By StartBusinessByStatePublisher: Robert SmithResearch process
Original research · U.S. DOL Wage and Hour Division tipped minimum-wage table revised July 1, 2026 · BLS QCEW annual 2025 private employment (NAICS 81211 / 722330) · As of September 18, 2026 (ET) · Last updated October 2, 2026 · Not legal advice
This is a national cash-wage / tip-credit reference with salon and food-service distinctions where state sources make them clear. For Florida-only payroll scenarios around the $15 step, see Florida minimum wage business costs.
Tip-credit status map
Bucket summary (50 states + D.C.)
| Status | Count | Jurisdictions |
|---|---|---|
| Tip credit allowed (general) | 41 | Most states + D.C. (cash floors still range from federal $2.13 up to high state cash wages) |
| Tip credit not allowed | 7 | Alaska, California, Minnesota, Montana, Nevada, Oregon, Washington |
| Partial / conditional | 1 | Hawaii (tip credit only if wages + tips clear MW + $7) |
| Industry exception (verify before using “Yes”) | 2 | New York (hospitality tip credit; salons/misc. = full MW); Connecticut (DOL row = hotel/restaurant rates) |
Coverage limit: This page is not a completed legal audit of every industry in every state. We verified high-stakes salon vs food-service carve-outs for New York and Connecticut against NY DOL and CT DOL / CGS sources. Other states may have occupation- or size-based sub-rules; always re-check the state labor office and the DOL footnotes.
Where salons differ from food-service tip credits
New York — hospitality tip credit only; nail/misc. salons pay full MW. NY DOL states that only hospitality employers may take a tip credit against the minimum wage. Food-service and hospitality service-employee cash wages vary by region (e.g., NYC food service $11.35 cash / $5.65 tip credit toward $17.00 in 2026). Nail salon employers must pay the full applicable minimum wage and cannot take any tip credit (rule in effect since December 31, 2020). Hairdressers and other miscellaneous-industry tipped occupations likewise fall outside the hospitality tip-credit framework. Sources: NY DOL Nail Salon Industry; NY DOL Minimum Wage (“Only hospitality employers are allowed to take credit from minimum wage”); Minimum Wage for Tipped Workers.
For how tipping itself differs between these two kinds of states, see our analysis of restaurant tips versus tipped wage rules.
Connecticut — DOL WHD cash/tip figures are hotel/restaurant rates. The July 1, 2026 DOL tipped table lists Connecticut at $16.94 combined with hotel/restaurant cash $6.38 / tip credit $10.56, and bartender cash $8.23 / tip credit $8.71. Those figures come from Connecticut’s Restaurant Wage Order (DOL-79) / tip statement for service employees — they are not a general salon cash wage. CGS §31-60 historically recognizes a tip credit “not to exceed thirty-five cents per hour in any other industry.” Do not treat the hotel/restaurant row as applying equally to salons. Sources: DOL WHD tipped table; CT DOL Restaurant Wage Order DOL-79 (eff. 1/1/2026); CGS §31-60.
Florida Sep 30, 2026 step
DOL’s July 1, 2026 tipped table still shows Florida at $14.00 combined / $10.98 cash. On September 30, 2026, Florida’s constitutional schedule reached $15.00 full MW and $11.98 tipped cash (tip credit stays $3.02 — the allowable FLSA tip credit in 2003).
| Item | Through Sep 29, 2026 (DOL Jul 1 table) | Effective Sep 30, 2026 |
|---|---|---|
| Full / combined minimum wage | $14.00 | $15.00 |
| Maximum tip credit | $3.02 | $3.02 (unchanged) |
| Minimum cash wage (tipped) | $10.98 | $11.98 |
Sources: Florida Constitution Art. X §24; DOL WHD footnote 4. Arithmetic: $15.00 − $3.02 = $11.98.
