Source: https://server44.app/tools/tipped-minimum-wage-by-state/

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# Tipped Minimum Wage by State

Look up the tipped minimum wage, tip credit, and employer obligations for any US state. Pick a second state if you want a side-by-side comparison.

_Interactive tool: open [the web page](https://server44.app/tools/tipped-minimum-wage-by-state/) to use it. This Markdown copy has the text only._

## How Tipped Minimum Wage Works

Under the federal Fair Labor Standards Act, employers can pay tipped employees a cash wage as low as $2.13 per hour, as long as the employee's tips bring total hourly pay up to at least $7.25 (the federal minimum wage). The gap between the cash wage and the minimum wage is the **tip credit**. When tips fall short in any workweek, the employer has to cover the difference.

States can set their own rules, but only _more_ generous ones. They can't go below the federal floor. In practice, this leaves us with three different approaches across the country.

### Three categories of state tipped wage laws

1. **No Tip Credit (7 states)** - Alaska, California, Minnesota, Montana, Nevada, Oregon, and Washington require employers to pay tipped workers the full state minimum wage. Tips go entirely on top of that base pay.
2. **Federal Baseline (15 states)** - These states follow the federal tipped minimum of $2.13/hr with a $5.12 tip credit. Several of them (Alabama, Louisiana, Mississippi, South Carolina, Tennessee) don't have a state minimum wage law at all, so the FLSA rate kicks in by default.
3. **State-Set Tip Credit (28 states + DC)** - These states set their own tipped wage somewhere between the federal floor and the full state minimum wage. Common formulas: 50% of the state minimum (Maine, Missouri, Vermont), 60% (Illinois), or a fixed dollar amount.

### Rules tipped workers should know

- **The 80/20 rule:** If you spend more than 20% of your shift on non-tipped duties (cleaning, rolling silverware), your employer owes you the full minimum wage for that time.
- **Tip pooling:** Employers can require tip pooling among customarily tipped employees, but managers and supervisors can't be part of it. Running an illegal tip pool means the employer loses the tip credit.
- **Service charges vs. tips:** Automatic gratuities and service charges count as wages, not tips. Your employer decides how they get distributed.
- **Record-keeping:** You need to report tips over $30 per month to your employer for tax purposes.
- **Overtime for tipped employees:** Overtime pay is (regular minimum wage x 1.5) minus the tip credit. At the federal level, that comes out to $5.76/hr for overtime hours.

## Tipped minimum wage by state: 2026 reference table

All 50 states and DC, sorted from highest to lowest tipped minimum wage. Rates are effective January 1, 2026, except Alaska, D.C. and Oregon (July 1, 2026) and Florida (September 30, 2026). Color coding: no tip credit, state-set, federal baseline.

| State | Min Wage | Tipped Wage | Tip Credit | Category |
| - | - | - | - | - |
| Washington | $17.13 | $17.13 | $0.00 | No Tip Credit |
| California | $16.90 | $16.90 | $0.00 | No Tip Credit |
| Oregon | $15.55 | $15.55 | $0.00 | No Tip Credit |
| Hawaii | $16.00 | $14.75 | $1.25 | State-Set |
| Alaska | $14.00 | $14.00 | $0.00 | No Tip Credit |
| Arizona | $15.15 | $12.15 | $3.00 | State-Set |
| Colorado | $15.16 | $12.14 | $3.02 | State-Set |
| Nevada | $12.00 | $12.00 | $0.00 | No Tip Credit |
| Florida | $15.00 | $11.98 | $3.02 | State-Set |
| Minnesota | $11.41 | $11.41 | $0.00 | No Tip Credit |
| New York | $17.00 | $11.35 | $5.65 | State-Set |
| Montana | $10.85 | $10.85 | $0.00 | No Tip Credit |
| D.C. | $18.40 | $10.30 | $8.10 | State-Set |
| Illinois | $15.00 | $9.00 | $6.00 | State-Set |
| Maine | $15.10 | $7.55 | $7.55 | State-Set |
| Missouri | $15.00 | $7.50 | $7.50 | State-Set |
| Vermont | $14.42 | $7.21 | $7.21 | State-Set |
| Massachusetts | $15.00 | $6.75 | $8.25 | State-Set |
| Connecticut | $16.94 | $6.38 | $10.56 | State-Set |
| New Jersey | $15.92 | $6.05 | $9.87 | State-Set |
| South Dakota | $11.85 | $5.93 | $5.92 | State-Set |
| Ohio | $11.00 | $5.50 | $5.50 | State-Set |
| Michigan | $13.73 | $5.49 | $8.24 | State-Set |
| North Dakota | $7.25 | $4.86 | $2.39 | State-Set |
| Iowa | $7.25 | $4.35 | $2.90 | State-Set |
| Rhode Island | $16.00 | $3.89 | $12.11 | State-Set |
| Maryland | $15.00 | $3.63 | $11.37 | State-Set |
| Idaho | $7.25 | $3.35 | $3.90 | State-Set |
| New Hampshire | $7.25 | $3.27 | $3.98 | State-Set |
| New Mexico | $12.00 | $3.00 | $9.00 | State-Set |
| Pennsylvania | $7.25 | $2.83 | $4.42 | State-Set |
| Arkansas | $11.00 | $2.63 | $8.37 | State-Set |
| West Virginia | $8.75 | $2.62 | $6.13 | State-Set |
| Wisconsin | $7.25 | $2.33 | $4.92 | State-Set |
| Delaware | $15.00 | $2.23 | $12.77 | State-Set |
| Alabama | $7.25 | $2.13 | $5.12 | Federal |
| Georgia | $7.25 | $2.13 | $5.12 | Federal |
| Indiana | $7.25 | $2.13 | $5.12 | Federal |
| Kansas | $7.25 | $2.13 | $5.12 | Federal |
| Kentucky | $7.25 | $2.13 | $5.12 | Federal |
| Louisiana | $7.25 | $2.13 | $5.12 | Federal |
| Mississippi | $7.25 | $2.13 | $5.12 | Federal |
| Nebraska | $15.00 | $2.13 | $12.87 | State-Set |
| North Carolina | $7.25 | $2.13 | $5.12 | Federal |
| Oklahoma | $7.25 | $2.13 | $5.12 | Federal |
| South Carolina | $7.25 | $2.13 | $5.12 | Federal |
| Tennessee | $7.25 | $2.13 | $5.12 | Federal |
| Texas | $7.25 | $2.13 | $5.12 | Federal |
| Utah | $7.25 | $2.13 | $5.12 | Federal |
| Virginia | $12.77 | $2.13 | $10.64 | State-Set |
| Wyoming | $7.25 | $2.13 | $5.12 | Federal |

