Tipped Minimum Wage By State [2026]
Research Summary: Understanding wages for tipped workers is complex due to differing state regulations. The federal minimum cash wage for tipped employees is set at $2.13, with a maximum tip credit of $5.12. However, many states have enacted their own higher tipped wage laws to address the needs of their local economies and labor markets.
As of 2026, 35 states in the U.S. have chosen to set their tipped minimum wage above the federal standard. This article provides vital insights into the tipped minimum wage rates across the United States, based on our comprehensive research:
| State | Total Tipped Minimum Wage (Cash + Tip) | Maximum Tip Credit | Minimum Cash Wage | Definition of Tipped Employee |
|---|---|---|---|---|
| Alabama | N/A | N/A | $2.13 | $30+ in tips per month |
| Alaska | $10.34 | N/A | $10.34 | N/A |
| Arizona | $12.80 | $3.00 | $9.80 | N/A |
| Arkansas | $11.00 | $8.37 | $2.63 | $20+ in tips per month |
| California | $15.00 | N/A | $15.00 | N/A |
| Colorado | $12.56 | $3.02 | $9.54 | $30+ in tips per month |
| Connecticut | $14.00 | $6.62 | $6.38 | $10+ in tips per week |
| Delaware | $10.50 | $8.27 | $2.23 | $30+ in tips per month |
| Florida | $10.00 | $3.02 | $6.98 | N/A |
| Georgia | N/A | N/A | $2.13 | N/A |
| Hawaii | $10.10 | $0.75 | $9.35 | $20+ in tips per month |
| Idaho | $7.25 | $3.90 | $3.35 | $30+ in tips per month |
| Illinois | $12.00 | $4.80 | $7.20 | $20+ in tips per month |
| Indiana | $7.25 | $5.12 | $2.13 | N/A |
| Iowa | $7.25 | $2.90 | $4.35 | $30+ in tips per month |
| Kansas | $7.25 | $5.12 | $2.13 | $20+ in tips per month |
| Kentucky | $7.25 | $5.12 | $2.13 | $30+ in tips per month |
| Louisiana | N/A | N/A | $2.13 | N/A |
| Maine | $12.75 | $6.37 | $6.38 | $30+ in tips per month |
| Maryland | $12.50 | $8.87 | $3.63 | $30+ in tips per month |
| Massachusetts | $14.25 | $8.10 | $6.15 | $20+ in tips per month |
| Michigan | $9.87 | $6.12 | $3.75 | N/A |
| Minnesota | $10.33 | N/A | $10.33 | N/A |
| Mississippi | N/A | N/A | $2.13 | N/A |
| Missouri | $11.15 | $5.57 | $5.58 | N/A |
| Montana | $9.20 | N/A | $9.20 | N/A |
| Nebraska | $9.00 | $6.87 | $2.13 | N/A |
| Nevada | $9.75 | N/A | $9.75 | N/A |
| New Hampshire | $7.25 | $3.99 | $3.26 | $30+ in tips per month |
| New Jersey | $13.00 | $7.87 | $5.13 | N/A |
| New Mexico | $11.50 | $8.70 | $2.80 | $30+ in tips per month |
| New York | $13.20 | $4.40 | $8.80 | N/A |
| North Carolina | $7.25 | $5.12 | $2.13 | $20+ in tips per month |
| North Dakota | $7.25 | $2.39 | $4.86 | $30+ in tips per month |
| Ohio | $9.30 | $4.65 | $4.65 | $30+ in tips per month |
| Oklahoma | $7.25 | $5.12 | $2.13 | N/A |
| Oregon | $12.75 | N/A | $12.75 | N/A |
| Pennsylvania | $7.25 | $4.42 | $2.83 | $30+ in tips per month |
| Rhode Island | $12.25 | $8.36 | $3.89 | N/A |
| South Carolina | N/A | N/A | $2.13 | N/A |
| South Dakota | $9.95 | $4.97 | $4.97 | $35+ in tips per month |
| Tennessee | N/A | N/A | $2.13 | N/A |
| Texas | $7.25 | $5.12 | $2.13 | $20+ in tips per month |
| Utah | $7.25 | $5.12 | $2.13 | $30+ in tips per month |
| Vermont | $12.55 | $6.27 | $6.28 | $120+ in tips per month |
| Virginia | $7.25 | $5.12 | $2.13 | $30+ in tips per month |
| Washington | $14.49 | N/A | $14.49 | N/A |
| West Virginia | $8.75 | $6.13 | $2.62 | N/A |
| Wisconsin | $7.25 | $4.92 | $2.33 | N/A |
| Wyoming | $7.25 | $5.12 | $2.13 | $30+ in tips per month |
States That Use The Federal Tipped Minimum Wage
Currently, 15 states adhere to the federal tipped minimum wage of $2.13 (minimum cash wage) plus $5.12 (maximum tip credit), meaning they do not have their own tipped minimum wage laws. These states include:
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Alabama
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Georgia
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Indiana
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Kansas
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Kentucky
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Louisiana
