If you earn tips — as a server, bartender, delivery driver, or in any tipped role — your paycheck follows different rules than the standard minimum wage. Your employer may pay you a lower cash wage and count your tips toward the rest. That gap is called the tip credit.
The federal tipped cash wage is $2.13/hour (unchanged since 1991), but most states set their own higher number — and 7 states don’t allow tip credits at all, meaning your employer must pay you the full minimum wage before tips.
Last verified: October 13, 2026 · Rates cross-checked against each state’s labor department and the U.S. DOL tipped wage tables.
| Effective | Next change | Notes & Source | ||
|---|---|---|---|---|
| Alabama FEDERAL FLOOR | $2.13/hour | Federal default | Not announced | No state tip-credit law; federal $2.13 cash / $5.12 credit applies. U.S. DOL |
| Alaska CHANGED MID-YEAR | $14.00/hour | Jul 1, 2026 | Not announced | No tip credit — employer pays full minimum wage; rose $13.00 → $14.00 on Jul 1, 2026. labor.alaska.gov |
| Arizona CHANGED JAN 1 | $12.15/hour | Jan 1, 2026 | Not announced | Max $3.00 tip credit; credit only if cash + tips ≥ $15.15 minimum wage. azica.gov |
| Arkansas NO CHANGE | $2.63/hour | Jan 1, 2021 | Not announced | Max $8.37 tip credit; standard minimum wage $11.00. labor.arkansas.gov |
| California CHANGED JAN 1 | $16.90/hour | Jan 1, 2026 | Not announced | No tip credit — employer pays full minimum wage before tips. dir.ca.gov |
| Colorado CHANGED JAN 1 | $12.14/hour | Jan 1, 2026 | Not announced | Max $3.02 tip credit; standard minimum wage $15.16. cdle.colorado.gov |
| Connecticut CHANGED JAN 1 | $10.56/hour | Jan 1, 2026 | Not announced | $10.56 hotel/restaurant, $8.71 bartenders; combined minimum wage $16.94. U.S. DOL |
| Delaware NO CHANGE | $2.23/hour | Jan 1, 2025 | Not announced | Max $12.77 tip credit; standard minimum wage $15.00. U.S. DOL |
| District of Columbia CHANGED MID-YEAR | $10.30/hour | Jul 1, 2026 | Tip credit ends 7/1/2027 | Tip credit phasing out — combined minimum wage $18.40; employer credit ends Jul 1, 2027. does.dc.gov |
| Florida CHANGED MID-YEAR | $11.98/hour | Sep 30, 2026 | Not announced | Max $3.02 tip credit; figure published by FL Dept. of Commerce on floridajobs.org — not a .gov domain, the one exception on this page. floridajobs.org |
| Georgia FEDERAL FLOOR | $2.13/hour | Federal default | Not announced | GA law excludes tipped employees — federal $2.13 applies. U.S. DOL |
| Hawaii CHANGED JAN 1 | $14.75/hour | Jan 1, 2026 | Not announced | Max $1.25 tip credit; credit only if cash + tips ≥ $23.00/hr; minimum wage $16.00. labor.hawaii.gov |
| Idaho NO CHANGE | $3.35/hour | Long-standing | Not announced | Max $3.90 tip credit; standard minimum wage $7.25. labor.idaho.gov |
| Illinois NO CHANGE | $9.00/hour | Jan 1, 2025 | Not announced | Max $6.00 tip credit; standard minimum wage $15.00. U.S. DOL |
| Indiana FEDERAL FLOOR | $2.13/hour | Federal default | Not announced | No state law; federal $2.13 applies. U.S. DOL |
| Iowa NO CHANGE | $4.35/hour | Long-standing | Not announced | Max $2.90 tip credit; standard minimum wage $7.25. workforce.iowa.gov |
| Kansas FEDERAL FLOOR | $2.13/hour | Federal default | Not announced | KS law excludes FLSA-covered work — federal $2.13 applies. U.S. DOL |
| Kentucky FEDERAL FLOOR | $2.13/hour | Federal default | Not announced | Follows federal rates. U.S. DOL |
| Louisiana FEDERAL FLOOR | $2.13/hour | Federal default | Not announced | No state minimum-wage law; federal applies. U.S. DOL |
| Maine CHANGED JAN 1 | $7.55/hour | Jan 1, 2026 | Not announced | Max $7.55 tip credit; minimum wage $15.10. U.S. DOL |
