Short answer: Alaska does not allow a tip credit. Tipped workers must be paid the full state minimum wage of $14.00 an hour before tips, and they keep their tips on top.
Alaska tipped wage at a glance
| Alaska | |
|---|---|
| Minimum wage | $14.00 an hour |
| Cash wage for tipped workers | $14.00 an hour |
| Maximum tip credit | None: no tip credit allowed |
| Who counts as a tipped employee | Federal rule: someone who regularly gets more than $30 a month in tips |
| In force since | 1 July 2026 |
The federal tipped minimum is $2.13 an hour with a $5.12 tip credit toward the $7.25 federal minimum wage. Where a state sets a higher figure, the higher one applies.
Upcoming changes
1 Jul 2027: $15.00 (2024 Ballot Measure 1), then yearly inflation adjustments.
Local rates and exceptions
No tip credit: tipped workers get the full state minimum before tips.
Tip pools and who keeps the tips
Alaska law bars employers, managers and supervisors from keeping any part of your tips. They may handle tips to run a tip pool, and pooled tips must be paid out daily unless the pool arrangement says they are held until the next payday, in which case you must get a written daily accounting.
Federal FLSA: employers, managers and supervisors may not keep any part of employees' tips. A mandatory tip pool may include only customarily tipped staff when a tip credit is taken; if the full minimum wage is paid, back-of-house staff may share the pool.
To share a pool fairly by hours or points, use the tip split calculator. To work out what a server owes support staff, use the tip-out calculator.
Who owns the tips
A tip in Alaska is cash or an amount a card customer writes on the slip, freely given in recognition of your service. Employers, managers and supervisors may not keep any part of it. Pooled tips are paid daily or on the next payday with a written accounting.
Can card fees come out of tips?
Alaska allows an employer who can show it pays the card company a percentage fee to pay you the card tip minus that same percentage of the tip (for example 3% off a $10 tip is 30 cents). Nothing beyond the actual percentage fee may be taken.
Service charges
Alaska's labour department says service charges, gratuities and other fees charged by the business are not tips, and the employer has full discretion over them. If you do get a share, it counts toward your regular rate when overtime is worked out.
Income tax on tips in Alaska
Alaska has no state income tax, so your tips are not taxed by the state. They are still taxable federally.
Other rules
- Your employer may not keep any part of your tips, and managers and supervisors may not either.
The agency in charge is the Alaska Department of Labor and Workforce Development, Wage and Hour.
Tips and federal income tax
From 2025 to 2028, up to $25,000 of qualified tips a year can be deducted from federal taxable income. See the no tax on tips calculator for who qualifies and what it saves.
Taking tips by card
Customers carry less cash. A personal QR code lets them tip you by card, Apple Pay or Google Pay from their own phone, with no app to install. See QR code tip jars by job.
Sources
- US DOL WHD, Minimum Wages for Tipped Employees (revised 1 Jul 2026)
- US DOL WHD, State Minimum Wage Laws (updated 1 Jul 2026)
- Alaska Dept of Labor and Workforce Development, minimum wage news release 2026
- AS 23.10.065 Minimum wages
- Wage and Hour, Alaska Department of Labor
- Restaurant Industry notice (Tips, Fees, Gratuities and Service Charges)
- Personal Income Tax
Checked in October 2026 against the sources above. Wage rates change, often on 1 January and 1 July; check the state labor department before relying on a figure. This is general information, not legal advice.
Common questions
What is the tipped minimum wage in Alaska in 2026?
Alaska does not allow a tip credit. Tipped workers must be paid the full state minimum wage of $14.00 an hour before tips, and they keep their tips on top.
Does Alaska allow a tip credit?
No. Tipped workers must be paid the full minimum wage before tips.
What happens if my tips do not make up the minimum wage?
When an employer pays a tipped cash wage, it must make up any shortfall so that your cash wage plus tips is at least the full minimum wage for the hours you worked.
Can my employer or manager keep part of my tips?
No. Under federal law, employers, managers and supervisors may not keep any part of employees’ tips, including through a tip pool.
Is the Alaska minimum wage going up?
1 Jul 2027: $15.00 (2024 Ballot Measure 1), then yearly inflation adjustments.
Can my employer take card fees out of my tips in Alaska?
Alaska allows an employer who can show it pays the card company a percentage fee to pay you the card tip minus that same percentage of the tip (for example 3% off a $10 tip is 30 cents). Nothing beyond the actual percentage fee may be taken.
Does Alaska tax tips?
Alaska has no state income tax, so your tips are not taxed by the state. They are still taxable federally.
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