Short answer: In Virginia, employers can pay tipped workers a cash wage of $2.13 an hour, as long as tips bring them up to the $12.77 minimum wage. The most an employer can count from tips, the tip credit, is $10.64 an hour.
Virginia tipped wage at a glance
| Virginia | |
|---|---|
| Minimum wage | $12.77 an hour |
| Cash wage for tipped workers | $2.13 an hour |
| Maximum tip credit | $10.64 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 $2.13 = $63.90 in cash wages. To reach the minimum wage of 30 x $12.77 = $383.10, the server's tips must add up to at least $319.20. If they make less in tips that week, the employer must pay the difference.
Upcoming changes
1 Jan 2027: $13.75; 1 Jan 2028: $15.00, then inflation from 2029 (law signed 9 Apr 2026).
Tip pools and who keeps the tips
Virginia's tipped employee definition only covers tips from customers, not your employer, and the statute I opened says nothing about pools. The federal rule applies: managers and supervisors cannot take part, and kitchen staff can only share 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. Virginia's wage statute lets your employer count tips towards your wage by an amount the employer decides, but you can challenge it by showing clearly that your actual tips were lower.
Can card fees come out of tips?
No Virginia rule found, so the federal position applies: an employer may subtract only the card company's actual percentage fee from a card tip, and not below minimum wage.
Income tax on tips in Virginia
Yes, Virginia taxes tips as income. I found no state tips deduction in the Department of Taxation's 2026 Legislative Summary. Virginia fixed its conformity to the federal tax code at 31 December 2025 and follows the 2025 federal law (P.L. 119-21) only for items that change adjusted gross income or itemized deductions, so the federal tips deduction does not carry over.
Other rules
- Training wage: employees in an on-the-job training program can be paid 75 percent of the minimum wage for up to 90 days.
- Farm workers become entitled to the state minimum wage from 1 January 2027.
The agency in charge is the Virginia Department of Labor and Industry.
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)
- Va. Code 40.1-28.10. Minimum wages
- Va. Code 40.1-28.9. Definitions; determining wage of tipped employee
- Virginia Minimum Wage Rate Increasing Effective January 1, 2026
- Governor Spanberger signs bills to raise state minimum wage
- Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act
- 2026 Legislative Summary
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 Virginia in 2026?
In Virginia, employers can pay tipped workers a cash wage of $2.13 an hour, as long as tips bring them up to the $12.77 minimum wage. The most an employer can count from tips, the tip credit, is $10.64 an hour.
Does Virginia allow a tip credit?
Yes. Employers can count up to $10.64 an hour of tips toward the $12.77 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 Virginia minimum wage going up?
1 Jan 2027: $13.75; 1 Jan 2028: $15.00, then inflation from 2029 (law signed 9 Apr 2026).
Can my employer take card fees out of my tips in Virginia?
No Virginia rule found, so the federal position applies: an employer may subtract only the card company's actual percentage fee from a card tip, and not below minimum wage.
Does Virginia tax tips?
Yes, Virginia taxes tips as income. I found no state tips deduction in the Department of Taxation's 2026 Legislative Summary. Virginia fixed its conformity to the federal tax code at 31 December 2025 and follows the 2025 federal law (P.L. 119-21) only for items that change adjusted gross income or itemized deductions, so the federal tips deduction does not carry over.
App Store
Google Play