CashoutTipped minimum wage
Tipped minimum wage by state
Federal law lets employers pay tipped workers a cash wage as low as $2.13 an hour, as long as tips bring you up to the full minimum wage; if they don't, the employer must make up the difference. That's the "tip credit." Many states are stricter, and seven states require the full state minimum wage before a single tip counts.
States with no tip credit
In these states your employer pays the full minimum wage, and your tips are yours on top of it.
| State | Minimum wage | Next change |
|---|---|---|
| Alaska | $14.00 | $15.00, July 1, 2027 |
| California | $16.90 | $17.40, January 1, 2027 |
| Minnesota | $11.41 | $11.87, January 1, 2027 |
| Montana | $10.85 | $11.20, January 1, 2027 |
| Nevada | $12.00 | None scheduled |
| Oregon | $15.55 | July 1, 2027, amount not set yet |
| Washington | $17.13 | $17.73, January 1, 2027 |
All other states, DC and Puerto Rico
| State | Tipped cash wage | Minimum wage | Next change |
|---|---|---|---|
| Alabama | $2.13 | $7.25 | None scheduled |
| Arizona | $12.15 | $15.15 | $15.65 ($12.65), January 1, 2027 |
| Arkansas | $2.63 | $11.00 | None scheduled |
| Colorado | $12.14 | $15.16 | $15.71 ($12.69), January 1, 2027 |
| Connecticut | $6.38 | $16.94 | $17.48 ($6.38), January 1, 2027 |
| Delaware | $2.23 | $15.00 | None scheduled |
| District of Columbia | $10.30 | $18.40 | July 1, 2027, amount not set yet |
| Florida | $11.98 | $15.00 | January 1, 2028, amount not set yet |
| Georgia | $2.13 | $7.25 | None scheduled |
| Hawaii | $14.75 | $16.00 | $18.00 ($16.50), January 1, 2028 |
| Idaho | $3.35 | $7.25 | None scheduled |
| Illinois | $9.00 | $15.00 | None scheduled |
| Indiana | $2.13 | $7.25 | None scheduled |
| Iowa | $4.35 | $7.25 | None scheduled |
| Kansas | $2.13 | $7.25 | None scheduled |
| Kentucky | $2.13 | $7.25 | None scheduled |
| Louisiana | $2.13 | $7.25 | None scheduled |
| Maine | $7.55 | $15.10 | $15.70 ($7.85), January 1, 2027 |
| Maryland | $3.63 | $15.00 | None scheduled |
| Massachusetts | $6.75 | $15.00 | None scheduled |
| Michigan | $5.49 | $13.73 | $15.00 ($6.30), January 1, 2027 |
| Mississippi | $2.13 | $7.25 | None scheduled |
| Missouri | $7.50 | $15.00 | None scheduled |
| Nebraska | $2.13 | $15.00 | $15.26 ($2.13), January 1, 2027 |
| New Hampshire | $3.27 | $7.25 | None scheduled |
| New Jersey | $6.05 | $15.92 | $16.48 ($6.61), January 1, 2027 |
| New Mexico | $3.00 | $12.00 | None scheduled |
| New York | $10.70 | $16.00 | None scheduled |
| North Carolina | $2.13 | $7.25 | None scheduled |
| North Dakota | $4.86 | $7.25 | None scheduled |
| Ohio | $5.50 | $11.00 | $11.40 ($5.70), January 1, 2027 |
| Oklahoma | $2.13 | $7.25 | None scheduled |
| Pennsylvania | $2.83 | $7.25 | None scheduled |
| Puerto Rico | $2.13 | $10.50 | None scheduled |
| Rhode Island | $3.89 | $16.00 | $17.00 ($3.89), January 1, 2027 |
| South Carolina | $2.13 | $7.25 | None scheduled |
| South Dakota | $5.93 | $11.85 | $12.30 ($6.15), January 1, 2027 |
| Tennessee | $2.13 | $7.25 | None scheduled |
| Texas | $2.13 | $7.25 | None scheduled |
| Utah | $2.13 | $7.25 | None scheduled |
| Vermont | $7.21 | $14.42 | January 1, 2027, amount not set yet |
| Virginia | $2.13 | $12.77 | $13.75 ($2.13), January 1, 2027 |
| West Virginia | $2.62 | $8.75 | None scheduled |
| Wisconsin | $2.33 | $7.25 | None scheduled |
| Wyoming | $2.13 | $7.25 | None scheduled |
Changes already set
Increases that are written into law or already announced. States that adjust for inflation but haven't published next year's rate are not listed yet.
| Date | State | Minimum wage | Tipped cash wage |
|---|---|---|---|
| January 1, 2027 | Arizona | $15.65 | $12.65 |
| January 1, 2027 | California | $17.40 | No tip credit |
| January 1, 2027 | Colorado | $15.71 | $12.69 |
| January 1, 2027 | Connecticut | $17.48 | $6.38 |
| January 1, 2027 | Maine | $15.70 | $7.85 |
| January 1, 2027 | Michigan | $15.00 | $6.30 |
| January 1, 2027 | Minnesota | $11.87 | No tip credit |
| January 1, 2027 | Montana | $11.20 | No tip credit |
| January 1, 2027 | Nebraska | $15.26 | $2.13 |
| January 1, 2027 | New Jersey | $16.48 | $6.61 |
| January 1, 2027 | Ohio | $11.40 | $5.70 |
| January 1, 2027 | Rhode Island | $17.00 | $3.89 |
| January 1, 2027 | South Dakota | $12.30 | $6.15 |
| January 1, 2027 | Virginia | $13.75 | $2.13 |
| January 1, 2027 | Washington | $17.73 | No tip credit |
| July 1, 2027 | Alaska | $15.00 | No tip credit |
| January 1, 2028 | Hawaii | $18.00 | $16.50 |
If your cash wage plus tips ever comes in under the full minimum wage for a workweek, your employer is legally required to make up the difference. Tracking every shift is how you prove it.
