*Note: State laws and regulations for tipped minimum wages have been checked and updated for 2025. <\/strong><\/p>\n\n\n Before providing factual information on minimum tipped wages by state, we\u2019ll first review general information you should know about this topic and go over the following questions:<\/p>\n\n\n\n The US Department of Labor (DOL) defines tipped employees as those who regularly receive more than $30 in tips per month<\/a> while working.<\/p>\n\n\n\n Some examples of tipped employees include:<\/p>\n\n\n\n According to the Internal Revenue Service (IRS)<\/a>, tips are optional or extra payments that customers give to employees as a token of appreciation for their services.<\/p>\n\n\n\n The IRS further classifies tips as:<\/p>\n\n\n\n In the US, a tipped wage is the base wage paid to employees who receive a significant portion of their compensation from tips. <\/p>\n\n\n\n The US Department of Labor states that an employer is only required to pay a tipped employee $2.13 per hour<\/strong> in direct wages if the employee earns at least the federal minimum wage<\/a> combined with tips.<\/p>\n\n\n\n In other words, if you make a total of $7.25 per hour or more, your employer is allowed to pay you the tipped federal minimum of $2.13 an hour because your tips cover the amount needed to meet the federal minimum wage.<\/p>\n\n\n\n \n Time tracking software used by millions. Clockify by CAKE.com is a time tracker and timesheet app that lets you track work hours across projects.<\/p>\n\n The federal minimum wage for tipped employees is $2.13 per hour<\/strong>. However, with their tips combined, tipped employees must earn at least the federal minimum wage of $7.25 per hour.<\/p>\n\n\n\n Here\u2019s an example. A server named Lucy made $10 in tips during her 5-hour shift, and her hourly rate is $2.13. She made $20.65 in total wages for the day:<\/p>\n\n\n\n $2.13 x 5 hours = $10.65 (the amount Lucy earned for 5 hours)<\/em><\/strong><\/p>\n\n\n\n $10.65 + $10 in tips = $20.65 (Lucy\u2019s total wages for the day)<\/em><\/strong><\/p>\n\n\n\n When we divide her total wages for the day ($20.65) by 5 hours worked, we see that Lucy made $4.13 per hour, which is below the federal minimum of $7.25 required by the Fair Labor Standards Act (FLSA)<\/a>.<\/p>\n\n\n\n Federal law mandates that the employer must compensate the employee<\/strong> for the difference<\/strong> if the employee\u2019s tips combined with their direct wages of at least $2.13 per hour don\u2019t equal the federal minimum hourly wage.<\/p>\n\n\n\n So, let\u2019s see how Lucy\u2019s employer calculates the difference: <\/p>\n\n\n\n $7.25 per hour \u2013 $4.13 per hour Lucy made = $3.12 per hour (the amount Lucy\u2019s employer has to pay additionally for each hour worked)<\/em><\/strong><\/p>\n\n\n\n Lucy worked 5 hours (5 x $3.12 per hour), so her employer will pay her an additional $15.60.<\/p>\n\n\n\n The amount of money Lucy earned in total is calculated this way:<\/p>\n\n\n\n $20.65 (her total wages for the day) + $15.60 (she got from her employer as the difference) = $36.25<\/em><\/strong> <\/p>\n\n\n Calculate payroll with Clockify<\/a><\/p>\n\n\n\n In this section, we will examine all state-individual tipped minimum wages for 2025. We have categorized the information into tables to make it easier for you to comprehend.