Tipped minimum wage by state
Federal law lets an employer pay a tipped worker as little as $2.13 an hour in cash and count up to $5.12 of tips toward the $7.25 minimum. States can only make that better for the worker — and 7 of them ban the tip credit entirely.
How the tip credit and make-up rule work
The tip credit is the gap between the full minimum wage and the cash wage the employer actually pays. It is a ceiling, not an entitlement: for each workweek, cash wages plus tips must reach the full minimum for every hour worked, and if they fall short the employer must pay the difference. An employer that wants the credit must tell workers about it in advance and let them keep their tips, apart from a valid pool among tipped staff.
The make-up duty is weekly. Thirty-two hours in a state with a $15.00 minimum and a $7.50 cash wage require $480; if the cash wage brings $240 and tips bring $200, the employer owes $40. The same week in Texas requires $232 against $68.16 of cash wages, so $163.84 of tips covers it with no make-up. Use the workweek check for your own numbers.
States that ban the tip credit
Alaska, California, Minnesota, Montana, Nevada, Oregon, Washington. In these states tips are always on top of the full minimum. Hawaii allows only a $1.25 credit, and only when wages plus tips are at least $7.00 above the minimum.
Every state, as of October 5, 2026
| State | Cash wage | Tip credit | Minimum | Next change (cash / minimum) |
|---|---|---|---|---|
| Alabama | $2.13 | $5.12 | $7.25 | None scheduled |
| Alaska | $14.00 | banned | $14.00 | July 1, 2027: $15.00 |
| Arizona | $12.15 | $3.00 | $15.15 | Due after December 31, 2026 — not yet published |
| Arkansas | $2.63 | $8.37 | $11.00 | None scheduled |
| California | $16.90 | banned | $16.90 | January 1, 2027: $17.40 |
| Colorado | $12.14 | $3.02 | $15.16 | January 1, 2027: $12.69 / $15.71 |
| Connecticut | $6.38 | $10.56 | $16.94 | Due after December 31, 2026 — not yet published |
| Delaware | $2.23 | $12.77 | $15.00 | None scheduled |
| District of Columbia | $10.30 | $8.10 | $18.40 | Due after June 30, 2027 — not yet published |
| Florida | $11.98 | $3.02 | $15.00 | Due after December 31, 2027 — not yet published |
| Georgia | $2.13 | $5.12 | $7.25 | None scheduled |
| Hawaii | $14.75 | $1.25 | $16.00 | Due after December 31, 2027 — not yet published |
| Idaho | $3.35 | $3.90 | $7.25 | None scheduled |
| Illinois | $9.00 | $6.00 | $15.00 | None scheduled |
| Indiana | $2.13 | $5.12 | $7.25 | None scheduled |
| Iowa | $4.35 | $2.90 | $7.25 | None scheduled |
| Kansas | $2.13 | $5.12 | $7.25 | None scheduled |
| Kentucky | $2.13 | $5.12 | $7.25 | None scheduled |
| Louisiana | $2.13 | $5.12 | $7.25 | None scheduled |
| Maine | $7.55 | $7.55 | $15.10 | January 1, 2027: $7.85 / $15.70 |
| Maryland | $3.63 | $11.37 | $15.00 | None scheduled |
| Massachusetts | $6.75 | $8.25 | $15.00 | None scheduled |
| Michigan | $5.49 | $8.24 | $13.73 | January 1, 2027: $6.30 / $15.00 |
| Minnesota | $11.41 | banned | $11.41 | January 1, 2027: $11.87 |
| Mississippi | $2.13 | $5.12 | $7.25 | None scheduled |
| Missouri | $7.50 | $7.50 | $15.00 | Due after December 31, 2026 — not yet published |
| Montana | $10.85 | banned | $10.85 | Due after December 31, 2026 — not yet published |
| Nebraska | $2.13 | $12.87 | $15.00 | Due after December 31, 2026 — not yet published |
| Nevada | $12.00 | banned | $12.00 | None scheduled |
| New Hampshire | $3.27 | $3.98 | $7.25 | None scheduled |
| New Jersey | $6.05 | $9.87 | $15.92 | January 1, 2027: $6.61 / $16.48 |
| New Mexico | $3.00 | $9.00 | $12.00 | None scheduled |
| New York | $11.35 | $5.65 | $17.00 | Due after December 31, 2027 — not yet published |
| North Carolina | $2.13 | $5.12 | $7.25 | None scheduled |
| North Dakota | $4.86 | $2.39 | $7.25 | None scheduled |
| Ohio | $5.50 | $5.50 | $11.00 | January 1, 2027: $5.70 / $11.40 |
| Oklahoma | $2.13 | $5.12 | $7.25 | None scheduled |
| Oregon | $16.80 | banned | $16.80 | Due after June 30, 2027 — not yet published |
| Pennsylvania | $2.83 | $4.42 | $7.25 | None scheduled |
| Rhode Island | $3.89 | $12.11 | $16.00 | January 1, 2027: $3.89 / $17.00 |
| South Carolina | $2.13 | $5.12 | $7.25 | None scheduled |
| South Dakota | $5.925 | $5.925 | $11.85 | Due after December 31, 2026 — not yet published |
| Tennessee | $2.13 | $5.12 | $7.25 | None scheduled |
| Texas | $2.13 | $5.12 | $7.25 | None scheduled |
| Utah | $2.13 | $5.12 | $7.25 | None scheduled |
| Vermont | $7.21 | $7.21 | $14.42 | Due after December 31, 2026 — not yet published |
| Virginia | $2.13 | $10.64 | $12.77 | Due after December 31, 2026 — not yet published |
| Washington | $17.13 | banned | $17.13 | January 1, 2027: $17.73 |
| West Virginia | $2.62 | $6.13 | $8.75 | None scheduled |
| Wisconsin | $2.33 | $4.92 | $7.25 | None scheduled |
| Wyoming | $2.13 | $5.12 | $7.25 | None scheduled |
Where a state has employer-size or regional tiers (New York, Oregon, Connecticut, Ohio, Montana, New Jersey, West Virginia), the table shows the first tier and the state page lists them all. City minimums are not shown.
Why the federal table is not enough
The Department of Labor’s table is dated July 1, 2026. Florida raised its minimum to $15.00 on September 30, and nine more states have already announced January 1, 2027 rates: California, Colorado, Maine, Michigan, Minnesota, New Jersey, Ohio, Rhode Island and Washington, while New York confirmed no change. Each state page uses the state agency’s own announcement for those dates.
Baseline: Minimum Wages for Tipped Employees (table by state), U.S. Department of Labor, Wage and Hour Division (2026-07-01); state announcements cited on each state page.