What Are My State Tip Laws in 2026?
The biggest state-to-state difference in tipping isn't etiquette — it's the law. Seven states require employers to pay tipped workers the full state minimum wage with no tip credit, while the other 44 allow a tip credit. Complete 2026 breakdown, state by state.
Photo: Brandon Mowinkel / Unsplash
States That Require the Full Minimum Wage (No Tip Credit)
In these 7 states, tipped employees earn the full state minimum wage in cash; tips are extra income they keep.
States That Allow a Tip Credit
| State | Full Min | Tipped Cash | Max Tip Credit |
|---|---|---|---|
| Alabama | $7.25 | $2.13 | $5.12 |
| Arizona | $15.15 | $12.15 | $3.00 |
| Arkansas | $11.00 | $2.63 | $8.37 |
| Colorado | $15.16 | $12.14 | $3.02 |
| Connecticut | $16.94 | $10.56 | $6.38 |
| Delaware | $15.00 | $2.23 | $12.77 |
| District of Columbia | $18.40 | $10.30 | $8.10 |
| Florida | $14.00 | $10.98 | $3.02 |
| Georgia | $7.25 | $2.13 | $5.12 |
| Hawaii | $16.00 | $14.75 | $1.25 |
| Idaho | $7.25 | $3.35 | $3.90 |
| Illinois | $15.00 | $9.00 | $6.00 |
| Indiana | $7.25 | $2.13 | $5.12 |
| Iowa | $7.25 | $4.35 | $2.90 |
| Kansas | $7.25 | $2.13 | $5.12 |
| Kentucky | $7.25 | $2.13 | $5.12 |
| Louisiana | $7.25 | $2.13 | $5.12 |
| Maine | $15.10 | $7.55 | $7.55 |
| Maryland | $15.00 | $3.63 | $11.37 |
| Massachusetts | $15.00 | $6.75 | $8.25 |
| Michigan | $13.73 | $5.49 | $8.24 |
| Mississippi | $7.25 | $2.13 | $5.12 |
| Missouri | $15.00 | $7.50 | $7.50 |
| Nebraska | $15.00 | $2.13 | $12.87 |
| New Hampshire | $7.25 | $3.27 | $3.98 |
| New Jersey | $15.92 | $6.05 | $9.87 |
| New Mexico | $12.00 | $3.00 | $9.00 |
| New York | $17.00 | Varies | Varies |
| North Carolina | $7.25 | $2.13 | $5.12 |
| North Dakota | $7.25 | $4.86 | $2.39 |
| Ohio | $11.00 | $5.50 | $5.50 |
| Oklahoma | $7.25 | $2.13 | $5.12 |
| Pennsylvania | $7.25 | $2.83 | $4.42 |
| Rhode Island | $16.00 | $3.89 | $12.11 |
| South Carolina | $7.25 | $2.13 | $5.12 |
| South Dakota | $11.85 | $5.93 | $5.92 |
| Tennessee | $7.25 | $2.13 | $5.12 |
| Texas | $7.25 | $2.13 | $5.12 |
| Utah | $7.25 | $2.13 | $5.12 |
| Vermont | $14.42 | $7.21 | $7.21 |
| Virginia | $12.77 | $2.13 | $10.64 |
| West Virginia | $8.75 | $2.62 | $6.13 |
| Wisconsin | $7.25 | $2.33 | $4.92 |
| Wyoming | $7.25 | $2.13 | $5.12 |
Calculate tips with your state's tax built in
Our calculators apply your local sales tax to the total only — your tip always stays on the pre-tax subtotal.
Frequently Asked Questions
Which states require tipped employees to be paid the full minimum wage?
Seven states prohibit the tip credit entirely: Alaska, California, Minnesota, Montana, Nevada, Oregon, and Washington. In these states employers must pay the full state minimum wage in cash, and workers keep 100% of their tips on top.
What is a tip credit?
Under the federal Fair Labor Standards Act, an employer can count a portion of an employee's tips toward the minimum wage. The federal tipped cash wage is $2.13/hour (with a $5.12 tip credit against the $7.25 federal minimum). Most states either adopt this floor or set their own higher cash wage and tip credit.
How many states allow a tip credit?
44 states and the District of Columbia allow some form of tip credit. Within those, many set a cash wage above the federal $2.13 floor, and a few (such as North Carolina, Virginia, and Texas) use the federal floor exactly.
Tipped minimum-wage figures are from the U.S. Department of Labor — Wage and Hour Division: Minimum Wages for Tipped Employees (July 1, 2026), retrieved 2026-08-09. Minimum wages change; verify with your state labor department before making wage or payroll decisions. Tip percentages are general etiquette guidelines, not legal advice.