A simple white tile is a great option for a nice clean look. If you would like to do something a little different, a herringbone pattern is a great option. Ames Tile & Stone, SOHO series has a couple sizes and different colors.

http://www.amestile.com/soho

The paint color of this space is Benjamin Moore, Manchester tan, #HC-81 with an eggshell finish. It is a great color, but we always recommend that you have a look at samples before moving forward.

why not white dove for the walls?

Clean white subway tile would modernize the space and not compete with the granite you'll be using for your countertops.

Perhaps our Lush glass subway tile in Cloud White in 1x4 or 3x6, our Kiln ceramic Milk white in 2x8 size or chevron.

Modwalls Tile may be purchase online. Samples availalable.

Where are the pictures of your Dove white cabinets and brown counters?

You will not achieve the "bright" result you are after with the wood ceiling. It will feel as a very heavy and overwhelming "lid" atop white cabinetry, while further minimizing the already small amount of natural light from the windows. I would advise painting it out.

Thank you all. The remodel has not yet started, so I have no pictures of the white cabinets. I love the wood as it is as well, but the dark wood and lack of light makes it very dark in there, The wood ceiling adds so much character for me that I want to keep it. I love the look of white cabinets against the wood. The color suggestions are great! A clean simple back-splash is the direction I'm going in.

We really need to see a sample of cabinets and countertops.

Maybe this will offer you some inspiration.

This is Brown Fantasy Granite.

Subway tile is going to give you yet another line in the room with the ceiling. I suggest you use the granite as a backsplash.

This will allow you more freedom with choosing a color for the room. With the warm tone of the ceiling and not seeing the floor I suggest a soft light warm taupe such as Behr Aged Beige

then go bold with your accent color(s).

After seeing that granite I'd agree to use it as the backsplash as well.
It has a lot of movement in it. Grout lines on tile would compete.
It's gorgeous!

this is some inspiration of what I'm going for. my kitchen is similar.

So bring up the granite - Stove and sink(?) backsplash and do the wood trim strips. Very nice. I do not suggest running the 4" or 6" splash around the counters though. Reducing the lines created will give you more freedom in the long run.

Also consider removing the cabinets flanking the window - perhaps putting them in the shelf area. It will give less of a tunnel feel and open the room up beautifully. Consider changing the windows to "almost" counter level in the future.

thoughts on a 4 x16 white glossy aubway tile? maybe less busy than 3x6? no money in the budget for granite backsplash. i also have been researching a wood or faux wood white planks?

I think subway tiles will be gorgeous, of whatever size. Just match the grout to the tile color as closely as possible, so you get more of a uniform effect.

Birdy often times there are scraps that will give you the back of the stove and the sink area very very inexpensively. The rest can be done in another effect. For instance the photo you presented had white on white vertical slats inter-spaced somewhat like this.

Also as an alternative to the std subway lay out you may want to consider a straight set tile look with the larger tiles.

The update.

I think it turned out beautifully!

What color did you end up painting the walls?