What is a Tipping Fee?

Tipping fees serve not only to recover the operational, maintenance and environmental compliance costs of waste management facilities, but also act as a behavioral and policy tool. For example, higher fees for landfill disposal can incentivize greater diversion of waste to recycling, reuse or composting. Related terms include gate fee, which is synonymous, and differential tipping fee, where fees vary by waste type or source. While the fee is charged when material is accepted, its influence feeds back upstream into decisions about packaging, material design and waste generation.