Chicago, D.C. and Michigan: slower tip-credit phase-outs
All three places once planned to end the lower tipped wage. Each has now slowed that plan down. Here are the current schedules from official sources, checked October 2, 2026. The national table below shows statewide rules only, so Chicago’s city rate is not in it.
| Place | Now | Next steps | What changed |
|---|---|---|---|
| Chicago (employers with 4+ workers) | Since July 1, 2026: $17.05 minimum wage, $12.96 tipped cash wage (tip credit 24%) | Credit stays at 24% until July 1, 2028. Employers with 21 or more workers: 16% on July 1, 2028, 8% on July 1, 2029, none on July 1, 2030. Employers with 4 to 20 workers: 24% until July 1, 2030, then 16% (2030), 12% (2031), 6% (2032), none on July 1, 2033. | The 2023 ordinance would have cut the credit again in 2026 and 2027. In May 2026 the City Council paused those cuts, so the tipped wage stays at $12.96 until July 1, 2028. |
| Washington, D.C. | Since July 1, 2026: $18.40 minimum wage, $10.30 tipped cash wage (56%) | 60% of the minimum wage on July 1, 2028; 65% in 2030; 70% in 2032; 75% on July 1, 2034. The tip credit does not go away. | Initiative 82 would have required the full minimum wage for tipped workers by 2027. A 2025 Council law froze the tipped wage at $10.00 until July 1, 2026 and stretched the increases out to 2034. |
| Michigan | Since January 1, 2026: $13.73 minimum wage, $5.49 tipped cash wage (40%) | January 1, 2027: $15.00 minimum wage, $6.30 tipped cash wage (42%). Then 2 points more each January 1: 44% (2028), 46% (2029), 48% (2030), 50% (2031). The tip credit does not go away. | Public Act 1 of 2025 (Senate Bill 8, in effect February 21, 2025) replaced a faster schedule from the 2018 ballot-initiative law that would have phased out the tip credit. |
In all three places, if a worker’s tips plus cash wage come up short of the full minimum wage, the employer must pay the difference. Sources: Chicago Office of Labor Standards minimum wage sheet (2026); Chicago minimum wage rules, effective July 1, 2026; D.C. Code §32-1003(f); DOES 2026 minimum wage notice; MCL 408.934d; Michigan LEO minimum wage page.
National tip-credit table
Observed DOL WHD values as revised July 1, 2026 (except the Florida Sep 30 note above). Rows marked Yes* have verified industry carve-outs. Employment columns are QCEW 2025 private annual average employment — not tip-credit participation. An em dash (—) means the QCEW cell is suppressed or unavailable, not zero.
| State | Tip credit | Max tip credit | Min cash wage | Full / combined MW | QCEW 81211 emp | QCEW 722330 emp |
|---|---|---|---|---|---|---|
| Alabama | Yes | $5.12 | $2.13 | $7.25 | 4,612 | 681 |
| Alaska | No | 0 (not allowed) | $14.00 | $14.00 | 735 | — |
| Arizona | Yes | $3.00 | $12.15 | $15.15 | 11,126 | 928 |
| Arkansas | Yes | $8.37 | $2.63 | $11.00 | 2,280 | 559 |
| California | No | 0 (not allowed) | $16.90 | $16.90 | 72,757 | 5,592 |
| Colorado | Yes | $3.02 | $12.14 | $15.16 | 13,060 | 1,425 |
| Connecticut | Yes* | $10.56 | $6.38 | $16.94 | 9,721 | 410 |
| Delaware | Yes | $12.77 | $2.23 | $15.00 | 2,698 | — |
| District of Columbia | Yes | $8.10 | $10.30 | $18.40 | 1,427 | — |
| Florida | Yes | $3.02 | $10.98 | $14.00 | 32,385 | 3,707 |
| Georgia | Yes | $5.12 | $2.13 | $7.25 | 12,795 | 579 |
| Hawaii | Partial | $1.25 | $14.75 | $16.00 | 1,603 | 1,035 |
