{ "license": { "name": "Attribution required", "url": "https://ratesandlimits.com/api/", "summary": "Free to use, including commercially. Attribute this site and link back. Do not strip the evidence fields and then present the figures as sourced from here." }, "verified_through": "2026-09-01", "documentation": "https://ratesandlimits.com/api/", "count": 152, "records": [ { "program": "401k-catch-up-contribution", "name": "401(k) Catch-Up Contribution", "category": "retirement-limits", "agency": "IRS", "year": 2026, "state": null, "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-09-01", "published_at": "2026-09-01T06:24:56.510Z", "canonical_url": "https://ratesandlimits.com/401k-catch-up-contribution/", "figures": [ { "key": "catch-up-50", "label": "Catch-up limit, age 50 and over", "value": 8000, "format": "usd-delta", "formatted": "+$8,000", "scope": null, "derived": false, "quote": "The limitation under section 414(v)(2)(B)(i) for catch-up contributions to an\napplicable employer plan other than a plan described in section 401(k)(11) or\nsection 408(p) that generally applies for individuals aged 50 or over is increased\nfrom $7,500 to $8,000.", "offset": 1986, "source": { "url": "https://www.irs.gov/pub/irs-drop/n-25-67.pdf", "title": "Notice 2025-67", "publisher": "IRS", "fetched_at": "2026-08-27T13:27:58.323Z", "sha256_text": "dee57a39e72fc363102f1c9fa373d5c5a969a62bc5422076830034732e2f131d", "snapshot_url": "https://ratesandlimits.com/snapshots/401k-catch-up-contribution/2026/n-25-67.txt" } }, { "key": "catch-up-60-63", "label": "Catch-up limit, ages 60 through 63", "value": 11250, "format": "usd-delta", "formatted": "+$11,250", "scope": null, "derived": false, "quote": "The limitation under section 414(v)(2)(E)(i) for catch-up\ncontributions to an applicable employer plan other than a plan described in\nsection 401(k)(11) or section 408(p) that applies for individuals who attain\nage 60, 61, 62, or 63 in 2026 remains $11,250.", "offset": 2248, "source": { "url": "https://www.irs.gov/pub/irs-drop/n-25-67.pdf", "title": "Notice 2025-67", "publisher": "IRS", "fetched_at": "2026-08-27T13:27:58.323Z", "sha256_text": "dee57a39e72fc363102f1c9fa373d5c5a969a62bc5422076830034732e2f131d", "snapshot_url": "https://ratesandlimits.com/snapshots/401k-catch-up-contribution/2026/n-25-67.txt" } }, { "key": "roth-catch-up-wage-threshold", "label": "Roth catch-up wage threshold", "value": 150000, "format": "usd", "formatted": "$150,000", "scope": null, "derived": false, "quote": "The Roth catch-up wage\nthreshold for 2025, which under section 414(v)(7)(A) is used to determine\nwhether an individual’s catch-up contributions to an applicable employer plan\n(other than a plan described in section 408(k) or (p)) for 2026 must be\ndesignated as Roth contributions, is increased from $145,000 to $150,000.", "offset": 2506, "source": { "url": "https://www.irs.gov/pub/irs-drop/n-25-67.pdf", "title": "Notice 2025-67", "publisher": "IRS", "fetched_at": "2026-08-27T13:27:58.323Z", "sha256_text": "dee57a39e72fc363102f1c9fa373d5c5a969a62bc5422076830034732e2f131d", "snapshot_url": "https://ratesandlimits.com/snapshots/401k-catch-up-contribution/2026/n-25-67.txt" } } ], "schedule": null, "explainers": [ { "key": "higher-catch-up-ages-60-63", "heading": "The larger catch-up for ages 60 through 63", "body": "The larger catch-up is defined by the age you attain during the tax year, not by an age you hold for all of it: a participant who turns 60, 61, 62 or 63 at any point in the year is inside the band, and one who turns 64 is back outside it. For 2026 the amount for those ages is $11,250, against $8,000 for every other catch-up-eligible participant, and it sits on top of the ordinary elective deferral limit the same way the smaller one does. Section 109 of the SECURE 2.0 Act of 2022 permits a plan to offer it; it does not require one to. So the question of whether you can actually defer the larger amount is answered by your plan document, and a plan that stays with the ordinary catch-up is within the law. Ask the administrator before setting a deferral rate on it.", "quote": "Beginning in 2025, section 109 of the SECURE 2.0 Act of\n2022 permits a deferred compensation plan (including\nmost 401(k) and 403(b) plans) to allow participants to\nmake a higher amount of catch-up contributions in a tax\nyear in which they attain age 60, 61, 62, or 63.", "offset": 5376, "verified_at": "2026-09-01", "source": { "url": "https://www.irs.gov/pub/irs-prior/p560--2025.pdf", "title": "Publication 560 (2025), Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans)", "publisher": "IRS", "fetched_at": "2026-08-29T11:27:54.650Z", "sha256_text": "a0f10ca7567acf2e701566b47e359f5c62733e6bd179d2f270639ecce5adebff", "snapshot_url": "https://ratesandlimits.com/snapshots/401k-catch-up-contribution/2026/p560--2025.txt" } }, { "key": "deferrals-become-catch-up-at-the-limit", "heading": "You do not elect a catch-up: your deferrals become one", "body": "Nothing on a payroll form is labelled catch-up. A participant makes one election - defer this much of my pay - and what it produces are ordinary elective deferrals until they pass a ceiling: the annual deferral limit, $24,500 for 2026, or the plan's own lower limit where it sets one, or the ADP test limit a plan is held to under the nondiscrimination rules. Whatever runs past whichever of those is reached first is what counts as the catch-up, up to $8,000 for 2026. Two things follow. Someone who defers less than $24,500 across the year never reaches the catch-up at all, however old they are, because there is nothing above the ceiling to reclassify. And someone who does reach it makes no second election to claim it: the reclassification is the plan administrator's arithmetic. The catch-up is the last money in, not the first.", "quote": "Elective deferrals aren't treated as catch-up contributions\nfor 2025 until they exceed the $23,500 limit ($24,500 limit\nfor 2026), the ADP test limit of section 401(k)(3), or the\nplan limit (if any).", "offset": 122667, "verified_at": "2026-09-01", "source": { "url": "https://www.irs.gov/pub/irs-prior/p560--2025.pdf", "title": "Publication 560 (2025), Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans)", "publisher": "IRS", "fetched_at": "2026-08-29T11:27:54.650Z", "sha256_text": "a0f10ca7567acf2e701566b47e359f5c62733e6bd179d2f270639ecce5adebff", "snapshot_url": "https://ratesandlimits.com/snapshots/401k-catch-up-contribution/2026/p560--2025.txt" } }, { "key": "plan-must-permit-and-age-50", "heading": "Your plan has to allow it, and you must turn 50 by year end", "body": "A 401(k) plan is not required to allow catch-up contributions. The plan document must specifically permit participants who reach age 50 by the last day of the calendar year to make these additional elective deferrals. For 2026, the catch-up limit is $8,000. If your plan does not include this provision, you cannot make catch-up contributions even if you are otherwise eligible based on age. Additionally, the catch-up amount you can actually contribute is subject to a further cap: you cannot contribute more in catch-up than the amount by which your compensation for the year exceeds your regular (non-catch-up) elective deferrals.", "quote": "A 401(k) plan can permit par-\nticipants who are age 50 or over at the end of the calendar\nyear to also make catch-up contributions.", "offset": 122463, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/p560--2025.pdf", "title": "Publication 560 (2025), Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans)", "publisher": "IRS", "fetched_at": "2026-08-29T11:27:54.650Z", "sha256_text": "a0f10ca7567acf2e701566b47e359f5c62733e6bd179d2f270639ecce5adebff", "snapshot_url": "https://ratesandlimits.com/snapshots/401k-catch-up-contribution/2026/p560--2025.txt" } }, { "key": "not-subject-to-the-annual-additions-limit", "heading": "The catch-up sits outside the overall contribution limit", "body": "A defined contribution plan places an overall annual cap on the total contributions and other additions to each participant's account. Catch-up contributions are explicitly excluded from this overall cap. This means that the catch-up amount - $8,000 for the standard catch-up in 2026, or $11,250 for the enhanced catch-up - does not count toward the plan's general annual additions ceiling. The practical effect is that participants who are eligible for catch-up contributions can save the full catch-up amount without it reducing the room available for employer contributions, forfeitures, or other plan additions. Without this exclusion, older participants who already receive substantial employer contributions might find little or no space remaining for their catch-up deferrals. The catch-up operates as a separate, additional allowance layered on top of the regular contribution framework.", "quote": "Catch-up contributions (discussed later under Limit on\nElective Deferrals) aren't subject to the above limit.", "offset": 111823, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/p560--2025.pdf", "title": "Publication 560 (2025), Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans)", "publisher": "IRS", "fetched_at": "2026-08-29T11:27:54.650Z", "sha256_text": "a0f10ca7567acf2e701566b47e359f5c62733e6bd179d2f270639ecce5adebff", "snapshot_url": "https://ratesandlimits.com/snapshots/401k-catch-up-contribution/2026/p560--2025.txt" } }, { "key": "capped-by-remaining-compensation", "heading": "Your pay can cap the catch-up below the stated limit", "body": "A participant's catch-up contributions for the year cannot exceed the lesser of the catch-up limit or the participant's compensation reduced by regular elective deferrals. The catch-up limit is $8,000 for 2026 for the standard catch-up, or $11,250 for the enhanced catch-up. If a participant's compensation is modest relative to the regular deferrals already made during the year, the remaining compensation available to support catch-up contributions may be less than the full catch-up limit. In that situation, the catch-up amount is effectively reduced to match whatever compensation remains. The plan must perform this comparison and enforce the lower of the two amounts. This compensation-based cap ensures that catch-up contributions do not exceed what the participant actually earned beyond what was already deferred through regular elective deferrals.", "quote": "A participant's catch-up contributions for a year can't\nexceed the lesser of the following amounts.\n• The catch-up contribution limit.