The terminal comes to you, and the transaction happens in front of you
In Canadian restaurants and bars, the card almost never leaves your hand. A server brings a wireless terminal to the table, keys in the bill total, and passes it to you; you tap, insert or swipe, answer whatever the screen asks, and hand it back. There is no equivalent of taking the card away to a back counter, and there is normally no paper slip on which you write a tip and a total.
That single design choice explains most of what feels unfamiliar to visitors. Because everything is decided on the screen in the thirty seconds the server is standing beside you, the tip decision is made under mild social pressure rather than in private. Knowing the sequence of screens in advance is the whole trick.
Reading the tip screen and entering your own number
The tip screen appears after the amount is confirmed and before you are asked for a PIN, and it is the merchant, not the bank, that configures what it offers. A typical screen shows three preset percentages side by side, plus smaller buttons for a custom amount and for no tip. The presets vary between businesses, and the low preset in one restaurant may be the middle preset in another.
The custom option is the one worth practising, because it is also how you tip on the pre-tax subtotal, tip a flat amount that keeps the total round, or leave nothing after a service charge has already been added to a large table's bill.
What is normally expected, by situation
Tipping expectations in Canada follow the same broad pattern as in the United States, and table service is where the expectation is strongest. The figures below describe common social practice rather than any rule or measured statistic, and no law obliges you to tip at all.
| Situation | Common practice | Notes |
|---|---|---|
| Sit-down restaurant, bar table service | Around 15–20% on the bill | The default expectation |
| Counter service, takeaway coffee | Discretionary | A prompt appears; declining is normal |
| Taxi and ride-hailing | Rounding up or roughly 10–15% | Apps prompt after the ride |
| Hotel housekeeping, porters | A few dollars, in cash | Terminals are not involved |
Two situations override the table. If a service charge or "gratuity" line already appears on the bill, common for groups of six or more, the tip has been added and the terminal prompt is offering to add a second one. And in a business where the terminal is presented for a self-serve transaction with no service performed, the prompt is simply an option the software offers.
Tax is added at the till, and changes at the provincial border
Prices displayed on Canadian menus, shelves and signs almost always exclude sales tax, so the number you agree to at the terminal is higher than the number you read on the menu. The tax is a federal Goods and Services Tax, sometimes combined with a provincial component into a single Harmonized Sales Tax, and sometimes accompanied by a separate provincial sales tax. The Canada Revenue Agency's rate calculator lists the rate that applies in each province and territory.
The differences are large enough to notice on a multi-province trip. As of 1 April 2025, Ontario applies 13% HST; New Brunswick, Newfoundland and Labrador and Prince Edward Island apply 15%; Nova Scotia applies 14% after a reduction from 15% on that date; Quebec charges 5% GST plus 9.975% QST; British Columbia and Manitoba charge 5% GST plus 7% PST; Saskatchewan charges 5% plus 6%; and Alberta, along with the three territories, charges only the 5% GST.
Tap limits, PINs, and why cash rarely comes out
Contactless is the normal way to pay for everyday amounts. Interac, which runs Canada's domestic debit network, allows financial institutions to set Interac Debit contactless limits up to CAN$250 per transaction, with each institution deciding the actual limit for its own cardholders. Credit card contactless limits are set by the card networks and issuers and follow a similar logic. Above the limit, or occasionally at random for security reasons, the terminal will refuse the tap and ask you to insert the card and enter a PIN.
Cash still works everywhere it is accepted, but it is no longer the default. The Bank of Canada's 2025 Methods-of-Payment Survey reports that contactless card payments dominate in-person transactions and that mobile device use is growing, while also noting that more than three in four adults still keep some cash on hand. Treat Canada as card-first rather than cashless: carrying a small amount of Canadian currency covers tips in cash, small independent businesses, and the occasional terminal outage.
The currency prompt on a foreign card
If your card was issued outside Canada, the terminal may add one extra screen offering to charge you in your home currency instead of Canadian dollars. That is dynamic currency conversion, and the exchange rate used is set by the merchant's payment provider, not by your bank.
Where the tip actually goes
Tips are regulated as a distinct category of money in Ontario, and the rules explain a few things visitors notice. Under Ontario's Employment Standards Act guidance on tips and gratuities, an employer generally cannot withhold, deduct from, or require the return of an employee's tips, and cannot deduct for spillage, breakage or losses. Tip pooling is allowed: an employer may collect and redistribute tips among some or all employees, and may set the pool's terms.
Two details apply directly to card payments. Since 21 June 2024, tips must be paid out by cash, cheque or direct deposit, including e-transfer. And where a tip is paid by credit card, the employer may deduct the greater of the actual processing fee percentage or 1.5% of the tip; fees on debit card tips cannot be deducted. These are Ontario provisions, and other provinces regulate tips under their own employment standards legislation.
Before your first bill in Canada
Do three things before you sit down. Confirm which province you are in and therefore what tax rate lands on top of the menu price, check whether your bank's contactless limit will cover a typical dinner or whether you should expect to insert and enter a PIN, and decide in advance what you intend to tip for table service so the screen does not decide for you.
This guide covers day-to-day payment at the point of sale. It does not cover currency exchange, ATM withdrawal fees, or the rules for claiming any sales tax rebate, each of which works differently from paying a bill in a restaurant.