Home › Tools › Tipped minimum wage by state
Direct answer: Under federal law, tipped workers can be paid as little as $2.13 an hour in cash if tips bring them to $7.25; if not, the employer must make up the difference. As of Oct. 18, 2026, 16 states including Tennessee use $2.13, while 7 states, led by California and Washington, allow no tip credit at all.
By the numbers: 16 states at the federal $2.13 cash wage; 7 states with no tip credit (AK, CA, MN, MT, NV, OR, WA); highest cash wage with a tip credit: Hawaii $14.75. Source: U.S. DOL Wage and Hour Division, Minimum Wages for Tipped Employees (July 1, 2026) + state labor agencies
“If an employee's tips combined with the employer's direct (or cash) wages do not equal the minimum hourly wage of $7.25 per hour in each workweek, the employer must make up the difference.” — U.S. Department of Labor, Fact Sheet #15
Updated 2026-10-18
Tennessee has no state minimum wage law, so federal rules apply: at least $2.13 an hour in cash, and cash plus tips must reach $7.25 an hour each workweek or the employer makes up the difference (U.S. Labor Department). Example: 30 hours at $2.13 is $63.90 in cash; with $100 in tips you're at $163.90, so the employer owes $53.60 more.
Seven states require the full minimum wage before tips: Alaska ($14.00), California ($16.90), Minnesota ($11.41), Montana ($10.85 for businesses over $110,000), Nevada ($12.00), Oregon ($15.55 standard) and Washington ($17.13), plus Guam ($9.25), per the U.S. Labor Department's July 1, 2026 table.
16 states: Alabama, Georgia, Indiana, Kansas, Kentucky, Louisiana, Mississippi, Nebraska, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Utah, Virginia, Wyoming. In several (Alabama, Louisiana, Mississippi, South Carolina, Tennessee) there's no state minimum wage law at all, so the federal rule applies.
$11.98 an hour since Sept. 30, 2026: Florida's $15.00 minimum minus a fixed $3.02 tip credit (FloridaCommerce). It stays at $11.98 through Dec. 31, 2027.
Your employer must make up the difference on the regular payday, so that cash wages plus tips equal at least the minimum wage for every hour in that workweek (U.S. Labor Department Fact Sheet #15). Overtime is figured on the full minimum wage, not the lower cash wage. In states with no tip credit, tips never count toward the minimum.
Verified so far: Colorado to $12.69 cash ($15.71 full), South Dakota to $6.15 ($12.30), Ohio to $5.70 ($11.40, larger employers), and no-tip-credit states Washington ($17.73), California ($17.40), Minnesota ($11.87) and Montana ($11.20). New York and Florida don't change on Jan. 1. We add others when the state posts its notice.
Tipped rates from the U.S. Labor Department's table dated July 1, 2026 (Florida from FloridaCommerce, New York from NY DOL); Jan. 1, 2027 rates from state agency notices; checked Oct. 18, 2026.
As of Oct. 18, 2026 · U.S. Labor Department tipped table dated July 1, 2026 · 2027 rates from state notices
Tipped or not, your cash wage plus tips must reach the full minimum wage every workweek, or your employer owes the difference. The federal floor is $2.13 an hour in cash ($7.25 with tips). As of Oct. 18, 2026, 16 states including Tennessee use $2.13, and 7 states (California, Washington and five more) allow no tip credit at all.
The math:
Sources: U.S. DOL tipped table (July 1, 2026) · DOL Fact Sheet #15 · FloridaCommerce
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Pick your state, then type one week: hours, the cash wage on your stub (leave blank for the minimum) and the tips you kept.