\n• The excess of the participant's compensation over the\nelective deferrals that aren’t catch-up contributions.", "offset": 4932, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/p560--2025.pdf", "title": "Publication 560 (2025), Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans)", "publisher": "IRS", "fetched_at": "2026-08-29T11:27:54.650Z", "sha256_text": "a0f10ca7567acf2e701566b47e359f5c62733e6bd179d2f270639ecce5adebff", "snapshot_url": "https://ratesandlimits.com/snapshots/401k-catch-up-contribution/2026/p560--2025.txt" } }, { "key": "the-plan-must-cap-deferrals", "heading": "The plan document itself must enforce the deferral limit", "body": "The plan document must contain a provision that prevents employees from deferring more than the applicable annual limit. This is a structural requirement of the plan itself, not merely a participant responsibility. When an employee participates in plans sponsored by more than one employer, the total of all deferrals across every plan must stay within the single annual limit that applies for that year. If the combined total exceeds the limit, the excess is included in the employee's gross income. The employee is then responsible for notifying the plan and having the excess distributed, along with any attributable earnings, by the deadline that falls on the fifteenth day of April of the following year. The plan administrator must enforce the limit throughout the year to prevent excess deferrals from arising in the first place.", "quote": "Your plan must provide\nthat your employees can't defer more than the limit that\napplies for a particular year.", "offset": 122020, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/p560--2025.pdf", "title": "Publication 560 (2025), Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans)", "publisher": "IRS", "fetched_at": "2026-08-29T11:27:54.650Z", "sha256_text": "a0f10ca7567acf2e701566b47e359f5c62733e6bd179d2f270639ecce5adebff", "snapshot_url": "https://ratesandlimits.com/snapshots/401k-catch-up-contribution/2026/p560--2025.txt" } }, { "key": "excess-deferral-correction", "heading": "What to do when you defer too much across two jobs", "body": "When an employee's total deferrals across multiple plans exceed the annual limit, the overage is treated as an excess deferral. The employee can request distribution of the excess from any plan that allows such distributions. The employee must notify the plan by April 15, 2026 of the amount to be withdrawn from each plan, or by any earlier date the plan specifies. The plan must then pay the employee the excess amount plus any earnings on that amount through the end of 2025, also by April 15, 2026. This correction must be completed by the deadline to avoid the excess being taxed in both the year of deferral and the year of distribution. The earnings distributed with the excess are taxable in the year of distribution.", "quote": "the employee can have the difference (called an\nexcess deferral) paid out of any of the plans that permit\nthese distributions. The employee must notify the plan by\nApril 15, 2026 (or an earlier date specified in the plan), of\nthe amount to be paid from each plan. The plan must then\npay the employee that amount, plus earnings on the\namount through the end of 2025, by April 15, 2026.", "offset": 131224, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/p560--2025.pdf", "title": "Publication 560 (2025), Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans)", "publisher": "IRS", "fetched_at": "2026-08-29T11:27:54.650Z", "sha256_text": "a0f10ca7567acf2e701566b47e359f5c62733e6bd179d2f270639ecce5adebff", "snapshot_url": "https://ratesandlimits.com/snapshots/401k-catch-up-contribution/2026/p560--2025.txt" } } ], "estimate": null }, { "program": "401k-contribution-limit", "name": "401(k) Contribution Limit", "category": "retirement-limits", "agency": "IRS", "year": 2026, "state": null, "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-09-01", "published_at": "2026-09-01T02:35:37.419Z", "canonical_url": "https://ratesandlimits.com/401k-contribution-limit/", "figures": [ { "key": "elective-deferral", "label": "Elective deferral", "value": 24500, "format": "usd", "formatted": "$24,500", "scope": null, "derived": false, "quote": "The limitation under section 402(g)(1) on the exclusion for elective deferrals\ndescribed in section 402(g)(3), which includes elective deferrals made to the\nThrift Savings Plan, is increased from $23,500 to $24,500.", "offset": 1580, "source": { "url": "https://www.irs.gov/pub/irs-drop/n-25-67.pdf", "title": "Notice 2025-67", "publisher": "IRS", "fetched_at": "2026-08-27T11:14:59.755Z", "sha256_text": "dee57a39e72fc363102f1c9fa373d5c5a969a62bc5422076830034732e2f131d", "snapshot_url": "https://ratesandlimits.com/snapshots/401k-contribution-limit/2026/n-25-67.txt" } }, { "key": "catch-up-50", "label": "Age 50 catch-up", "value": 8000, "format": "usd-delta", "formatted": "+$8,000", "scope": null, "derived": false, "quote": "The limitation under section 414(v)(2)(B)(i) for catch-up contributions to an\napplicable employer plan other than a plan described in section 401(k)(11) or\nsection 408(p) that generally applies for individuals aged 50 or over is increased\nfrom $7,500 to $8,000.", "offset": 1986, "source": { "url": "https://www.irs.gov/pub/irs-drop/n-25-67.pdf", "title": "Notice 2025-67", "publisher": "IRS", "fetched_at": "2026-08-27T11:14:59.755Z", "sha256_text": "dee57a39e72fc363102f1c9fa373d5c5a969a62bc5422076830034732e2f131d", "snapshot_url": "https://ratesandlimits.com/snapshots/401k-contribution-limit/2026/n-25-67.txt" } }, { "key": "catch-up-60-63", "label": "Age 60 through 63 catch-up", "value": 11250, "format": "usd-delta", "formatted": "+$11,250", "scope": null, "derived": false, "quote": "The limitation under section 414(v)(2)(E)(i) for catch-up\ncontributions to an applicable employer plan other than a plan described in\nsection 401(k)(11) or section 408(p) that applies for individuals who attain\nage 60, 61, 62, or 63 in 2026 remains $11,250.", "offset": 2248, "source": { "url": "https://www.irs.gov/pub/irs-drop/n-25-67.pdf", "title": "Notice 2025-67", "publisher": "IRS", "fetched_at": "2026-08-27T11:14:59.755Z", "sha256_text": "dee57a39e72fc363102f1c9fa373d5c5a969a62bc5422076830034732e2f131d", "snapshot_url": "https://ratesandlimits.com/snapshots/401k-contribution-limit/2026/n-25-67.txt" } } ], "schedule": null, "explainers": [ { "key": "higher-catch-up-ages-60-63", "heading": "The larger catch-up in the year you turn 60 through 63", "body": "A participant who attains age 60, 61, 62 or 63 during the year is allowed a larger catch-up than other catch-up-eligible participants get. For 2026 that larger amount is $11,250 rather than $8,000, and it sits on top of the $24,500 elective deferral limit exactly as the smaller one does. The band is defined by the age reached during the year rather than one held throughout it, so someone who attains 60 in December is inside it for that whole year. Someone past the band is back to the ordinary amount: the larger figure is stated for those ages and no others. A plan is not required to offer it at all, and where the plan does not, the ordinary catch-up applies whatever the participant's age - which is why what payroll will actually take is the plan's answer and not only the notice's.", "quote": "The catch-up limit is $11,250 if you\nare age 60, 61, 62, or 63 in 2025.", "offset": 57473, "verified_at": "2026-09-01", "source": { "url": "https://www.irs.gov/pub/irs-prior/p525--2025.pdf", "title": "Publication 525 (2025), Taxable and Nontaxable Income", "publisher": "IRS", "fetched_at": "2026-08-29T07:59:39.908Z", "sha256_text": "7ab3b9e08c5053a38b9832f0a76965c7317b3a60250a7ca8223186ee2a7bbc06", "snapshot_url": "https://ratesandlimits.com/snapshots/401k-contribution-limit/2026/p525--2025.txt" } }, { "key": "what-an-elective-deferral-is", "heading": "What the limit counts, and the tax it does not save", "body": "An elective deferral is money you choose to have your employer pay directly into a qualified retirement plan instead of receiving as regular wages. It applies to arrangements such as cash or deferred arrangements, the federal Thrift Savings Plan, tax-sheltered annuities, salary reduction simplified employee pensions, SIMPLE plans, and governmental deferred compensation plans. The key tax feature is that a traditional elective deferral is not counted as wages subject to federal income tax at the moment it goes into the plan, so it lowers the income tax you owe for that year. However, the amount is still subject to social security and Medicare taxes, so your payroll tax base is not reduced by what you defer. A separate category called a designated Roth contribution works differently: it is included in your taxable income up front. Both kinds count toward the same annual limit on how much you can defer across all of your plans in a given year. For 2026, that base elective deferral limit is $24,500. You are responsible for tracking the total you put in across every plan you participate in, even though your employer applies the limit on each plan individually.", "quote": "An elective deferral, other\nthan a designated Roth contribution (discussed\nlater), isn’t included in wages subject to income\ntax at the time contributed. However, it’s inclu-\nded in wages subject to social security and\nMedicare taxes.", "offset": 55090, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/p525--2025.pdf", "title": "Publication 525 (2025), Taxable and Nontaxable Income", "publisher": "IRS", "fetched_at": "2026-08-29T07:59:39.908Z", "sha256_text": "7ab3b9e08c5053a38b9832f0a76965c7317b3a60250a7ca8223186ee2a7bbc06", "snapshot_url": "https://ratesandlimits.com/snapshots/401k-contribution-limit/2026/p525--2025.txt" } }, { "key": "one-limit-across-every-plan", "heading": "One limit across every plan you defer into", "body": "The IRS does not give you a separate deferral cap for each plan you happen to be covered by. Instead, it sets one overall annual limit that applies to the total of all your elective deferrals across every qualifying plan taken together. That means if you work two jobs in the same year and both employers let you defer into a qualified retirement plan, the dollar cap is shared between the two accounts. It is your responsibility, not your employer's, to watch the combined total. Employers and plan administrators apply the correct annual limit when they process contributions, but they generally cannot see what you are deferring into a different employer's plan. If the combined deferrals exceed the overall limit, you have excess deferrals that must be corrected, typically by requesting a distribution of the excess from one of the plans by April 15 of the following year. The limit does not depend on how many plans you participate in or how much you earn. For 2026, the overall limit on elective deferrals is $24,500.", "quote": "Your employer or plan administrator should\napply the proper annual limit when figuring your\nplan contributions. However, you’re