2024 Tipped Minimum Wage Rates By State

Author: Jason Coles

Updated On:

Updated On:

Tipped employees are workers who provide a service to customers where it is typical or customary for the customer to tip them with a gratuity in return.

Tipped workers including waiters, waitresses, bartenders, servers, hotel and airport workers, massage therapists, hairdressers, and more, will often be paid a cash wage that is lower than the current state or federal minimum wage rate through a system called “tip credit”.

There are some states that do not enforce a tipped credit system. However, for most states that must provide tipped credit to their employees, a certain amount of tips that are received by an employee can be credited towards the employer’s obligation to pay minimum wage to an employee.

If the employee does not make enough tips, combined with the tipped minimum wage, then the employer must make up the difference.

The following list details all 50 states and their tipped minimum wage pay rate, including the tip credit employees, should receive on top of the cash wage in the event that they do not receive enough tips to meet the minimum wage threshold.

The majority of employers that pay tipped employees will do so on a bi-weekly basis as this is the most common pay period frequency that restaurants, hotels, and other businesses in the U.S. pay their employees.

So, as an employee, your pay is calculated based on an accumulation of hours worked and tips received over each two-week period (typically 26 pay periods in a year).

All 50 States Tipped Minimum Wage Rates

1. Alabama – Tipped minimum wage rate: $2.13 per hour.

Alabama follows federal minimum wage laws and therefore the federal tipped minimum wage rate. The tipped minimum wage rate in Alabama is just $2.13 per hour and the tip credit is $5.12 per hour, making the minimum wage total $7.25 per hour.

2. Alaska – Tipped minimum wage rate: $11.73 per hour (no tip credit).

Alaska does not allow for a tip credit, meaning that all employees in the state (tipped or not) must be paid at least the minimum wage rate of $11.73 per hour.

3. Arizona – Tipped minimum wage rate: $11.35 per hour.

Arizona has its own minimum wage laws and does not follow the federal minimum wage. If you are a tipped employee in Arizona, you will be paid $11.35 per hour with up to $3.00 in tip credits, making the minimum wage total $14.35 per hour.

4. Arkansas – Tipped minimum wage rate: $2.63 per hour.

Arkansas has its own minimum wage laws and does not follow the federal minimum wage. If you are a tipped employee in Arkansas, you will be paid $2.63 per hour with up to $8.37 in tip credits, making the minimum wage total $11.00 per hour.

5. California – Tipped minimum wage rate: $16.00 per hour (no tip credit).

In California, there is no tip credit, meaning your tipped minimum wage is the same as the regular minimum wage. This effectively means that the tipped minimum wage in California is $16.00 per hour for all servers and other tipped employees.

6. Colorado – Tipped minimum wage rate: $11.40 per hour.

Colorado has its own minimum wage laws and does not follow the federal minimum wage. If you are a tipped employee in Colorado, you will be paid at least $11.40 per hour with up to $3.02 in tip credits, making the minimum wage total $14.42 per hour.

7. Connecticut – Tipped minimum wage rate: $6.38 per hour (Hotel and restaurant workers) or $8.23 per hour (Bartenders who customarily receive tips).

Connecticut has a slightly more complex system when it comes to the tipped minimum wage rate. Essentially, there are two employment types that have different tipped minimum wage rates. Learn about this with our Connecticut server minimum wage guide.

8. Delaware – Tipped minimum wage rate: $2.23 per hour.

If you are a tipped employee in Delaware, you will be paid a minimum of $2.23 per hour with up to $11.02 in tip credits, making the minimum wage total $13.25 per hour.

9. Florida – Tipped minimum wage rate: $8.98 per hour.

Florida has its own minimum wage laws and does not follow the federal minimum wage. If you are a tipped employee in Florida, you must be paid a tipped minimum wage of $8.98 per hour with $3.02 in tip credits, making the minimum wage total $12.00 per hour.

10. Georgia – Tipped minimum wage rate: $2.13 per hour.

Georgia follows federal minimum wage laws and therefore the federal tipped minimum wage rate. The tipped minimum wage rate in Georgia is just $2.13 per hour and the tip credit is $5.12 per hour, making the minimum wage total $7.25 per hour.

