Short answer: Washington does not allow a tip credit. Tipped workers must be paid the full state minimum wage of $17.13 an hour before tips, and they keep their tips on top.
Washington tipped wage at a glance
| Washington | |
|---|---|
| Minimum wage | $17.13 an hour |
| Cash wage for tipped workers | $17.13 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 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.
Upcoming changes
1 Jan 2027: $17.73 (L&I).
Local rates and exceptions
No tip credit. Seattle $21.30 in 2026; SeaTac, Tukwila, Renton, Everett, Bellingham and others set higher local rates.
Tip pools and who keeps the tips
Your employer can run a tip pool or require tip outs. Salaried exempt managers and business owners cannot take part, but staff who do not serve customers directly, such as kitchen workers and hourly leads, can be included. No one can be made to put in more than they received in 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.
Who owns the tips
Tips and service charges belong to the employees. Your employer cannot use them for business expenses or to pay your wages, and must pay card tips no later than the paycheck for the same pay period (or sooner, as earned).
Can card fees come out of tips?
Only a share. Your employer can deduct only its proportionate share of the processing fee on a card tip or service charge, for example up to 10 cents on a $10 tip with a 1% fee.
Service charges
The receipt and menu must clearly say how much of a service charge goes to the staff who served you. If the disclosure is missing or unclear, the whole charge goes to the employee who provided the service.
Income tax on tips in Washington
Washington has no personal income tax on wages or tips. A 9.9% tax on adjusted gross income over $1 million starts on 1 January 2028 (Senate Bill 6346, 2026), which does not reach ordinary tipped earnings. Federal income tax still applies, and the federal 2025 tips deduction applies on your federal return.
Other rules
- Managers and supervisors may keep tips only for services they personally provide.
- Cash register shortages and business expenses cannot be deducted from tips.
The agency in charge is the Washington State Department of Labor & Industries.
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
- Tips and Service Charges
- Local minimum wage rates
- Income tax
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 Washington in 2026?
Washington does not allow a tip credit. Tipped workers must be paid the full state minimum wage of $17.13 an hour before tips, and they keep their tips on top.
Does Washington 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 Washington minimum wage going up?
1 Jan 2027: $17.73 (L&I).
Can my employer take card fees out of my tips in Washington?
Only a share. Your employer can deduct only its proportionate share of the processing fee on a card tip or service charge, for example up to 10 cents on a $10 tip with a 1% fee.
Does Washington tax tips?
Washington has no personal income tax on wages or tips. A 9.9% tax on adjusted gross income over $1 million starts on 1 January 2028 (Senate Bill 6346, 2026), which does not reach ordinary tipped earnings. Federal income tax still applies, and the federal 2025 tips deduction applies on your federal return.
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