responsible\nfor monitoring the total you defer to ensure that\nthe deferrals aren’t more than the overall limit.", "offset": 56941, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/p525--2025.pdf", "title": "Publication 525 (2025), Taxable and Nontaxable Income", "publisher": "IRS", "fetched_at": "2026-08-29T07:59:39.908Z", "sha256_text": "7ab3b9e08c5053a38b9832f0a76965c7317b3a60250a7ca8223186ee2a7bbc06", "snapshot_url": "https://ratesandlimits.com/snapshots/401k-contribution-limit/2026/p525--2025.txt" } }, { "key": "catch-up-contributions", "heading": "The catch-up once you are old enough for it", "body": "Once you reach age 50, the tax code allows you to defer more than the regular elective deferral limit. These extra amounts are called catch-up contributions, and they are available only if you are age 50 or older by the end of the tax year. The catch-up is an addition on top of the regular limit, not a replacement for it. Catch-up contributions apply to employer-sponsored retirement plans including cash or deferred arrangements, tax-sheltered annuities, the federal Thrift Savings Plan, salary reduction simplified employee pensions, and governmental deferred compensation plans. For 2026, the catch-up amount available to participants age 50 or older is $8,000, which is added to the regular $24,500 elective deferral limit. An eligible participant can therefore defer the full regular limit plus the catch-up amount on top of it in the same year. The catch-up is intended to help workers who are closer to retirement build up savings more quickly. If you participate in more than one plan, catch-up contributions can generally only be made to one plan unless the plans coordinate otherwise.", "quote": "You may be allowed\ncatch-up contributions (additional elective de-\nferrals) if you’re age 50 or older by the end of\nyour tax year.", "offset": 57205, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/p525--2025.pdf", "title": "Publication 525 (2025), Taxable and Nontaxable Income", "publisher": "IRS", "fetched_at": "2026-08-29T07:59:39.908Z", "sha256_text": "7ab3b9e08c5053a38b9832f0a76965c7317b3a60250a7ca8223186ee2a7bbc06", "snapshot_url": "https://ratesandlimits.com/snapshots/401k-contribution-limit/2026/p525--2025.txt" } }, { "key": "excess-deferrals", "heading": "What happens if you defer more than the limit", "body": "When your total elective deferrals for the year exceed the annual limit, the excess is called an excess deferral. You must notify your plan by the date the plan requires. If the plan allows it, the excess amount will be distributed back to you. If you participate in more than one plan, you can have the excess paid out from any plan that permits these distributions, but you must notify each plan by its required date about the amount to be paid from that particular plan. The plan must then distribute the excess, together with any income earned on that amount, by April 15 of the following year. The excess deferral must be included in your income for the year it was contributed, so you add the amount to earned income on your tax return. If you fail to take out the excess by the deadline, you face a double tax: the excess is taxed once when contributed and again when eventually distributed, unless the excess was a designated Roth contribution, in which case it was already included in income.", "quote": "If your deferrals exceed the\nlimit, you must notify your plan by the date re-\nquired by the plan. If the plan permits, the ex-\ncess amount will be distributed to you.", "offset": 65152, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/p525--2025.pdf", "title": "Publication 525 (2025), Taxable and Nontaxable Income", "publisher": "IRS", "fetched_at": "2026-08-29T07:59:39.908Z", "sha256_text": "7ab3b9e08c5053a38b9832f0a76965c7317b3a60250a7ca8223186ee2a7bbc06", "snapshot_url": "https://ratesandlimits.com/snapshots/401k-contribution-limit/2026/p525--2025.txt" } }, { "key": "designated-roth-contributions", "heading": "Roth deferrals count against the same limit", "body": "Employers that sponsor certain qualified retirement plans may offer a designated Roth option within the plan. Under such a program, you can elect to have some or all of your elective deferrals treated as after-tax Roth contributions rather than pre-tax contributions. The important point is that designated Roth contributions are still elective deferrals, and they still count against the same annual limit that applies to traditional pre-tax deferrals. For 2026, that limit is $24,500 in total across both traditional and Roth deferrals combined. The difference is purely in the timing of taxation: a designated Roth contribution is included in your wages and taxed in the year it is made, whereas a traditional elective deferral is excluded from income tax when contributed but taxed when distributed later. The plan must maintain separate accounts and record-keeping for the designated Roth contributions. Qualified distributions from a Roth account are then tax-free, provided the distribution meets the required holding period.", "quote": "Designated Roth contributions\nare treated as elective deferrals, except that\nthey’re included in income.", "offset": 63010, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/p525--2025.pdf", "title": "Publication 525 (2025), Taxable and Nontaxable Income", "publisher": "IRS", "fetched_at": "2026-08-29T07:59:39.908Z", "sha256_text": "7ab3b9e08c5053a38b9832f0a76965c7317b3a60250a7ca8223186ee2a7bbc06", "snapshot_url": "https://ratesandlimits.com/snapshots/401k-contribution-limit/2026/p525--2025.txt" } } ], "estimate": null }, { "program": "403b-contribution-limit", "name": "403(b) Contribution Limit", "category": "retirement-limits", "agency": "IRS", "year": 2026, "state": null, "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-29", "published_at": "2026-08-29T10:27:16.981Z", "canonical_url": "https://ratesandlimits.com/403b-contribution-limit/", "figures": [ { "key": "elective-deferral", "label": "Elective deferral limit", "value": 24500, "format": "usd", "formatted": "$24,500", "scope": null, "derived": false, "quote": "The limitation under section 402(g)(1) on the exclusion for elective deferrals\ndescribed in section 402(g)(3), which includes elective deferrals made to the\nThrift Savings Plan, is increased from $23,500 to $24,500.", "offset": 1580, "source": { "url": "https://www.irs.gov/pub/irs-drop/n-25-67.pdf", "title": "Notice 2025-67", "publisher": "IRS", "fetched_at": "2026-08-27T13:27:58.361Z", "sha256_text": "dee57a39e72fc363102f1c9fa373d5c5a969a62bc5422076830034732e2f131d", "snapshot_url": "https://ratesandlimits.com/snapshots/403b-contribution-limit/2026/n-25-67.txt" } }, { "key": "catch-up-50", "label": "Catch-up limit, age 50 and over", "value": 8000, "format": "usd-delta", "formatted": "+$8,000", "scope": null, "derived": false, "quote": "The limitation under section 414(v)(2)(B)(i) for catch-up contributions to an\napplicable employer plan other than a plan described in section 401(k)(11) or\nsection 408(p) that generally applies for individuals aged 50 or over is increased\nfrom $7,500 to $8,000.", "offset": 1986, "source": { "url": "https://www.irs.gov/pub/irs-drop/n-25-67.pdf", "title": "Notice 2025-67", "publisher": "IRS", "fetched_at": "2026-08-27T13:27:58.361Z", "sha256_text": "dee57a39e72fc363102f1c9fa373d5c5a969a62bc5422076830034732e2f131d", "snapshot_url": "https://ratesandlimits.com/snapshots/403b-contribution-limit/2026/n-25-67.txt" } } ], "schedule": null, "explainers": [ { "key": "limit-on-annual-additions", "heading": "The other ceiling: total contributions of 100% of pay", "body": "The limit on annual additions is the first component used to determine your maximum amount contributable for the year. It caps the total dollars that can flow into the account from all sources combined: elective deferrals, nonelective employer contributions, and after-tax employee contributions. For 2026, the cap is the smaller of $72,000 or 100% of your includible compensation for your most recent year of service. In plain terms, the plan cannot accept more than you earned, and it cannot accept more than the statutory dollar ceiling no matter how high your pay is. If you participate in more than one account maintained by the same employer, you must aggregate the contributions across all those accounts when testing this limit. This cap operates independently of the elective-deferral limit; whichever figure is smaller governs what can be contributed in total before catch-up amounts are added.", "quote": "The first component of your MAC is the limit on annual ad-\nditions. This is a limit on the total contributions (elective\ndeferrals, nonelective contributions, and after-tax contribu-\ntions) that can be made to your 403(b) account. The limit\non annual additions is generally the lesser of:\n• $70,000 for 2025 and $72,000 for 2026, or\n• 100% of your includible compensation for your most\nrecent year of service.", "offset": 22206, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/p571.pdf", "title": "Publication 571 (2025), Tax-Sheltered Annuity Plans (403(b) Plans)", "publisher": "IRS", "fetched_at": "2026-08-29T08:00:53.170Z", "sha256_text": "a67c9cf9f979f09972a9fdfb3492d572c35723d6f5894fc6108ef597fa73bd6c", "snapshot_url": "https://ratesandlimits.com/snapshots/403b-contribution-limit/2026/p571.txt" } }, { "key": "the-mac", "heading": "Two limits, and your MAC is the lesser of them", "body": "Your maximum amount contributable for the year is found by comparing two separate ceilings. The first is the limit on annual additions, which caps all contributions from every source - salary reductions, employer nonelective amounts, and after-tax employee contributions - taken together. The second is the limit on elective deferrals, which for 2026 is $24,500 and applies only to salary-reduction contributions. Depending on what types of contributions are made to the account in a given year, only one or both of these limits may come into play. The overall maximum that can go in is the lesser of the two results. In practice, rank-and-file participants usually find the elective-deferral limit is the binding constraint, while highly compensated employees who receive large employer contributions may instead find that the annual-additions cap governs. Catch-up amounts for participants who are age 50 or older may be added on top of this figure without reducing it.", "quote": "Components of Your MAC\nGenerally, before you can determine your MAC, you must\nfirst figure the components of your MAC. The components\nof your MAC are:\n• The limit on annual additions (chapter 3), and\n• The limit on elective deferrals (chapter 4).\nHow Do I Figure My MAC?