It is not necessary to remove the dishwasher. You don't want to butt the tile against the kickplate either, which would make it difficult to remove the dishwasher later on and make for an unsightly gap. First, you will need to remove the kickplate by unscrewing a couple of screws. Behind the kickplate there are two adjustable pegs that screw upward. Turn the pegs enough to clear the tile. Chances are good that the top of the dishwasher is mounted to the underside of your cabinet, which will allow the front of the dishwasher to hang, allowing you to screw the pegs up without using a shim. When you are ready to tile, you only need to make the cuts in front of the dishwasher just big enough to allow the pegs to fully rest on the tile. If the pegs won't screw up by hand, you may need a wrench. Good luck!
Michael Prachniak - Expert Tile and Stone Consultant and Writer, Owner - Tile Productions
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