| Maryland NO CHANGE | $3.63/hour | Jan 1, 2024 | Not announced | Max $11.37 tip credit; standard minimum wage $15.00. U.S. DOL |
| Massachusetts NO CHANGE | $6.75/hour | Jan 1, 2023 | Not announced | Max $8.25 tip credit; standard minimum wage $15.00. U.S. DOL |
| Michigan CHANGED JAN 1 | $5.49/hour | Jan 1, 2026 | Tipped → 50% of MW by 2031 | Tipped = 40% of minimum wage in 2026; rising to 50% by 2031. michigan.gov |
| Minnesota CHANGED JAN 1 | $11.41/hour | Jan 1, 2026 | Not announced | No tip credit — employer pays full minimum wage before tips. dli.mn.gov |
| Mississippi FEDERAL FLOOR | $2.13/hour | Federal default | Not announced | No state minimum-wage law; federal applies. U.S. DOL |
| Missouri CHANGED JAN 1 | $7.50/hour | Jan 1, 2026 | Not announced | Max $7.50 tip credit (50%); minimum wage $15.00. labor.mo.gov |
| Montana CHANGED JAN 1 | $10.85/hour | Jan 1, 2026 | Not announced | No tip credit; $4.00 exception for non-FLSA employers with ≤$110k sales. erd.dli.mt.gov |
| Nebraska CHANGED JAN 1 | $2.13/hour | Jan 1, 2026 | Not announced | Max $12.87 tip credit; minimum wage $15.00. dol.nebraska.gov |
| Nevada NO CHANGE | $12.00/hour | Jul 1, 2024 | Not announced | No tip credit — employer pays full minimum wage before tips. U.S. DOL |
| New Hampshire NO CHANGE | $3.27/hour | Long-standing | Not announced | Max $3.98 tip credit (45% of MW); standard minimum wage $7.25. U.S. DOL |
| New Jersey CHANGED JAN 1 | $6.05/hour | Jan 1, 2026 | Tipped → $6.61 in 2027 | Max $9.87 tip credit; minimum wage $15.92. U.S. DOL |
| New Mexico NO CHANGE | $3.00/hour | Jan 1, 2023 | Not announced | Max $9.00 tip credit; standard minimum wage $12.00. U.S. DOL |
| New York CHANGED JAN 1 | $11.35/hour | Jan 1, 2026 | Not announced | $11.35 food-service downstate (NYC/LI/Westchester), $10.70 upstate; hospitality order. dol.ny.gov |
| North Carolina FEDERAL FLOOR | $2.13/hour | Federal default | Not announced | Signed tip certification required to claim the credit. U.S. DOL |
| North Dakota NO CHANGE | $4.86/hour | Long-standing | Not announced | Max $2.39 tip credit; standard minimum wage $7.25. U.S. DOL |
| Ohio CHANGED JAN 1 | $5.50/hour | Jan 1, 2026 | Not announced | Max $5.50 tip credit; minimum wage $11.00. com.ohio.gov |
| Oklahoma FEDERAL FLOOR | $2.13/hour | Federal default | Not announced | OK law excludes FLSA-covered work — federal applies. U.S. DOL |
| Oregon CHANGED MID-YEAR | $15.55/hour | Jul 1, 2026 | Not announced | No tip credit; $15.55 standard / $16.80 Portland metro / $14.55 nonurban. oregon.gov |
| Pennsylvania NO CHANGE | $2.83/hour | Long-standing | Not announced | Max $4.42 tip credit; standard minimum wage $7.25. U.S. DOL |
| Rhode Island NO CHANGE | $3.89/hour | Jan 1, 2026 | Not announced | Max $12.11 tip credit; minimum wage $16.00. dlt.ri.gov |
| South Carolina FEDERAL FLOOR | $2.13/hour | Federal default | Not announced | No state minimum-wage law; federal applies. U.S. DOL |
| South Dakota CHANGED JAN 1 | $5.925/hour | Jan 1, 2026 | Not announced | Max $5.925 tip credit (50% of MW); minimum wage $11.85. dlr.sd.gov |
| Tennessee FEDERAL FLOOR | $2.13/hour | Federal default | Not announced | No state minimum-wage law; federal applies. U.S. DOL |
| Texas FEDERAL FLOOR | $2.13/hour | Federal default | Not announced | TX law excludes FLSA-covered work — federal applies. U.S. DOL |
| Utah FEDERAL FLOOR | $2.13/hour | Jan 1, 2026 | Not announced | UT law excludes FLSA-covered work — federal applies. U.S. DOL |
| Vermont CHANGED JAN 1 | $7.21/hour | Jan 1, 2026 | Not announced | Max $7.21 tip credit (50% of MW); minimum wage $14.42. labor.vermont.gov |
| Virginia CHANGED JAN 1 | $2.13/hour | Jan 1, 2026 | Not announced | Max $10.64 tip credit; minimum wage $12.77; tipped cash follows FLSA. doli.virginia.gov |
