Tipped Minimum Wage by State 2026: Full Cash-Wage Chart

This guide is for general information only. It summarizes federal and state wage rules in effect for 2026 and is not tax or legal advice. Wage rates change, and city or industry-specific rules can override the state floor. Verify your situation against the linked primary sources or talk to a labor attorney before acting on it.

The federal tipped cash wage has been stuck at $2.13 per hour since 1991. Your state, your city, and now your tax return decide whether that number matters. If you wait tables, tend bar, deliver food, or work any tipped job, the rate on your pay stub is only half the story. The other half is what your tips have to add on top to make the full minimum wage, and what the IRS does with both numbers after the year ends.

Here is the 2026 chart, with the math and the worker-side action steps.

Tipped Minimum Wage in 2026: The Federal Baseline

The Fair Labor Standards Act sets three numbers that anchor the whole system:

$7.25 per hour federal minimum wage
$2.13 per hour federal tipped cash wage
$5.12 per hour maximum federal tip credit ($7.25 minus $2.13)

A “tip credit” is the amount your employer is allowed to count from your tips toward the minimum wage. So long as your tips bring you up to at least $7.25 for every hour you worked in a pay period, your employer can legally pay the $2.13 cash wage. If they don’t, the FLSA requires the employer to make up the shortfall in cash. This is the “make-up” rule in Fact Sheet #15 from the U.S. Department of Labor.

Who counts as a tipped employee

Under the FLSA, a tipped employee is anyone who customarily and regularly receives more than $30 a month in tips. The employer must also tell you, in writing, that they intend to take a tip credit, the cash wage they’ll pay, and that all tips you receive are yours unless they pool tips with other tipped workers.

Where the federal floor still applies

About 16 states still let employers use the full $2.13 cash wage. Five states (Alabama, Louisiana, Mississippi, South Carolina, Tennessee) have no state minimum-wage law at all, so federal law sets the floor. The rest of the country sets a higher cash wage, a smaller tip credit, or no tip credit at all.

The Three Tip-Credit Models

Every state fits into one of three buckets. Knowing which bucket your state is in tells you what to look for on your pay stub.

Model 1: One Fair Wage (no tip credit)

Seven states require the full state minimum wage in cash, before tips. Your tips are on top of that floor, not part of how the employer reaches it. Tips are still taxable, and tip-out rules still apply, but the cash-wage line on your pay stub matches the state minimum wage.

States in this group for 2026: Alaska, California, Minnesota, Montana, Nevada, Oregon, Washington. Hawaii is often listed here but allows a tip credit when the employee earns at least $7.00 per hour above minimum wage, which makes it a partial outlier.

Model 2: Modified tip credit (state-set cash wage and credit)

About 27 states set their own cash wage above $2.13 and their own tip credit. New York is a good example: the New York Department of Labor sets a $5.65 tip credit for food-service workers in New York City, with a $11.35 cash wage and a $17.00 full minimum. Illinois pegs the tipped wage at 60% of the full minimum, with the employer making up any shortfall on slow shifts.

Model 3: Federal tip credit (full $5.12 credit allowed)

Roughly 16 states adopt the federal cash wage and tip credit. If you’re in one of these states, your employer can pay $2.13 cash as long as your tips fill the gap to $7.25. In a slow week, this is where the make-up rule does the heavy lifting and where most wage-theft cases happen.

A quick worker example

Say you work 30 hours in a federal-model state and earn $90 in tips for the week. Cash wage: 30 hrs x $2.13 = $63.90. Tips: $90. Total: $153.90. Federal minimum wage check: 30 x $7.25 = $217.50. You’re short $63.60. Your employer owes you the difference in your next paycheck. If they don’t pay it, that’s a wage violation. The tip credit calculator runs this check from your shift hours and tip total.

Full 2026 Tipped Minimum Wage Chart: All 50 States + DC

Rates effective January 1, 2026 unless noted. Cash wage is what the employer must pay you in actual hourly wages. Tip credit is the maximum amount of your tips the employer can apply toward minimum wage. Full minimum is the floor your cash wage plus tips must hit.