\nGenerally, contributions to your 403(b) account are limited\nto the lesser of:\n• The limit on annual additions, or\n• The limit on elective deferrals.", "offset": 19363, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/p571.pdf", "title": "Publication 571 (2025), Tax-Sheltered Annuity Plans (403(b) Plans)", "publisher": "IRS", "fetched_at": "2026-08-29T08:00:53.170Z", "sha256_text": "a67c9cf9f979f09972a9fdfb3492d572c35723d6f5894fc6108ef597fa73bd6c", "snapshot_url": "https://ratesandlimits.com/snapshots/403b-contribution-limit/2026/p571.txt" } }, { "key": "fifteen-year-rule", "heading": "The 15 years of service catch-up almost nobody uses", "body": "Long-service employees of qualifying organizations may access a special catch-up that sits on top of the regular elective-deferral limit. To qualify, you must have at least 15 years of service with an educational organization, hospital, home health agency, health and welfare agency, church, or associated organization, and the plan must permit it. When these conditions are met, the deferral ceiling is increased by a formula based on years of service and prior catch-up usage. For 2026, this special catch-up can raise total elective deferrals as high as $27,500. The provision is sometimes called the special catch-up or the years-of-service catch-up. If you also qualify for the age 50 catch-up in the same year, the plan must apply the 15-year service rule first and then apply the age 50 catch-up to any remaining room. Despite its availability, few participants use this benefit because the calculations are complex and the lifetime cap on prior catch-ups is often reached before participants become aware the provision exists.", "quote": "If you qualify for the 15-year rule (sometimes referred to\nas the “special section 403(b) catch-up” or the\n“years-of-service catch-up”), your elective deferrals under\nthis limit can be as high as $26,500 for 2025 and $27,500\nfor 2026.", "offset": 46074, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/p571.pdf", "title": "Publication 571 (2025), Tax-Sheltered Annuity Plans (403(b) Plans)", "publisher": "IRS", "fetched_at": "2026-08-29T08:00:53.170Z", "sha256_text": "a67c9cf9f979f09972a9fdfb3492d572c35723d6f5894fc6108ef597fa73bd6c", "snapshot_url": "https://ratesandlimits.com/snapshots/403b-contribution-limit/2026/p571.txt" } }, { "key": "age-50-catch-up", "heading": "The age 50 catch-up sits on top of the limit", "body": "Participants who will reach age 50 by the end of the calendar year may make additional catch-up elective deferrals on top of the regular $24,500 limit, provided the plan permits them and the participant has already maxed out the basic elective-deferral amount for the plan year. For 2026, the age 50 catch-up allows an extra $8,000 in salary-reduction contributions. These catch-up dollars cannot come from after-tax employee contributions; they must be pre-tax or designated Roth deferrals. Importantly, catch-up amounts are not counted against the participant's maximum amount contributable, meaning they sit above and beyond the regular annual ceiling. If a participant is eligible for both the long-service catch-up and the age 50 catch-up in the same year, the plan must apply the long-service rule first and then apply the age 50 catch-up to any remaining room. Starting in 2025, participants who reach ages 60 through 63 during the year may qualify for an even higher catch-up amount.", "quote": "If you will be age 50 or older by the end of the year, you\nmay also be able to make additional catch-up contribu-\ntions. These additional contributions can’t be made with\nafter-tax employee contributions.", "offset": 65796, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/p571.pdf", "title": "Publication 571 (2025), Tax-Sheltered Annuity Plans (403(b) Plans)", "publisher": "IRS", "fetched_at": "2026-08-29T08:00:53.170Z", "sha256_text": "a67c9cf9f979f09972a9fdfb3492d572c35723d6f5894fc6108ef597fa73bd6c", "snapshot_url": "https://ratesandlimits.com/snapshots/403b-contribution-limit/2026/p571.txt" } }, { "key": "excess-contributions", "heading": "What to do when too much went in", "body": "When the total deposited into the account in a plan year exceeds the maximum amount contributable, the overage is an excess contribution. Catch-up amounts are excluded from this test, so only regular deferrals, employer contributions, and after-tax employee dollars count. At year-end - or early in the following year - the participant should refigure the maximum based on actual compensation and actual contributions to determine whether an excess exists. If employment status or compensation changes during the year, the limit should be refigured mid-year using revised estimates to prevent an excess from arising in the first place. Excess contributions can trigger income tax, additional taxes, and penalties. The specific consequences depend on the type of excess: for example, excess elective deferrals are treated differently from excess annual additions, and certain excess amounts may be corrected by distribution. The plan administrator or the participant's tax advisor should be consulted to determine the proper correction method for the particular type of excess.", "quote": "Excess Contributions\nIf your actual contributions (not including catch-up contri-\nbutions) are greater than your MAC, you have an excess\ncontribution. Excess contributions can result in income\ntax, additional taxes, and penalties.", "offset": 67972, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/p571.pdf", "title": "Publication 571 (2025), Tax-Sheltered Annuity Plans (403(b) Plans)", "publisher": "IRS", "fetched_at": "2026-08-29T08:00:53.170Z", "sha256_text": "a67c9cf9f979f09972a9fdfb3492d572c35723d6f5894fc6108ef597fa73bd6c", "snapshot_url": "https://ratesandlimits.com/snapshots/403b-contribution-limit/2026/p571.txt" } } ], "estimate": null }, { "program": "457b-contribution-limit", "name": "457(b) Contribution Limit", "category": "retirement-limits", "agency": "IRS", "year": 2026, "state": null, "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-09-01", "published_at": "2026-09-01T04:55:23.332Z", "canonical_url": "https://ratesandlimits.com/457b-contribution-limit/", "figures": [ { "key": "elective-deferral", "label": "Deferral limit", "value": 24500, "format": "usd", "formatted": "$24,500", "scope": null, "derived": false, "quote": "The limitation on deferrals under section 457(e)(15) concerning deferred\ncompensation plans of state and local governments and tax-exempt\norganizations is increased from $23,500 to $24,500.", "offset": 1796, "source": { "url": "https://www.irs.gov/pub/irs-drop/n-25-67.pdf", "title": "Notice 2025-67", "publisher": "IRS", "fetched_at": "2026-08-29T03:08:32.033Z", "sha256_text": "dee57a39e72fc363102f1c9fa373d5c5a969a62bc5422076830034732e2f131d", "snapshot_url": "https://ratesandlimits.com/snapshots/457b-contribution-limit/2026/n-25-67.txt" } } ], "schedule": null, "explainers": [ { "key": "deferral-limit-and-includible-compensation", "heading": "Your limit is the lesser of the dollar cap and your includible compensation", "body": "For 2026, the IRS limits how much you can defer into a governmental 457(b) plan to the lesser of $24,500 or your includible compensation for the year. That means if your includible compensation is below the dollar cap, your deferral limit is that lower figure rather than the full amount. Includible compensation is generally your Form W-2 wages plus any elective deferrals already made on your behalf. It covers salaries, professional-service fees, commissions, tips, bonuses, fringe benefits, and other amounts received for personal services performed during the year. The rule applies to employees of state or local governments and tax-exempt organizations who participate in a section 457 plan. No catch-up provision — whether the age 50 catch-up or the special three-year pre-retirement catch-up — can push total deferrals above the includible compensation you actually earned.", "quote": "Includible compensation. Generally, this\nis your Form W-2 wages plus elective deferrals.", "offset": 60515, "verified_at": "2026-09-01", "source": { "url": "https://www.irs.gov/pub/irs-prior/p525--2025.pdf", "title": "Publication 525 (2025), Taxable and Nontaxable Income", "publisher": "IRS", "fetched_at": "2026-08-29T08:16:45.202Z", "sha256_text": "7ab3b9e08c5053a38b9832f0a76965c7317b3a60250a7ca8223186ee2a7bbc06", "snapshot_url": "https://ratesandlimits.com/snapshots/457b-contribution-limit/2026/p525--2025.txt" } }, { "key": "age-50-catch-up", "heading": "The age 50 catch-up, and who can use it", "body": "A governmental 457(b) plan in the United States may allow participants who are at least 50 years old to make catch-up elective deferrals on top of the regular $24,500 limit. You qualify for this age 50 catch-up if you reached age 50 by the end of the calendar year and no other elective deferrals can be made for you under the plan for that year because of limits or restrictions — meaning the regular deferral cap (or a lower plan-specific ceiling) has already been reached. When you meet both conditions, the plan may let you defer an additional amount above the regular limit. However, if you are also within three years of the plan's normal retirement age and the plan offers the special pre-retirement catch-up, that separate provision may produce a still higher limit, and the two catch-ups cannot be used together. The age 50 catch-up does not allow deferrals to exceed includible compensation.", "quote": "No other elective deferrals can be made for\nyou to the plan for the year because of lim-\nits or restrictions.", "offset": 62353, "verified_at": "2026-09-01", "source": { "url": "https://www.irs.gov/pub/irs-prior/p525--2025.pdf", "title": "Publication 525 (2025), Taxable and Nontaxable Income", "publisher": "IRS", "fetched_at": "2026-08-29T08:16:45.202Z", "sha256_text": "7ab3b9e08c5053a38b9832f0a76965c7317b3a60250a7ca8223186ee2a7bbc06", "snapshot_url": "https://ratesandlimits.com/snapshots/457b-contribution-limit/2026/p525--2025.txt" } }, { "key": "three-year-pre-retirement-catch-up", "heading": "The special catch-up in the last 3 years before normal retirement age", "body": "A section 457 plan may offer a special catch-up in the last 3 years before you reach normal retirement age under the plan. If the plan provides this increased limit, your deferral ceiling for each of those years becomes the lesser of 2 alternative amounts. First, the limit can be twice the basic annual limit - for 2026, that means twice $24,500. Second, the limit can be the basic annual limit of $24,500 plus any portion of the basic limit that went unused in earlier years, but this second alternative is permitted only if you are not also using the age-50-or-over catch-up contributions. You may use the special 