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) |
|
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.