Which states pay servers $2.13 an hour?
The short answer
Why $2.13?
Federal wage law lets employers take a “tip credit”: they pay at least $2.13 an hour in cash wages and count your tips toward the rest of the $7.25 minimum. The most tips they can count is $5.12 an hour. Your employer can do this only if it told you about the tip credit and you keep all your tips, except through a valid tip pool.
If a week’s tips don’t cover the gap, your employer must pay the difference by the regular payday for that week. That’s why a slow week should never leave you under $7.25 an hour, even at a $2.13 cash wage.
Some of these states have no minimum wage law of their own, some match the federal rates, and a few set a lower state rate or exclude employers already covered by federal law. Either way, servers at most restaurants end up with the federal rates. The notes column gives the Department of Labor’s wording for each state.
The states
| State | Cash wage | DOL note | State income tax on tips |
|---|---|---|---|
| Alabama | $2.13 | No state MW law; federal $7.25 applies | Not checked yet |
| Georgia | $2.13 | $5.15 state ("employers of 6 or more"); federal $7.25 applies to FLSA-covered | Georgia doesn’t follow the federal deduction, but up to $1,750 of tipped wages may be excluded from Georgia taxable income. |
| Indiana | $2.13 | $7.25 ("employers of 2 or more") | Not checked yet |
| Kansas | $2.13 | $7.25 | Not checked yet |
| Kentucky | $2.13 | $7.25 | Not checked yet |
| Louisiana | $2.13 | No state MW law; federal $7.25 | Not checked yet |
| Mississippi | $2.13 | No state MW law; federal $7.25 | Not checked yet |
| North Carolina | $2.13 | $7.25. Tip credit: Yes, only with each employee's signed tip certification (TW fn13) | Not checked yet |
| South Carolina | $2.13 | No state MW law; federal $7.25 | Not checked yet |
| Tennessee | $2.13 | No state MW law; federal $7.25 | Not checked yet |
| Texas | $2.13 | $7.25 (adopts federal by reference; excludes FLSA-covered) | Texas has no personal income tax. |
| Utah | $2.13 | $7.25 | Not checked yet |
| Wyoming | $2.13 | $5.15 state; federal $7.25 applies to FLSA-covered | Not checked yet |
As of the U.S. Department of Labor tables revised July 1, 2026. Cities can set higher rates.
Official sources
Last verified
. Checked DOL Fact Sheet #15 and the DOL state tables.