Find out how you should track and report all your tips and gratuities

In Canada, the amount you earn in tips and gratuities is considered to be income, and you must report all of it on your tax return.

How you report your tips and gratuities depends on whether you receive them directly, or through an arrangement with your employer. If you receive direct tips or gratuities (amount paid to you directly by the consumer) as part of the work you do, it is your responsibility to follow these three steps:

1. Track all your tips and gratuities received throughout the year and keep a copy of your tracking document.
2. Calculate the total amount of tips earned between January 1 and December 31 of the year for your tax return.
3. Report the total amount received on line 10400 of your income tax and benefit return.

Find out more about how to track, calculate and report your tips.

Fact sheet: Are you aware that all your tips and gratuities are taxable

• Reporting all your tips and gratuities is to your advantage. Learn more about the benefits.
• If the Canada Revenue Agency (CRA) reassesses your tax return and you haven't declared all your tips and gratuities, you will have to pay what you owe, plus interest and penalties.
• The Voluntary Disclosures Program (VDP) gives you a second chance to correct a tax return you previously filed or to file a return that you should have filed. Read more about the VDP.