I think you either end it at the end of the upper cabinet or tile the whole wall to the ceiling.

What kind of backsplash are you installing? 4 inch that matches the countertop or tile to the bottom of the top cabinets? IMO, a four inch backsplash would work best, the end of the counter being the stopping point. I agree with you that ending at the cabinet would look awkward.

If your putting shelves up on the end where there are no upper cabinets you could get away with tiling just up to the first shelf but I think your contractor is wrong and you should come all the way down and if your not doing shelves I would take the tile all the way up! Good luck

I agree. Tile all the way up or add about 3 floating open shelving which will also look nice and you can tile up to the last floating shelf

Are you planning on having anything else on the wall above that extra counter? Yes, ending it might look incomplete, but the alternative is a long rectangle of orphaned tile above the counter, which is also sub-ideal. Best would have been to plan something above -- you could add open shelves now, or just plan to live with the stretch of tile and hang some great art.

Here's a thread which involved some photos of the various outcomes.

https://www.houzz.com/discussions/where-to-end-backsplash-dsvw-vd~3299942?n=78

Another option would be to extend a corbel or other divider down from the cabinet at the left end of your run, so that it would give the tile a natural place to end.

I'd tile out to where the overhead beam ends, then all the way up to that beam. That beam is a different color than the rest of your wall, indicating it's a different room. This will leave plain wall above the cabinet for artwork or shelves. I don't think shelves will look good there cause they'll leave an awkward space between the shelves and the cabinet imho.

Hello everyone thanks for your thoughts... all great!!! I dont like the idea of shelves there. We will put some kind of artwork there but above the tile area . I think I will tile up wall to end of cabinet with some sort of boarder. will send a pic when all finished,,,

Don't tile straight across the wall at the cabinet height. If you want a picture there then stop at the end of the cabinet. That will give you a clean wall. Hanging a picture over extended tile is going to be too high. Plus, you'll still have 18 inches of blank tile below.

A large framed vintage food or wine poster would work well