3-year catch-up for any or all of the final 3 years before normal retirement age, but you must choose whichever of the 2 formulas produces the smaller result. This catch-up is generally more valuable than the age-50 catch-up for participants close to retirement whose prior-year deferrals were low, but the plan terms govern whether it is available at all.", "quote": "During any, or all, of the\nlast 3 years ending before you reach normal re-\ntirement age under the plan, your plan may pro-\nvide that your limit is the lesser of:\n1. Twice the annual limit ($47,000 for 2025),\nor\n2. The basic annual limit plus the amount of\nthe basic limit not used in prior years (only\nallowed if not using age 50-or-over\ncatch-up contributions).", "offset": 61813, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/p525--2025.pdf", "title": "Publication 525 (2025), Taxable and Nontaxable Income", "publisher": "IRS", "fetched_at": "2026-08-29T08:16:45.202Z", "sha256_text": "7ab3b9e08c5053a38b9832f0a76965c7317b3a60250a7ca8223186ee2a7bbc06", "snapshot_url": "https://ratesandlimits.com/snapshots/457b-contribution-limit/2026/p525--2025.txt" } } ], "estimate": null }, { "program": "aca-affordability-percentage", "name": "ACA Affordability Percentage", "category": "health-accounts", "agency": "IRS", "year": 2026, "state": null, "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-29", "published_at": "2026-08-29T13:25:14.392Z", "canonical_url": "https://ratesandlimits.com/aca-affordability-percentage/", "figures": [ { "key": "required-contribution", "label": "Required contribution percentage", "value": 9.96, "format": "percent", "formatted": "9.96%", "scope": null, "derived": false, "quote": "the Required Contribution Percentage for purposes of\n§ 36B(c)(2)(C)(i)(II) and § 1.36B-2(c)(3)(v)(C) is 9.96%.", "offset": 3820, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-25.pdf", "title": "Rev. Proc. 2025-25", "publisher": "IRS", "fetched_at": "2026-08-28T02:46:00.801Z", "sha256_text": "beac6167aaf748ab10dad047139082b4912c34d6ac910c1023ff029440be65bd", "snapshot_url": "https://ratesandlimits.com/snapshots/aca-affordability-percentage/2026/rp-25-25.txt" } } ], "schedule": null, "explainers": [ { "key": "how-affordability-is-measured", "heading": "The share of household income that makes an offer affordable", "body": "An employer's coverage is affordable when the employee's annual cost for self-only coverage does not exceed 9.96% of the household income. This share of income is called the employee required contribution. For 2026, the threshold is set at 9.96%. If the cost for the employee alone is affordable but family coverage costs more than 9.96% of household income, the employee can still take the premium tax credit for other family members who enroll in a Marketplace plan. The test focuses only on self-only coverage when measuring affordability for the employee, not the total cost to cover the entire family.", "quote": "For 2026, this annual cost threshold will\nincrease to 9.96%.", "offset": 51741, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/p974.pdf", "title": "Publication 974 (2025), Premium Tax Credit (PTC)", "publisher": "IRS", "fetched_at": "2026-08-29T08:02:12.071Z", "sha256_text": "944c87ae30eb83a98c8c01ca406658fe35630bfe41988961c89ded24f5047ca5", "snapshot_url": "https://ratesandlimits.com/snapshots/aca-affordability-percentage/2026/p974.txt" } }, { "key": "affordable-coverage-blocks-the-credit", "heading": "An affordable offer blocks the premium tax credit", "body": "When an employer offers health coverage that qualifies as minimum essential coverage, the employee is considered eligible for an employer-sponsored plan and cannot receive the premium tax credit for a qualified health plan purchased through the Marketplace, but only if two conditions are both met: the employer-sponsored coverage must be affordable, and the coverage must provide minimum value. This means having access to employer coverage alone does not automatically block someone from receiving financial assistance. The offer must pass both the affordability test and the minimum value test. If either test is not satisfied, the employee may still qualify for the premium tax credit despite having an offer of employer coverage. Family members who are eligible to enroll in the same employer coverage face the same two-part test: the coverage must be both affordable and provide minimum value for them to be blocked from receiving the credit.", "quote": "In addition, if you or your family member en-\nrolls in the employer coverage that qualifies as MEC, the\nindividual enrolled cannot get the PTC for coverage in a\nqualified health plan, even if the employer coverage is not\naffordable or does not provide minimum value.", "offset": 48870, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/p974.pdf", "title": "Publication 974 (2025), Premium Tax Credit (PTC)", "publisher": "IRS", "fetched_at": "2026-08-29T08:02:12.071Z", "sha256_text": "944c87ae30eb83a98c8c01ca406658fe35630bfe41988961c89ded24f5047ca5", "snapshot_url": "https://ratesandlimits.com/snapshots/aca-affordability-percentage/2026/p974.txt" } }, { "key": "minimum-value", "heading": "The second test an employer plan has to fail", "body": "An employer health plan must satisfy two separate requirements to block an employee from receiving the premium tax credit: the plan must be affordable and it must provide minimum value. The affordability requirement focuses on whether the employee's premium cost exceeds a percentage of household income. The minimum value requirement is a separate test that the plan must also pass. If a plan fails either test, the employee may qualify for the premium tax credit despite having an offer of employer coverage. The minimum value test examines whether the employer plan covers a sufficient share of total medical expenses for a standard population. When a plan does not meet minimum value standards, it means the coverage is too limited to count as adequate employer-sponsored coverage that would disqualify the employee from Marketplace subsidies.", "quote": "In addition, if you or your family member en-\nrolls in the employer coverage that qualifies as MEC, the\nindividual enrolled cannot get the PTC for coverage in a\nqualified health plan, even if the employer coverage is not\naffordable or does not provide minimum value.", "offset": 48870, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/p974.pdf", "title": "Publication 974 (2025), Premium Tax Credit (PTC)", "publisher": "IRS", "fetched_at": "2026-08-29T08:02:12.071Z", "sha256_text": "944c87ae30eb83a98c8c01ca406658fe35630bfe41988961c89ded24f5047ca5", "snapshot_url": "https://ratesandlimits.com/snapshots/aca-affordability-percentage/2026/p974.txt" } }, { "key": "waiting-periods", "heading": "A waiting period is not coverage you can use", "body": "During a waiting period before employer coverage becomes effective, an employee is not considered eligible for that employer coverage. This means the employee can receive the premium tax credit for coverage in a qualified health plan during those months, if otherwise eligible. However, if the employee could have enrolled in employer coverage that is affordable and provides minimum value but chose not to enroll during an available enrollment period, they lose eligibility for the premium tax credit for the rest of that plan year. This rule prevents employees from declining adequate employer coverage during open enrollment and then claiming subsidies for Marketplace coverage. If the enrollment period relates to coverage for multiple plan years and there is no subsequent opportunity to enroll, the employee may regain eligibility for the premium tax credit in those later plan years.", "quote": "Waiting periods and other periods without access\nto benefits. You are not considered eligible for employer\ncoverage, and can get the PTC for your coverage in a\nqualified health plan if you are otherwise eligible, for a\nmonth when you cannot receive benefits under the em-\nployer coverage (for example, you are in a waiting period\nbefore the employer coverage becomes effective).", "offset": 49137, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/p974.pdf", "title": "Publication 974 (2025), Premium Tax Credit (PTC)", "publisher": "IRS", "fetched_at": "2026-08-29T08:02:12.071Z", "sha256_text": "944c87ae30eb83a98c8c01ca406658fe35630bfe41988961c89ded24f5047ca5", "snapshot_url": "https://ratesandlimits.com/snapshots/aca-affordability-percentage/2026/p974.txt" } }, { "key": "what-counts-as-an-employer-plan", "heading": "Which plans are eligible employer-sponsored coverage", "body": "Eligible employer-sponsored plans that qualify as minimum essential coverage include several types of health coverage. These are: an employee health plan offered in the group market, whether insured or self-insured; a self-insured group health plan for employees; coverage under certain expatriate health plans for employees; and the Nonappropriated Fund Health Benefits Program of the Department of Defense. These employer-sponsored plans may also include retiree coverage or COBRA continuation coverage. When employer-sponsored plans provide minimum essential coverage, they are referred to as eligible employer-sponsored plans. However, not all employer-sponsored health coverage counts as minimum essential coverage. Coverage limited to excepted benefits - such as stand-alone vision or dental plans, workers' compensation coverage, or coverage for a specified disease or illness - does not qualify as minimum essential coverage and therefore does not block eligibility for the premium tax credit.", "quote": "Employer-sponsored plans that are MEC are also refer-\nred to as “eligible employer-sponsored plans.”", "offset": 47539, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/p974.pdf", "title": "Publication 974 (2025), Premium Tax Credit (PTC)", "publisher": "IRS", "fetched_at": "2026-08-29T08:02:12.071Z", "sha256_text": "944c87ae30eb83a98c8c01ca406658fe35630bfe41988961c89ded24f5047ca5", "snapshot_url": "https://ratesandlimits.com/snapshots/aca-affordability-percentage/2026/p974.txt" } } ], "estimate": null }, { "program": "additional-medicare-tax-threshold", "name": "Additional Medicare Tax Threshold", "category": "payroll-and-wages", "agency": "IRS", "year": 2026, "state": null, "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-29", "published_at": "2026-08-29T15:34:36.004Z", "canonical_url": "https://ratesandlimits.com/additional-medicare-tax-threshold/", "figures": [ { "key": "rate", "label": "Rate", "value": 0.9, "format": "percent", "formatted": "0.9%", "scope": null, "derived": false, "quote": "A 0.9% Additional Medicare tax applies to Medicare wages, self-employment income, and railroad retirement (RRTA) compensation", "offset": 4440, "source": { "url": "https://www.irs.gov/taxtopics/tc560", "title": "Topic no. 560, Additional Medicare tax", "publisher": "IRS", "fetched_at": "2026-08-29T02:27:52.416Z", "sha256_text": "568551c87ad8f91aa8dcc60f36ff9582ab445f41417ae20201255da5a7789ebf", "snapshot_url": "https://ratesandlimits.com/snapshots/additional-medicare-tax-threshold/2026/tc560.txt" } }, { "key": "joint", "label": "Married filing jointly", "value": 250000, "format": "usd", "formatted": "$250,000", "scope": null, "derived": false, "quote": "$250,000 for married filing jointly;", "offset": 4634, "source": { "url": "https://www.irs.gov/taxtopics/tc560", "title": "Topic no. 560, Additional Medicare tax", "publisher": "IRS", "fetched_at": "2026-08-29T02:27:52.416Z", "sha256_text": "568551c87ad8f91aa8dcc60f36ff9582ab445f41417ae20201255da5a7789ebf", "snapshot_url": "https://ratesandlimits.com/snapshots/additional-medicare-tax-threshold/2026/tc560.txt" } }, { "key": "separate", "label": "Married filing separately", "value": 125000, "format": "usd", "formatted": "$125,000", "scope": null, "derived": false, "quote": "$125,000 for married filing separately; and", "offset": 4671, "source": { "url": "https://www.irs.gov/taxtopics/tc560", "title": "Topic no. 560, Additional Medicare tax", "publisher": "IRS", "fetched_at": "2026-08-29T02:27:52.416Z", "sha256_text": "568551c87ad8f91aa8dcc60f36ff9582ab445f41417ae20201255da5a7789ebf", "snapshot_url": "https://ratesandlimits.com/snapshots/additional-medicare-tax-threshold/2026/tc560.txt" } }, { "key": "all-other", "label": "All other taxpayers", "value": 200000, "format": "usd", "formatted": "$200,000", "scope": null, "derived": false, "quote": "$200,000 for all other taxpayers.", "offset": 4715, "source": { "url": "https://www.irs.gov/taxtopics/tc560", "title": "Topic no. 560, Additional Medicare tax", "publisher": "IRS", "fetched_at": "2026-08-29T02:27:52.416Z", "sha256_text": "568551c87ad8f91aa8dcc60f36ff9582ab445f41417ae20201255da5a7789ebf", "snapshot_url": "https://ratesandlimits.com/snapshots/additional-medicare-tax-threshold/2026/tc560.txt" } } ], "schedule": null, "explainers": [ { "key": "employer-withholds-at-200k", "heading": "Your employer withholds at $200,000 whatever your filing status", "body": "Your employer must begin withholding the 0.9% Additional Medicare Tax in the pay period where your wages or compensation for the calendar year exceed $200,000, and must continue withholding it each pay period for the rest of that year. This $200,000 withholding threshold applies to all employees regardless of filing status - even if you are married filing jointly and your actual threshold is $250,000, or married filing separately with a $125,000 threshold. Because of this mismatch, some taxpayers will have too much withheld and some too little. Any excess Additional Medicare Tax withheld can be claimed as a credit against your total tax liability on your return by filing Form 8959. You cannot ask your employer to stop withholding once it is required to begin. The $200,000 withholding trigger applies separately at each employer: one employer does not take into account wages paid by another employer.", "quote": "Your employer is responsible for withholding the 0.9%\nAdditional Medicare Tax on your Medicare wages or RRTA\ncompensation paid in excess of $200,000 in a calendar\nyear. Your employer is required to begin withholding\nAdditional Medicare Tax in the pay period in which your\nwages or compensation for the year exceed $200,000 and\ncontinue to withhold it in each pay period for the\nremainder of the calendar year.", "offset": 2020, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/i8959.pdf", "title": "2025 Instructions for Form 8959, Additional Medicare Tax", "publisher": "IRS", "fetched_at": "2026-08-29T08:01:47.418Z", "sha256_text": "95b3945624811472700070185aeaa2dbe07a61de92b98bf86b1db4b08268237c", "snapshot_url": "https://ratesandlimits.com/snapshots/additional-medicare-tax-threshold/2026/i8959.txt" } }, { "key": "thresholds-not-indexed", "heading": "These thresholds do not move with inflation", "body": "The threshold amounts for Additional Medicare Tax are fixed by statute and do not adjust for inflation. For 2026, the thresholds are $250,000 for married filing jointly, $125,000 for married filing separately, and $200,000 for single filers, head of household, and qualifying surviving spouse. These amounts remain the same each year unless Congress changes the law. Because the thresholds are not indexed for inflation, more taxpayers may become subject to the 0.9% tax over time as wages and self-employment income rise with inflation, even if their real purchasing power stays the same. The $200,000 employer withholding threshold is also not adjusted for inflation, creating potential mismatches between what employers withhold and what taxpayers actually owe based on their filing status.", "quote": "Note: The threshold amounts below aren’t indexed for\ninflation.", "offset": 2476, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/i8959.pdf", "title": "2025 Instructions for Form 8959, Additional Medicare Tax", "publisher": "IRS", "fetched_at": "2026-08-29T08:01:47.418Z", "sha256_text": "95b3945624811472700070185aeaa2dbe07a61de92b98bf86b1db4b08268237c", "snapshot_url": "https://ratesandlimits.com/snapshots/additional-medicare-tax-threshold/2026/i8959.txt" } }, { "key": "who-must-file", "heading": "When Form 8959 is required", "body": "Form 8959 must be filed if any of the following conditions apply: your Medicare wages and tips from any single Form W-2 exceed $200,000; your RRTA compensation from any single Form W-2 exceeds $200,000; your combined Medicare wages, tips, and self-employment income (plus your spouse's if married filing jointly) exceed the threshold amount for your filing status; or your combined RRTA compensation (plus your spouse's if married filing jointly) exceeds the threshold amount for your filing status. The $200,000 amounts for wages and RRTA compensation apply regardless of filing status, while the threshold amounts vary by filing status. Even if you believe you do not owe Additional Medicare Tax, you must still file Form 8959 if your employer withheld any Additional Medicare Tax from your wages or RRTA compensation, so you can claim a credit for the amount withheld against your total tax liability.", "quote": "Who Must File\nYou must file Form 8959 if one or more of the following\napplies to you.\n• Your Medicare wages and tips on any single Form W-2\n(box 5) are greater than $200,000.\n• Your RRTA compensation on any single Form W-2\n(box 14) is greater than $200,000.\n• Your total Medicare wages and tips plus your\nself-employment income, if any, and your spouse’s\nMedicare wages and tips and self-employment income, if\nmarried filing jointly, are greater than the threshold amount\nfor your filing status in the Threshold Amounts for\nAdditional Medicare Tax chart.\n• Your total RRTA compensation and tips (Form W-2,\nbox 14) and your spouse’s RRTA compensation and tips,\nif married filing jointly, are greater than the threshold\namount for your filing status in the Threshold Amounts for\nAdditional Medicare Tax chart.", "offset": 2898, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/i8959.pdf", "title": "2025 Instructions for Form 8959, Additional Medicare Tax", "publisher": "IRS", "fetched_at": "2026-08-29T08:01:47.418Z", "sha256_text": "95b3945624811472700070185aeaa2dbe07a61de92b98bf86b1db4b08268237c", "snapshot_url": "https://ratesandlimits.com/snapshots/additional-medicare-tax-threshold/2026/i8959.txt" } }, { "key": "wages-and-self-employment-combined", "heading": "Wages and self-employment income are added together", "body": "For purposes of determining whether you exceed the Additional Medicare Tax threshold, your Medicare wages and your self-employment income are added together. This combined total is then compared to the threshold amount that applies based on your filing status - $250,000 for married filing jointly, $125,000 for married filing separately, or $200,000 for all other taxpayers. If the combined amount exceeds the threshold, the 0.9% tax applies to the excess. A self-employment loss should not be used to reduce your Medicare wages for this calculation. The threshold for taxing self-employment income is reduced by the amount of your Medicare wages, so that wages and self-employment income are not taxed twice against the same threshold. Railroad Retirement Tax Act compensation is treated differently and is compared separately to the threshold rather than being combined with wages and self-employment income.", "quote": "Medicare wages and self-employment income are\ncombined to determine if your income exceeds the\nthreshold.", "offset": 1775, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/i8959.pdf", "title": "2025 Instructions for Form 8959, Additional Medicare Tax", "publisher": "IRS", "fetched_at": "2026-08-29T08:01:47.418Z", "sha256_text": "95b3945624811472700070185aeaa2dbe07a61de92b98bf86b1db4b08268237c", "snapshot_url": "https://ratesandlimits.com/snapshots/additional-medicare-tax-threshold/2026/i8959.txt" } }, { "key": "rrta-compensation", "heading": "Railroad compensation is measured on its own", "body": "Railroad Retirement Tax Act compensation is subject to Additional Medicare Tax to the extent it exceeds the threshold amount for your filing status. Unlike Medicare wages, which are combined with self-employment income to determine if the threshold is exceeded, RRTA compensation is compared separately to the threshold. If you have both wages and self-employment income, the threshold for applying the tax to self-employment income is reduced by your Medicare wages, but there is no equivalent reduction rule for RRTA compensation. This means RRTA compensation maintains its own separate threshold calculation. A railroad employer must withhold the 0.9% Additional Medicare Tax on RRTA compensation it pays to you in excess of $200,000 for the calendar year, regardless of your filing status and regardless of wages or compensation paid by another employer.", "quote": "There is no equivalent rule for RRTA compensation.", "offset": 6087, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/i8959.pdf", "title": "2025 Instructions for Form 8959, Additional Medicare Tax", "publisher": "IRS", "fetched_at": "2026-08-29T08:01:47.418Z", "sha256_text": "95b3945624811472700070185aeaa2dbe07a61de92b98bf86b1db4b08268237c", "snapshot_url": "https://ratesandlimits.com/snapshots/additional-medicare-tax-threshold/2026/i8959.txt" } } ], "estimate": null }, { "program": "adoption-credit", "name": "Adoption Credit", "category": "deductions-and-credits", "agency": "IRS", "year": 