Tipped minimum wage by state (2026 table)

Short answer: Under federal law your employer can pay you $2.13 an hour in cash as long as tips bring you to $7.25. The gap, up to $5.12, is the tip credit. Most states set a higher cash wage, and seven states plus Guam allow no tip credit at all. The tables below give the cash wage, the maximum tip credit and the full minimum for every state and DC, with the date the rate took effect and a source for each row. If your cash wage plus tips comes out under the full minimum for the hours you worked, your employer owes you the difference. That rule holds everywhere.

By Goodhands Apps · Updated October 30, 2026 · 13 min read · Also in Spanish

This page describes public wage rules. It is not legal advice. Rates change on different dates in different states, so check the linked source before relying on a figure. Last checked: 2026-10-30.

How does the tip credit work?

Three numbers matter on your pay stub.

1. Cash wage. The hourly amount your employer pays you directly.
2. Tip credit. The part of your tips the employer may count toward the minimum wage.
3. Full minimum wage. Cash wage plus tip credit. Your total hourly pay, cash plus tips, cannot legally land below this.

The DOL page on wages and tips states the federal rule. An employer "is only required to pay $2.13 per hour in direct wages if that amount combined with the tips received at least equals the federal minimum wage." If it does not, "the employer must make up the difference."

A slow week shows how that plays out. You work 30 hours at $2.13 ($63.90) and take home $150 in tips. That is $213.90, or $7.13 an hour. The federal floor for 30 hours is $217.50, so your employer owes you $3.60 more for the week. Same week in Ohio, where the cash wage is $5.50 and the full minimum $11.00: $165 cash plus $150 tips is $315 against a $330 floor, so the employer owes $15.

Which states allow no tip credit?

In these states the employer pays the full state minimum in cash. Tips are on top.

California puts it plainly: "An employer may not use an employee's tips as a credit toward its obligation to pay the minimum wage per hour" (California DIR). Washington says the same: "Businesses may not use tips and service charges paid to an employee as part of an employee's hourly minimum wage" (Washington L&I).

Which states pay a cash wage above $2.13?

Connecticut, Illinois, Maine, Michigan, Missouri, New York, Ohio and Pennsylvania attach conditions to the tip credit: a percent-of-wage formula, an employer size test, a region, or the type of job. The footnotes on the DOL table and the state links above spell them out.

Which states use the $2.13 cash wage?

Alabama, Louisiana, Mississippi, South Carolina and Tennessee have no state minimum wage law, and Georgia's does not cover tipped workers, so the federal rate applies (DOL table footnotes). Puerto Rico ($2.13 cash, $10.50 full), the U.S. Virgin Islands and the Northern Mariana Islands are on the DOL table and not repeated here.

Texas

Texas adopts the federal rate by statute. The Texas Workforce Commission states: "Texas adopts the federal minimum wage rate," lists it as $7.25 an hour effective July 24, 2009, and notes that "with specified restrictions, employers may count tips and the value of meals and lodging toward minimum wage" (TWC). So a Texas server's floor is $2.13 cash and $7.25 total. On a Saturday double of 11 hours, the cash wage is $23.43 before withholding; the tips are the paycheck.

California

California allows no tip credit. The state minimum is $16.90 an hour for all employers from January 1, 2026, and many cities set a higher local rate (California DIR). A server in California gets the full $16.90 (or the local rate) in cash, plus every tip.

Florida

Florida changes its minimum every September 30. The DOL table, dated July 1, 2026, shows $14.00 full minimum and a $10.98 cash wage, and its footnote says the state minimum rises to $15.00 on September 30, 2026 (DOL table). Florida's tip credit is fixed at $3.02, so from September 30, 2026 the cash wage is $15.00 minus $3.02, or $11.98. FloridaCommerce posts the official rate each year on its minimum wage page, and the required poster at your workplace shows the current rate.

New York

New York splits the state into two regions and splits tipped hospitality workers into two groups. For January 1 through December 31, 2026 (New York DOL P717):

Illinois and Chicago

Illinois sets the minimum at $15.00 for workers 18 and older, and an employer "may pay 60% of the minimum wage" to tipped employees, which the state lists as $9.00 (Illinois DOL). Chicago sets its own higher minimum and its own tipped rate, tiered by employer size, with changes every July 1 (City of Chicago minimum wage page). Check the city's current notice on that page for this year's rates.

What does "tipped employee" mean?

Federal law treats you as a tipped employee if you "customarily and regularly" receive more than $30 a month in tips (DOL). Some states set the bar elsewhere: $20 in Massachusetts, North Carolina and Texas, $135 in Pennsylvania, $191 in Maine. The "Tips/month" column shows each state's threshold where the DOL table lists one.

Which rate applies to me?

Where state and federal law differ, you get whichever pays more. Some cities and counties set higher minimums than their state; the DOL table notes this without listing them. Some states have lower rates for minors, students or new hires. The state link in your row is the place to check.

How do I check my paycheck against the minimum?

Take one pay period. Multiply your hours by the full minimum in your row. Add your cash wage for the period to the tips you kept after tip-outs. If the second number is smaller than the first, the employer owes the gap. The arithmetic only works if you know your cash tips, and your employer does not. A daily log, on paper or in an app like Goodhands Tip Tracker, is what gives you the number to compare.

When do these numbers change?

Most states adjust on January 1. Florida changes on September 30, DC and Oregon on July 1. Connecticut, Michigan and several others index to inflation each year. The DOL page is revised when states report changes, so its "as of" date can lag a state's own announcement. That is why the rows above link to the state source where the state publishes a current notice. This page is refreshed after each January 1 and July 1 round.

FAQ

Can my employer pay me $2.13 an hour?

Only if your state allows the federal cash wage and your tips bring you to at least the full minimum. Sixteen states, listed in the last table, use a $2.13 cash wage. If tips fall short, the employer must make up the difference (DOL).

Do tips count toward minimum wage in California?

No. California bars employers from counting tips toward the minimum wage, so you get the full $16.90 (from January 1, 2026) plus tips (California DIR).

What is the tipped minimum wage in Texas?

$2.13 an hour in cash, with a $5.12 tip credit, for a $7.25 total. Texas follows the federal rate (TWC).

Why does the DOL table say "as of July 1, 2026" when my state changed later?

The DOL updates its table when states report changes, and some states change rates on dates other than January 1 and July 1. Florida's September 30 increase is the clearest example this year. Where a state source is linked in your row, it is the more current of the two.

This page describes public DOL and state labor department material. It is not legal advice, and your situation may differ. Rates change; check the linked source for your state. Last checked: 2026-10-30.

Guides describe public information and are not tax advice. Goodhands is not affiliated with the IRS.