Tipped employees
Tipped minimum wage by state
The cash wage an employer must pay before tips, and the maximum tip credit, from each state's own page.
- 7 states allow no tip credit: Alaska, California, Minnesota, Montana, Nevada, Oregon, Washington.
- The federal tipped cash wage is $2.13, unchanged since 1991, against a $7.25 minimum.
- Where a state's cash wage is below the minimum, tips must make up the difference for the workweek or the employer pays it.
| State | Minimum wage | Tipped cash wage | Max tip credit | Rule |
|---|---|---|---|---|
| Washington | $17.13 | $17.13 | None allowed | No tip credit. RCW 49.46.020(3) and L&I: 'Businesses may not use tips and service charges paid to an employee as part of an employee's hourly minimum wage.' |
| California | $16.90 | $16.90 | None allowed | No tip credit: an employer may not use an employee's tips as a credit toward its obligation to pay the minimum wage. |
| Oregon | $15.55 | $15.55 | None allowed | 'Tip credits are illegal in Oregon'; tips are separate and cannot be counted as wages. |
| Hawaii | $16.00 | $14.75 | $1.25 | A tip credit of $1.25 (rising to $1.50 on 2028-01-01) is allowed only if the employee's cash wage plus tips is at least $7.00 more than the applicable minimum wage (HRS 387-2(b)). |
| Alaska | $14.00 | $14.00 | None allowed | No tip credit: tips and gratuities may not be applied toward the minimum wage; tipped employees receive the full state minimum wage. |
| Arizona | $15.15 | $12.15 | $3.00 | Employers may pay tipped employees up to $3.00 per hour less than the minimum wage if wages plus tips equal at least the minimum wage for all hours worked (A.R.S. 23-363(C)). |
| Colorado | $15.16 | $12.14 | $3.02 | No more than $3.02 per hour in tip income may be used to offset the minimum wage of employees who regularly receive tips (Colo. Const. art. XVIII sec. 15). |
| Nevada | $12.00 | $12.00 | None allowed | No tip credit; tips cannot be counted toward the minimum wage (NRS 608.250). |
| Minnesota | $11.41 | $11.41 | None allowed | 'No employer may take a tip credit against minimum wages in Minnesota.' Tipped employees receive the full minimum wage plus tips. |
| Florida | $14.00 | $10.98 | $3.02 | Employers may credit tips up to the allowable FLSA tip credit as of 2003 ($3.02), so the cash wage is $10.98 now and $11.98 from 2026-09-30. |
| Montana | $10.85 | $10.85 | None allowed | No tip credit, meal credit, or training wage is allowed under Montana wage and hour law. |
| New York | $16.00 | $10.70 | $5.30 | Hospitality industry only. Rest of state: food service workers $10.70 cash / $5.30 credit; service employees $13.30 / $2.70. NYC, Long Island, Westchester: food service $11.35 / $5.65; service... |
| District of Columbia | $18.40 | $10.30 | $8.10 | From 2026-07-01 the tipped cash wage is 56% of the standard minimum wage ($10.30); if weekly-averaged tips plus cash wage fall short of $18.40 the employer pays the difference. |
| Illinois | $15.00 | $9.00 | $6.00 | Employers may take a gratuity allowance of up to 40% of the applicable minimum wage (820 ILCS 105/4(c)); IDOL states tipped employees may be paid 60% of minimum wage ($9.00) provided tips bring them... |
| Maine | $15.10 | $7.55 | $7.55 | Service employees: direct (cash) wage at least 50% of the minimum wage; tip credit may not exceed 50% (26 MRS 664(2)). 2026: direct service wage $7.55, max credit $7.55. Tipped threshold: more than... |
| Missouri | $15.00 | $7.50 | $7.50 | Employers must pay tipped employees at least 50 percent of the minimum wage ($7.50) plus enough to bring total compensation to $15.00/hour (RSMo 290.512). |
