Short answer: In Hawaii, employers can pay tipped workers a cash wage of $14.75 an hour, as long as tips bring them up to the $16.00 minimum wage. The most an employer can count from tips, the tip credit, is $1.25 an hour.
Hawaii tipped wage at a glance
| Hawaii | |
|---|---|
| Minimum wage | $16.00 an hour |
| Cash wage for tipped workers | $14.75 an hour |
| Maximum tip credit | $1.25 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 January 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 $14.75 = $442.50 in cash wages. To reach the minimum wage of 30 x $16.00 = $480.00, the server's tips must add up to at least $37.50. If they make less in tips that week, the employer must pay the difference.
Upcoming changes
1 Jan 2028: $18.00 with a $1.50 tip credit (cash $16.50).
Local rates and exceptions
Tip credit allowed only if the worker's wages plus tips are at least $7.00 above the minimum wage. Workers with guaranteed pay of $4,000+ a month are exempt.
Tip pools and who keeps the tips
This state has no extra rule on tip pools in our sources, so the federal rules below apply.
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.
Income tax on tips in Hawaii
Hawaii taxes tips as income. The Department of Taxation's 2025 N-11 instructions list no tips deduction, and Hawaii bills to add one (for example HB 567 and HB 520 in 2026) were only seen as bill texts, not as enacted law.
Other rules
- Hawaii's tip credit rule is unusual: it depends on you earning at least $7.00 an hour above the minimum in wages plus tips, not just reaching the minimum.
The agency in charge is the Hawaii Department of Labor and Industrial Relations, Wage Standards Division.
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)
- Notice to Employees: Tip Credit Under the Hawaii Wage and Hour Law (HWHL-1a)
- 2025 N-11 Instructions
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 Hawaii in 2026?
In Hawaii, employers can pay tipped workers a cash wage of $14.75 an hour, as long as tips bring them up to the $16.00 minimum wage. The most an employer can count from tips, the tip credit, is $1.25 an hour.
Does Hawaii allow a tip credit?
Yes. Employers can count up to $1.25 an hour of tips toward the $16.00 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 Hawaii minimum wage going up?
1 Jan 2028: $18.00 with a $1.50 tip credit (cash $16.50).
Does Hawaii tax tips?
Hawaii taxes tips as income. The Department of Taxation's 2025 N-11 instructions list no tips deduction, and Hawaii bills to add one (for example HB 567 and HB 520 in 2026) were only seen as bill texts, not as enacted law.
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