Short answer: In Ontario, the minimum wage is $17.95 an hour from 1 October 2026. There is no lower wage for tipped staff: tips come on top of the full minimum wage. Tips belong to the employee.
Minimum wage and tips in Ontario
| Ontario | |
|---|---|
| Minimum wage | $17.95 an hour |
| In force since | 1 October 2026 |
| Lower wage for tipped staff | No |
General rate from 1 October 2026 to 30 September 2027. Student rate (under 18, up to 28 hours a week in the school year, or during breaks) is 16.90. Homeworker rate is 19.70.
No lower wage for tipped staff. Tips are not wages and cannot be counted towards minimum wage.
Ontario no longer has a separate liquor server rate; the general rate applies.
Upcoming changes
The rate is indexed each year on 1 October. No change is scheduled for January 2027, and the 2027 figure has not been announced.
Who owns the tips
Tips belong to the employee. Employers generally cannot withhold, deduct or take back tips, and employees cannot waive that right, even in writing. The only deductions allowed are legal payroll deductions, court-ordered deductions and tip pool redistributions. Since 21 June 2024 tips must be paid by cash, cheque or direct deposit (including e-Transfer). There is no fixed payment deadline, but unreasonable delay can count as withholding.
Tip pools
Employers may set up a tip pool and decide who takes part and how shares are worked out. Pool contributions can only come from tips, and joining can be a condition of the job. Managers can keep their own tips and may share in a pool if the employer's policy allows it. An employer or owner can only share if they are a sole proprietor, partner, director or shareholder who regularly does substantially the same work as the staff in the pool, and since 21 June 2024 that policy must be posted at work and kept for three years after it ends.
Can card fees come out of tips?
Yes, in a limited way. An employer may deduct the card processing fee on a credit card tip, calculated as the greater of the card company's percentage or 1.5% of the tip. Debit card fees and other processing fees cannot be taken out of tips.
Service charges
Yes. Under the Employment Standards Act, a service or similar charge that the employer adds and that a reasonable person would expect staff to keep or share counts as a tip or gratuity, so it is covered by the tip rules.
Income tax on tips in Ontario
Tips are taxable income. The CRA says you must report all tips: direct tips go on line 10400 of your return, and controlled tips (paid through your employer) should already be on your T4. Only controlled tips count for CPP and EI at source. We did not find a federal or Ontario exemption or deduction for tips.
Other rules
- Tips are not counted in vacation pay, public holiday pay, overtime or termination pay calculations.
- Spillage, breakage, cash shortages and walkouts cannot be deducted from your tips.
The agency in charge is the Ontario Ministry of Labour, Immigration, Training and Skills Development (Employment Standards).
Sharing tips fairly
To share a pool by hours or points, use the tip split calculator. For what a server owes support staff, use the tip-out calculator. Customs for visitors are in tipping in Canada.
Sources
- Your guide to the Employment Standards Act: Minimum wage
- Your guide to the Employment Standards Act: Tips and other gratuities
- Individuals: Track and report your tips and gratuities
- Tips and gratuities (CPP/EI explained)
Checked in October 2026 against the sources above. Wages and rules change; check with the agency in charge before relying on a figure. This is general information, not legal advice.
Common questions
What is the minimum wage in Ontario?
$17.95 an hour, from 1 October 2026.
Is there a lower wage for tipped workers in Ontario?
No. Tipped workers get the full minimum wage, and tips come on top.
Can my employer keep my tips in Ontario?
Tips belong to the employee. Employers generally cannot withhold, deduct or take back tips, and employees cannot waive that right, even in writing. The only deductions allowed are legal payroll deductions, court-ordered deductions and tip pool redistributions. Since 21 June 2024 tips must be paid by cash, cheque or direct deposit (including e-Transfer). There is no fixed payment deadline, but unreasonable delay can count as withholding.
Can my employer take card fees out of my tips in Ontario?
Yes, in a limited way. An employer may deduct the card processing fee on a credit card tip, calculated as the greater of the card company's percentage or 1.5% of the tip. Debit card fees and other processing fees cannot be taken out of tips.
Are tip pools allowed in Ontario?
Employers may set up a tip pool and decide who takes part and how shares are worked out. Pool contributions can only come from tips, and joining can be a condition of the job. Managers can keep their own tips and may share in a pool if the employer's policy allows it. An employer or owner can only share if they are a sole proprietor, partner, director or shareholder who regularly does substantially the same work as the staff in the pool, and since 21 June 2024 that policy must be posted at work and kept for three years after it ends.
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