| Vermont | $14.42 | $7.21 | $7.21 | 21 V.S.A. 384(a)(2): a 'service or tipped employee' of a hotel, motel, tourist place or restaurant who customarily receives more than $120/month in tips may be paid a basic wage of not less than... |
| Massachusetts | $15.00 | $6.75 | $8.25 | Service employees who customarily receive more than $20/month in tips: cash wage not less than $6.75; employer must make up any shortfall to the full minimum wage, calculated at the end of each... |
| Connecticut | $16.94 | $6.38 | $10.56 | Employer's share is fixed at $6.38 per hour for hotel and restaurant employees who customarily receive gratuities and $8.23 for bartenders, with tips making up the difference to the full minimum... |
| New Jersey | $15.92 | $6.05 | $9.87 | Cash wage of at least $6.05 (2026); statutory tip credit fixed at $9.87 for 2024 and subsequent years; employer must make up any shortfall so total equals the full minimum wage. |
| South Dakota | $11.85 | $5.92 | $5.92 | SDCL 60-11-3.1: cash wage not less than 50% of the minimum wage if a tip credit is claimed; employer makes up any shortfall each pay period. Tipped employee = more than $35/month in tips. DLR lists... |
| Ohio | $11.00 | $5.50 | $5.50 | Constitution: employer may pay not less than half the minimum wage if tips plus wages equal or exceed the minimum wage. $5.50 is half of $11.00 (the agency's 2026 poster could not be read). |
| Michigan | $13.73 | $5.49 | $8.24 | Tipped minimum is a percentage of the full rate (MCL 408.934d): 38% from 2025-02-21, 40% from 2026-01-01 ($5.49), 42% 2027, 44% 2028, 46% 2029, 48% 2030, 50% from 2031-01-01. Requires reported... |
| North Dakota | $7.25 | $4.86 | $2.39 | Tip credit of up to 33% of the minimum wage for tipped employees (service employees receiving more than $30/month in tips); minimum direct wage $4.86 per hour; employer must inform employee in... |
| Iowa | $7.25 | $4.35 | $2.90 | For restaurant/hotel/motel/inn/cabin employees regularly receiving more than $30/month in tips, the employer may credit tips up to 40% of the minimum wage (Iowa Code 91D.1(1)(c)); DIAL: 'the... |
| Rhode Island | $16.00 | $3.89 | $12.11 | RIGL 28-12-5(c): cash wage 'not less than three dollars and eighty-nine cents ($3.89) per hour' since 2017-01-01; tips must bring the employee to $16.00. Tipped employee = more than $30/month in... |
| Maryland | $15.00 | $3.63 | $11.37 | Employees regularly receiving more than $30/month in tips: employer must pay at least $3.63/hr; tip credit may not exceed the minimum wage less $3.63 (LE 3-419). |
| Idaho | $7.25 | $3.35 | $3.90 | Direct wages to tipped employees may not be less than $3.35/hr; if tips plus direct wages fall short of $7.25 the employer must make up the difference (Idaho Code 44-1502). Max credit $3.90 per DOL... |
| New Hampshire | $7.25 | $3.27 | $3.98 | Tipped employees of restaurants, hotels, motels, inns, cabins, ballrooms and cigar bars who regularly receive more than $30/month in tips: base rate not less than 45 percent of the applicable... |
| New Mexico | $12.00 | $3.00 | $9.00 | Employees customarily receiving more than $30/month in tips: cash wage of at least $3.00 (on and after 2023-01-01); tips plus cash wage must equal at least the full minimum wage; tips retained by... |
| Pennsylvania | $7.25 | $2.83 | $4.42 | Tipped employee = customarily and regularly receives more than $135/month in tips (34 Pa. Code 231.1, 2022 amendment). Employer must make up the difference if cash wage + tips < $7.25. 34 Pa. Code... |
| Arkansas | $11.00 | $2.63 | $8.37 | Employers may pay tipped employees a cash wage of not less than $2.63 per hour and credit gratuities for the remainder, provided the employee actually receives enough tips to reach $11.00 (Ark. Code... |