From the U.S. Labor Department's tipped-employee table (dated July 1, 2026), plus Florida's Sept. 30, 2026 increase (FloridaCommerce) and New York's regional cash wages (NY DOL). “Minimum cash wage” is what the employer must pay per hour before tips; “with tips, at least” is the full minimum the total must reach (never less than the federal $7.25 for jobs covered by federal law). “Jan. 1, 2027” is filled in only where we read the state's own notice; — means not verified yet, not “no change”.
| State | Minimum cash wage | Max tip credit | With tips, at least | Jan. 1, 2027 cash wage | Notes |
|---|---|---|---|---|---|
| Alabama | $2.13 | $5.12 | $7.25 | — | No state minimum wage law; FLSA-covered jobs use the federal $7.25 / $2.13; Tipped employee: more than $30 a month in tips |
| Alaska | $14.00 | Not allowed | $14.00 | — | |
| Arizona | $12.15 | $3.00 | $15.15 | — | |
| Arkansas | $2.63 | $8.37 | $11.00 | — | |
| California | $16.90 | Not allowed | $16.90 | $17.40 (no tip credit) | |
| Colorado | $12.14 | $3.02 | $15.16 | $12.69 cash / $15.71 | Tipped employee: more than $30 a month in tips |
| Connecticut | $6.38 | $10.56 | $16.94 | — | Hotel and restaurant workers $6.38; bartenders who customarily receive tips $8.23 |
| Delaware | $2.23 | $12.77 | $15.00 | — | Tipped employee: more than $30 a month in tips |
| District of Columbia | $10.30 | $8.10 | $18.40 | — | Cash wage must be at least 56% of the standard minimum wage |
| Florida | $11.98 | $3.02 | $15.00 | No change | Rose Sept. 30, 2026 from $14.00/$10.98 (FloridaCommerce); the $3.02 tip credit is fixed; Tipped employee: more than $30 a month in tips; 2027: no Jan. 1 change: $15.00 / $11.98 through Dec. 31, 2027 |
| Georgia | $2.13 (federal) | $5.12 | $7.25 | — | Georgia's state law doesn't cover tipped employees; federal rules apply; Tipped employee: more than $30 a month in tips |
| Guam | $9.25 | Not allowed | $9.25 | — | |
| Hawaii | $14.75 | $1.25 | $16.00 | — | Tip credit allowed only if the employee's cash wage plus tips is at least $7.00 an hour more than the minimum wage |
| Idaho | $3.35 | $3.90 | $7.25 | — | Tipped employee: more than $30 a month in tips |
| Illinois | $9.00 | $6.00 (40%) | $15.00 | — | |
| Indiana | $2.13 | $5.12 | $7.25 | — | Tipped employee: more than $30 a month in tips |
| Iowa | $4.35 | $2.90 (40%) | $7.25 | — | Tipped employee: more than $30 a month in tips |
| Kansas | $2.13 | $5.12 | $7.25 | — | State law excludes FLSA-covered jobs; those follow federal rules |
| Kentucky | $2.13 | $5.12 | $7.25 | — | Tipped employee: more than $30 a month in tips |
| Louisiana | $2.13 | $5.12 | $7.25 | — | No state minimum wage law; FLSA-covered jobs use the federal $7.25 / $2.13; Tipped employee: more than $30 a month in tips |
| Maine | $7.55 | $7.55 (50%) | $15.10 | — | Tipped employee: more than $191 a month in tips |
| Maryland | $3.63 | $11.37 | $15.00 | — | Tipped employee: more than $30 a month in tips |
| Massachusetts | $6.75 | $8.25 | $15.00 | — | Tipped employee: more than $20 a month in tips |
| Michigan | $5.49 | $8.24 | $13.73 | — | Michigan's tipped cash wage rises each year until it reaches 50% of the minimum wage in 2031; the minimum wage goes to $15.00 on Jan. 1, 2027 |
| Minnesota | $11.41 | Not allowed | $11.41 | $11.87 (no tip credit) | |
| Mississippi | $2.13 | $5.12 | $7.25 | — | No state minimum wage law; FLSA-covered jobs use the federal $7.25 / $2.13; Tipped employee: more than $30 a month in tips |
| Missouri | $7.50 | $7.50 (50%) | $15.00 | — | |