<\/p>\n\n\n\n The following states require employers to pay tipped employees the full state minimum wage before tips. There is no maximum tip credit per hour or a definition of a tipped employee.<\/p>\n\n\n\n The following states require employers to pay tipped employees a minimum cash wage above the federal tipped minimum wage of $2.13 per hour.<\/p>\n\n\n\n *Applies to employers with annual gross receipts of $394,000 or more. For businesses with smaller revenues, federal rules apply.<\/em><\/strong><\/p>\n\n\n\n In the following states, the state minimum tipped wage is the same as that required under the federal Fair Labor Standards Act ($2.13 per hour):<\/p>\n\n\n\n Minimum wage regulations for 5 inhabited US territories<\/a> in the Caribbean and the US Pacific Islands region are presented in the table below.<\/p>\n\n\n\n![\"Tipped](\"https:\/\/clockify.me\/learn\/wp-content\/uploads\/2023\/03\/Tipped-wages-by-state-cover.jpg\")
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General information about tipped minimum wages in the US<\/h2>\n\n\n\n
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Who qualifies as a tipped employee?<\/h3>\n\n\n\n
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What qualifies as a tip?<\/h3>\n\n\n\n
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How do tipped wages work?<\/h3>\n\n\n\n
Free employee time tracker<\/h2>\n
![\"Illustration\"](\"https:\/\/clockify.me\/learn\/wp-content\/themes\/cake-learn\/src\/images\/clockify\/banners\/landing-3@2x.png)
\n <\/picture>\n <\/div>\n<\/div>\n <\/p>\n\n\n\nWhat is the federal minimum wage for tipped employees?<\/h3>\n\n\n\n
![\"Federal](\"https:\/\/clockify.me\/learn\/wp-content\/uploads\/2023\/03\/Federal-tipped-minimum-wages.jpg\")
<\/figure>\n<\/div>\n\n\nTipped minimum wage by state for 2025<\/h2>\n\n\n\n
States with the same tipped minimum wage as the state wage<\/h3>\n\n\n\n
State<\/th> Minimum wage rate and total tipped minimum wage<\/th><\/tr><\/thead> Alaska<\/strong><\/strong><\/td> $11.91<\/td><\/tr> California<\/strong><\/td> $16.50<\/td><\/tr> Minnesota<\/strong><\/td> $11.13 for large employers;
$9.08 for small employers;<\/td><\/tr>Montana<\/strong><\/td> $10.55 for businesses with gross annual sales over $110,000;
$4.00 for businesses not covered by the FLSA with gross annual sales of $110,000 or less;<\/td><\/tr>Nevada<\/strong><\/td> $12.00<\/td><\/tr> Oregon<\/strong><\/td> $14.70 (standard);
$15.95 (Portland metro area);
$13.70 (non-urban counties);<\/td><\/tr>Washington<\/strong><\/td> $16.66<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n States with the tipped minimum wage above the federal tipped minimum wage<\/h3>\n\n\n\n
State<\/th> Tipped minimum wage rate<\/th> Maximum tip credit<\/th> Total tipped minimum wage <\/th> Definition of a tipped employee<\/th><\/tr><\/thead> Arizona<\/strong><\/td> $11.70<\/td> $3.00<\/td> $14.70<\/td> N\/S<\/td><\/tr> Arkansas<\/strong><\/td> $2.63<\/td> $8.37<\/td> $11.00<\/td> N\/S<\/td><\/tr> Colorado<\/strong><\/td> $11.79<\/td> $3.02<\/td> $14.81<\/td> Earns more than $30 in tips<\/td><\/tr> Connecticut<\/strong><\/td> $6.38 for hotel or restaurant staff;
