Tipped Minimum Wage by State: 2026 Complete Guide
Compare tipped minimum wage rates across all 50 states and Washington D.C. See which states use tip credit, which require employers to pay full minimum wage for tipped workers, and how the OBBBA affects your take-home pay.
The federal tipped minimum wage is $2.13/hour as of 2026. However, 7 states (California, Oregon, Washington, Alaska, Minnesota, Montana, Nevada) require employers to pay the full state minimum wage with no tip credit. The highest tipped minimum wage is in Washington state at $16.66/hour.
| State | Tipped Min. Wage | Regular Min. Wage | Tip Credit | Notes |
|---|---|---|---|---|
| Alabama | $2.13/hr | $7.25/hr | Yes | Federal minimum |
| Alaska | $11.91/hr | $11.91/hr | No | No tip credit |
| Arizona | $11.35/hr | $14.35/hr | Yes | $3.00 tip credit |
| California | $16.50/hr | $16.50/hr | No | No tip credit |
| Colorado | $11.79/hr | $14.81/hr | Yes | $3.02 tip credit |
| Connecticut | $6.38/hr | $16.35/hr | Yes | |
| Delaware | $2.23/hr | $13.25/hr | Yes | |
| Florida | $9.98/hr | $13.00/hr | Yes | $3.02 tip credit |
| Georgia | $2.13/hr | $7.25/hr | Yes | Federal minimum |
| Hawaii | $14.25/hr | $16.00/hr | Yes | |
| Idaho | $3.35/hr | $7.25/hr | Yes | |
| Illinois | $8.40/hr | $14.00/hr | Yes | 60% of minimum |
| Indiana | $2.13/hr | $7.25/hr | Yes | Federal minimum |
| Iowa | $4.35/hr | $7.25/hr | Yes | |
| Kansas | $2.13/hr | $7.25/hr | Yes | Federal minimum |
| Kentucky | $2.13/hr | $7.25/hr | Yes | Federal minimum |
| Louisiana | $2.13/hr | $7.25/hr | Yes | Federal minimum |
| Maine | $7.33/hr | $14.65/hr | Yes | 50% of minimum |
| Maryland | $3.63/hr | $15.00/hr | Yes | |
| Massachusetts | $6.75/hr | $15.00/hr | Yes | |
| Michigan | $4.01/hr | $10.56/hr | Yes | 38% of minimum |
| Minnesota | $11.13/hr | $11.13/hr | No | No tip credit |
| Mississippi | $2.13/hr | $7.25/hr | Yes | Federal minimum |
| Missouri | $6.38/hr | $13.75/hr | Yes | |
| Montana | $10.55/hr | $10.55/hr | No | No tip credit |
| Nebraska | $2.13/hr | $13.50/hr | Yes | |
| Nevada | $12.00/hr | $12.00/hr | No | No tip credit |
| New Hampshire | $3.26/hr | $7.25/hr | Yes | 45% of minimum |
| New Jersey | $5.62/hr | $15.49/hr | Yes | |
| New Mexico | $3.00/hr | $12.00/hr | Yes | |
| New York | $10.65/hr | $15.50/hr | Yes | NYC: $16.50 |
| North Carolina | $2.13/hr | $7.25/hr | Yes | Federal minimum |
| North Dakota | $4.86/hr | $7.25/hr | Yes | |
| Ohio | $5.35/hr | $10.70/hr | Yes | 50% of minimum |
| Oklahoma | $2.13/hr | $7.25/hr | Yes | Federal minimum |
| Oregon | $14.70/hr | $14.70/hr | No | No tip credit |
| Pennsylvania | $2.83/hr | $7.25/hr | Yes | |
| Rhode Island | $3.89/hr | $15.00/hr | Yes | |
| South Carolina | $2.13/hr | $7.25/hr | Yes | Federal minimum |
| South Dakota | $5.85/hr | $11.70/hr | Yes | 50% of minimum |
| Tennessee | $2.13/hr | $7.25/hr | Yes | Federal minimum |
| Texas | $2.13/hr | $7.25/hr | Yes | Federal minimum |
| Utah | $2.13/hr | $7.25/hr | Yes | Federal minimum |
| Vermont | $7.01/hr | $14.01/hr | Yes | 50% of minimum |
| Virginia | $2.13/hr | $12.41/hr | Yes | |
| Washington | $16.66/hr | $16.66/hr | No | No tip credit |
| Washington D.C. | $10.00/hr | $17.50/hr | Yes | |
| West Virginia | $2.62/hr | $8.75/hr | Yes | |
| Wisconsin | $2.33/hr | $7.25/hr | Yes | |
| Wyoming | $2.13/hr | $7.25/hr | Yes | Federal minimum |
Data reflects 2026 rates. Last updated March 2026. Minimum wages subject to change — verify with your state labor department.
What Is Tipped Minimum Wage?
The tipped minimum wage is the minimum hourly rate an employer must pay a worker who regularly receives tips. Under federal law, employers may pay tipped employees as little as $2.13 per hour — a figure unchanged since 1991 — as long as the worker's tips bring their total compensation up to at least the federal minimum wage of $7.25/hour. This arrangement is known as the tip credit.
