either way is fine. let me show you some pics of similar fireplaces so you can see what you like.

Here. I photo shopped it for you. the only change I would make is to get a beam mantle that spans all the way across the tile. this one looks too puny.

And, the wood stain you use for the mantle? get a piece of wood on top of your cabinets and stain it the same color. Look how good this cabinet looks w/matching top and the shelves. and the sconce!

this beam is better looking

floor level. all white bookcase, diff type of tile/mantle surroud.

slightly raised insert. ledgerstone tile.

few more I photoshopped

slightly raised insert, shiplap surround and black mantle.

one with a hearth. thicker beam

different material, raised hearth

this size is almost like yours, even the large TV!. they just did the tile on the insert surround, but added a small hearth.

As you can see, hearth, no hearth, raised or floor level, all look fine.

Whats your tile look like?

Thanks Beth! These two pictures were some that we had used for inspiration. The ones I see off the floor tend to have a metal piece along the bottom that is even with the top- ours is flat on the bottom and higher on top so not sure if that will make a difference in the look.

I really like your first one. (that gray almost looks like a honed gray basalt. I like the way they did a solid surround and hearth with it) or the first one I did for you (with the black tile and dark beam) I don't usually care for large tile, but I do like that one

i like this look too

Your second choice w/no mantle looks way too modern for your casual bookcase you have.

If we're just looking at openings, I don't see a diff. one is higher. Maybe I'm missing your actual dilemma.

do you have a picture of the insert? or a picture of your tile? design elements in the room?

We were also planning to do the tile until the mantle (mantle will match the shelves), but some of the photos are now making me consider going all the way up. Hmm, but not sure we will have enough tile for that!

if you're using large format tile, then go all the way up. doesn't make sense to use a large tile if you're going to have to cut the heck out of it and use on the lower portion.

lets see the tile

what about this look?

Here is the close up of the insert- it is meant to sit on the ground since it is almost flush with the floor and the black surround part is about 8 inches surrounding the top, and 4 inches on each side

I do really like that first photo you did (and agree with updating the mantle to go the full width)! So maybe I keep it on the floor like that one vs raising it and having a four inch piece of tile underneath. We don’t plan to add a hearth since we felt it made the room feel bigger without it

that's nice looking.

I'd do something like this with it

they did a little hearth in front, but you could choose not too, or, even do a slightly raised one.

something like this has a metal frame around it, and then a black shiplap, with the insert for the tv. you might think about doing something similar w/your tv since it's so large.

what about raising it 4 inches from the floor like this one is shown? (or do you like it better at ground level? Either is fine w/me)

instead of doing a tile (are you going to show a picture of this tile? I keep asking) you could just get some stone remnants of some sort and use the whole pieces as the surround

Closer picture showing marble pieces.

ground level

another ground level, but notice how they took one tile width and used that on the floor for a 'hearth'. I don't think it would make things look smaller.

Otherwise, I'd use a smaller tile on this portion.

marble mosaic herringbone tile surround, shiplap above that. I hate the tile they used for this hearth. horrible choice. a solid piece of marble would have looked better.

If you like the large tile (like 12x24?) then I'd take it all the way up.

But can we see it??

Yes, I was trying to find a better photo, but it would be the tile on the board against the fireplace on the right, but the grey color (small one, second from right). The tile guy plans to do two pieces on each side, and one piece along the top middle. It is 24x48” tile. We wanted the look of the stone but in a better price point. I am thinking I should see if I can get more tile to go all the way up. We didn’t do that since we have such a big tv that hides most of it but reconsidering!

ok. are the floors staying as is? I ask because they're on the warm yellow side, and the tile you're choosing in on the cool/greenish/blue-gray side.

Yes, the floors are staying as is