| Idaho | Yes | $3.90 | $3.35 | $7.25 | 2,315 | 1,050 |
| Illinois | Yes | 40% of the applicable minimum wage ($6.00) | $9.00 | $15.00 | 20,443 | 1,083 |
| Indiana | Yes | $5.12 | $2.13 | $7.25 | 8,236 | 764 |
| Iowa | Yes | 40% of the applicable minimum wage ($2.90) | $4.35 | $7.25 | 3,802 | 370 |
| Kansas | Yes | $5.12 | $2.13 | $7.25 | 4,792 | 327 |
| Kentucky | Yes | $5.12 | $2.13 | $7.25 | 3,537 | 649 |
| Louisiana | Yes | $5.12 | $2.13 | $7.25 | 4,961 | 408 |
| Maine | Yes | 50% of the applicable minimum wage ($7.55) | $7.55 | $15.10 | 1,445 | — |
| Maryland | Yes | $11.37 | $3.63 | $15.00 | 11,197 | 696 |
| Massachusetts | Yes | $8.25 | $6.75 | $15.00 | 18,000 | 835 |
| Michigan | Yes | $8.24 | $5.49 | $13.73 | 12,099 | 935 |
| Minnesota | No | 0 (not allowed) | $11.41 | $11.41 | 11,414 | 948 |
| Mississippi | Yes | $5.12 | $2.13 | $7.25 | 1,734 | 242 |
| Missouri | Yes | 50% of the applicable minimum wage ($7.50) | $7.50 | $15.00 | 8,510 | 1,468 |
| Montana | No | 0 (not allowed) | $10.85 | $10.85 | 983 | 351 |
| Nebraska | Yes | $12.87 | $2.13 | $15.00 | 2,967 | 250 |
| Nevada | No | 0 (not allowed) | $12.00 | $12.00 | 3,826 | 486 |
| New Hampshire | Yes | $3.98 | $3.27 | $7.25 | 3,136 | — |
| New Jersey | Yes | $9.87 | $6.05 | $15.92 | 31,238 | 542 |
| New Mexico | Yes | $9.00 | $3.00 | $12.00 | 1,660 | 308 |
| New York | Yes* | Tipped workers’ minimum wage rates vary by region and type of employer. See New York’s Minimum Wage: Overview . | Varies (hospitality); full MW for nail/misc. salons | $17.00 (NYC, Long Island, & Westchester); $16.00 (remainder of NY state) | 47,968 | 1,703 |
| North Carolina | Yes | $5.12 | $2.13 | $7.25 | 12,251 | 1,221 |
| North Dakota | Yes | 33% of the applicable minimum wage ($2.39) | $4.86 | $7.25 | 1,397 | — |
| Ohio | Yes | $5.50 | $5.50 | $11.00 | 20,948 | 1,956 |
| Oklahoma | Yes | $5.12 | $2.13 | $7.25 | 3,429 | 354 |
| Oregon | No | 0 (not allowed) | $15.55 (standard statewide); $16.80 (Portland metro); $14.55 (nonurban counties) | $15.55 (standard statewide); $16.80 (Portland metro); $14.55 (nonurban counties) | 5,321 | 1,700 |
| Pennsylvania | Yes | $4.42 | $2.83 | $7.25 | 34,545 | 1,340 |
| Rhode Island | Yes | $12.11 | $3.89 | $16.00 | 1,928 | 152 |
| South Carolina | Yes | $5.12 | $2.13 | $7.25 | 5,480 | 596 |
| South Dakota | Yes | 50% of the applicable minimum wage ($5.92) | $5.93 | $11.85 | 1,144 | — |
| Tennessee | Yes | $5.12 | $2.13 | $7.25 | 8,329 | 1,115 |
| Texas | Yes | $5.12 | $2.13 | $7.25 | 38,061 | 4,276 |
| Utah | Yes | $5.12 | $2.13 | $7.25 | 5,956 | 932 |
| Vermont | Yes | 50% of the applicable minimum wage ($7.21) | $7.21 | $14.42 | 735 | — |
| Virginia | Yes | $10.64 | $2.13 | $12.77 | 17,114 | 1,253 |
| Washington | No | 0 (not allowed) | $17.13 | $17.13 | 14,578 | 1,639 |
| West Virginia | Yes | 70% of the applicable minimum wage ($6.13) | $2.62 | $8.75 | 1,343 | — |
| Wisconsin | Yes | $4.92 | $2.33 | $7.25 | 10,835 | 510 |
| Wyoming | Yes | $5.12 | $2.13 | $7.25 | 318 | — |
Yes* = tip credit exists in the state but salon vs food-service rules differ (NY, CT). Multi-rate notes and U.S. territories are in the downloadable CSV (territories are separate rows — never attached as notes to unrelated states).
Tip credits set the cash wage; income tax on tips is a separate question. See which states still tax tips.
