Short answer: In Georgia, employers can pay tipped workers a cash wage of $2.13 an hour, as long as tips bring them up to the $7.25 minimum wage. The most an employer can count from tips, the tip credit, is $5.12 an hour.
Georgia tipped wage at a glance
| Georgia | |
|---|---|
| Minimum wage | $7.25 an hour |
| Cash wage for tipped workers | $2.13 an hour |
| Maximum tip credit | $5.12 an hour |
| Who counts as a tipped employee | Federal rule: someone who regularly gets more than $30 a month in tips |
| In force since | 24 July 2009 |
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 $2.13 = $63.90 in cash wages. To reach the minimum wage of 30 x $7.25 = $217.50, the server's tips must add up to at least $153.60. If they make less in tips that week, the employer must pay the difference.
Local rates and exceptions
State minimum is $5.15 (employers with 6+ staff) and state law does not cover tipped workers; FLSA-covered employers pay the federal $7.25 and $2.13.
Tip pools and who keeps the tips
Georgia has no tip pool rule of its own that I could find, so the federal rule applies. Managers and supervisors cannot take part in a pool, and when your employer takes a tip credit the pool is generally limited to workers who customarily receive tips. Kitchen staff can only share in a pool if your employer takes no tip credit.
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
Federal law says tips belong to you, and your employer cannot keep any part of them. Georgia has no separate deadline for paying out card tips that I could confirm.
Can card fees come out of tips?
Georgia has no rule on this, so the federal position applies: an employer may subtract the card company's actual percentage fee from the tip on a card payment, but no more than that fee, and your pay cannot fall below the minimum wage.
Service charges
No state rule found. Under federal law a mandatory service charge is not a tip, so your employer can keep it or use it for wages.
Income tax on tips in Georgia
Yes, Georgia taxes tips as income, and it did not adopt the federal 'no tax on tips' deduction. Instead, House Bill 463 (the Georgia Economic Growth and Tax Relief Act of 2026) lets you subtract up to $1,750 of qualified cash tips on your Georgia return for tax years 2026 to 2028. Employers do not reduce your withholding for it, so you claim it when you file.
Other rules
- Tipped workers still need to reach the full $7.25 an hour each week, averaged over the pay period, when cash wage and tips are added together.
- Georgia's state law does not apply to tipped employees, so the Georgia Department of Labor sends tip questions to the U.S. Department of Labor.
The agency in charge is the Georgia Department of Labor.
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)
- Minimum Wage
- Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act
- 2026 Employer's Tax Guide (updated June 2026)
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 Georgia in 2026?
In Georgia, employers can pay tipped workers a cash wage of $2.13 an hour, as long as tips bring them up to the $7.25 minimum wage. The most an employer can count from tips, the tip credit, is $5.12 an hour.
Does Georgia allow a tip credit?
Yes. Employers can count up to $5.12 an hour of tips toward the $7.25 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.
Can my employer take card fees out of my tips in Georgia?
Georgia has no rule on this, so the federal position applies: an employer may subtract the card company's actual percentage fee from the tip on a card payment, but no more than that fee, and your pay cannot fall below the minimum wage.
Does Georgia tax tips?
Yes, Georgia taxes tips as income, and it did not adopt the federal 'no tax on tips' deduction. Instead, House Bill 463 (the Georgia Economic Growth and Tax Relief Act of 2026) lets you subtract up to $1,750 of qualified cash tips on your Georgia return for tax years 2026 to 2028. Employers do not reduce your withholding for it, so you claim it when you file.
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