11. Hawaii – Tipped minimum wage rate: $12.75 per hour.

Hawaii has its own minimum wage laws and does not follow the federal minimum wage. If you are a tipped employee in Hawaii then you must be paid a tipped minimum wage of $12.75 per hour with $1.25 in tip credits, making the minimum wage total $14.00 per hour.

12. Idaho – Tipped minimum wage rate: $3.35 per hour.

Idaho follows federal minimum wage laws and therefore the federal minimum wage rate. The tipped minimum wage rate in Idaho is just $3.35 per hour and the tip credit is $3.90 per hour, making the minimum wage total $7.25 per hour.

13. Illinois – Tipped minimum wage rate: $8.40 per hour.

Illinois has its own minimum wage laws and does not follow the federal minimum wage. If you are a tipped employee in Illinois, you must be paid a tipped minimum wage of $8.40 per hour with $5.60 in tip credits, making the minimum wage total $14.00 per hour.

14. Indiana – Tipped minimum wage rate: $2.13 per hour.

Indiana follows federal minimum wage laws and therefore the federal minimum wage. The tipped minimum wage rate in Indiana is just $2.13 per hour and the tip credit is $5.12 per hour, making the minimum wage total $7.25 per hour.

15. Iowa – Tipped minimum wage rate: $4.35 per hour.

Iowa follows federal minimum wage laws and therefore the federal minimum wage. The tipped minimum wage rate in Iowa is just $4.35 per hour and the tip credit is $2.90 per hour, making the minimum wage total $7.25 per hour.

16. Kansas – Tipped minimum wage rate: $2.13 per hour.

Kansas follows federal minimum wage laws and therefore the federal minimum wage. The tipped minimum wage rate is just $2.13 per hour and the tip credit is $5.12 per hour, making the minimum wage total $7.25 per hour.

17. Kentucky – Tipped minimum wage rate: $2.13 per hour.

Kentucky follows federal minimum wage laws and therefore the federal minimum wage. The tipped minimum wage rate in Kentucky is just $2.13 per hour and the tip credit is $5.12 per hour, making the minimum wage total $7.25 per hour.

18. Louisiana – Tipped minimum wage rate: $2.13 per hour.

Louisiana follows federal minimum wage laws and therefore the federal minimum wage. The tipped minimum wage rate in Louisiana is just $2.13 per hour and the tip credit is $5.12 per hour, making the minimum wage total $7.25 per hour.

19. Maine – Tipped minimum wage rate: $7.08 per hour.

Maine has its own tipped minimum wage laws and does not follow the federal minimum wage. If you are a tipped employee in Maine then you must be paid a tipped minimum wage of $7.08 per hour with $7.07 in tip credits, making the minimum wage total $14.15 per hour.

20. Maryland – Tipped minimum wage rate: $3.63 per hour.

Maryland has its own minimum wage laws and does not follow the federal minimum wage. If you are a tipped employee in Maryland, you must be paid a tipped minimum wage of $3.63 per hour with $11.37 in tip credits, making the minimum wage total $15.00 per hour.

21. Massachusetts – Tipped minimum wage rate: $6.75 per hour.

If you are a tipped employee in Massachusetts, you must be paid a tipped minimum wage of $6.75 per hour with $8.25 in tip credits, making the minimum wage total $15.00 per hour.

22. Michigan – Tipped minimum wage rate: $3.93 per hour.

Michigan has its own minimum wage laws and does not follow the federal minimum wage. If you are a tipped employee in Michigan then you must be paid a tipped minimum wage of $3.93 per hour with $6.40 in tip credits, making the minimum wage total $10.33 per hour.

23. Minnesota – Tipped minimum wage rate: $10.85 (large businesses) and $8.85 (small businesses) per hour (no tip credit).

Minnesota does not allow for a tip credit, meaning that all employees in the state (tipped or not) must be paid at least the minimum wage rate of $10.85 (for large businesses) or $8.85 (for small businesses) per hour. So, the tipped minimum wage in Minnesota is either $8.85 per hour or $10.85 per hour.

24. Mississippi – Tipped minimum wage rate: $2.13 per hour.

Mississippi follows federal tipped minimum wage laws and therefore the federal minimum wage. The tipped minimum wage rate is just $2.13 per hour and the tip credit is $5.12 per hour, making the minimum wage total $7.25 per hour.