U.S. territories (separate from the 50-state table)
| Jurisdiction | Tip credit | Max tip credit | Min cash wage | Full / combined MW |
|---|---|---|---|---|
| American Samoa | Yes | $2.13 | Special minimum wage rates | |
| Commonwealth of the Northern Mariana Islands | Yes | $5.12 | $2.13 | $7.25 |
| Guam | No | 0 (not allowed) | $9.25 | $9.25 |
| Puerto Rico | Yes | $8.37 | $2.13 | $10.50 |
| Virgin Islands | Yes | $6.30 | 40% of the applicable minimum wage ($4.20) | $10.50 |
Salon & food-truck employment context (QCEW 2025)
Tip-credit rules matter most where tipped personal-care and mobile-food payroll jobs cluster. Using BLS QCEW annual 2025 private employment:
| Industry | NAICS | States published | Sum of published state employment |
|---|---|---|---|
| Hair, nail, and skin care services | 81211 | 51 | 553,174 |
| Personal care services (broader parent) | 8121 | 51 | 751,267 |
| Mobile food services | 722330 | 41 | 45,375 |
| Special food services (parent; includes caterers) | 7223 | 45 | 773,820 |
Largest published 81211 (salon-relevant) payroll footprints: California (72,757), New York (47,968), Texas (38,061), Pennsylvania (34,545), Florida (32,385). Largest published 722330 (mobile food) footprints: California (5,592), Texas (4,276), Florida (3,707), Ohio (1,956), New York (1,703).
California — a no-tip-credit state — also hosts the largest published salon and mobile-food payroll counts in this pull. Florida — a tip-credit state stepping to $15 / $11.98 — ranks in the top five for both series. That contrast is geographic context; it is not a claim that tip-credit law caused those employment levels. QCEW covers UI-covered employees. Booth-rental stylists and many solo food-truck operators are largely outside this frame (see also salon industry statistics and food truck industry statistics).
HYPOTHETICAL payroll examples (cash-wage floor only)
Label: HYPOTHETICAL. These examples compare minimum direct cash wages required for tipped employees under two published state floors. They are not forecasts, total labor-cost estimates, legal advice, or claims about tip income. In tip-credit states, cash + tips must still meet the full minimum wage. Overtime, taxes, benefits, local ordinances, and tip-pooling rules are ignored. For New York nail salons, use the full MW floor — not a hospitality tip-credit cash wage.
Example A — Five tipped stylists (salon)
Assumptions: 5 tipped employees × 40 hours/week × 52 weeks = 10,400 hours/year.
| Scenario | Min cash wage used | Hours | HYPOTHETICAL annual cash-wage floor |
|---|---|---|---|
| Tip-credit state: Florida on/after Sep 30, 2026 | $11.98 | 10,400 | $124,592.00 |
| No tip-credit state: California (DOL Jul 1, 2026 cash = full MW) | $16.90 | 10,400 | $175,760.00 |
| Difference (CA − FL cash floor) | — | — | $51,168.00 |
Example B — Two tipped food-truck employees
Turn the staffing calculation into an operating plan with salon staffing and payroll preparation. Food-truck owners can add food-truck insurance to the payroll budget and describe tipped employees and event work when seeking coverage.
Assumptions: 2 tipped employees × 40 × 52 = 4,160 hours/year.
| Scenario | Min cash wage used | Hours | HYPOTHETICAL annual cash-wage floor |
|---|---|---|---|
| Tip-credit state: Florida on/after Sep 30, 2026 | $11.98 | 4,160 | $49,836.80 |
| No tip-credit state: California | $16.90 | 4,160 | $70,304.00 |
| Difference (CA − FL cash floor) | — | — | $20,467.20 |
Operators comparing other pairs (for example Texas $2.13 cash vs Washington $17.13 full MW per the July 1, 2026 DOL table) can multiply the same hour counts by those published cash floors. Always verify current state and local rules before setting pay.
What this page is / is not
| Is | Is not |
|---|---|
| National tip-credit / tipped cash-wage reference with industry-exception callouts | A substitute for state labor counsel or a full occupation-by-occupation audit |
| DOL WHD–sourced state table + QCEW industry footprint | Occupational wage medians (see wages by state) |
| Labeled hypothetical cash-floor arithmetic | Advice to classify workers as tipped or to claim a tip credit |
| Context for salon & food-truck employers and reporters | A ranking of “best states” to open a business |
Related guides
- Florida minimum wage business costs — Florida-only payroll scenarios around the $15 step
- Hair salon business guides · Food truck business guides
- Salon industry statistics · Food truck industry statistics
- Service employer pay by state · Wages by state
- bar closing times by state: last call laws and liquor license guides for every state.
