustration with tipping itself, many Canadians feel that the whole system is broken. Opinions are split on where tips actually end up — about half of Canadians believe their tip goes directly to their server, while the other half suspect it goes to the employer instead.

Regardless, a huge 88% believe tipping culture has become a way for employers to pay staff less, and 91% think Canada should move toward a model where employees are paid fair wages instead of relying on tips.

With that in mind, it's not surprising that 53% of Canadians consider themselves "frugal tippers," only tipping for exceptional service or choosing the lowest option available.

Interestingly, while most people know that tips are supposed to be declared as taxable income, many doubt that actually happens. Nearly half (47%) of Canadians assume that tipped workers aren't reporting their earnings to the Canada Revenue Agency. And in a quiet act of tax resistance, 45% of Canadians say they prefer to tip in cash, hoping that it helps the recipient avoid taxes.

The survey results paint a clear picture: Canadians are tired of being asked to tip for everything and would rather see a system where workers are simply paid better wages.

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