25. Missouri – Tipped minimum wage rate: $6.15 per hour.

Missouri has its own minimum wage laws and does not follow the federal minimum wage. If you are a tipped employee in Missouri then you must be paid a tipped minimum wage of $6.15 per hour with $6.15 in tip credits, making the minimum wage total $12.30 per hour.

26. Montana – Tipped minimum wage rate: $10.30 per hour (for businesses with gross annual sales over $110,000) or $4.00 (for businesses not covered by the Fair Labor Standards Act with gross annual sales of $110,000 or less).

Montana does not allow for a tip credit, meaning that all tipped employees in the state (tipped or not) must be paid at least the minimum wage rate of $10.30 per hour if they work for businesses with gross annual sales over $110,000, and minimum wage rate of $4.00 for businesses not covered by the Fair Labor Standards Act with gross annual sales of $110,000 or less.

27. Nebraska – Tipped minimum wage rate: $2.13 per hour.

Nebraska has its own minimum wage laws and does not follow the federal minimum wage. If you are a tipped employee in Nebraska, you will be paid $2.13 per hour with $9.87 in tip credits, making the minimum wage total $12.00 per hour.

28. New Hampshire – Tipped minimum wage rate: $3.26 per hour.

New Hampshire follows federal tipped minimum wage laws and therefore the federal minimum wage. This minimum wage rate is just $3.26 per hour and the tip credit is $3.99 per hour, making the minimum wage total $7.25 per hour.

29. New Jersey – Tipped minimum wage rate: $5.26 per hour.

New Jersey has its own minimum wage laws and does not follow the federal minimum wage. If you are a tipped employee in New Jersey then you must be paid a tipped minimum wage of $5.26 per hour with $9.87 in tip credits, making the minimum wage total $15.13 per hour.

30. New Mexico – Tipped minimum wage rate: $3.00 per hour.

New Mexico has its own minimum wage laws and does not follow the federal minimum wage. If you are a tipped employee in New Mexico, you must be paid a tipped minimum wage of $3.00 per hour with $9.00 in tip credits, making the minimum wage total $12.00 per hour.

31. New York – Tipped minimum wage rate: $15.00 per hour (no tip credit).

New York does not allow for a tip credit, meaning that all employees in the state (tipped or not) must be paid at least the minimum wage rate of $15.00 per hour.

32. Nevada – Tipped minimum wage rate: $11.25 per hour (with no health insurance benefits provided by the employer and received by the employee) or $10.25 (with health insurance benefits provided by the employer and received by the employee).

Nevada does not allow for a tip credit, meaning that all tipped employees in the state (tipped or not) must be paid at least the minimum wage rate of $11.25 per hour if they work for businesses with no health insurance benefits for employees and a minimum wage rate of $10.25 for businesses that do provide health insurance benefits to employees.

33. North Carolina – Tipped minimum wage rate: $2.13 per hour.

North Carolina follows federal minimum wage laws and therefore the federal minimum wage. The tipped minimum wage rate is just $2.13 per hour and the tip credit is $5.12 per hour, making the minimum wage total $7.25 per hour.

34. North Dakota – Tipped minimum wage rate: $4.86 per hour.

North Dakota follows federal minimum wage laws and therefore the federal minimum wage. The tipped minimum wage rate is just $4.86 per hour and the tip credit is $2.39 per hour, making the minimum wage total $7.25 per hour.

35. Ohio – Tipped minimum wage rate: $5.25 per hour.

Ohio has its own minimum wage laws and does not follow the federal minimum wage. If you are a tipped employee in Ohio, you will be paid $5.25 per hour with $5.20 in tip credits, making the minimum wage total $10.45 per hour.

36. Oklahoma – Tipped minimum wage rate: $2.13 per hour.

Oklahoma follows federal minimum wage laws and therefore the federal minimum wage. The tipped minimum wage rate is just $2.13 per hour and the tip credit is $5.12 per hour, making the tipped employee minimum wage total $7.25 per hour.

37. Oregon – Tipped minimum wage rate: $14.20 (no tip credit).

There are several different minimum wage rates in Oregon, varying depending on the region you are employed in. So, check out our Oregon minimum wage guide to find out the different rates depending on location!