2026, "state": null, "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-09-01", "published_at": "2026-09-01T04:56:55.790Z", "canonical_url": "https://ratesandlimits.com/adoption-credit/", "figures": [ { "key": "maximum-credit", "label": "Maximum credit", "value": 17670, "format": "usd", "formatted": "$17,670", "scope": null, "derived": false, "quote": "the maximum credit allowed for other adoptions is the amount of qualified\nadoption expenses up to $17,670.", "offset": 22467, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32", "publisher": "IRS", "fetched_at": "2026-08-27T13:18:36.758Z", "sha256_text": "208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66", "snapshot_url": "https://ratesandlimits.com/snapshots/adoption-credit/2026/rp-25-32.txt" } }, { "key": "refundable-portion", "label": "Refundable credit", "value": 5120, "format": "usd", "formatted": "$5,120", "scope": null, "derived": false, "quote": "the amount used in\n§ 23(a)(4) to determine the amount of the credit under § 23 that may be refundable is\n$5,120.", "offset": 22985, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32", "publisher": "IRS", "fetched_at": "2026-08-27T13:18:36.758Z", "sha256_text": "208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66", "snapshot_url": "https://ratesandlimits.com/snapshots/adoption-credit/2026/rp-25-32.txt" } }, { "key": "phaseout-threshold", "label": "Phase-out threshold", "value": 265080, "format": "usd", "formatted": "$265,080", "scope": null, "derived": false, "quote": "The available adoption credit begins to phase out\nunder § 23(b)(2)(A) for taxpayers with modified adjusted gross income in excess of\n$265,080", "offset": 22574, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32", "publisher": "IRS", "fetched_at": "2026-08-27T13:18:36.758Z", "sha256_text": "208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66", "snapshot_url": "https://ratesandlimits.com/snapshots/adoption-credit/2026/rp-25-32.txt" } }, { "key": "phaseout-complete", "label": "Fully phased out", "value": 305080, "format": "usd", "formatted": "$305,080", "scope": null, "derived": false, "quote": "under § 23(b)(2)(A) for taxpayers with modified adjusted gross income in excess of\n$265,080 and is completely phased out for taxpayers with modified adjusted gross\nincome of $305,080 or more.", "offset": 22624, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32", "publisher": "IRS", "fetched_at": "2026-08-27T13:18:36.758Z", "sha256_text": "208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66", "snapshot_url": "https://ratesandlimits.com/snapshots/adoption-credit/2026/rp-25-32.txt" } } ], "schedule": null, "explainers": [ { "key": "income-phaseout", "heading": "The credit shrinks as income rises", "body": "For the 2026 Adoption Credit, the amount a family can claim is reduced once modified adjusted gross income (MAGI) crosses a set threshold. The income limit on the credit and on the exclusion for employer-provided adoption benefits is based entirely on MAGI. In 2026, the credit begins to phase out when MAGI exceeds $265,080. Above that level, the available credit is reduced proportionally for each dollar of additional income. Once MAGI reaches $305,080 or more, the credit is fully phased out and no adoption credit can be claimed for that year. The phase-out applies to the combined total of the refundable and nonrefundable portions of the credit as well as the exclusion for employer-provided benefits. Taxpayers whose MAGI falls below the $265,080 threshold can claim the full credit for which they qualify without any income-based reduction. Those in the phase-out range should use the worksheet instructions for Form 8839 to calculate the reduced amount.", "quote": "The income limit on the adoption credit or\nexclusion is based on modified adjusted gross income (MAGI).", "offset": 4541, "verified_at": "2026-09-01", "source": { "url": "https://www.irs.gov/pub/irs-prior/i8839--2025.pdf", "title": "2025 Instructions for Form 8839, Qualified Adoption Expenses", "publisher": "IRS", "fetched_at": "2026-08-29T04:22:51.682Z", "sha256_text": "59adbe7f0200247557c052a8da839c9d80315f4ec025bc8c5a2a04afd8236b80", "snapshot_url": "https://ratesandlimits.com/snapshots/adoption-credit/2026/i8839--2025.txt" } }, { "key": "income-limit-is-magi", "heading": "The income limit is measured on modified AGI", "body": "Whether the adoption credit or the exclusion for employer-provided adoption benefits is reduced turns on modified adjusted gross income, not on the adjusted gross income printed on the front of the return. The Form 8839 instructions send you to a worksheet to work MAGI out, because certain excluded amounts - foreign earned income, income excluded by a bona fide resident of Puerto Rico or American Samoa - are added back before the test is applied. The same figure governs the credit and the exclusion, so a taxpayer above the line loses ground on both at once. For 2026 the reduction starts once MAGI passes $265,080 and the credit and exclusion are gone entirely at $305,080. Below the first of those amounts the income limit does not touch the credit at all, and the maximum of $17,670 per eligible child applies subject to the other rules.", "quote": "Income limit. The income limit on the adoption credit or\nexclusion is based on modified adjusted gross income (MAGI).", "offset": 4527, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/i8839--2025.pdf", "title": "2025 Instructions for Form 8839, Qualified Adoption Expenses", "publisher": "IRS", "fetched_at": "2026-08-29T04:22:51.682Z", "sha256_text": "59adbe7f0200247557c052a8da839c9d80315f4ec025bc8c5a2a04afd8236b80", "snapshot_url": "https://ratesandlimits.com/snapshots/adoption-credit/2026/i8839--2025.txt" } }, { "key": "credit-or-exclusion-not-both", "heading": "The credit and the employer exclusion cannot cover the same expense", "body": "An employee whose employer runs a qualified adoption assistance program can use two different tax benefits for the same adoption: the exclusion, which keeps employer-provided benefits out of income, and the credit, which offsets tax on expenses paid out of pocket. What cannot happen is both benefits resting on the same dollar of expense. The expenses have to be allocated, with one set of costs supporting the exclusion and a different set supporting the credit. This is why Part III of Form 8839 is completed before Part II - the exclusion is figured first, and only expenses left over can be carried into the credit. For 2026 each ceiling is $17,670 per eligible child, and each is measured on its own expenses, so the same adoption can reach both only if the spending behind them is kept apart.", "quote": "But, you can’t claim both a credit and exclusion for the\nsame expenses.", "offset": 1637, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/i8839--2025.pdf", "title": "2025 Instructions for Form 8839, Qualified Adoption Expenses", "publisher": "IRS", "fetched_at": "2026-08-29T04:22:51.682Z", "sha256_text": "59adbe7f0200247557c052a8da839c9d80315f4ec025bc8c5a2a04afd8236b80", "snapshot_url": "https://ratesandlimits.com/snapshots/adoption-credit/2026/i8839--2025.txt" } }, { "key": "unused-credit-carries-forward", "heading": "Unused credit carries forward", "body": "If your nonrefundable adoption credit exceeds the limit shown on Form 8839, line 17, you may have an unused credit amount that can be carried forward to future tax years. The unused nonrefundable credit can be carried forward for up to 5 years or until it is fully used, whichever occurs first. To calculate the carryforward amount, you must use the Nonrefundable Adoption Credit Carryforward Worksheet for Line 18. If you have any unused nonrefundable credit to carry forward to 2026, you should keep the worksheet because you will need it to figure your nonrefundable credit for that year.", "quote": "If Form 8839, line 17, is smaller than line 16, you may have an\nunused nonrefundable credit to carry forward to the next 5 years\nor until used, whichever comes first.", "offset": 40302, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/i8839--2025.pdf", "title": "2025 Instructions for Form 8839, Qualified Adoption Expenses", "publisher": "IRS", "fetched_at": "2026-08-29T04:22:51.682Z", "sha256_text": "59adbe7f0200247557c052a8da839c9d80315f4ec025bc8c5a2a04afd8236b80", "snapshot_url": "https://ratesandlimits.com/snapshots/adoption-credit/2026/i8839--2025.txt" } } ], "estimate": null }, { "program": "american-opportunity-credit", "name": "American Opportunity Credit", "category": "deductions-and-credits", "agency": "IRS", "year": 2026, "state": null, "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-09-01", "published_at": "2026-09-01T04:56:07.632Z", "canonical_url": "https://ratesandlimits.com/american-opportunity-credit/", "figures": [ { "key": "maximum", "label": "Maximum credit", "value": 2500, "format": "usd", "formatted": "$2,500", "scope": null, "derived": false, "quote": "AOTC allows a credit up to $2,500 per eligible student.", "offset": 8963, "source": { "url": "https://www.irs.gov/credits-deductions/individuals/education-credits-aotc-llc", "title": "Education credits - AOTC and LLC", "publisher": "IRS", "fetched_at": "2026-08-29T02:32:02.373Z", "sha256_text": "6dfc0e60e0ff2842f4b6a13e2eeb68cc20e6362711efb0dd1af53626a35fa568", "snapshot_url": "https://ratesandlimits.com/snapshots/american-opportunity-credit/2026/education-credits-aotc-llc.txt" } }, { "key": "first-tier-expenses", "label": "Expenses credited in full", "value": 2000, "format": "usd", "formatted": "$2,000", "scope": "the first $2,000", "derived": false, "quote": "100% of the first $2,000 and 25% of the next $2,000.", "offset": 9104, "source": { "url": "https://www.irs.gov/credits-deductions/individuals/education-credits-aotc-llc", "title": "Education credits - AOTC and LLC", "publisher": "IRS", "fetched_at": "2026-08-29T02:32:02.373Z", "sha256_text": "6dfc0e60e0ff2842f4b6a13e2eeb68cc20e6362711efb0dd1af53626a35fa568", "snapshot_url": "https://ratesandlimits.com/snapshots/american-opportunity-credit/2026/education-credits-aotc-llc.txt" } }, { "key": "second-tier-expenses", "label": "Further expenses credited in part", "value": 2000, "format": "usd", "formatted": "$2,000", "scope": "the next $2,000", "derived": false, "quote": "100% of the first $2,000 and 25% of the next $2,000.", "offset": 9104, "source": { "url": "https://www.irs.gov/credits-deductions/individuals/education-credits-aotc-llc", "title": "Education credits - AOTC and LLC", "publisher": "IRS", "fetched_at": "2026-08-29T02:32:02.373Z", "sha256_text": "6dfc0e60e0ff2842f4b6a13e2eeb68cc20e6362711efb0dd1af53626a35fa568", "snapshot_url": "https://ratesandlimits.com/snapshots/american-opportunity-credit/2026/education-credits-aotc-llc.txt" } }, { "key": "second-tier-rate", "label": "Rate on the further expenses", "value": 