Tipped minimum wage by state for 2027: cash wages and tip credits in all 50 states and DC, with Michigan at $6.30 on January 1 and Colorado at $12.69
Five states have published a higher tipped cash wage that starts on January 1, 2027: Michigan ($5.49 to $6.30), New Jersey ($6.05 to $6.61), Maine ($7.55 to $7.85), Ohio ($5.50 to $5.70) and South Dakota ($5.925 to $6.15), and Colorado lists $12.69 (from $12.14) as its 2027 tipped rate. Seven states allow no tip credit at all, so tipped workers get the full state minimum: Alaska, California, Minnesota, Montana, Nevada, Oregon and Washington. The federal floor is unchanged: a $2.13 cash wage and a maximum tip credit of $5.12 against the $7.25 federal minimum.
- Federal tipped cash wage
- $2.13 an hour (29 U.S.C. 203(m); 29 CFR 531.50)
- Federal maximum tip credit
- $5.12 an hour ($7.25 minus $2.13)
- Largest Jan. 1, 2027 tipped increase
- Michigan, $5.49 to $6.30 (42% of $15.00)
- Colorado tipped rate, 2027
- $12.69 (Denver $16.82 from Jan. 1, 2027)
- No tip credit allowed
- Alaska, California, Minnesota, Montana, Nevada, Oregon, Washington
- Florida
- $11.98 since Sept. 30, 2026; no change on Jan. 1, 2027
- New York on Jan. 1, 2027
- No change (food service $11.35 NYC area, $10.70 rest of state)
Figures above were read from state labor agency pages, state statutes and federal law on 2026-10-17. See sources.
How the tipped minimum wage works
Under the Fair Labor Standards Act, an employer may pay a tipped employee a cash wage of at least $2.13 an hour and count tips toward the rest of the $7.25 federal minimum. 29 CFR 531.50 states the $2.13 figure, and 29 CFR 531.59 describes the tip credit as the minimum wage "minus cash wage paid (at least $2.13)". A tipped employee is one who customarily and regularly receives more than $30 a month in tips (29 U.S.C. 203(t)). If cash wage plus tips falls short of the minimum, the employer pays the difference.
States can set a higher cash wage, a smaller tip credit, or no tip credit. Where a state rate is higher than the federal rate, the state rule applies. The table below shows, for each state, the 2026 minimum wage, the tipped cash wage, the tip credit, and what the state has published for 2027.
Tipped minimum wage by state, 2026 and 2027
| State | Minimum wage, 2026 | Tipped cash wage, 2026 | Maximum tip credit, 2026 | 2027 | Source |
|---|---|---|---|---|---|
| Federal (FLSA) | $7.25 | $2.13 | $5.12 | No change in 29 U.S.C. 206 or 203(m) | 29 U.S.C. 203(m); 29 CFR 531.50 |
| Alabama | No state law; federal $7.25 | $2.13 (federal) | $5.12 (federal) | Federal rates | U.S. DOL State Minimum Wage Laws |
| Alaska | $14.00 (since July 1, 2026) | No tip credit | None | $15.00 on July 1, 2027; no tip credit | Alaska Stat. 23.10.065 |
| Arizona | Not confirmed | Minimum wage minus up to $3.00 | Up to $3.00 | Not confirmed | A.R.S. 23-363(C) |
| Arkansas | Not confirmed | Not confirmed | Not confirmed | Not confirmed | Arkansas DLL page refused our reader |
| California | $16.90 | No tip credit | None | $17.40 on Jan. 1, 2027; no tip credit | California Labor Commissioner FAQ; DIR release 2026-66 |