38. Pennsylvania – Tipped minimum wage rate: $2.83 per hour.

Pennsylvania follows federal minimum wage laws and therefore the federal minimum wage. The tipped minimum wage rate is just $2.83 per hour and the tip credit is $4.42 per hour, making the minimum wage total $7.25 per hour.

39. Rhode Island – Tipped minimum wage rate: $3.89 per hour.

Rhode Island has its own minimum wage laws and does not follow the federal minimum wage. If you are a tipped employee in Rhode Island, you will be paid $3.89 per hour with $10.11 in tip credits, making the minimum wage total $14.00 per hour.

40. South Carolina – Tipped minimum wage rate: $2.13 per hour.

South Carolina follows federal minimum wage laws and therefore the federal minimum wage. The SC tipped minimum wage rate is just $2.13 per hour and the tip credit is $5.12 per hour, making the minimum wage total $7.25 per hour.

41. South Dakota – Tipped minimum wage rate: $5.60 per hour.

South Dakota has its own minimum wage laws and does not follow the federal minimum wage. If you are a tipped employee in South Dakota, you will be paid $5.60 per hour with $5.60 in tip credits, making the minimum wage total $11.20 per hour.

42. Tennessee – Tipped minimum wage rate: $2.13 per hour.

Tennessee follows federal minimum wage laws and therefore the federal minimum wage. The tipped minimum wage rate is just $2.13 per hour and the tip credit is $5.12 per hour, making the tipped Tennessee minimum wage total $7.25 per hour.

43. Texas – Tipped minimum wage rate: $2.13 per hour.

Texas follows federal minimum wage laws and therefore the federal minimum wage. The tipped minimum wage rate in Texas is just $2.13 per hour and the tip credit is $5.12 per hour, making the minimum wage total $7.25 per hour.

44. Utah – Tipped minimum wage rate: $2.13 per hour.

Utah follows federal minimum wage laws and therefore the federal minimum wage. The tipped minimum wage rate is just $2.13 per hour and the tip credit is $5.12 per hour, making the minimum wage total $7.25 per hour.

45. Vermont – Tipped minimum wage rate: $6.84 per hour.

Vermont has its own minimum wage laws and does not follow the federal minimum wage. If you are a tipped employee in Vermont, you will be paid $6.84 per hour with $6.83 in tip credits, making the minimum wage total $13.67 per hour.

46. Virginia – Tipped minimum wage rate: $2.13 per hour.

Virginia follows federal minimum wage laws and therefore the federal minimum wage. The tipped minimum wage rate is just $2.13 per hour and the tip credit is $5.12 per hour, making the minimum wage total $7.25 per hour.

47. Washington – Tipped minimum wage rate: $16.28 per hour.

Washington does not allow for a tip credit, meaning that all employees in the state (tipped or not) must be paid at least the minimum wage rate of $16.28 per hour.

48. West Virginia – Tipped minimum wage rate: $2.62 per hour.

West Virginia has its own minimum wage laws and does not follow the federal minimum wage. If you are a tipped employee in West Virginia, you will be paid $2.62 per hour with $6.13 in tip credits, making the minimum wage total $8.75 per hour.

49. Wisconsin – Tipped minimum wage rate: $2.33 per hour.

Wisconsin follows federal minimum wage laws and therefore the federal minimum wage. The tipped minimum wage rate is just $2.33 per hour and the tip credit is $4.92 per hour, making the minimum wage total $7.25 per hour.

50. Wyoming – Tipped minimum wage rate: $2.13 per hour.

Wyoming follows federal minimum wage laws and therefore the federal minimum wage. The tipped minimum wage rate is just $2.13 per hour and the tip credit is $5.12 per hour, making the minimum wage total $7.25 per hour.

Minimum Wage Rates for each State

Colorado, Florida, Georgia, Texas

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Jason Coles

Jason Coles is the Founder of Foreign USA and its Chief Content Writer and Editor. Recognized as a prolific business plan writer by many prominent immigration attorneys in the U.S. who refer his services to their clients regularly, Jason has written over 1,345 business plans across the past 17+ years for start-up companies and franchises looking to expand their footprint in the United States. Jason is considered a seasoned expert in his field. He creates detailed business plans for his clients that include five-year financial projections, market and industry analysis reports, demographic studies, organizational charts, job descriptions, employee hiring plans, and more.