Short answer: In District of Columbia, employers can pay tipped workers a cash wage of $10.30 an hour, as long as tips bring them up to the $18.40 minimum wage. The most an employer can count from tips, the tip credit, is $8.10 an hour.
District of Columbia tipped wage at a glance
| District of Columbia | |
|---|---|
| Minimum wage | $18.40 an hour |
| Cash wage for tipped workers | $10.30 an hour |
| Maximum tip credit | $8.10 an hour |
| 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.
An example week
A server works 30 hours. The employer pays at least 30 x $10.30 = $309.00 in cash wages. To reach the minimum wage of 30 x $18.40 = $552.00, the server's tips must add up to at least $243.00. If they make less in tips that week, the employer must pay the difference.
Upcoming changes
Adjusted each 1 Jul by inflation; the 1 Jul 2027 rate is not yet announced.
Local rates and exceptions
Tipped cash wage is set at 56% of the full DC minimum. Same rate for all employer sizes. A $25 minimum wage initiative missed the Nov 2026 ballot.
Tip pools and who keeps the tips
A pool can only include employees who customarily and regularly receive tips, such as servers, bussers and service bartenders. Managers, dishwashers, cooks, chefs and janitors cannot share in a pool, according to the District's Department of Employment Services training material on D.C. Code 32-1003.
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
To pay you the tipped base wage, D.C. Code 32-1003 requires your employer to tell you about it and to let you keep all your tips, apart from a valid pool among employees who customarily receive tips.
Can card fees come out of tips?
I found no District rule on deducting card fees from tips, so the federal position applies: only the card company's actual percentage fee, and never below minimum wage. The Attorney General says employers cannot charge workers fees for tip-handling services that benefit the employer.
Service charges
No District rule found. Under federal law a mandatory service charge is not a tip, so it does not have to go to staff.
Other rules
- Employers who pay the tipped base wage must file quarterly reports with the Department of Employment Services certifying that you were paid the required minimum wage.
- Overtime is due at 1.5 times your regular rate after 40 hours in a week.
The agency in charge is the D.C. Department of Employment Services, Office of Wage-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)
- DC DOES, 2026 Minimum Wage Increase Notice
- Tipped Employee Quarterly Wage Reports Public Education Campaign
- Worker Alert: Check Whether You Are Being Charged Fees to Collect Tips
- Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act
- D.C. Act 26-214. D.C. Income and Franchise Tax Conformity and Revision Emergency Amendment Act of 2025
- Public Law 119-78
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 District of Columbia in 2026?
In District of Columbia, employers can pay tipped workers a cash wage of $10.30 an hour, as long as tips bring them up to the $18.40 minimum wage. The most an employer can count from tips, the tip credit, is $8.10 an hour.
Does District of Columbia allow a tip credit?
Yes. Employers can count up to $8.10 an hour of tips toward the $18.40 minimum wage.
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 District of Columbia minimum wage going up?
Adjusted each 1 Jul by inflation; the 1 Jul 2027 rate is not yet announced.
Can my employer take card fees out of my tips in District of Columbia?
I found no District rule on deducting card fees from tips, so the federal position applies: only the card company's actual percentage fee, and never below minimum wage. The Attorney General says employers cannot charge workers fees for tip-handling services that benefit the employer.
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