| Colorado | $15.16 | $12.14 | $3.02 | $15.71; tipped $12.69 (listed as the 2027 rates; start day not stated on the cited pages) | CDLE DLSS; CDLE release Aug. 13, 2026 |
| Connecticut | $16.94 | $6.38 hotel and restaurant service; $8.23 bartenders | $10.56; bartenders $8.71 | $17.48 on Jan. 1, 2027; tipped cash wage not announced as of 2026-10-17 | CT DOL Tip Statement 2026; Governor's release Aug. 5, 2026 |
| Delaware | $15.00 | $2.23 | $12.77 | No 2027 change in the statute | 19 Del. C. 902 |
| District of Columbia | $18.40 (since July 1, 2026) | $10.30 (56% of minimum) | $8.10 | CPI increase on July 1, 2027, not announced as of 2026-10-17 | D.C. Code 32-1003(f); DC DOES notice |
| Florida | $15.00 (since Sept. 30, 2026) | $11.98 | $3.02 | No change on Jan. 1, 2027; first inflation adjustment takes effect Jan. 1, 2028 | Fla. Const. art. X, sec. 24; FloridaCommerce |
| Georgia | State $5.15; federal $7.25 generally applies | $2.13 (federal) | $5.12 (federal) | Federal rates | Georgia DOL |
| Hawaii | $16.00 | $14.75 | $1.25 (only if wages plus tips are at least $7.00 above the minimum) | Same through Dec. 31, 2027; $18.00 and $16.50 on Jan. 1, 2028 | Hawaii DLIR tip credit notice |
| Idaho | $7.25 | $3.35 | $3.90 | No 2027 change in the statute | Idaho Code 44-1502 |
| Illinois | $15.00 | $9.00 | $6.00 (40% of minimum) | No 2027 change in the statute | 820 ILCS 105/4 |
| Indiana | $7.25 | $2.13 | $5.12 | No change on the cited page | Indiana DOL |
| Iowa | $7.25 | $4.35 | $2.90 (40% of minimum) | No 2027 change in the statute | Iowa Code 91D.1 |
| Kansas | $7.25 | $2.13 | $5.12 | No 2027 change in the statute | K.S.A. 44-1203 |
| Kentucky | $7.25 | $2.13 | $5.12 | No change on the cited poster | Kentucky Labor Cabinet poster |
| Louisiana | No state law; federal $7.25 | $2.13 (federal) | $5.12 (federal) | Federal rates | U.S. DOL State Minimum Wage Laws |
| Maine | $15.10 | $7.55 | $7.55 | $15.70; tipped $7.85 on Jan. 1, 2027 | Maine DOL release Sept. 18, 2026 |
| Maryland | $15.00 | $3.63 | $11.37 | No change on the cited page | Maryland Department of Labor |
| Massachusetts | $15.00 | $6.75 | $8.25 | No 2027 change in the statute | M.G.L. c. 151, secs. 1 and 7 |
| Michigan | $13.73 | $5.49 (40%) | $8.24 | $15.00; tipped $6.30 (42%) on Jan. 1, 2027 | Michigan LEO FAQ |
| Minnesota | $11.41 | No tip credit | None | $11.87 on Jan. 1, 2027; no tip credit | Minnesota DLI |
| Mississippi | No state law; federal $7.25 | $2.13 (federal) | $5.12 (federal) | Federal rates | U.S. DOL State Minimum Wage Laws |
| Missouri | $15.00 | $7.50 (50%) | $7.50 | No 2027 change in RSMo 290.502 | Missouri DOLIR; RSMo 290.502 |
| Montana | $10.85 | No tip credit | None | $11.20 on Jan. 1, 2027; no tip credit | Montana DLI |
| Nebraska | $15.00 | $2.13 | $12.87 | $15.26 on Jan. 1, 2027; tipped $2.13 | Neb. Rev. Stat. 48-1203; Nebraska DOL poster |
| Nevada | $12.00 (since July 1, 2024) | No tip credit | None | No 2027 change in the constitution; no tip credit | Nev. Const. art. 15, sec. 16 |
| New Hampshire | Federal $7.25 | 45% of the minimum ($3.2625) | 55% of the minimum | No 2027 change in the statute | N.H. RSA 279:21 |