| Montana | $10.85 | Not allowed | $10.85 | $11.20 (no tip credit) | Businesses with gross annual sales over $110,000. Businesses not covered by the federal FLSA with sales of $110,000 or less: $4.00 (no tip credit); 2027: no tip credit; businesses over $110,000 |
| Nebraska | $2.13 | $12.87 | $15.00 | — | |
| Nevada | $12.00 | Not allowed | $12.00 | — | |
| New Hampshire | $3.27 | $3.98 | $7.25 | — | Tipped employee: more than $30 a month in tips |
| New Jersey | $6.05 | $9.87 | $15.92 | — | Tip credit only if workers were told in advance of the cash wage, the credit claimed and that tips are theirs (valid tip pools aside); $15.23 minimum for employers with fewer than 6 workers and seasonal jobs; Tipped employee: more than $30 a month in tips |
| New Mexico | $3.00 | $9.00 | $12.00 | — | Tipped employee: more than $30 a month in tips |
| New York | $11.35 | $5.65 | $17.00 | No change | Food service workers in NYC, Long Island and Westchester $11.35 cash ($10.70 rest of state); other tipped service employees $14.15 ($13.30 rest of state). Only hospitality employers may take a tip credit (NY DOL); 2027: no change (food service, NYC/LI/Westchester) |
| North Carolina | $2.13 | $5.12 | $7.25 | — | Tip credit only with a signed tip certification each month or pay period and advance notice; Tipped employee: more than $20 a month in tips |
| North Dakota | $4.86 | $2.39 (33%) | $7.25 | — | Tipped employee: more than $30 a month in tips |
| Northern Mariana Islands | $2.13 | $5.12 | $7.25 | — | Tipped employee: more than $30 a month in tips |
| Ohio | $5.50 | $5.50 | $11.00 | $5.70 cash / $11.40 | Employers with annual gross receipts of $405,000 or more; smaller employers: state minimum $7.25 (federal rules apply to FLSA-covered jobs); Tipped employee: more than $30 a month in tips; 2027: employers with gross receipts of $419,000 or more |
| Oklahoma | $2.13 | $5.12 | $7.25 | — | Small employers (fewer than 10 full-time at a location, sales $100,000 or less): $2.00; state law excludes FLSA-covered jobs |
| Oregon | $15.55 | Not allowed | $15.55 | — | $15.55 standard; $16.80 Portland metro; $14.55 nonurban counties (no tip credit anywhere) |
| Pennsylvania | $2.83 | $4.42 | $7.25 | — | Tipped employee: $135 per month in tips |
| Puerto Rico | $2.13 | $8.37 | $10.50 | — | Tipped employee: more than $30 a month in tips |
| Rhode Island | $3.89 | $12.11 | $16.00 | — | Tipped employee: more than $30 a month in tips |
| South Carolina | $2.13 | $5.12 | $7.25 | — | No state minimum wage law; FLSA-covered jobs use the federal $7.25 / $2.13; Tipped employee: more than $30 a month in tips |
| South Dakota | $5.93 | $5.92 (50%) | $11.85 | $6.15 cash / $12.30 | South Dakota DLR lists the 2026 tipped wage as $5.925 an hour; Tipped employee: more than $35 a month in tips |
| Tennessee | $2.13 | $5.12 | $7.25 | — | No state minimum wage law; FLSA-covered jobs use the federal $7.25 / $2.13; Tipped employee: more than $30 a month in tips |
| Texas | $2.13 | $5.12 | $7.25 | — | State law excludes FLSA-covered jobs; those follow federal rules; Tipped employee: more than $20 a month in tips |
| Utah | $2.13 | $5.12 | $7.25 | — | State law excludes FLSA-covered jobs; those follow federal rules; Tipped employee: more than $30 a month in tips |
| Vermont | $7.21 | $7.21 (50%) | $14.42 | — | Tipped employee: more than $120 a month in tips |
| Virgin Islands | $4.20 | $6.30 | $10.50 | — | |
| Virginia | $2.13 | $10.64 | $12.77 | — | Tipped employee: more than $30 a month in tips |
| Washington | $17.13 | Not allowed | $17.13 | $17.73 (no tip credit) | |
| West Virginia | $2.62 | $6.13 (70%) | $8.75 | — | State law applies to employers with 6 or more employees |
