Quebec's new tipping and pricing rules: What consumers and businesses need to know

Tips based on pre-tax bills: A small change with big impact

At the heart of the new rules is a tipping tweak many diners have long hoped for: Restaurants and bars must now base their suggested tip amounts on the pre-tax subtotal, not the final, taxed amount.

It’s a subtle shift, but one that could save consumers a few extra dollars on every meal. Take a $100 dinner bill, for example. Under the old model, an 18% tip would be calculated on roughly $115 (after taxes), adding up to $20.70. Under the new rule, that same tip would be just $18.

While it might sound like a win for customers, the change is stirring debate within the service industry, where many workers rely on tips as a key part of their income.

“There’s concern that this could affect earnings, especially in a sector where wages are already low,” a Montreal restaurant worker told CTV News. “Tips aren’t just nice — they’re necessary.”

Still, for some small business owners, the regulation offers a silver lining: Lower declared tips could mean reduced payroll taxes, and lower credit card processing fees, two welcome reliefs amid rising operating costs.

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Grocery shopping gets a clarity boost

The legislation also touches another pain point for Quebecers, price transparency in grocery stores.

From now on, grocery retailers must make it crystal clear whether taxes are included in the shelf price of food items. And when it comes to sales, stores must display both the regular and discounted price side-by-side. Prices tied to loyalty programs must be clearly marked, too.

That’s not all: For multi-packs or bundled goods, retailers are now required to post the unit price. Similar products, even from competing brands, must also use the same unit of measurement so shoppers can compare apples to apples (or cereal to cereal).

The goal? To make navigating grocery aisles less of a guessing game, especially for consumers watching every dollar.

The changes will help shoppers manage and stretch their grocery budgets, and helps to avoid surprises at the check out.

What this means for your wallet — and your business

For consumers, these changes may seem minor, but they add up. Paying closer attention to tip calculations and shelf labels could lead to small but meaningful savings, particularly in a time when inflation continues to squeeze household budgets.

Financially savvy shoppers should double-check grocery unit prices and avoid over-tipping based on inflated, post-tax totals. And dining out? It’s still customary to tip generously, but now you have a clearer picture of how much you’re tipping, and why.

For business owners, especially in hospitality and retail, it’s time to update systems and train staff. Transparency isn’t just about compliance, it’s about trust. Adapting quickly could build customer loyalty and help manage back-end costs more efficiently.

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A wider push for consumer fairness

Quebec’s new rules reflect a growing national trend toward consumer protection and financial literacy. In an era of rising prices and economic uncertainty, governments across Canada are facing pressure to protect purchasing power, not just with subsidies or rebates, but with clearer, fairer rules.

“We’re setting a precedent,” Jolin-Barrette said. “The more consumers understand what they’re paying for, the more confident and empowered they’ll feel.”

And that, at the end of the day, might be the most valuable change of all.

Sources

1. CTV News: New rules on tipping, price labelling take effect across Quebec (May 7, 2025)