| New Jersey | $15.92 | $6.05 | $9.87 | $16.48; tipped $6.61 on Jan. 1, 2027; credit stays $9.87 | NJDOL release Sept. 29, 2026 |
| New Mexico | $12.00 | $3.00 | $9.00 | No change on the cited page | New Mexico DWS |
| New York | $17.00 NYC, Long Island, Westchester; $16.00 rest of state | Food service $11.35 / $10.70; service $14.15 / $13.30 | Food service $5.65 / $5.30; service $2.85 / $2.70 | No change on Jan. 1, 2027 | NY DOL |
| North Carolina | $7.25 (federal rate) | $2.13 (tips count up to the FLSA 203(m) amount) | $5.12 | Federal rates | N.C. Gen. Stat. 95-25.3 |
| North Dakota | Not stated on the cited page | $4.86 | 33% of the minimum wage | No change on the cited page | North Dakota DOL FAQ |
| Ohio | $11.00 | $5.50 | $5.50 | $11.40; tipped $5.70 on Jan. 1, 2027 | Ohio Department of Commerce posters; Ohio Const. art. II, sec. 34a |
| Oklahoma | $7.25 | $2.13 (FLSA-covered employees) | $5.12 | Federal rates | Oklahoma DOL wage rules |
| Oregon | $15.55 standard; $16.80 Portland metro; $14.55 non-urban (July 1, 2026 to June 30, 2027) | No tip credit | None | Inflation change, if any, on July 1, 2027, not announced as of 2026-10-17 | Oregon BOLI |
| Pennsylvania | $7.25 | $2.83 | $4.42 | No change on the cited pages | Pennsylvania L&I |
| Rhode Island | $16.00 | $3.89 | $12.11 | $17.00 on Jan. 1, 2027; cash wage $3.89 in the statute (credit $13.11) | R.I. Gen. Laws 28-12-3, 28-12-5 |
| South Carolina | No state law; federal $7.25 | $2.13 (federal) | $5.12 (federal) | Federal rates | U.S. DOL State Minimum Wage Laws |
| South Dakota | $11.85 | $5.925 | $5.925 | $12.30; tipped $6.15 on Jan. 1, 2027 | South Dakota DLR |
| Tennessee | No state law; federal $7.25 | $2.13 (federal) | $5.12 (federal) | Federal rates | Tennessee Department of Labor and Workforce Development |
| Texas | $7.25 | $2.13 | $5.12 | Federal rates | Texas Workforce Commission |
| Utah | $7.25 | $2.13 | $5.12 | No change on the cited page | Utah Labor Commission |
| Vermont | $14.42 | $7.21 (one-half the minimum) | $7.21 | Not announced as of 2026-10-17 | Vermont DOL; 21 V.S.A. 384 |
| Virginia | $12.77 | No dollar amount in the state code; the federal $2.13 applies to FLSA-covered employers | Not stated in the state code | $13.75 on Jan. 1, 2027 | Va. Code 40.1-28.9, 40.1-28.10 |
| Washington | $17.13 | No tip credit | None | $17.73 on Jan. 1, 2027; no tip credit | Washington L&I |
| West Virginia | $8.75 | $2.62 | 70% of the minimum | No 2027 change in the statute | West Virginia Division of Labor FAQ; W. Va. Code 21-5C-2 |
| Wisconsin | $7.25 | $2.33 | $4.92 | No change in the rule | Wis. Admin. Code DWD 272.03 |
| Wyoming | State $5.15; federal $7.25 for FLSA-covered employers | $2.13 | $5.12 (federal) | Federal rates | Wyo. Stat. 27-4-202 |
Colorado and Denver tipped minimum wage 2027
Colorado's Department of Labor and Employment announced on August 13, 2026 that "Colorado’s minimum wage will increase to $15.71 per hour in 2027, and $12.69 for tipped workers." Its rate table also lists 2027 rates for local minimum wages. Denver Labor says the city rate "will adjust to $19.84 per hour on January 1, 2027" and that employers "may claim a maximum tip credit of $3.02 in the food and beverage industry."