If a tipped worker's combined wages and tips fall short of the regular minimum wage in any workweek, the employer must make up the difference. In practice, most tipped workers earn well above the minimum — but the guarantee only applies to the floor, not to any specific income level.
How the Tip Credit Works
The tip credit allows employers to count a portion of the tips their employees receive toward the regular minimum wage obligation. States can set higher tipped minimum wages (reducing or eliminating the tip credit), but they cannot go below the federal floor of $2.13/hour.
Tip Credit States vs No Tip Credit States
Seven states — California, Oregon, Washington, Nevada, Minnesota, Montana, and Alaska — do not allow a tip credit. Employers in these states must pay tipped workers the full state minimum wage regardless of tips received.
No Tip Credit States
- Alaska — $11.91/hr/hr
- California — $16.50/hr/hr
- Minnesota — $11.13/hr/hr
- Montana — $10.55/hr/hr
- Nevada — $12.00/hr/hr
- Oregon — $14.70/hr/hr
- Washington — $16.66/hr/hr
Employers must pay the full minimum wage. Tips are entirely additional income.
Tip Credit Highlights
- Federal (17 states) — $2.13/hr tipped wage, $5.12 tip credit
- Connecticut — $6.38/hr tipped wage, $9.97 tip credit
- New York — $10.65/hr tipped wage, $4.85 tip credit
- Illinois — 60% of minimum ($8.40), 40% tip credit
Employers can count tips toward minimum wage. Worker must still receive at least the regular minimum when combined.
Why Does This Matter for Workers?
In a tip credit state, your base paycheck may be very small — sometimes only a few hundred dollars for a full week of work. Your take-home pay depends heavily on tip volume and consistency. Slow shifts, off-season weeks, or a table that doesn't tip can pull your effective hourly rate down toward the floor.
In a no-tip-credit state, your base paycheck is substantially higher, and tips represent a true bonus on top of guaranteed wages. Many workers in California or Washington earn both a full minimum wage and significant tips, resulting in higher overall compensation.
How OBBBA Affects Tipped Workers
The One Big Beautiful Bill Act (OBBBA), signed in 2025, creates a federal income tax exemption on up to $25,000/year of tip income for workers earning under $150,000 annually. This is separate from — and on top of — state minimum wage laws.
The practical effect: tipped workers in all 50 states now keep more of their tip income at tax time. Whether you're in a $2.13/hr federal-floor state like Texas or a full-minimum-wage state like California, the federal tip tax exemption applies to your tip earnings.
See your exact savings: Use the No Tax on Tips Calculator to enter your wage, hours, and tip rate and get an instant estimate of your annual federal tax savings under OBBBA.
Calculate My Tip Tax SavingsOBBBA + State Minimum Wage: Two Separate Issues
It's important to understand that the OBBBA tip tax exemption does not change minimum wage law. Your employer still owes you the applicable tipped minimum wage (state or federal, whichever is higher). The OBBBA only changes how your tip income is taxed at the federal level — it does not affect your employer's pay obligations.
Frequently Asked Questions
What happens if my tips don't bring me up to minimum wage?
Your employer is legally required to make up the difference. If your tipped minimum wage is $2.13/hr and your tips in a given week average only $4/hr, your employer must pay you an additional $1.12/hr to bring your total to $7.25/hr. Failure to do so is a wage theft violation under the Fair Labor Standards Act (FLSA). You can file a complaint with the U.S. Department of Labor's Wage and Hour Division.
Can a state have a lower tipped minimum wage than $2.13/hr?
No. The federal tipped minimum wage of $2.13/hr is a floor — states cannot go below it. However, many states have set higher tipped minimum wages, either by law or by tying the tipped wage to a percentage of the state regular minimum wage. When a state minimum wage is higher than the federal rate, the state rate applies.
Does the tipped minimum wage apply to all tip-receiving workers?
The federal tip credit applies to employees who "customarily and regularly" receive more than $30/month in tips. Occasional tips don't qualify. The FLSA definition covers most restaurant servers, bartenders, hotel housekeeping staff, and similar roles. See our list of 68 qualifying tip jobs for more detail.
Is the tipped minimum wage going up in 2026?
The federal tipped minimum wage has been $2.13/hr since 1991 and has not been raised as of 2026. However, many states have increased their own tipped minimum wages through state legislation or automatic inflation adjustments. Washington ($16.66), California ($16.50), and Oregon ($14.70) currently pay the highest effective tipped wages because they require full minimum wage with no tip credit. Check our tipping guide for industry-specific context.
Related Tools & Resources
Use the No Tax on Tips Calculator to calculate your exact federal tax savings on tip income under the 2026 OBBBA exemption — works for all 50 states.
Curious about which occupations qualify for the tip tax exemption? Read our complete list of 68 qualifying tip jobs.
Need state-specific information on minimum wage, tip credit, and OBBBA savings? See our state guides for California, Texas, and Washington.
Want a quick breakdown of how much to tip and what tax applies? Try our tipping guide.