Tipped minimum wage calculator

Under federal law an employer may pay $2.13 an hour in cash if tips bring the total to at least $7.25 for every hour in the workweek. If they do not, the employer must make up the difference. Many states set a higher cash wage or ban the tip credit. Pick a row from the Department of Labor table dated July 1, 2026.

By Matt Totty, TipSlice · Last reviewed

The wage rules for a pool are in tip-out and tip pooling. The handoff math is the tip-out calculator.

Hourly wage with tips

Rate

Cash pay
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Tips
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Cash pay plus tips
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Effective hourly rate
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Printed row
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Make-up on these hours
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The federal row, as the table prints it

The Department of Labor page Minimum Wages for Tipped Employees is dated July 1, 2026, and the page says it was last revised that day. Its federal row lists a combined minimum of $7.25, a maximum tip credit of $5.12, and a minimum cash wage of $2.13. A tipped employee under that row receives more than $30 a month in tips. Fact Sheet #15 says the employer must make up the difference if cash wages plus tips do not equal $7.25 in each workweek. The dropdown and the table below are that DOL table, checked October 19, 2026. Next scheduled check: January 1, 2027, because the Michigan footnote names that date. This is arithmetic against the printed row, not a finding that an employer broke the law. DOL says individuals should consult the relevant state labor office.

Minimum hourly wages for tipped employees, as printed by the U.S. Department of Labor, July 1, 2026
JurisdictionCombined minimumMaximum tip creditMinimum cash wageTipped employee
Federal (FLSA)7.255.12$2.13More than $30
Alaska$14.00
California$16.90
Guam$9.25
Minnesota$11.41
Montana, sales over $110,000$10.85
Montana, not covered by the FLSA, sales of $110,000 or less$4.00
Nevada$12.00
Oregon, standard$15.55
Oregon, Portland metro$16.80
Oregon, nonurban counties$14.55
Washington$17.13
Arizona15.153.00$12.15Not specified
Arkansas11.008.37$2.63Not specified
Colorado15.163.02$12.14More than $30
Connecticut, hotel and restaurant16.9410.56$6.38Not specified
Connecticut, bartenders who customarily receive tips16.948.71$8.23
Delaware15.0012.77$2.23More than $30
District of Columbia18.408.10$10.30Not specified
Florida14.003.02$10.98More than $30
Hawaii16.001.25$14.75
Idaho7.253.90$3.35More than $30
Illinois15.0040% of the applicable minimum wage ($6.00)$9.00Not specified
Iowa7.2540% of the applicable minimum wage ($2.90)$4.35More than $30
Maine15.1050% of the applicable minimum wage ($7.55)$7.55More than $191
Maryland15.0011.37$3.63More than $30
Massachusetts15.008.25$6.75More than $20
Michigan13.738.24$5.49Not specified
Missouri15.0050% of the applicable minimum wage ($7.50)$7.50Not specified
New Hampshire7.253.98$3.27More than $30
New Jersey15.929.87$6.05More than $30
New Mexico12.009.00$3.00More than $30
New York17.00 (NYC, Long Island, & Westchester); 16.00 (remainder of NY state)Tipped workers' minimum wage rates vary by region and type of employer.Not specified
North Dakota7.2533% of the applicable minimum wage ($2.39)$4.86More than $30
Ohio, gross receipts of $405,000 or more11.005.50$5.50More than $30
Oklahoma7.255.12$2.13Not specified
Pennsylvania7.254.42$2.83$135 per month
Rhode Island16.0012.11$3.89More than $30
South Dakota11.8550% of the applicable minimum wage ($5.92)$5.93More than $35
Vermont14.4250% of the applicable minimum wage ($7.21)$7.21More than $120
Virgin Islands10.506.30$4.20Not specified
Wisconsin7.254.92$2.33Not specified
West Virginia8.7570% of the applicable minimum wage ($6.13)$2.62Not specified
Alabama7.255.12$2.13More than $30
American SamoaSpecial minimum wage rates$2.13More than $30
Georgia7.255.12$2.13More than $30
Indiana7.255.12$2.13More than $30
Kansas7.255.12$2.13Not specified
Kentucky7.255.12$2.13More than $30
Louisiana7.255.12$2.13More than $30
Mississippi7.255.12$2.13More than $30
Nebraska15.0012.87$2.13Not specified
North Carolina7.255.12$2.13More than $20
Northern Mariana Islands7.255.12$2.13More than $30
Puerto Rico10.508.37$2.13More than $30
South Carolina7.255.12$2.13More than $30
Tennessee7.255.12$2.13More than $30
Texas7.255.12$2.13More than $20
Utah7.255.12$2.13More than $30
Virginia12.7710.64$2.13More than $30
Wyoming7.255.12$2.13More than $30

What the boxes do

Cash pay is the hourly wage you type, times the hours, rounded to the cent. Tips are the amount you type for that same period. The effective hourly rate is those two added together, divided by the hours, then rounded to the cent. Taxes are not taken out. A tip-out you already handed to a busser is not subtracted unless you leave it out of the tips box yourself. The tip-out calculator is the place to see that handoff before you type the tips that stayed with you.

A worked example uses the federal cash wage from the table and numbers that are not a real shift. At $2.13 an hour for 40 hours, cash pay is $85.20. Add $400 in tips and the total is $485.20. Divide by 40 and the effective rate is $12.13. Open it: /hourly-wage-with-tips/?w=2.13&h=40&t=400. At the federal row, $7.25 times 40 hours is $290.00, and $485.20 is above that, so the make-up line is $0.00. The same $2.13 cash wage in California is below the $16.90 full minimum the table prints, and the tool flags it. A shortfall example: $2.13 times 30 hours is $63.90, plus $120 in tips is $183.90, against $7.25 times 30 hours ($217.50), so the make-up is $33.60. Florida's row on the July 1, 2026 table is still $14.00 combined, $3.02 tip credit, and $10.98 cash. Footnote 4 says: "The Florida minimum wage is scheduled to increase by $1.00 every year on September 30th until reaching $15.00 on September 30, 2026." The calculator uses the printed $14.00 row and shows that footnote. It does not replace the row with $15.00.

Related pages: tip-out and tip pooling for the pool rules, and restaurant tipping for the guest-facing percent.

Hourly wage FAQ

What federal tipped cash wage and tip credit does this page use?

The Department of Labor table Minimum Wages for Tipped Employees, dated July 1, 2026, lists the federal Fair Labor Standards Act row as a basic combined cash and tip minimum of $7.25, a maximum tip credit of $5.12, and a minimum cash wage of $2.13. The same row defines a tipped employee as someone who receives more than $30 a month in tips. The calculator compares the wage and tips you type with the row you pick, including that federal row.

Does every state use the $2.13 cash wage?

No. The same July 1, 2026 table has a section for states that require employers to pay tipped employees the full state minimum wage before tips, and another section for states that require a cash wage above $2.13. The table on this page copies those rows. Alaska, California, Guam, Minnesota, Montana's large-employer line, Nevada, Oregon, and Washington are the full-minimum block. New York varies by region, so the tool shows the DOL sentence and does not invent one cash wage.

What does effective hourly rate mean here?

It is the cash pay for the hours you entered, plus the tips you entered, divided by those hours. It is not a promise of what an employer must pay, and it does not subtract taxes.