These are statewide minimums, with two exceptions. The New York row shows the rate for New York City, Long Island and Westchester; the rest of the state is $16.00, or $10.70 for tipped food service workers. The Oregon row shows the standard rate; the Portland metro area is $16.80 and nonurban counties $14.55. Some cities set higher rates, such as Seattle WA at $21.30 in 2026, Los Angeles at $18.42 and San Francisco at $19.61. Check with your state labor department to confirm your local rate.

Want a personalized earnings estimate? Try our [Server Hourly Wage Calculator](https://server44.app/tools/server-hourly-wage-calculator/) or [Annual Tip Income Estimator](https://server44.app/tools/annual-tip-income-estimator/).

## Frequently Asked Questions

Common questions about tipped minimum wage by state

### What is the federal tipped minimum wage in 2026?

It's $2.13 per hour, and it hasn't changed since 1991. Employers can claim a tip credit of up to $5.12 per hour under the FLSA, but the employee's tips have to bring total hourly pay to at least $7.25 (the federal minimum wage).

### Which states do not allow a tip credit?

Seven states ban tip credits completely: Alaska, California, Minnesota, Montana, Nevada, Oregon, and Washington. Employers in those states pay tipped workers the full state minimum wage no matter how much the employee makes in tips.

### What happens if my tips do not bring me to minimum wage?

Your employer has to make up the difference. If your cash wage plus tips don't reach the applicable minimum wage in any workweek, the employer owes you a "shortfall payment." It's calculated on a workweek-by-workweek basis.

### What is a tip credit and how does it work?

A tip credit lets an employer count part of your tips toward meeting the minimum wage. It's the gap between the regular minimum wage and the tipped minimum wage. So if the state minimum is $15.00 and the tipped wage is $7.50, the employer is taking a $7.50 tip credit.

### Who qualifies as a "tipped employee" under federal law?

The FLSA defines a tipped employee as anyone who regularly receives more than $30 per month in tips. Some states set different thresholds, like Massachusetts at $20/month.

### Can my employer require me to share tips (tip pooling)?

Yes, employers can require tip pooling among customarily tipped employees (servers, bartenders, bussers). Managers and supervisors can't participate, though. If the employer runs an illegal tip pool, they lose the right to claim the tip credit.

### What is the 80/20 rule for tipped employees?

If you spend more than 20% of your workweek on non-tipped duties (side work like cleaning or rolling silverware), DOL guidelines say the employer has to pay you the full minimum wage for that time. Some courts also apply a 30-minute continuous rule.

### How is overtime calculated for tipped employees?

The formula is: (regular minimum wage x 1.5) minus tip credit. At the federal level, that works out to ($7.25 x 1.5) - $5.12 = $5.76/hr for any hours over 40 in a week.

## Related Tools

- [Dual Jobs 80/20 Sidework Calculator](https://server44.app/tools/dual-jobs-80-20-sidework-calculator/): Check your sidework against the 80/20 and 30-minute tests, see which hours should be paid full minimum wage, and estimate the pay difference.
- [Tip Pooling Legality Checker by State](https://server44.app/tools/tip-pooling-legality-checker/): Check if your tip pool is legal in 2026: enter your state and setup to see federal and state rules on managers, back-of-house staff, and the tip credit.
- [Auto-Gratuity Calculator for Large Parties](https://server44.app/tools/auto-gratuity-calculator/): Figure the automatic gratuity on a large-party restaurant check. Enter the subtotal, party size, and percent to see the auto-grat, the per-guest share, and how the IRS treats the charge versus a tip.
- [Banquet Server Gratuity Calculator](https://server44.app/tools/banquet-server-gratuity-calculator/): Enter the event food and beverage total, service charge percent, the share paid to staff, and your hours to see what a banquet service charge really pays.