| Washington CHANGED JAN 1 | $17.13/hour | Jan 1, 2026 | Not announced | No tip credit — employer pays full minimum wage before tips. lni.wa.gov |
| West Virginia NO CHANGE | $2.62/hour | Long-standing | Not announced | Max $6.13 tip credit (70%); minimum wage $8.75. U.S. DOL |
| Wisconsin NO CHANGE | $2.33/hour | Long-standing | Not announced | Max $4.92 tip credit; standard minimum wage $7.25. docs.legis.wisconsin.gov |
| Wyoming FEDERAL FLOOR | $2.13/hour | Federal default | Not announced | FLSA-covered workers get federal $7.25/$2.13. U.S. DOL |
51 jurisdictions
How tip credits work
The idea is simple: cash wage + tips must equal at least the standard minimum wage. If your tips fall short in a given week, your employer is legally required to make up the difference. No exceptions — this is federal law (FLSA), and it applies in every state.
Example: in Texas, your employer pays $2.13/hour in cash. If you average $5.12/hour in tips, you've hit the $7.25 federal minimum. If you only average $3/hour in tips, your employer owes you the $2.12 difference.
The 7 states with no tip credit
In these states, the tip credit doesn't exist. Your employer pays the full state minimum wage in cash, and every tip you earn is on top:
- Washington — $17.13 (WA Dept. of Labor & Industries)
- California — $16.90 (CA Dept. of Industrial Relations)
- Oregon — $15.55 standard / $16.80 Portland metro / $14.55 nonurban (Oregon Bureau of Labor & Industries)
- Alaska — $14.00, from Jul 1, 2026 (Alaska Dept. of Labor & Workforce Development)
- Nevada — $12.00 (Nevada Office of the Labor Commissioner)
- Minnesota — $11.41 (Minnesota Dept. of Labor & Industry)
- Montana — $10.85 (Montana Dept. of Labor & Industry)
Washington, D.C. is phasing its credit out entirely — the tip credit ends July 1, 2027.
States at the federal $2.13 floor
16 states use the federal tipped cash wage of $2.13/hour: Alabama, Georgia, Indiana, Kansas, Kentucky, Louisiana, Mississippi, Nebraska, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Utah, Virginia, and Wyoming.
Notable state rules worth knowing
- New York splits tipped workers into categories — food-service workers downstate get $11.35/hour cash; the rules differ upstate and for other service employees.
- Connecticut has separate rates for hotel/restaurant workers ($10.56) and bartenders ($8.71).
- Hawaii allows only a $1.25 credit — and only if your cash wage plus tips reaches $23/hour.
- Michigan is raising its tipped wage on a fixed schedule: 40% of the standard minimum wage in 2026, climbing to 50% by 2031.
- Missouri overhauled its system in 2026: $7.50 cash wage with a 50% tip credit.
What to check on your pay stub
- Your cash wage — is it at least your state's tipped minimum?
- Cash + tips vs. standard minimum wage — if the total falls short, your employer owes the difference.
- Tip pooling — employers can require tip pooling among tipped staff, but managers and owners can never take a share.
If the math doesn't add up, file with your state labor department or the U.S. DOL Wage and Hour Division.
The full picture
Minimum Wage by State 2026: See every state's full minimum wage — current rates, effective dates, and what's changing next — in our main comparison.
Oct 9, 2026 — Article published. All 51 jurisdictions verified.
Wage laws change and local ordinances can set higher rates than the state. This article summarizes state-level rules as of the last verified date. It is not legal advice.
Tipped wage figures verified against state labor department publications and the U.S. Department of Labor. Florida's figure comes from floridajobs.org (FloridaCommerce), the one non-.gov exception on this page.