Tipped Wages by State (2026): DOL FLSA $2.13 Tip Credit & Employer Offset Calculator
Federal & State Tipped Wage Rule (2026): Under the federal Fair Labor Standards Act (29 U.S.C. § 203(m)), employers must pay tipped workers a direct cash floor of at least $2.13/hour and may claim a maximum $5.12/hour tip credit toward the $7.25/hour federal minimum wage—provided combined cash plus tips equal or exceed $7.25/hour across the workweek. However, 34 states + D.C. mandate higher direct cash wages, including 7 states (AK, CA, MN, MT, NV, OR, WA) that outlaw tip credits entirely ($11.41–$17.13/hr full cash before tips).
2026 All 50 States + D.C. Tipped Minimum Wage & Tip Credit Table
| State | Combined Min Wage | Direct Cash Wage | Max Employer Tip Credit | Tip Credit Rule |
|---|---|---|---|---|
| Alabama (AL) | $7.25/hr | $2.13/hr | $5.12/hr | Tip Credit Permitted |
| Alaska (AK) | $14.00/hr | $14.00/hr | $0.00/hr | No Tip Credit (Full Cash) |
| Arizona (AZ) | $15.15/hr | $12.15/hr | $3.00/hr | Tip Credit Permitted |
| Arkansas (AR) | $11.00/hr | $2.63/hr | $8.37/hr | Tip Credit Permitted |
| California (CA) | $16.90/hr | $16.90/hr | $0.00/hr | No Tip Credit (Full Cash) |
| Colorado (CO) | $15.16/hr | $12.14/hr | $3.02/hr | Tip Credit Permitted |
| Connecticut (CT) | $16.94/hr | $6.38/hr | $10.56/hr | Tip Credit Permitted |
| Delaware (DE) | $15.00/hr | $2.23/hr | $12.77/hr | Tip Credit Permitted |
| District of Columbia (DC) | $18.40/hr | $10.30/hr | $8.10/hr | Tip Credit Permitted |
| Florida (FL) | $15.00/hr | $11.98/hr | $3.02/hr | Tip Credit Permitted |
| Georgia (GA) | $7.25/hr | $2.13/hr | $5.12/hr | Tip Credit Permitted |
| Hawaii (HI) | $16.00/hr | $14.75/hr | $1.25/hr | Tip Credit Permitted |
| Idaho (ID) | $7.25/hr | $3.35/hr | $3.90/hr | Tip Credit Permitted |
| Illinois (IL) | $15.00/hr | $9.00/hr | $6.00/hr | Tip Credit Permitted |
| Indiana (IN) | $7.25/hr | $2.13/hr | $5.12/hr | Tip Credit Permitted |
| Iowa (IA) | $7.25/hr | $4.35/hr | $2.90/hr | Tip Credit Permitted |
| Kansas (KS) | $7.25/hr | $2.13/hr | $5.12/hr | Tip Credit Permitted |
| Kentucky (KY) | $7.25/hr | $2.13/hr | $5.12/hr | Tip Credit Permitted |
| Louisiana (LA) | $7.25/hr | $2.13/hr | $5.12/hr | Tip Credit Permitted |
| Maine (ME) | $15.10/hr | $7.55/hr | $7.55/hr | Tip Credit Permitted |
| Maryland (MD) | $15.00/hr | $3.63/hr | $11.37/hr | Tip Credit Permitted |
| Massachusetts (MA) | $15.00/hr | $6.75/hr | $8.25/hr | Tip Credit Permitted |
| Michigan (MI) | $13.73/hr | $5.49/hr | $8.24/hr | Tip Credit Permitted |
| Minnesota (MN) | $11.41/hr | $11.41/hr | $0.00/hr | No Tip Credit (Full Cash) |
| Mississippi (MS) | $7.25/hr | $2.13/hr | $5.12/hr | Tip Credit Permitted |
| Missouri (MO) | $15.00/hr | $7.50/hr | $7.50/hr | Tip Credit Permitted |
| Montana (MT) | $10.85/hr | $10.85/hr | $0.00/hr | No Tip Credit (Full Cash) |
| Nebraska (NE) | $15.00/hr | $2.13/hr | $12.87/hr | Tip Credit Permitted |
| Nevada (NV) | $12.00/hr | $12.00/hr | $0.00/hr | No Tip Credit (Full Cash) |
| New Hampshire (NH) | $7.25/hr | $3.27/hr | $3.98/hr | Tip Credit Permitted |
| New Jersey (NJ) | $15.92/hr | $6.05/hr | $9.87/hr | Tip Credit Permitted |
| New Mexico (NM) | $12.00/hr | $3.00/hr | $9.00/hr | Tip Credit Permitted |
| New York (NY) | $17.00/hr | Varies ($10.65–$11.35) | Varies by region | Tip Credit Permitted |
| North Carolina (NC) | $7.25/hr | $2.13/hr | $5.12/hr | Tip Credit Permitted |
| North Dakota (ND) | $7.25/hr | $4.86/hr | $2.39/hr | Tip Credit Permitted |