$8.23 for bartenders<\/td>$9.97 for hotel or restaurant staff;
$8.12 for bartenders<\/td>$16.35<\/td> N\/S<\/td><\/tr> Delaware<\/strong><\/td> $2.23<\/td> $12.77<\/td> $15.00<\/td> Earns more than $30 in tips<\/td><\/tr> District of Columbia<\/strong><\/td> $10.00 (set to increase to $12.00 on July 1, 2025)<\/td> $7.50<\/td> $17.50<\/td> N\/S<\/td><\/tr> Florida<\/strong><\/strong><\/td> $9.98 (set to increase to $10.98 on September 1, 2025)<\/td> $3.02<\/td> $13.00 (set to increase to $14.00 on September 1, 2025)<\/td> Earns more than $30 in tips<\/td><\/tr> Hawaii<\/strong><\/td> $12.75<\/td> $1.25<\/td> Employees must receive at least $7.00 more in tips than the minimum wage ($14.00), currently $21.00<\/td> Earns more than $20 in tips<\/td><\/tr> Idaho<\/strong><\/td> $3.35<\/td> $3.90<\/td> $7.25<\/td> Earns more than $30 in tips<\/td><\/tr> Illinois<\/strong><\/td> $9.00<\/td> 40% of the applicable minimum wage ($6.00)<\/td> $15.00<\/td> N\/S<\/td><\/tr> Iowa<\/strong><\/td> $4.35<\/td> 40% of the applicable minimum wage ($2.90)<\/td> $7.25<\/td> Earns more than $30 in tips<\/td><\/tr> Maine<\/strong><\/td> $7.33<\/td> 50% of the applicable minimum wage ($7.33)<\/td> $14.65<\/td> Earns more than $185 in tips<\/td><\/tr> Maryland<\/strong><\/td> $3.63<\/td> $11.37<\/td> $15.00<\/td> Earns more than $30 in tips<\/td><\/tr> Massachusetts<\/strong><\/td> $6.75<\/td> $8.25<\/td> $15.00<\/td> Earns more than $20 in tips<\/td><\/tr> Michigan<\/strong><\/td> 48% of the minimum hourly wage, which is $5.99 (starting from February 21, 2025)<\/td> $6.49<\/td> $12.48 (starting from February 21, 2025)<\/td> N\/S<\/td><\/tr> Missouri<\/strong><\/td> $6.88<\/td> 50% of the applicable minimum wage ($6.88)<\/td> $13.75<\/td> N\/S<\/td><\/tr> New Hampshire<\/strong><\/td> $3.27<\/td> $3.98<\/td> $7.25<\/td> Earns more than $30 in tips<\/td><\/tr> New Jersey<\/strong><\/td> $5.62<\/td> $9.87<\/td> $15.49<\/td> Earns more than $30 in tips<\/td><\/tr> New Mexico<\/strong><\/td> $3.00<\/td> $9.00<\/td> $12.00<\/td> Earns more than $30 in tips<\/td><\/tr> New York (New York City)<\/strong><\/td> $13.75 for service employees;
$11.00 for food service workers;<\/td>$2.75 for service employees;
$5.50 for food service workers;<\/td>$16.50<\/td> N\/S<\/td><\/tr> New York (Long Island and Westchester County)<\/strong><\/td> $13.75 for service employees;
$11.00 for food service workers;<\/td>$2.75 for service employees;
$5.50 for food service workers;<\/td>$16.50<\/td> N\/S<\/td><\/tr> New York (Remainder of the NYS)<\/strong><\/td> $12.90 for service employees;
$10.35 for food service workers;<\/td>$2.60 for service employees;
$5.15 for food service employees;<\/td>$15.50<\/td> N\/S<\/td><\/tr> North Dakota<\/strong><\/td> $4.86<\/td> 33% of the applicable minimum wage ($2.39)<\/td> $7.25<\/td> Earns more than $30 in tips<\/td><\/tr> Ohio*<\/strong><\/td> $5.35<\/td> $5.35<\/td> $10.70<\/td> Earns more than $30 in tips<\/td><\/tr> Oklahoma<\/strong><\/td> $2.00 for employers not covered by the FLSA and with less than $100,000 in revenue;
