Tipped Wage by State, 2026
The federal cash wage is $2.13 and 43 states let employers take that and credit your tips up to minimum wage. Seven take the whole wage with zero credit. This is the cash you're owed before a single tip lands.
Employer rule in credit states: cash wage + your tips must reach full minimum wage every pay period. If tips come up short, the employer owes the difference, that's a paycheck claim, not a favor.
How the math works
- Tip credit model (43 states): employer pays a cash wage as low as $2.13 and counts your tips toward the full minimum wage. Cash + tips ÷ hours must be ≥ minimum wage, each pay period.
- No-credit states: Alaska, California, Minnesota, Montana, Nevada, Oregon, Washington, tipped staff are paid the full state minimum in cash, tips are on top, no offset allowed.
- State cash wages verified for 2026 (this site's wage table): MA $6.75, VT $8.41, MO $7.50, NH $3.38, WV $3.71, with full rates $15.00, $14.42, $15.00, $12.50, $8.75. States not listed take the federal $2.13 cash wage against the $7.25 federal floor.
- Shortfall: (minimum wage × hours) − cash wages paid − tips reported. Positive = employer owes you. Federal FLSA §3(m) and state wage acts allow back-pay claims with the wage claim.
- Tip pooling: only tipped employees can be in a mandatory pool, managers and supervisors can't take tips (federal rule since 2020; California bans manager tips outright).
What is the federal tipped minimum wage in 2026?
$2.13 an hour in cash, unchanged since 1991. It's legal in most states because tips are credited up to the full minimum wage, if your tips don't cover the gap, the employer must make it up.
Which states have no tip credit?
Seven: Alaska, California, Minnesota, Montana, Nevada, Oregon, and Washington require tipped workers to be paid the full state minimum wage in cash, tips are fully on top. Several cities (Seattle, Tacoma, Portland metro) set higher cash floors on top of that.
What if my tips plus cash wage fall below minimum wage?
The employer owes you the difference for that pay period. Keep your tip reports and paystubs, file a wage claim with the state labor agency, the shortfall is recoverable back pay in every credit state.