| Ohio (OH) | $11.00/hr | $5.50/hr | $5.50/hr | Tip Credit Permitted |
| Oklahoma (OK) | $7.25/hr | $2.13/hr | $5.12/hr | Tip Credit Permitted |
| Oregon (OR) | $15.55/hr | $15.55/hr | $0.00/hr | No Tip Credit (Full Cash) |
| Pennsylvania (PA) | $7.25/hr | $2.83/hr | $4.42/hr | Tip Credit Permitted |
| Rhode Island (RI) | $16.00/hr | $3.89/hr | $12.11/hr | Tip Credit Permitted |
| South Carolina (SC) | $7.25/hr | $2.13/hr | $5.12/hr | Tip Credit Permitted |
| South Dakota (SD) | $11.85/hr | $5.93/hr | $5.92/hr | Tip Credit Permitted |
| Tennessee (TN) | $7.25/hr | $2.13/hr | $5.12/hr | Tip Credit Permitted |
| Texas (TX) | $7.25/hr | $2.13/hr | $5.12/hr | Tip Credit Permitted |
| Utah (UT) | $7.25/hr | $2.13/hr | $5.12/hr | Tip Credit Permitted |
| Vermont (VT) | $14.42/hr | $7.21/hr | $7.21/hr | Tip Credit Permitted |
| Virginia (VA) | $12.77/hr | $2.13/hr | $10.64/hr | Tip Credit Permitted |
| Washington (WA) | $17.13/hr | $17.13/hr | $0.00/hr | No Tip Credit (Full Cash) |
| West Virginia (WV) | $8.75/hr | $2.62/hr | $6.13/hr | Tip Credit Permitted |
| Wisconsin (WI) | $7.25/hr | $2.33/hr | $4.92/hr | Tip Credit Permitted |
| Wyoming (WY) | $7.25/hr | $2.13/hr | $5.12/hr | Tip Credit Permitted |
Frequently Asked Questions
What is the federal tipped minimum wage and employer tip credit in 2026?
Under Section 3(m) of the Fair Labor Standards Act (29 U.S.C. § 203(m)), the federal minimum cash wage for tipped employees (those who customarily and regularly receive more than $30 per month in tips) is $2.13 per hour. Employers may claim a maximum FLSA tip credit of $5.12 per hour toward the $7.25 federal minimum wage. If an employee's direct cash wage plus actual tips do not average at least $7.25/hr over the workweek, the employer is legally required to pay the difference.
Which states prohibit the tip credit and require full minimum wage in cash?
Seven U.S. states prohibit the employer tip credit entirely in 2026: Alaska ($14.00/hr), California ($16.90/hr), Minnesota ($11.41/hr), Montana ($10.85/hr), Nevada ($12.00/hr), Oregon ($15.45/hr), and Washington ($17.13/hr). In these jurisdictions, tipped employees receive 100% of the state minimum wage in direct cash before tips.
What tipping code and FLSA classification does a hunting or fishing guide fall under in Texas?
In Texas (which follows the federal $2.13/hr cash wage and $5.12/hr tip credit under FLSA § 203(t)), professional hunting and fishing outfitters/guides operate under NAICS Code 713990 (All Other Amusement and Recreation Industries — Recreational Guide Services) or NAICS 114210 (Hunting and Trapping / Game Preserves), and SOC Code 39-7011 (Tour and Travel Guides). Because Texas hunting guides customarily receive more than $30/month in gratuities (standard benchmark: 15%–20% of the total hunt package price, or $100–$250/day), they qualify as tipped employees under 29 CFR § 531.50 unless exempt as seasonal recreational establishments.
What is the 2026 minimum wage for tipped workers on federal contracts (Executive Order 13658 / 14026)?
Under Department of Labor Wage and Hour Division notices for federal service and concession contracts (Executive Order 13658 and Executive Order 14026), the special lower tipped cash wage for federal contract workers has been phased out—requiring covered contractors to pay 100% of the applicable Executive Order minimum wage in direct cash.
By The TipFig Editorial Team · independent editorial research project