| Jurisdiction | 2026 | 2026 with tip credit | 2027 | 2027 with tip credit |
|---|---|---|---|---|
| Colorado (no local minimum) | $15.16 | $12.14 | $15.71 | $12.69 |
| Denver City/County | $19.29 | $16.27 | $19.84 | $16.82 |
| City of Boulder | $16.82 | $13.80 | $18.17 | $15.15 |
Michigan tipped minimum wage 2027 and the schedule to 2031
Michigan's tipped rate is a percentage of the state minimum wage under the law that took effect on February 21, 2025. The Department of Labor and Economic Opportunity lists $5.49 (40%) for 2026 and $6.30 (42% of $15.00) from January 1, 2027. The percentage then rises two points a year: 44% in 2028, 46% in 2029, 48% in 2030, and "beginning January 1, 2031 and thereafter, it shall be 50% of the minimum hourly wage rate." The same agency table gives $8.70 as the average hourly tips a 2027 tipped employee must report.
Florida tipped minimum wage 2027
Florida's minimum wage reached $15.00 on September 30, 2026 under Article X, Section 24 of the state constitution. The constitution says employers "may credit towards satisfaction of the Minimum Wage tips up to the amount of the allowable FLSA tip credit in 2003", which FloridaCommerce states as $3.02. That puts the tipped cash wage at $11.98. The first inflation adjustment is calculated on September 30, 2027, and the constitution says "Each adjusted Minimum Wage rate calculated shall be published and take effect on the following January 1st." So no Florida change takes effect on January 1, 2027; the next one is January 1, 2028.
District of Columbia: Initiative 82 as now written
D.C. Code 32-1003(f) now ties the tipped minimum to a share of the full minimum wage. It says that "as of July 1, 2026, the tipped minimum wage shall be 56% of the minimum wage provided in subsection (a) of this section". The DC Department of Employment Services notice puts the tipped base at $10.30 and the full minimum at $18.40 from July 1, 2026. The code then sets 60% from July 1, 2028, 65% from 2030, 70% from 2032 and 75% from July 1, 2034. The DC rates change each July 1 with inflation; the July 1, 2027 figures were not published as of 2026-10-17.
States with no tip credit
Seven states require the full state minimum wage before tips:
- Alaska: "An employer may not apply tips or gratuities bestowed upon employees as a credit toward payment of the minimum hourly wage required by this section." (Alaska Stat. 23.10.065)
- California: "An employer may not use an employee's tips as a credit toward its obligation to pay the minimum wage per hour." (Labor Commissioner FAQ)
- Minnesota: "No employer may take a tip credit against minimum wages in Minnesota." (DLI)
- Montana: "No tip credit, meal credit, or training wage is allowed under Montana's Wage & Hour Laws." (DLI)
- Nevada: "Tips or gratuities received by employees shall not be credited as being any part of or offset against the wage rates required by this section." (Nev. Const. art. 15, sec. 16)
- Oregon: "Tip credits are illegal in Oregon." (BOLI)
- Washington: "Businesses may not use tips and service charges paid to an employee as part of an employee’s hourly minimum wage." (L&I)
Some cities set their own tipped rules; Denver is shown above. This page covers state and DC rates. State minimum wage increases without tips are listed in our state minimum wage increases on January 1, 2027 record, and salary thresholds for exempt employees in 2027 exempt salary threshold by state.
Other rules that change the cash wage
- Hawaii allows its $1.25 tip credit only when wages plus tips are at least $7.00 above the minimum wage, which the DLIR notice shows as $23.00 an hour for 2026 and 2027.
- New York: the Department of Labor says that for 2027 an off-ramp condition was met, so "the minimum wage will not receive an inflation-based increase on January 1, 2027." Its table shows the same tipped cash wages "as of 01/01/2027" and says only hospitality employers may take a credit.