State	Cash Wage	Tip Credit	Full Min Wage	Notes
Alabama	$2.13	$5.12	$7.25	No state law; federal floor
Alaska	$13.00	$0.00	$13.00	One Fair Wage; $14.00 on July 1, 2026
Arizona	$12.15	$3.00	$15.15	Flagstaff: $18.35, no tip credit
Arkansas	$2.63	$8.37	$11.00
California	$16.90	$0.00	$16.90	One Fair Wage
Colorado	$12.14	$3.02	$15.16	Denver higher
Connecticut	$6.38 / $8.23	varies	$16.94	Bartenders / waitstaff split
Delaware	$2.23	$12.77	$15.00
DC	$10.00	$8.40	$18.40	Initiative 82 partial repeal; $10.30 on July 1, 2026
Florida	$10.98	$3.02	$14.00	$11.98 / $15.00 on Sept 30, 2026
Georgia	$2.13	$5.12	$7.25	Federal floor
Hawaii	$14.75	$1.25	$16.00	Tip credit only if tips $7+ above min
Idaho	$3.35	$3.90	$7.25
Illinois	$9.00	$6.00	$15.00	60% of full min
Indiana	$2.13	$5.12	$7.25	Federal floor
Iowa	$4.35	$2.90	$7.25
Kansas	$2.13	$5.12	$7.25	Federal floor
Kentucky	$2.13	$5.12	$7.25	Federal floor
Louisiana	$2.13	$5.12	$7.25	No state law
Maine	$7.55	$7.55	$15.10
Maryland	$3.63	$11.37	$15.00	Montgomery, PG County higher
Massachusetts	$6.75	$8.25	$15.00
Michigan	$5.49	$8.24	$13.73	Step-up schedule
Minnesota	$11.41	$0.00	$11.41	One Fair Wage
Mississippi	$2.13	$5.12	$7.25	No state law
Missouri	$7.50	$7.50	$15.00	50% of full min
Montana	$10.85	$0.00	$10.85	One Fair Wage
Nebraska	$2.13	$12.87	$15.00
Nevada	$12.00	$0.00	$12.00	One Fair Wage
New Hampshire	$3.27	$3.98	$7.25
New Jersey	$6.05	$9.87	$15.92
New Mexico	$3.00	$9.00	$12.00
New York	$11.35	$5.65	$17.00	NYC food service; downstate $11.35; rest of state $10.70 / $16.00
North Carolina	$2.13	$5.12	$7.25	Federal floor
North Dakota	$4.86	$2.39	$7.25
Ohio	$5.50	$5.50	$11.00	Small-employer carveouts
Oklahoma	$2.13	$5.12	$7.25	Federal floor
Oregon	$15.05	$0.00	$15.05	One Fair Wage; Portland metro $16.30
Pennsylvania	$2.83	$4.42	$7.25
Rhode Island	$3.89	$12.11	$16.00
South Carolina	$2.13	$5.12	$7.25	No state law
South Dakota	$5.93	$5.92	$11.85	50% of full min
Tennessee	$2.13	$5.12	$7.25	No state law
Texas	$2.13	$5.12	$7.25	Federal floor
Utah	$2.13	$5.12	$7.25	Federal floor
Vermont	$7.21	$7.21	$14.42
Virginia	$2.13	$10.64	$12.77	Tip credit large
Washington	$17.13	$0.00	$17.13	One Fair Wage; Seattle, SeaTac higher
West Virginia	$2.62	$6.13	$8.75
Wisconsin	$2.33	$4.92	$7.25
Wyoming	$2.13	$5.12	$7.25	Federal floor

Rates compiled from the DOL state tipped-employee table, EPI’s Minimum Wage Tracker, and state labor-agency publications. City rates can override state rates (Denver, NYC, Portland metro, Seattle, Minneapolis, Flagstaff). Verify your local rule before banking on the state number. The tipped minimum wage by state tool gives you a live lookup with the same data.

Where the 2026 increases landed

Nineteen states raised their general minimum wages on January 1, 2026, lifting cash wages or tip credits for tipped workers in most of them. The Economic Policy Institute estimates over 8.3 million workers picked up a raise that day. Florida’s general minimum then steps from $14.00 to $15.00 on September 30, 2026, taking the tipped cash wage from $10.98 to $11.98 on the same day, per the state constitutional amendment.

The Seven “One Fair Wage” States (And the Flagstaff Wildcard)

Seven states require the full state minimum wage in cash for tipped workers. Tips are on top, not part of the math:

Alaska ($13.00, stepping to $14.00 on July 1, 2026)
California ($16.90)
Minnesota ($11.41)
Montana ($10.85)
Nevada ($12.00)
Oregon ($15.05, with $16.30 in the Portland metro)
Washington ($17.13, with higher rates in Seattle and SeaTac)

Hawaii looks like it belongs, but the state allows employers to claim a $1.25 tip credit when the employee earns at least $7.00 per hour more than minimum wage. In practice that limits the tip credit to higher-tip restaurants, so most servers in Hawaii get the full minimum cash wage anyway. The state still belongs in its own footnote.

Flagstaff, Arizona is the local wildcard. Effective January 1, 2026, Flagstaff eliminated the tip credit entirely and now requires the full local minimum of $18.35 in cash. It’s the first major city in the country to break with state law on the tip-credit question, and other cities are watching.

