Tipped & Minimum Wage in Chicago, Illinois (2026)
Chicago, Illinois sets its own local minimum wage of $17.05/hour in 2026. Tipped workers — see the local rules and how much to tip below.
By The TipFig Editorial Team · independent editorial research project
Local Minimum-Wage Law in Chicago
Local Min
$17.05/hr
Tipped Cash Wage
$12.96/hr
Max Tip Credit
$4.09/hr
Tip Credit?
Yes
Effective July 1, 2026; tipped (4+ employees) cash wage $12.96.
Source: City of Chicago — Minimum Wage & Paid Sick Leave
Standard Tip Percentages in Chicago
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 Chicago, 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 Chicago'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 Chicago, 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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Tip is calculated on the pre-tax amount. Adjust state for accurate tax rates.
Frequently Asked Questions
What is the minimum wage in Chicago, Illinois in 2026?
As of 2026-08-29, Chicago has its own local minimum wage of $17.05/hour. Effective July 1, 2026; tipped (4+ employees) cash wage $12.96. Tipped employees are paid a cash wage of $12.96/hour (employer may claim a tip credit of up to $4.09/hour). Source: City of Chicago — Minimum Wage & Paid Sick Leave.
Does Chicago have its own minimum wage or follow Illinois state law?
Chicago sets its own local minimum wage ($17.05/hour in 2026), which is higher than the Illinois state rate of $15.00/hour. Employers must pay the higher local rate for work performed in Chicago.
What is the tipped minimum wage and tip credit in Chicago?
In Chicago, the tipped cash wage is $12.96/hour and employers may take a tip credit of up to $4.09/hour, for a combined cash-plus-tip minimum of $17.05/hour (local). If tips don't bring the employee to the minimum, the employer must make up the difference.
How much should I tip in Chicago?
Like the rest of the U.S., Chicago follows national tipping norms — tip 15–20% on the pre-tax subtotal at restaurants, bars, and for delivery and rideshare, not the 8.25% combined sales tax. In Illinois, tipped workers already earn at least $17.05/hour, yet 15–20% remains the customary gratuity because tips supplement take-home pay.
Other Illinois Cities
More State Guides
Local minimum-wage figures for Chicago are from City of Chicago — Minimum Wage & Paid Sick Leave (retrieved 2026-08-29). Minimum wages change frequently; verify with the local agency before making wage or payroll decisions. Tip percentages are general etiquette guidelines, not legal advice. Sales-tax rates are approximate combined state + local averages.