- Nebraska: the Department of Labor's poster, updated July 31, 2026, lists $15.26 from January 1, 2027, and a tipped cash wage of at least $2.13.
- Pennsylvania: the tip credit applies only if the employee earns at least $135 in tips per month, according to Labor & Industry.
- West Virginia: the $2.62 cash wage applies where state law covers the employer; the Division of Labor says the state rules require six or more employees at one location.
- Vermont: 21 V.S.A. 384 bars paying a service or tipped employee "at a basic wage rate less than one-half the minimum wage"; the 2027 minimum had not been posted on the Department of Labor page as of 2026-10-17.
What we could not confirm
- Arizona's 2026 and 2027 dollar figures. The Industrial Commission of Arizona's minimum wage page refused our automated reader (HTTP 403). A.R.S. 23-363(C) lets employers pay up to $3.00 an hour less than the minimum wage to tipped employees.
- Arkansas's minimum wage and tipped cash wage. The Arkansas Department of Labor and Licensing page refused our automated reader (HTTP 403), and we did not find the statute on an official site we could read.
- Connecticut's tipped cash wages for 2027. The latest Department of Labor tip statement we found is the one effective January 1, 2026; the Connecticut statute site could not be read by our reader.
- The U.S. Department of Labor's Minimum Wages for Tipped Employees table refused our automated reader (HTTP 403), so each row above uses a state source instead.
- New Hampshire's Department of Labor minimum wage page refused our reader (HTTP 403). RSA 279:21 sets the base rate at 45% of the applicable minimum wage while the federal minimum stays at its July 23, 2021 level; 45% of $7.25 is $3.2625 by our arithmetic.
- Oklahoma's statute (40 O.S.) is disallowed for automated reading by the Legislature's robots.txt. The row uses the Oklahoma Department of Labor's wage rules document, which addresses employees under federal wage law.
Questions
What is the Michigan tipped minimum wage in 2027?
What is the Colorado and Denver tipped minimum wage in 2027?
What is the Florida tipped minimum wage in 2027?
Which states have no tip credit?
What is the federal tipped minimum wage?
Sources
- Federal tipped cash wage and tip credit - 29 U.S.C. 203, U.S. Code 2023 edition (govinfo), 29 CFR 531.50 (eCFR) and 29 CFR 531.59 (eCFR), read 2026-10-17
- Alabama, Louisiana, Mississippi, South Carolina - U.S. Department of Labor: State Minimum Wage Laws (updated July 1, 2026), read 2026-10-16
- Alaska - Alaska Stat. 23.10.065 and Alaska Department of Labor: Wage and Hour, read 2026-10-17
- Arizona - A.R.S. 23-363, read 2026-10-17
- California - California Labor Commissioner: Minimum wage FAQ and California DIR news release 2026-66, read 2026-10-17
- Colorado - CDLE Division of Labor Standards and Statistics and CDLE press release, Aug. 13, 2026, read 2026-10-17
- Denver - Denver Labor: Denver's Minimum Wage, read 2026-10-17
- Connecticut - CT DOL: Tip Statement effective Jan. 1, 2026 (PDF) and Office of Governor Ned Lamont, Aug. 5, 2026, read 2026-10-17
- Delaware - 19 Del. C. 902, read 2026-10-17
- District of Columbia - D.C. Code 32-1003 and DC DOES: Minimum Wage Increase notice (PDF), read 2026-10-17
- Florida - Florida Constitution, Article X, Section 24 (Florida Senate) and FloridaCommerce: Florida's Minimum Wage Updated September 30, 2025 (PDF), for the $3.02 tip credit, read 2026-10-17
