CashoutTipped minimum wage / Alaska
Alaska tipped minimum wage
What employers must pay
Alaska does not allow a tip credit. Your employer has to pay the full minimum wage of $14.00 an hour, and your tips are on top of that.
What changes next
On July 1, 2027, the minimum wage goes to $15.00. This step was set by the 2024 ballot measure. After 2027 the rate goes up each year with Anchorage inflation.
Tip pooling and service charges
Alaska has no tip pooling law of its own, so federal rules apply. Because no tip credit is allowed, a required pool may include back-of-house staff, but employers, managers and supervisors may never keep tips from a pool.
Overtime
1.5 times the regular rate after 8 hours in a day or 40 hours in a week. Daily and weekly overtime does not apply to employers with fewer than 4 employees. Tipped workers already earn the full minimum, so overtime is 1.5 times their regular rate.
Taxes on your tips
Alaska does not tax wage income, so there is no state income tax on your tips. Federal income tax, Social Security and Medicare still apply. The federal tip deduction can cut the income tax part: see how the No Tax on Tips deduction works.
If you are underpaid
Start by comparing your pay stubs with your own record of hours and tips. If the numbers don't add up, you can file a complaint with the Alaska Department of Labor and Workforce Development, Wage and Hour Section: how to file. You can also call the U.S. Department of Labor, Wage and Hour Division, at 1-866-487-9243.
