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.