$2.13 for employers covered by the FLSA;<\/td>Maximum of $3.63 for covered FLSA employers with more than $100,000 in revenue<\/td> $7.25<\/td> N\/S<\/td><\/tr> Pennsylvania<\/strong><\/td> $2.83<\/td> $4.42<\/td> $7.25<\/td> Earns more than $135 in tips<\/td><\/tr> Rhode Island<\/strong><\/td> $3.89<\/td> $11.11<\/td> $15.00<\/td> N\/S<\/td><\/tr> South Dakota<\/strong><\/td> $5.75<\/td> 50% of the applicable minimum wage ($5.75)<\/td> $11.50<\/td> Earns more than $35 in tips<\/td><\/tr> Vermont<\/strong><\/td> $7.01<\/td> $7.01<\/td> $14.01<\/td> Earns more than $120 and works in a hotel, motel, tourist place, or a restaurant<\/td><\/tr> Wisconsin<\/strong><\/td> $2.33<\/td> $4.92<\/td> $7.25<\/td> Regularly receives tips<\/td><\/tr> West Virginia<\/strong><\/td> $2.62<\/td> 70% of the applicable minimum wage ($6.13)<\/td> $8.75<\/td> N\/S<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n States with the same tipped minimum wage as the federal tipped minimum wage<\/h3>\n\n\n\n
State<\/th> Tipped minimum wage rate <\/th> Maximum tip credit <\/th> Total tipped minimum wage<\/th> Definition of a tipped employee<\/th><\/tr><\/thead> Alabama<\/strong><\/td> $2.13<\/td> $5.12<\/td> $7.25<\/td> Earns more than $30 in tips<\/td><\/tr> Georgia<\/strong><\/td> $2.13<\/td> $5.12<\/td> $7.25<\/td> Earns more than $30 in tips<\/td><\/tr> Indiana<\/strong><\/td> $2.13<\/td> $5.12<\/td> $7.25<\/td> N\/S<\/td><\/tr> Kansas<\/strong><\/td> $2.13<\/td> $5.12<\/td> $7.25<\/td> N\/S<\/td><\/tr> Kentucky<\/strong><\/td> $2.13<\/td> $5.12<\/td> $7.25<\/td> Earns more than $30 in tips<\/td><\/tr> Louisiana<\/strong><\/td> $2.13<\/td> $5.12<\/td> $7.25<\/td> Earns more than $30 in tips<\/td><\/tr> Mississippi<\/strong><\/td> $2.13<\/td> $5.12<\/td> $7.25<\/td> Earns more than $30 in tips<\/td><\/tr> Nebraska<\/strong><\/td> $2.13<\/td> $11.37<\/td> $13.50<\/td> Earns more than $30 in tips<\/td><\/tr> North Carolina<\/strong><\/td> $2.13<\/td> $5.12<\/td> $7.25<\/td> Earns more than $20 in tips<\/td><\/tr> South Carolina<\/strong><\/td> $2.13<\/td> $5.12<\/td> $7.25<\/td> Earns more than $30 in tips<\/td><\/tr> Tennessee<\/strong><\/td> $2.13<\/td> $5.12<\/td> $7.25<\/td> Earns more than $30 in tips<\/td><\/tr> Texas<\/strong><\/td> $2.13<\/td> $5.12<\/td> $7.25<\/td> Earns more than $20 in tips<\/td><\/tr> Utah<\/strong><\/td> $2.13<\/td> $5.12<\/td> $7.25<\/td> Earns more than $30 in tips<\/td><\/tr> Virginia<\/strong><\/td> $2.13<\/td> $10.28<\/td> $12.41<\/td> Earns more than $30 in tips<\/td><\/tr> Wyoming<\/strong><\/td> $2.13<\/td> $5.12<\/td> $7.25<\/td> Earns more than $30 in tips<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n Tipped minimum wage for inhabited US territories<\/h3>\n\n\n\n
State<\/th> Tipped minimum wage rate<\/th> Maximum tip credit<\/th> Total tipped minimum wage<\/th> Definition of a tipped employee<\/th><\/tr><\/thead> American Samoa<\/strong><\/td> $2.13<\/td> \/<\/td> Special minimum wage rates<\/a><\/td> Earns more than $30 in tips<\/td><\/tr> Guam<\/strong><\/td> $9.25<\/td> \/<\/td> $9.25<\/td> N\/S<\/td><\/tr> Commonwealth of the Northern Mariana Islands<\/strong><\/td> $2.13<\/td> $5.12<\/td> $7.25<\/td> Earns more than $30 in tips<\/td><\/tr> Puerto Rico<\/strong><\/td> $2.13<\/td> $8.37<\/td> $10.50<\/td> Earns more than $30 in tips<\/td><\/tr> US Virgin Islands<\/strong><\/td> 40% of the minimum hourly wage, which is $4.20<\/td> $6.30<\/td> $10.50<\/td> N\/S<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n