- restaurant jobs and wages by state: restaurant counts, jobs and pay from BLS data.
Methodology & sources
- Tip credit / tipped cash wages: U.S. Department of Labor, Wage and Hour Division, Minimum Wages for Tipped Employees, document revised July 1, 2026 (HTML snapshot archived 2026-09-18). Territories parsed as their own rows.
- New York industry rules: NY DOL Nail Salon Industry (full MW, no tip credit since 12/31/2020); NY DOL Minimum Wage; Tipped Workers.
- Connecticut industry rules: DOL WHD CT hotel/restaurant and bartender sub-rows; CT DOL Restaurant Wage Order DOL-79 / Tip Statement (eff. 1/1/2026); CGS §31-60 (other-industry tip credit cap).
- Florida Sep 30, 2026 schedule: Florida Constitution Art. X §24; DOL WHD footnote 4.
- Employment footprint: BLS QCEW open data annual 2025 CSVs, private ownership, NAICS 81211 / 8121 / 722330 / 7223. Suppressed cells are never treated as zero. Employment ≠ measured tip-credit usage.
Point-in-time DOL table (Jul 1, 2026) vs near-term FL step (Sep 30, 2026). State law complexity is compressed into one row plus exception callouts. Hypotheticals are arithmetic illustrations, not forecasts or advice. Re-check DOL WHD and state labor offices after legislative or scheduled rate changes. This page is not legal advice.
Frequently asked
Does “Yes” tip credit mean the same cash wage everywhere?
No. Tip credit allowed still spans federal $2.13 cash floors and much higher state cash wages. New York and Connecticut additionally restrict which industries may use the tip-credit rates shown on a general table. Always read the min cash wage column and the industry-exception callouts.
Can New York nail salons take a tip credit?
No. NY DOL states that beginning December 31, 2020, nail salon employers must pay the full applicable minimum wage and cannot take any tip credit. More broadly, only hospitality employers may take a tip credit against New York’s minimum wage.
Do Connecticut’s $6.38 / $10.56 figures apply to salons?
Those are the hotel/restaurant service-employee rates on the DOL WHD table and CT Restaurant Wage Order — not a general salon rate. Confirm current CT DOL wage orders for non-restaurant occupations before setting pay.
Are Chicago and D.C. getting rid of the tipped wage?
Not soon. Chicago keeps a 24% tip credit until July 1, 2028 and phases it out by 2030 for employers with 21 or more workers and by 2033 for smaller ones. D.C. now keeps a tip credit for good: its tipped wage rises to 75% of the minimum wage by 2034. Michigan also keeps its tip credit, with the tipped wage rising to 50% of the minimum wage by 2031.
Why does Florida show $10.98 on the national table?
The DOL WHD table was revised July 1, 2026 and still lists then-current Florida figures ($14.00 / $10.98). The Sep 30, 2026 $15.00 / $11.98 step is documented in the Florida callout from the state constitution (Art. X §24) and DOL footnote 4.
Are the salon and food-truck dollar examples real payroll costs?
No. They are HYPOTHETICAL cash-wage-floor arithmetic (hours × published min cash wage). They exclude tip income, overtime, taxes, benefits, and local rules.
Why are some employment cells “—”?
BLS QCEW suppresses some cells for confidentiality. A dash means suppressed/unavailable — never treat it as zero employment.
How is this different from the Florida minimum-wage business-costs page?
That companion is Florida-only payroll scenarios around the $15 step. This page is the national tip-credit / tipped cash-wage reference with industry-exception callouts and salon/food-truck QCEW context.
Download the data
- Tip credit / tipped cash wage by state & territories (CSV) — DOL WHD Jul 1, 2026 clean parse; 50 states + DC + 5 territories as separate rows
- States + D.C. only (CSV)
- Territories only (CSV)
- QCEW salon & food-truck employment by state (CSV) — 2025 private annual; NAICS 81211 / 8121 / 722330 / 7223
- Tip-credit status map (SVG)
Cite with a link to this page. Last updated: October 2, 2026 (ET). Not legal advice.