| Wisconsin | $2.33 | $4.92 | $7.25 | — | Opportunity employees (under 20, first 90 days): $2.13 cash wage |
| Wyoming | $2.13 (federal) | $5.12 | $7.25 | — | Wyoming's state minimum is $5.15; FLSA-covered jobs use the federal $7.25/$2.13; Tipped employee: more than $30 a month in tips |
American Samoa has special industry rates (not shown). Cities and counties can set higher minimums (for example Denver, Chicago and Seattle); this table is statewide only. Sources: U.S. DOL tipped table (July 1, 2026) · FloridaCommerce · NY DOL; 2027: Colorado CDLE · South Dakota DLR · Ohio Commerce · WA L&I · CA Dept. of Finance · Minnesota DLI · Montana DLI
Michigan's minimum wage goes to $15.00 on Jan. 1, 2027 and its tipped cash wage rises each year until it's 50% of the minimum in 2031 (U.S. Labor Department), but we haven't read Michigan's 2027 tipped figure from the state yet. Other states adjust yearly too; we list a 2027 rate only after reading the state's own notice.
Source: DOL Fact Sheet #15
How we built this: every state figure is read from the U.S. Labor Department's tipped table (saved with a checksum and parsed in code; each row's cash wage + tip credit is checked to equal the full rate, and the full rate is checked against our minimum wage by state data). Florida comes from FloridaCommerce, New York from NY DOL, and 2027 figures only from the state agency's notice or poster. The check runs in your browser with the same arithmetic as our server-side test.
Facts and math, not legal advice. The U.S. Labor Department says to consult the state labor office for official information. Local, youth, training and dual-job rules aren't covered.
Tennessee has no state minimum wage law, so federal rules apply: at least $2.13 an hour in cash, and cash plus tips must reach $7.25 an hour each workweek or the employer makes up the difference (U.S. Labor Department). Example: 30 hours at $2.13 is $63.90 in cash; with $100 in tips you're at $163.90, so the employer owes $53.60 more.
Seven states require the full minimum wage before tips: Alaska ($14.00), California ($16.90), Minnesota ($11.41), Montana ($10.85 for businesses over $110,000), Nevada ($12.00), Oregon ($15.55 standard) and Washington ($17.13), plus Guam ($9.25), per the U.S. Labor Department's July 1, 2026 table.
16 states: Alabama, Georgia, Indiana, Kansas, Kentucky, Louisiana, Mississippi, Nebraska, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Utah, Virginia, Wyoming. In several (Alabama, Louisiana, Mississippi, South Carolina, Tennessee) there's no state minimum wage law at all, so the federal rule applies.
$11.98 an hour since Sept. 30, 2026: Florida's $15.00 minimum minus a fixed $3.02 tip credit (FloridaCommerce). It stays at $11.98 through Dec. 31, 2027.
Your employer must make up the difference on the regular payday, so that cash wages plus tips equal at least the minimum wage for every hour in that workweek (U.S. Labor Department Fact Sheet #15). Overtime is figured on the full minimum wage, not the lower cash wage. In states with no tip credit, tips never count toward the minimum.
Verified so far: Colorado to $12.69 cash ($15.71 full), South Dakota to $6.15 ($12.30), Ohio to $5.70 ($11.40, larger employers), and no-tip-credit states Washington ($17.73), California ($17.40), Minnesota ($11.87) and Montana ($11.20). New York and Florida don't change on Jan. 1. We add others when the state posts its notice.
Estimates, not financial advice. Taxes, insurance, PMI and fees vary by lender, county and city; confirm with your lender, dealer and state agency before acting.
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