CashoutTipped minimum wage / Minnesota
Minnesota tipped minimum wage
What employers must pay
Minnesota does not allow a tip credit. Your employer has to pay the full minimum wage of $11.41 an hour, and your tips are on top of that.
Workers under 20 may be paid a $9.31 training wage for their first 90 days; Minneapolis and St. Paul set higher rates.
What changes next
On January 1, 2027, the minimum wage goes to $11.87. The state raised the rate for inflation. The 90-day training wage rises to $9.68.
Local and regional rates
Some places in Minnesota have their own minimum wage or a regional rate. If you work there, the rate listed here applies.
| Place | Minimum | Cash wage | Since |
|---|---|---|---|
| MinneapolisApplies to all employers regardless of size. No tip credit. Adjusts for inflation each January 1; the 2027 rate was not yet published. | $16.37 | $16.37 | January 1, 2026 |
| St. PaulRate for businesses with 6 or more workers. Businesses with 6 to 100 workers reached it on July 1, 2026. Micro businesses of 5 or fewer pay $14.25, rising to $15.00 on July 1, 2027. No tip credit. | $16.37 | $16.37 |
Tip pooling and service charges
Employers may not keep tips or require employees to share tips or join a tip pool. Employees may share voluntarily, and a tip left for a group of direct service workers (such as a banquet) or a shared tip jar may be split among the direct service workers on that shift.
A mandatory charge a customer could reasonably think is for the worker's service counts as a gratuity unless the employer clearly tells customers it does not go to employees; since Aug. 1, 2024 employers may not deduct card fees from tips.
Overtime
State law requires 1.5 times the regular rate after 48 hours a week; employers covered by federal law must pay overtime after 40. With no tip credit, overtime is 1.5 times the regular rate.
Taxes on your tips
Minnesota taxes wage income, and tips are wages, so its income tax applies to 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 Minnesota Department of Labor and Industry, Labor Standards: how to file. You can also call the U.S. Department of Labor, Wage and Hour Division, at 1-866-487-9243.
