Tipped Minimum Wage by State

Employees who receive the majority of their compensation from tips are typically paid a tipped minimum wage, rather than standard minimum wage.

While the federal tipped minimum wage stands at $2.13 per hour, many states set rates that are higher and have varying requirements. To find out the tipped minimum wage by state, review the chart below:

 

State

2023 Tipped Minimum Wage Effective date is noted. (If no date, in effect currently.)

Alabama

$2.13 for tipped employees.

Alaska

No tip credit. State minimum wage applies.

Arizona

$10.85 ($3 below state minimum wage rate of $13.85) for tipped employees.

Effective January 1, 2023.

Arkansas

$2.63 for tipped employees. Applies to employers with four or more employees.

California*

No tip credit. State minimum wage applies.

Colorado

$10.63 ($3.02 max tip credit allowed on state minimum wage which is $13.65).

 

Effective January 1, 2023.

 

Connecticut

$6.38 for tipped employees and $8.23 for bartenders.

Delaware

$2.23 for tipped employees.

District of Columbia

$5.35 for tipped employees.[1]

Florida

$8.98 for tipped employees.

(Effective 9/30/23)

Georgia

$2.13 for tipped employees.

Hawaii

Maximum tip credit is $1.00 per hour bringing minimum cash wage to $11.00 per hour (state minimum wage is $12.00 per hour).

 

Idaho

$3.35 for tipped employees.

Illinois

$7.80 for tipped employees (60% of state minimum wage) and $10.50 for minors under the age of 18 working fewer than 650 hours per calendar year.

January 1, 2023.

Indiana

$2.13 for tipped employees.

Iowa

$4.35 for tipped employees.

Kansas

$2.13 for tipped employees.

Kentucky

$2.13 for tipped employees.

Louisiana

$2.13 for tipped employees.

Maine

$6.90 for tipped employees. (Tip credit up to 50% of state minimum  wage of $13.80)

 

Effective January 1, 2023

Maryland

$3.63 for tipped employees.

Massachusetts

$6.75 for tipped employees.

Michigan

$9.60 for tipped employees (80% of state minimum wage)
(effective 2/19/23)[2]

Minnesota**

No tip credit. State minimum wage applies.

Mississippi

$2.13 for tipped employees.

Missouri

$6.00 for tipped employees (50% of state minimum wage)

Montana

No tip credit. State minimum wage applies.

Nebraska

$2.13 for tipped employees

Nevada

No tip credit. State minimum wage applies.

New Hampshire

$3.26 (45% of applicable minimum wage)

New Jersey***

$5.26 for tipped employees

 

Effective January 1, 2023

New Mexico

$3.00 for tipped employees

 

Effective January 1, 2023

New York****

$9.45/$10.00 for food service tipped employees, and $11.85/$12.50 for service employees

 

Effective December 31, 2022

North Carolina

$2.13 for tipped employees

North Dakota

$4.86 for tipped employees.

Ohio[3]

$5.05 for tipped employees.

 

Effective January 1, 2023.

Oklahoma

$2.13 for tipped employees.

Oregon*****

No tip credit. State minimum wage applies.

Pennsylvania

$2.83 for tipped employees (if employee earns at least $135.00 in tips per month)

Puerto Rico

Federal minimum wage of $7.25 plus tips to equal Puerto Rico minimum wage.

Rhode Island

$3.89 for tipped employees.

South Carolina

$2.13 for tipped employees.  

South Dakota

No less than $5.40 per hour, which will be no less than 50% of the state minimum wage.

 

Effective January 1, 2023

Tennessee

$2.13 for tipped employees.

Texas

$2.13 for tipped employees.

Utah

$2.13 for tipped employees.

Vermont

$6.59 for tipped employees (50% of the state minimum wage).

Virginia

$2.13 for tipped employees.

Washington

No tip credit-state minimum wage applies.

West Virginia

$2.62 for tipped employees (tip credit of up to 70% of state minimum wage [$6.13] for employers with 6 or more employees.)

Wisconsin

$2.33 for tipped employees.

Wyoming

$2.13 for tipped employees.

 

[1]On November 8, 2022, Washington DC voters approved a ballot initiative (82) phasing out tipped minimum wage by 2027. Initiative 82 will eliminate the city’s tipped minimum wage by increasing the minimum wage for tipped workers from $5.35 per hour to $16.10 per hour by 2027, bringing tipped workers up to the same DC minimum wage.

[2] Litigation is ongoing in Michigan relative to the state minimum wage, so please be advised that additional information and/or changes may be forthcoming.

[3] Ohio Minimum wage will apply to businesses with annual gross receipts of $342,000.00 or more per year. For businesses with annual receipts less than $371,000.00 per year after January 1, 2023, the state minimum wage is $7.25 per hour.

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