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Mississippi
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North Carolina
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Oklahoma
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South Carolina
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Tennessee
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Texas
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Utah
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Virginia
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Wyoming
Tipped Minimum Wage By State FAQ
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The federal definition of a tipped employee is anyone who makes over $30 per month in tips. However, this varies by state, as 16 states have adopted the federal minimum. These include: Alabama, Colorado, Delaware, Idaho, Iowa, Kentucky, Maine, Maryland, New Hampshire, New Mexico, North Dakota, Ohio, Pennsylvania, Utah, Virginia, and Wyoming.
The next most common definition includes employees who earn at least $20 per month from tips, with seven states adopting this standard: Arkansas, Hawaii, Illinois, Kansas, Massachusetts, North Carolina, and Texas.
Additionally, there are three unique state definitions:
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Connecticut: Any employee that makes $10 or more in tips per week
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South Dakota: Any employee that makes $35 or more in tips per month
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Vermont: Any employee that makes $120 or more in tips per month
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Should the US have a tipped minimum wage?
The debate over the existence of a tipped minimum wage continues. Small businesses often argue that removing the tipped minimum wage would negatively impact their operations and financial viability. They assert that they cannot sustain higher wage requirements without the tip structure.
Conversely, advocates for abolishing the tipped minimum wage argue that replacing it with a standard minimum wage could alleviate poverty. Research indicates that such changes could improve overall economic stability.
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What is tip credit against minimum wage?
A tip credit is the portion of tips that an employer can deduct from the minimum wage owed to an employee. The federal tip credit is capped at $5.12, but many states have higher or lower limits.
For example, California does not allow any tip credit, while Maryland permits employers to claim up to $8.87 against the minimum wage.
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What state has the highest tipped minimum wage?
Massachusetts holds the title for the highest tipped minimum wage, with a minimum cash wage of $6.15 and a maximum tip credit of $8.10. Although this totals $14.25, it remains lower than the minimum wages in California and Washington, which do not utilize tip credits.
Conclusion
Despite the pressures of inflation, the federal tipped minimum wage has not changed in over three decades. Currently, 35 states have established their own tipped minimum wage regulations, while 15 states continue to rely on the federal minimum of $2.13.
The discussion around tipping practices remains contentious, with some small businesses maintaining that tips are crucial for their survival, while others advocate for a transition to a fairer minimum wage structure to combat poverty and enhance economic conditions.
Given these dynamics, the trend towards increasing tipped minimum wages is likely to persist as many states continue to raise their general minimum wages.
Author
Jack Flynn is a writer for Zippia. In his professional career he’s written over 100 research papers, articles and blog posts. Some of his most popular published works include his writing about economic terms and research into job classifications. Jack received his BS from Hampshire College.