- Georgia - Georgia Department of Labor: Minimum Wage, read 2026-10-17
- Hawaii - Hawaii DLIR: Minimum Wage and Overtime and Hawaii DLIR: Tip Credit Notice (PDF), read 2026-10-17
- Idaho - Idaho Code 44-1502, read 2026-10-17
- Illinois - 820 ILCS 105/4, read 2026-10-17
- Indiana - Indiana Department of Labor: Indiana Minimum Wage Law (PDF), read 2026-10-17
- Iowa - Iowa Code 91D.1 (PDF), read 2026-10-17
- Kansas - K.S.A. 44-1203, read 2026-10-17
- Kentucky - Kentucky Labor Cabinet: Wage and Hour poster (PDF), read 2026-10-17
- Maine - Maine DOL: Maine's Minimum Wage to Increase to $15.70 Per Hour in 2027, read 2026-10-17
- Maryland - Maryland Department of Labor: Minimum Wage and Overtime Law, read 2026-10-17
- Massachusetts - M.G.L. c. 151, sec. 1 and M.G.L. c. 151, sec. 7, read 2026-10-17
- Michigan - Michigan LEO: Minimum Wage and Overtime FAQs and Michigan LEO: Minimum Wage and Overtime, read 2026-10-17
- Minnesota - Minnesota DLI: Minimum wage in Minnesota, read 2026-10-17
- Missouri - Missouri DOLIR: Minimum Wage and RSMo 290.502, read 2026-10-17
- Montana - Montana DLI: Montana's Minimum Wage, read 2026-10-17
- Nebraska - Neb. Rev. Stat. 48-1203 and Nebraska DOL: State of Nebraska Minimum Wage poster, updated July 31, 2026 (PDF), read 2026-10-17
- Nevada - Nevada Constitution, Article 15, Section 16, read 2026-10-17
- New Hampshire - N.H. RSA 279:21, read 2026-10-17
- New Jersey - NJDOL news release, Sept. 29, 2026, read 2026-10-17
- New Mexico - New Mexico DWS: Minimum Wage Information, read 2026-10-17
- New York - New York State Department of Labor: Minimum Wage, read 2026-10-17
- North Carolina - N.C. Gen. Stat. 95-25.3, read 2026-10-17
- North Dakota - North Dakota Department of Labor: Wage and Hour FAQ, read 2026-10-17
- Ohio - Ohio Department of Commerce: 2026 Minimum Wage poster (PDF), 2027 Minimum Wage poster (PDF) and Ohio Constitution, Article II, Section 34a, read 2026-10-17
- Oklahoma - Oklahoma Department of Labor: wage law and rules (PDF), read 2026-10-17
- Oregon - Oregon Bureau of Labor and Industries: Minimum wage, read 2026-10-17
- Pennsylvania - Pennsylvania L&I: Pennsylvania's Minimum Wage Act and Overtime and Tipped Worker Rules in PA, read 2026-10-17
- Rhode Island - R.I. Gen. Laws 28-12-3 and R.I. Gen. Laws 28-12-5, read 2026-10-17
- South Dakota - South Dakota Department of Labor and Regulation: Minimum wage, read 2026-10-17
- Tennessee - Tennessee Department of Labor and Workforce Development: Should I be paid minimum wage?, read 2026-10-17
- Texas - Texas Workforce Commission: Allowable Deductions Under the FLSA, read 2026-10-17
- Utah - Utah Labor Commission: Wage Claim, read 2026-10-17
- Vermont - Vermont Department of Labor: Worker Rights and Protections and 21 V.S.A. 384, read 2026-10-17
- Virginia - Va. Code 40.1-28.9 and Va. Code 40.1-28.10, read 2026-10-17
- Washington - Washington L&I: Minimum wage, read 2026-10-17
- West Virginia - West Virginia Division of Labor: Minimum Wage FAQ and W. Va. Code 21-5C-2, read 2026-10-17
- Wisconsin - Wis. Admin. Code DWD 272, read 2026-10-17
- Wyoming - Wyoming Statutes Title 27, 27-4-202 (PDF), read 2026-10-17
Source links are not affiliate links. This page is general information, not legal, tax or financial advice. Tipped wage rules depend on the facts, the employer and the state.