| West Virginia | $8.75 | $2.62 | $6.13 | WV Code 21-5C-4: after 2014-12-31 employers may take 'a credit ... of seventy percent of the hourly rate' for employees customarily receiving gratuities. Division of Labor FAQ: 70% credit permits a... |
| Wisconsin | $7.25 | $2.33 | $4.92 | Wis. Stat. 104.035(3) / DWD 272.03: tipped employees may be paid $2.33/hour ($2.13 for tipped opportunity employees) provided wages plus tips reach the applicable minimum. |
| Delaware | $15.00 | $2.23 | $12.77 | Employees who customarily receive more than $30 a month in tips may be paid a cash wage of not less than $2.23 per hour with gratuities making up the rest of the minimum wage (19 Del. C. 902(c)). |
| Alabama | $7.25 | $2.13 | $5.12 | No state tipped-wage law; the federal $2.13 cash wage / $5.12 tip credit applies to FLSA-covered employers. |
| Georgia | $7.25 | $2.13 | $5.12 | State law excludes tipped employees from the $5.15 minimum entirely; FLSA-covered employers follow the federal $2.13 cash wage / $5.12 tip credit. |
| Indiana | $7.25 | $2.13 | $5.12 | Employers claiming a tip credit must pay at least $2.13/hr and make up any shortfall to $7.25 (IDOL poster; DOL tipped table). |
| Kansas | $7.25 | $2.13 | $5.12 | Tipped employees may be paid $2.13/hr provided tips bring them to $7.25; otherwise the employer pays the difference (K.S.A. 44-1203). |
| Kentucky | $7.25 | $2.13 | $5.12 | For employees regularly receiving more than $30/month in tips, the employer may pay 'not less than the hourly wage rate required to be paid a tipped employee under the federal minimum hourly wage... |
| Louisiana | $7.25 | $2.13 | $5.12 | Federal FLSA tipped rules apply (no state law). |
| Mississippi | $7.25 | $2.13 | $5.12 | Federal FLSA tipped rules apply (no state law). |
| Nebraska | $15.00 | $2.13 | $12.87 | $2.13 per hour plus all gratuities, provided tips plus wages equal the applicable minimum wage. |
| North Carolina | $7.25 | $2.13 | $5.12 | Tips may be counted as wages only up to the amount permitted by FLSA section 3(m); employees must be notified in advance and retain all tips (tip pooling allowed, no employee's tips reduced more... |
| Oklahoma | $7.25 | $2.13 | $5.12 | 40 O.S. 197.16(A): credit for tips, gratuities, meals or lodging is allowed provided the employer pays a cash wage not less than that required under 29 C.F.R. 531.50(a)(1) (the federal $2.13 tipped... |
| South Carolina | $7.25 | $2.13 | $5.12 | Federal FLSA rules only (no state tipped provision); tipped employee = more than $30/month in tips. |
| Tennessee | $7.25 | $2.13 | $5.12 | Federal FLSA rules only; tipped employee = more than $30/month in tips. |
| Texas | $7.25 | $2.13 | $5.12 | Texas Labor Code 62.052: tipped wage determined per FLSA Section 3(m) (federal $2.13 cash wage); 'tipped employee' = customarily and regularly receives more than $20/month in tips. TWC: employers... |
| Utah | $7.25 | $2.13 | $5.12 | Labor Commission: 'Tipped employees (adults and minors) may be paid $2.13 per hour, but only' if tips plus cash wage equal at least $7.25 (Utah Code 34-40-104; R610-1). Tipped employee = more than... |
| Virginia | $12.77 | $2.13 | $10.64 | DOLI poster: under the FLSA 'tip credit' provisions, tipped employees (more than $30/month in tips) may be paid $2.13/hour, but wages plus tips actually received must reach the Virginia minimum... |
| Wyoming | $7.25 | $2.13 | $5.12 | W.S. 27-4-202(b): since 2001-04-01 tipped employees must be paid not less than $2.13/hour, with the employer paying the difference if wages plus tips fall short of the applicable minimum; 'tip'... |