diff --git a/docs/axes/cartesian/README.md b/docs/axes/cartesian/README.md
index c5457161938..7d27c625b48 100644
--- a/docs/axes/cartesian/README.md
+++ b/docs/axes/cartesian/README.md
@@ -31,7 +31,7 @@ The following options are common to all cartesian axes but do not apply to other
 | `maxRotation` | `Number` | `90` | Maximum rotation for tick labels when rotating to condense labels. Note: Rotation doesn't occur until necessary. *Note: Only applicable to horizontal scales.*
 | `minRotation` | `Number` | `0` | Minimum rotation for tick labels. *Note: Only applicable to horizontal scales.*
 | `mirror` | `Boolean` | `false` | Flips tick labels around axis, displaying the labels inside the chart instead of outside. *Note: Only applicable to vertical scales.*
-| `padding` | `Number` | `10` | Padding between the tick label and the axis. *Note: Only applicable to horizontal scales.*
+| `padding` | `Number` | `10` | Padding between the tick label and the axis. When set on a vertical axis, this applies in the horizontal (X) direction. When set on a horizontal axis, this applies in the vertical (Y) direction.
 
 ## Axis ID
 The properties `dataset.xAxisID` or `dataset.yAxisID` have to match the scale properties `scales.xAxes.id` or `scales.yAxes.id`. This is especially needed if multi-axes charts are used.
diff --git a/src/core/core.scale.js b/src/core/core.scale.js
index 471540e034c..302c3b0c49c 100644
--- a/src/core/core.scale.js
+++ b/src/core/core.scale.js
@@ -340,6 +340,7 @@ module.exports = function(Chart) {
 				var largestTextWidth = helpers.longestText(me.ctx, tickFont.font, me.ticks, me.longestTextCache);
 				var tallestLabelHeightInLines = helpers.numberOfLabelLines(me.ticks);
 				var lineSpace = tickFont.size * 0.5;
+				var tickPadding = me.options.ticks.padding;
 
 				if (isHorizontal) {
 					// A horizontal axis is more constrained by the height.
@@ -354,7 +355,7 @@ module.exports = function(Chart) {
 						+ (tickFont.size * tallestLabelHeightInLines)
 						+ (lineSpace * tallestLabelHeightInLines);
 
-					minSize.height = Math.min(me.maxHeight, minSize.height + labelHeight);
+					minSize.height = Math.min(me.maxHeight, minSize.height + labelHeight + tickPadding);
 					me.ctx.font = tickFont.font;
 
 					var firstTick = me.ticks[0];
@@ -379,7 +380,7 @@ module.exports = function(Chart) {
 					if (tickOpts.mirror) {
 						largestTextWidth = 0;
 					} else {
-						largestTextWidth += me.options.ticks.padding;
+						largestTextWidth += tickPadding;
 					}
 					minSize.width = Math.min(me.maxWidth, minSize.width + largestTextWidth);
 					me.paddingTop = tickFont.size / 2;
@@ -605,19 +606,21 @@ module.exports = function(Chart) {
 				var tx1, ty1, tx2, ty2, x1, y1, x2, y2, labelX, labelY;
 				var textAlign = 'middle';
 				var textBaseline = 'middle';
+				var tickPadding = optionTicks.padding;
 
 				if (isHorizontal) {
+					var labelYOffset = tl + tickPadding;
 
 					if (options.position === 'bottom') {
 						// bottom
 						textBaseline = !isRotated? 'top':'middle';
 						textAlign = !isRotated? 'center': 'right';
-						labelY = me.top + tl;
+						labelY = me.top + labelYOffset;
 					} else {
 						// top
 						textBaseline = !isRotated? 'bottom':'middle';
 						textAlign = !isRotated? 'center': 'left';
-						labelY = me.bottom - tl;
+						labelY = me.bottom - labelYOffset;
 					}
 
 					var xLineValue = me.getPixelForTick(index) + helpers.aliasPixel(lineWidth); // xvalues for grid lines
@@ -630,7 +633,6 @@ module.exports = function(Chart) {
 					y2 = chartArea.bottom;
 				} else {
 					var isLeft = options.position === 'left';
-					var tickPadding = optionTicks.padding;
 					var labelXOffset;
 
 					if (optionTicks.mirror) {