Short answer: Oregon does not allow a tip credit. Tipped workers must be paid the full state minimum wage of $15.55 an hour before tips, and they keep their tips on top.
Oregon tipped wage at a glance
| Oregon | |
|---|---|
| Minimum wage | $15.55 an hour |
| Cash wage for tipped workers | $15.55 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
Adjusted each 1 Jul by inflation; the 1 Jul 2027 rate is not yet announced.
Local rates and exceptions
No tip credit. Portland metro $16.80; nonurban counties $14.55.
Tip pools and who keeps the tips
BOLI says your employer can require you to pool tips with other workers, but under federal rules management or the house cannot take a share of the pool. Because Oregon has no tip credit, federal rules also let an employer that pays full minimum wage include non-tipped staff such as cooks and dishwashers in a pool.
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
BOLI says tips are separate from wages and cannot be counted toward the minimum wage. Federal law also bars your employer from keeping any part of your tips. The Oregon pages checked do not give a specific payout deadline for tips.
Can card fees come out of tips?
The Oregon sources checked do not address deducting card processing fees from tips. Under federal rules an employer may only deduct the actual fee on that card tip, no more, and cannot pass on other costs like terminals.
Income tax on tips in Oregon
Oregon taxes tips as income, but for tax year 2025 the Department of Revenue lets you claim on your Oregon return the same tip income deduction you claim federally (Schedule OR-ASC subtraction). Nonresidents can only claim it for tips earned while working in Oregon or from an Oregon-based business.
Other rules
- Your employer cannot take payroll deductions for items required to do the job, including a uniform, if you are paid minimum wage.
- Paydays may not be more than 35 days apart.
The agency in charge is the Oregon Bureau of Labor and Industries (BOLI).
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)
- BOLI: Oregon Minimum Wage
- BOLI: Minimum wage schedule
- BOLI: Paycheck deductions
- BOLI: Your Rights at Work FAQ
- 2025 Schedule OR-ASC and OR-ASC-NP Instructions
- Fact Sheet #15: Tipped Employees Under the FLSA
- 29 CFR 531.54 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 Oregon in 2026?
Oregon does not allow a tip credit. Tipped workers must be paid the full state minimum wage of $15.55 an hour before tips, and they keep their tips on top.
Does Oregon 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 Oregon 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 Oregon?
The Oregon sources checked do not address deducting card processing fees from tips. Under federal rules an employer may only deduct the actual fee on that card tip, no more, and cannot pass on other costs like terminals.
Does Oregon tax tips?
Oregon taxes tips as income, but for tax year 2025 the Department of Revenue lets you claim on your Oregon return the same tip income deduction you claim federally (Schedule OR-ASC subtraction). Nonresidents can only claim it for tips earned while working in Oregon or from an Oregon-based business.
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