Tipping & Tip Laws in Illinois (2026)

In Illinois, the tipped cash wage is $9.00/hr. Employers may claim a tip credit of up to $6.00/hr, so the combined cash + tip minimum is $15.00/hr (federal floor: $7.25 / $2.13 tipped). Like the rest of the U.S., Illinois follows national tipping norms — tip on the pre-tax subtotal, not the 8.25% combined sales tax.

By The TipFig Editorial Team · independent editorial research project

Tipped Minimum-Wage Law in Illinois

Full State Min

$15.00/hr

Tipped Cash Wage

$9.00/hr

Max Tip Credit

$6.00/hr

Tip Credit?

Yes

Employers must pay tipped workers at least 40% of the applicable minimum wage in cash ($6.00).

Standard Tip Percentages in Illinois

Restaurants

15–20%

Delivery

15–20%

Rideshare

15–20%

Bars

$1–2/drink

Hotel

$2–5/night

Salon/Spa

15–20%

These percentages are general U.S. etiquette norms. In Illinois, the tipped cash wage is lower than the full minimum, so tips are a core part of server income — 15–20% on the pre-tax subtotal is the expected norm.

Calculate tips with Illinois's tax built in

Our calculators apply the 8.25% combined Illinois rate automatically — your tip stays on the pre-tax subtotal.

Tip Calculator for Illinois

Enter your bill — Illinois's 8.25% sales tax is applied automatically and your tip stays on the pre-tax subtotal.

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Results

Tip Amount
$0.00
Tax (8.25%)
$0.00
Total Bill
$0.00
Each Person
$0.00
Bill Breakdown
Subtotal (Pre-Tax)$50.00
Tax (8.25%)$4.13
Tip (18%)$9.00
Total$63.13

Tip is calculated on the pre-tax amount. Adjust state for accurate tax rates.

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Frequently Asked Questions

What is the tipped minimum wage in Illinois in 2026?

In Illinois, the tipped cash wage is $9.00/hour and employers may take a tip credit of up to $6.00/hour, for a combined cash-plus-tip minimum of $15.00/hour (the federal floor is $2.13/hour tipped). If an employee's tips don't bring them to the minimum, the employer must make up the difference. (Source: U.S. Department of Labor, July 1, 2026.)

Does Illinois allow a tip credit?

Yes. Illinois allows a tip credit, so an employer can count up to $6.00/hour of an employee's tips toward the minimum wage, paying a cash wage of $9.00/hour. The combined total must reach $15.00/hour. Some localities or employer types may set higher cash wages.

What is the sales tax rate in Illinois for tipping math?

Illinois's combined state + local sales tax averages about 8.25% (state rates). TipFig applies your local rate to the total only — your tip is always calculated on the pre-tax subtotal, so you never tip on the tax.

Other State Tipping Guides

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. Sales-tax rates are approximate combined state + local averages.

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