The Economic Policy Institute and worker advocacy groups have been pushing One Fair Wage state by state for a decade. Massachusetts (Question 5, 2024) and Maine narrowly voted it down, and the DC partial repeal in 2025 (more on that below) showed how politically fragile the move from tip credit to full minimum can be once restaurants weigh in.

2026 Changes You Need to Know

A short list of the biggest moves on or near January 1, 2026:

DC partially repeals Initiative 82

Voters approved Initiative 82 in November 2022, phasing out the DC tipped minimum wage by 2027. In July 2025, the DC Council voted to slow it down. The tipped wage is now frozen at $10 per hour through July 2026, with biennial step-ups that cap the tipped wage at 75% of the full minimum by 2034. The phase-out to a single wage is off the table, at least under current law.

Pay-stub disclosure rules tighten

DC’s new pay-stub rule, effective January 1, 2026, requires employers to itemize cash wage, tip credit, service charges, bonuses, and commissions separately. Several states (NY, CA, MA, MN) already had something similar in place. Read your pay stub. The cash-wage line is where employer mistakes get caught.

Florida’s September step-up

Florida is on a constitutional $1-per-year ramp. The general minimum hits $15.00 on September 30, 2026, lifting the tipped cash wage to $11.98. Plan for the mid-year change; it doesn’t wait for January 1, 2027.

New York food-service rates

Downstate (NYC, Long Island, Westchester) tipped food-service workers: $11.35 cash, $5.65 tip credit, $17.00 full. Rest of state: $10.70 cash, $5.30 tip credit, $16.00 full. The state DOL also enforces “spread of hours” pay, which adds an extra hour at minimum wage on any workday longer than 10 hours.

Federal $2.13 is still real

About 16 states still allow the $2.13 federal cash wage, and Congress hasn’t moved the federal minimum since 2009. If you work in one of those states, your pay stub probably shows $2.13 as the cash-wage line, with tip credit doing the rest. That’s where the make-up rule matters most.

What the State Rate Actually Means for Your Take-Home Pay

The cash wage is the floor. Take-home is what’s left after taxes and tip-outs. Two 2026 federal changes redraw the second part:

The No Tax on Tips deduction (Sec. 224)

The One Big Beautiful Bill Act, signed July 4, 2025, created an above-the-line deduction of up to $25,000 in qualified tips from federal income tax. It’s in effect for tax years 2025 through 2028. The MAGI phase-out begins at $150,000 single / $300,000 joint and drops the deduction by $100 for every $1,000 over those thresholds. Most tipped workers are well under the phase-out floor.

The deduction does not eliminate FICA. Social Security (6.2%) and Medicare (1.45%) still apply to every reported tip. It also doesn’t help with state income tax in most states. Read “no tax on tips” as: no federal income tax, up to $25K, for four years. Real money, but not a blanket exemption.

The No Tax on Tips calculator runs the deduction math against your income for a quick estimate of the federal income tax savings.

Separate tip reporting on the W-2 starting 2026

Starting tax year 2026, qualified tips must be separately reported on your W-2 (in a new code TP entry in Box 12, with your Treasury Tipped Occupation Code in Box 14b) or on a 1099-NEC, 1099-MISC, 1099-K, or Form 4137 for self-employed workers. If your tips aren’t broken out on one of those forms, you lose the deduction.

This is the daily-log requirement in disguise. Employers can only put the right number on your W-2 if you reported tips correctly through the year. The federal Form 4070 monthly tip report and a daily tip log under IRS Publication 531 are how the W-2 numbers get built.

What this looks like for a typical server

Take a server in Texas (federal-model state) with $4,260 in cash wages (2,000 hours x $2.13) and $32,000 in tips. The full minimum wage check works out: 2,000 hours x $7.25 = $14,500 floor; cash + tips = $36,260, well over the floor. Federal income tax on the tips at the 12% bracket would be roughly $3,840 without the deduction. Apply Sec. 224 (full $32K under the $25K cap means the deduction is capped at $25K, so $7,000 of tips remains taxable): federal income tax on tips drops to about $840, a saving of around $3,000 for the year. FICA of about $2,448 on the tips still applies.

The state cash wage gets your foot in the door each pay period. The federal deduction is where the year-end win happens. Server44 was built for tipped workers because the answer to “how much did I actually take home?” requires both numbers, every shift, all year.

Service charges are not tips

One more trap to watch. Automatic gratuities and mandatory service charges (the 18% slapped on parties of six or more, the “service fee” on banquets, the resort fee at hotel spas) are wages, not tips. They don’t count toward the tip credit, they don’t qualify for the Sec. 224 deduction, and the employer can keep all or part of them as long as the distribution is disclosed. If your pay stub shows “service charge tips,” ask the manager to break them out separately. They’re regular wages, taxed accordingly.

