Tipped minimum wage 2027 by state: the cash wage
A tipped employee can be paid a lower cash wage where the state allows a tip credit, as long as tips bring them up to the full minimum wage. The federal minimum cash wage is $2.13. 7 states allow no tip credit at all, 38 set their own cash wage and 6 follow the federal rule. Checked on the official pages on 2026-09-30.
Open the 2027 minimum wage by state
States that set a tipped cash wage
| State | Full minimum now | Cash wage now | Cash wage 2027 | Status |
|---|---|---|---|---|
| Arizona | $15.15 | $12.15 | To be announced | To be announced |
| Arkansas | $11.00 | $2.63 | $2.63 (no change) | No change |
| Colorado | $15.16 | $12.14 | $12.69 | Announced |
| Connecticut | $16.94 | $6.38 | $6.38 (no change) | No change |
| Delaware | $15.00 | $2.23 | $2.23 (no change) | No change |
| District of Columbia | $18.40 | $10.30 | To be announced | To be announced |
| Florida | $15.00 | $11.98 | $11.98 (no change) | No change |
| Hawaii | $16.00 | $14.75 | $14.75 (no change) | No change |
| Idaho | $7.25 | $3.35 | $3.35 (no change) | No change |
| Illinois | $15.00 | $9.00 | $9.00 (no change) | No change |
| Indiana | $7.25 | $2.13 | $2.13 (no change) | No change |
| Iowa | $7.25 | $4.35 | $4.35 (no change) | No change |
| Kansas | $7.25 | $2.13 | $2.13 (no change) | No change |
| Kentucky | $7.25 | $2.13 | $2.13 (no change) | No change |
| Maine | $15.10 | $7.55 | $7.85 | Announced |
| Maryland | $15.00 | $3.63 | $3.63 (no change) | No change |
| Massachusetts | $15.00 | $6.75 | $6.75 (no change) | No change |
| Michigan | $13.73 | $5.49 | $6.30 | Set in law |
| Missouri | $15.00 | $7.50 | $7.50 (no change) | No change |
| Nebraska | $15.00 | $2.13 | $2.13 (no change) | No change |
| New Hampshire | $7.25 | $3.27 | $3.27 (no change) | No change |
| New Jersey | $15.92 | $6.05 | $6.61 | Announced |
| New Mexico | $12.00 | $3.00 | $3.00 (no change) | No change |
| New York | $16.00 | $10.70 | To be announced | To be announced |
| North Carolina | $7.25 | $2.13 | $2.13 (no change) | No change |
| North Dakota | $7.25 | $4.86 | $4.86 (no change) | No change |
| Ohio | $11.00 | $5.50 | To be announced | To be announced |
| Oklahoma | $7.25 | $2.13 | $2.13 (no change) | No change |
| Pennsylvania | $7.25 | $2.83 | $2.83 (no change) | No change |
| Rhode Island | $16.00 | $3.89 | $3.89 (no change) | No change |
| South Dakota | $11.85 | $5.93 | To be announced | To be announced |
| Texas | $7.25 | $2.13 | $2.13 (no change) | No change |
| Utah | $7.25 | $2.13 | $2.13 (no change) | No change |
| Vermont | $14.42 | $7.21 | To be announced | To be announced |
| Virginia | $12.77 | $2.13 | $2.13 (no change) | No change |
| West Virginia | $8.75 | $2.62 | $2.62 (no change) | No change |
| Wisconsin | $7.25 | $2.33 | $2.33 (no change) | No change |
| Wyoming | $5.15 | $2.13 | $2.13 (no change) | No change |
No tip credit: full minimum wage before tips
Alaska ($14.00 now), California ($16.90 now), Minnesota ($11.41 now), Montana ($10.85 now), Nevada ($12.00 now), Oregon ($15.55 now), Washington ($17.13 now).
Federal $2.13 cash wage
Alabama, Georgia, Louisiana, Mississippi, South Carolina, Tennessee: no state tipped rule in our data, so employers covered by the Fair Labor Standards Act follow the federal $2.13 cash wage and $7.25 total.
Cities with their own tipped wage
| Place | Cash wage now | Cash wage 2027 |
|---|---|---|
| Albuquerque (city), NM | $7.20 | Not verified yet |
| Chicago (city), IL | $12.96 | To be announced |
| Cook County, IL | $9.25 | To be announced |
| Denver (city and county), CO | $16.27 | $16.82 |
| Flagstaff (city), AZ | Full minimum wage (no tip credit) | Full minimum wage (no tip credit) |
| Howard County, MD | $3.63 | Not verified yet |
| Minneapolis (city), MN | Full minimum wage (no tip credit) | Full minimum wage (no tip credit) |
| Montgomery County, MD | $4.00 | Not verified yet |
| New York City, Long Island & Westchester, NY | $11.35 | To be announced |
| New York, rest of state, NY | $10.70 | To be announced |
| Oregon nonurban counties, OR | Full minimum wage (no tip credit) | Full minimum wage (no tip credit) |
| Portland (city), ME | $8.38 | To be announced |
| Portland metro (urban growth boundary), OR | Full minimum wage (no tip credit) | Full minimum wage (no tip credit) |
| Saint Paul (city), MN | Full minimum wage (no tip credit) | Full minimum wage (no tip credit) |
| Santa Fe (city), NM | $3.00 | Not verified yet |
| Seattle (city), WA | Full minimum wage (no tip credit) | Full minimum wage (no tip credit) |
| Tucson (city), AZ | $12.45 | To be announced |
To check tipped staff on your list, mark them tipped (Y) in the raise calculator: their cash wage is compared with the 2027 cash wage for their state or city.
Frequently asked questions
- What is the tipped minimum wage in 2027?
- It depends on the state: from the federal $2.13 an hour up to the full minimum wage in states with no tip credit (Alaska, California, Minnesota, Montana, Nevada, Oregon, Washington). The table lists every state.
- Which states do not allow a tip credit?
- Alaska, California, Minnesota, Montana, Nevada, Oregon, Washington: tipped staff get the full state minimum wage before tips.
- Does the tipped wage go up when the minimum wage goes up?
- In states that set it as a share of the minimum wage (for example 50%), yes; in states with a fixed cash amount, only if the law changes it. 10 states have a 2027 change or an adjustment still to be announced.
- What if tips do not reach the minimum wage?
- The employer must make up the difference so cash wage plus tips is at least the full minimum wage for the hours worked.
More guides
- Minimum wage increases in 2027: the list by state and date
Every state and city minimum wage increase published for 2027, with the new rate, the date (January 1 or July 1), the change and the official source.
- Exempt salary threshold 2027 by state
The 2027 minimum salary for exempt (white-collar) employees: federal $684 a week and the higher state thresholds, announced or still pending, with sources.
- How to budget for 2027 minimum wage raises (worked example)
Who on your staff list falls under a 2027 floor, from which date, the raise per hour and the cost for the year: the method step by step on a sample roster.
Last updated 2026-09-30. Rates from official state and city sources, checked on the date shown next to each figure. Some 2027 rates are announced later in the year. Not legal advice; check your state labor department and local ordinances. Not affiliated with the US Department of Labor or any state agency.