I think you need to paint first. We need to be able to see how the white will read in your space and lighting.

What is your granite? Most likely a white or a very light gray tile could work.

As you found out, dark backsplashes such the light out of a room.

Seems like you’re switching to more farmhouse look. I like the idea of gray glass or marble mosaic backsplash with white cabinets, black counters and gray paint.

Thanks! I have no clue why they tiled that wall (bump). We're removing all the tile from the chimney/exhaust thing (it has to stay) and just painting it to match the wall color. Also, the counter although primarily black has a lot of greenish/opal-ish flecks.

Cool. That opens you up to the green/gray options for tile, like Oyster Shell.

Leave the backsplash until you are ready to replace the counter and backsplash all at one time. I like to use the same slab material for both. It’s too easy to select the wrong backsplash: the colors really don’t work together, the white is not the same, there is too much contrast, sometimes it’s just too hard to find a backsplash you like.

Changing the counter really isn't in the near future - I only had the budget to swap out appliances (which really needed to go) or the counter. :( And I can't look at the black subway tile anymore - it's horrible.

@felizlady, I disagree. It’s such a small space that the cost of tiling it will be $. The cost of re-tiling it a few years down the road will also be $. You can absolutely tile in the short term if the space is this small and the tile this depressing.

Looking at granite colors online - it looks like I have Emerald Pearl Granite: http://www.luxurycountertops.com/images/14261/emerald-pearl-3.jpg

I think you’re on the right track. Pull out the black backsplash and pick new glossy tile after cabinets before wall paint. Fewer selections available in tile and paint is easy to match to almost anything. Also maybe consider some open shelves next to bump out over peninsula?

Just putting in a light colored backsplash will make a huge difference! Do you have under cabinet lighting?

no, I don't. We did have some cheap push button lights from Ikea - but they never really worked. But, I will look into it. :) Thanks for the suggestion.

slowly getting there. This was day one of painting. :) cabinet doors - will be done in a few days.

Well if you work on that bump out and are able to make it smaller, perhaps you can get a little remnant piece of granite to place there until you can change your counters.

I wish I could make the bump area smaller. :( But, it would cost $$ to get it done as it's currently functioning as a boiler chimney? I think that's what it's called. So the bump is staying. :(

The bump will blend once you remove the tile and paint. Even if you could have made it smaller, and even if you could find a matching remnant, it would still be patched. Best to keep the granite counter intact.

I like eam’s idea of a greenish gray tile. It will tie in the walls and counter.

I thought the granite was black at first but looking closely, it is obviously green.