Worker Action Items by State

Three things every tipped worker should do at least once a year:

Pull a recent pay stub. Confirm the cash-wage line matches the cash wage for your state in the chart above. If it’s wrong, ask payroll in writing to correct it.
Total your tips and hours for a slow week. Cash wage + tips divided by hours worked has to be at least the full state minimum wage. If it’s less, your employer owes you the difference. File a wage claim with the U.S. Department of Labor or your state labor agency if they refuse.
Track every tip, cash and card. A daily log feeds the monthly Form 4070 to your employer, which feeds the new W-2 Box 12 code TP entry starting in 2026, which is the deduction. No log, no deduction.

For step 1, the server hourly wage calculator converts your shift earnings into an effective hourly rate so you can sanity-check it against the state full minimum. For step 3, see our guide on the daily tip log under IRS Form 4070A.

Frequently Asked Questions

What is the federal tipped minimum wage in 2026?

The federal tipped cash wage is $2.13 per hour, with a maximum tip credit of $5.12 per hour applied toward the $7.25 federal minimum wage. Employers can only claim the tip credit when an employee’s cash wage plus tips equals or exceeds $7.25 for every hour worked in the pay period.

Which states have no tipped minimum wage (no tip credit) in 2026?

Seven states require employers to pay the full state minimum wage in cash before tips: Alaska, California, Minnesota, Montana, Nevada, Oregon, and Washington. Hawaii is often grouped with them, but Hawaii actually allows a narrow tip credit when an employee earns at least $7.00 per hour more than minimum wage. Flagstaff, Arizona is the first major city to eliminate the tip credit at the local level, effective January 1, 2026.

What happens if my tips plus cash wage don’t add up to minimum wage?

Under the FLSA, your employer must make up the difference each workweek so that your cash wage plus tips equals at least the applicable federal or state minimum wage. Failure to make up the shortfall is a wage violation, and you can recover the unpaid amount plus damages by filing a complaint with the U.S. Department of Labor or your state labor agency.

Did DC eliminate the tipped minimum wage under Initiative 82?

No. The DC Council partially repealed Initiative 82 in July 2025. The tipped wage is frozen at $10 per hour through July 2026, and the phase-up to a single minimum wage was stretched out, with the tipped wage now capped at 75% of the standard minimum wage by 2034 rather than reaching parity.

Are service charges and automatic gratuities considered tips?

No. Under both FLSA and IRS rules, mandatory service charges and automatic gratuities are wages, not tips. They do not count toward the tip credit, they do not qualify for the new federal No Tax on Tips deduction, and the employer can keep all or part of them as long as the distribution is disclosed.

How does the new federal No Tax on Tips deduction work in 2026?

Workers in qualifying tipped occupations can deduct up to $25,000 of qualified tip income from federal income tax for tax years 2025 through 2028. The deduction phases out by $100 for every $1,000 of MAGI over $150,000 single or $300,000 joint. Starting with tax year 2026, qualified tips must be separately reported on the W-2, 1099-NEC, 1099-MISC, 1099-K, or Form 4137 to be deductible.

Can my employer pay me $2.13 in any state?

Only in states that follow the federal model. Roughly 16 states still allow the full $2.13 federal cash wage. Most other states set a higher cash wage floor, and seven states require the full state minimum wage in cash before tips. Always check your state’s chart and confirm the cash wage line on your pay stub.

Which states are raising their tipped minimum wage in 2026?

Nineteen states raised their general minimum wages on January 1, 2026, and most of those increases flow through to higher cash wages or larger tip credits for tipped workers. Florida steps up again on September 30, 2026, when its general minimum hits $15.00 and the tipped cash wage rises to $11.98 per hour.

References

Frequently Asked Questions

What is the federal tipped minimum wage in 2026?

The federal tipped cash wage is $2.13 per hour, with a maximum tip credit of $5.12 per hour applied toward the $7.25 federal minimum wage. Employers can only claim the tip credit when an employee's cash wage plus tips equals or exceeds $7.25 for every hour worked in the pay period.

Which states have no tipped minimum wage (no tip credit) in 2026?

What happens if my tips plus cash wage don't add up to minimum wage?

Did DC eliminate the tipped minimum wage under Initiative 82?

Are service charges and automatic gratuities considered tips?

How does the new federal No Tax on Tips deduction work in 2026?

Can my employer pay me $2.13 in any state?

Only in states that follow the federal model. Roughly 16 states still allow the full $2.13 federal cash wage. Most other states set a higher cash wage floor, and seven states require the full state minimum wage in cash before tips. Always check your state's chart and confirm the cash wage line on your pay stub.

Which states are raising their tipped minimum wage in 2026?