Short answer: In Massachusetts, employers can pay tipped workers a cash wage of $6.75 an hour, as long as tips bring them up to the $15.00 minimum wage. The most an employer can count from tips, the tip credit, is $8.25 an hour.
Massachusetts tipped wage at a glance
| Massachusetts | |
|---|---|
| Minimum wage | $15.00 an hour |
| Cash wage for tipped workers | $6.75 an hour |
| Maximum tip credit | $8.25 an hour |
| Who counts as a tipped employee | Someone who regularly gets more than $20 a month in tips |
| In force since | 1 January 2023 |
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 $6.75 = $202.50 in cash wages. To reach the minimum wage of 30 x $15.00 = $450.00, the server's tips must add up to at least $247.50. If they make less in tips that week, the employer must pay the difference.
Local rates and exceptions
Must stay at least $0.50 above the federal minimum. The 2024 ballot question to end the tip credit failed.
Tip pools and who keeps the tips
Only wait staff, service employees and service bartenders may share a tip pool; managers and employers may not take tips.
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 Massachusetts
Massachusetts taxes tips as income. I could not confirm whether Massachusetts has adopted a deduction like the federal 2025 tips deduction, so check the Massachusetts Department of Revenue.
The agency in charge is the Massachusetts Attorney General's Fair Labor 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)
- 29 CFR 531.54 Tip sharing and tip pooling
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 Massachusetts in 2026?
In Massachusetts, employers can pay tipped workers a cash wage of $6.75 an hour, as long as tips bring them up to the $15.00 minimum wage. The most an employer can count from tips, the tip credit, is $8.25 an hour.
Does Massachusetts allow a tip credit?
Yes. Employers can count up to $8.25 an hour of tips toward the $15.00 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.
Does Massachusetts tax tips?
Massachusetts taxes tips as income. I could not confirm whether Massachusetts has adopted a deduction like the federal 2025 tips deduction, so check the Massachusetts Department of Revenue.
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