25, "format": "percent", "formatted": "25%", "scope": "25%", "derived": false, "quote": "100% of the first $2,000 and 25% of the next $2,000.", "offset": 9104, "source": { "url": "https://www.irs.gov/credits-deductions/individuals/education-credits-aotc-llc", "title": "Education credits - AOTC and LLC", "publisher": "IRS", "fetched_at": "2026-08-29T02:32:02.373Z", "sha256_text": "6dfc0e60e0ff2842f4b6a13e2eeb68cc20e6362711efb0dd1af53626a35fa568", "snapshot_url": "https://ratesandlimits.com/snapshots/american-opportunity-credit/2026/education-credits-aotc-llc.txt" } } ], "schedule": null, "explainers": [ { "key": "refundable-portion", "heading": "40% of the credit is refundable, the rest only offsets tax", "body": "For the American Opportunity Credit in 2026, 40% of the credit is refundable. This means that portion can be paid to the taxpayer as a refund even if they owe no federal income tax. The rest of the credit is non-refundable and can only reduce tax liability. With a maximum credit of $2,500 per eligible student, the refundable portion makes this credit more valuable than fully non-refundable education credits, because it can result in a payment to the taxpayer even when their tax liability is zero.", "quote": "AOTC is partially refundable, 40%.", "offset": 9327, "verified_at": "2026-09-01", "source": { "url": "https://www.irs.gov/credits-deductions/individuals/education-credits-aotc-llc", "title": "Education credits - AOTC and LLC", "publisher": "IRS", "fetched_at": "2026-08-29T02:32:02.373Z", "sha256_text": "6dfc0e60e0ff2842f4b6a13e2eeb68cc20e6362711efb0dd1af53626a35fa568", "snapshot_url": "https://ratesandlimits.com/snapshots/american-opportunity-credit/2026/education-credits-aotc-llc.txt" } }, { "key": "half-time-in-a-degree-program", "heading": "Half-time enrollment in a degree program is required", "body": "To claim the American Opportunity Credit, the student must be enrolled at least half-time at an eligible educational institution for at least one academic period that begins during the tax year. Half-time enrollment generally means the student is taking at least half the normal full-time workload for the course of study they are pursuing, as defined by the school. This requirement applies only to the American Opportunity Credit, not to the Lifetime Learning Credit. The academic period can be a semester, trimester, quarter, or any other period of study recognized by the institution. Students who are enrolled less than half-time, or who are taking courses merely to acquire or improve job skills without pursuing a credential, do not meet this threshold and are ineligible for the American Opportunity Credit for that year.", "quote": "The student must be enrolled at least half-time for at least one academic period 1 that begins during 2025 (or the first 3 months of 2026 if the qualified expenses were paid in 2025.)", "offset": 5696, "verified_at": "2026-09-01", "source": { "url": "https://www.irs.gov/credits-deductions/individuals/education-credits-aotc-llc", "title": "Education credits - AOTC and LLC", "publisher": "IRS", "fetched_at": "2026-08-29T02:32:02.373Z", "sha256_text": "6dfc0e60e0ff2842f4b6a13e2eeb68cc20e6362711efb0dd1af53626a35fa568", "snapshot_url": "https://ratesandlimits.com/snapshots/american-opportunity-credit/2026/education-credits-aotc-llc.txt" } }, { "key": "income-cutoff", "heading": "The income at which you lose the credit entirely", "body": "The credit begins to phase out once your modified adjusted gross income (MAGI) reaches a certain level, and it is lost entirely once MAGI exceeds the upper limit. For a single filer, the credit is reduced once MAGI reaches $90,000 and is gone entirely above that amount; for married couples filing jointly, the phase-out begins at $180,000 and ends at that same upper bound. If you are married filing separately, you cannot claim the credit at all regardless of income. The income test applies to the taxpayer claiming the credit, not to the student, so a student with high earnings can still be claimed by an eligible parent whose MAGI is below the limit.", "quote": "Your modified adjusted gross income (MAGI), is over $90,000 ($180,000 for joint filers).", "offset": 11087, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/credits-deductions/individuals/education-credits-aotc-llc", "title": "Education credits - AOTC and LLC", "publisher": "IRS", "fetched_at": "2026-08-29T02:32:02.373Z", "sha256_text": "6dfc0e60e0ff2842f4b6a13e2eeb68cc20e6362711efb0dd1af53626a35fa568", "snapshot_url": "https://ratesandlimits.com/snapshots/american-opportunity-credit/2026/education-credits-aotc-llc.txt" } }, { "key": "four-tax-years-only", "heading": "The same student can be claimed in only four tax years", "body": "A student may be claimed for the American Opportunity Credit in only 4 tax years total. Once four years of credits have been taken, whether or not they were consecutive, neither the student nor anyone else can claim the credit for that student in any later year. The rule is measured by the number of tax years in which the credit was previously claimed for that student, not by the student's progress toward a degree or the number of academic years completed. Even if the student is still enrolled and continues to pay qualified expenses after those four years, no further AOTC is available.", "quote": "AOTC is available ONLY for 4 years per eligible student.", "offset": 7722, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/credits-deductions/individuals/education-credits-aotc-llc", "title": "Education credits - AOTC and LLC", "publisher": "IRS", "fetched_at": "2026-08-29T02:32:02.373Z", "sha256_text": "6dfc0e60e0ff2842f4b6a13e2eeb68cc20e6362711efb0dd1af53626a35fa568", "snapshot_url": "https://ratesandlimits.com/snapshots/american-opportunity-credit/2026/education-credits-aotc-llc.txt" } }, { "key": "first-four-years-of-college", "heading": "What counts as having finished the first four years", "body": "To qualify for the credit, the student must not have completed the first 4 years of postsecondary education. The four years are counted as academic years, not tax years, and they do not have to be consecutive. Time spent in high school taking college courses, or credits earned before enrolling in a degree program, may count toward the total. Once the student has finished those first 4 years of postsecondary education, the American Opportunity Credit is no longer available for that student, even if the student continues toward a graduate degree or is still paying for undergraduate courses beyond the fourth year.", "quote": "AOTC is available ONLY if the student hasn’t completed the first 4 years of postsecondary education.", "offset": 7422, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/credits-deductions/individuals/education-credits-aotc-llc", "title": "Education credits - AOTC and LLC", "publisher": "IRS", "fetched_at": "2026-08-29T02:32:02.373Z", "sha256_text": "6dfc0e60e0ff2842f4b6a13e2eeb68cc20e6362711efb0dd1af53626a35fa568", "snapshot_url": "https://ratesandlimits.com/snapshots/american-opportunity-credit/2026/education-credits-aotc-llc.txt" } }, { "key": "felony-drug-conviction", "heading": "A felony drug conviction disqualifies the student", "body": "A student who has been convicted of a felony for possessing or distributing a controlled substance is disqualified from the American Opportunity Credit for the tax year in question. The disqualification applies to state and federal convictions alike. However, this bar is specific to AOTC; a felony drug conviction does not make the student ineligible for the Lifetime Learning Credit. Because the rule looks at the student's own criminal record, a parent claiming the credit for a dependent child must verify that the student has no such conviction. The disqualification is evaluated separately each year, so a student who was ineligible in one year may be eligible again in a later year if the circumstances change.", "quote": "The student cannot have been convicted of a state or federal felony for possessing or distributing a controlled substance.", "offset": 7875, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/credits-deductions/individuals/education-credits-aotc-llc", "title": "Education credits - AOTC and LLC", "publisher": "IRS", "fetched_at": "2026-08-29T02:32:02.373Z", "sha256_text": "6dfc0e60e0ff2842f4b6a13e2eeb68cc20e6362711efb0dd1af53626a35fa568", "snapshot_url": "https://ratesandlimits.com/snapshots/american-opportunity-credit/2026/education-credits-aotc-llc.txt" } } ], "estimate": null }, { "program": "amt-exemption", "name": "AMT Exemption", "category": "brackets-and-rates", "agency": "IRS", "year": 2026, "state": null, "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-29", "published_at": "2026-08-29T10:36:08.215Z", "canonical_url": "https://ratesandlimits.com/amt-exemption/", "figures": [ { "key": "exemption-joint", "label": "Exemption, joint returns or surviving spouses", "value": 140200, "format": "usd", "formatted": "$140,200", "scope": null, "derived": false, "quote": "Joint Returns or Surviving Spouses $140,200", "offset": 26336, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32", "publisher": "IRS", "fetched_at": "2026-08-29T03:21:34.397Z", "sha256_text": "208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66", "snapshot_url": "https://ratesandlimits.com/snapshots/amt-exemption/2026/rp-25-32.txt" } }, { "key": "exemption-unmarried", "label": "Exemption, unmarried individuals", "value": 90100, "format": "usd", "formatted": "$90,100", "scope": null, "derived": false, "quote": "Unmarried Individuals (other than Surviving Spouses) $90,100", "offset": 26380, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32", "publisher": "IRS", "fetched_at": "2026-08-29T03:21:34.397Z", "sha256_text": "208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66", "snapshot_url": "https://ratesandlimits.com/snapshots/amt-exemption/2026/rp-25-32.txt" } }, { "key": "exemption-separate", "label": "Exemption, married individuals filing separate returns", "value": 70100, "format": "usd", "formatted": "$70,100", "scope": null, "derived": false, "quote": "Married Individuals Filing Separate Returns $70,100", "offset": 26441, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32", "publisher": "IRS", "fetched_at": "2026-08-29T03:21:34.397Z", "sha256_text": "208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66", "snapshot_url": "https://ratesandlimits.com/snapshots/amt-exemption/2026/rp-25-32.txt" } }, { "key": "exemption-estates-trusts", "label": "Exemption, estates and trusts", "value": 31400, "format": "usd", "formatted": "$31,400", "scope": null, "derived": false, "quote": "Estates and Trusts $31,400", "offset": 26493, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32", "publisher": "IRS", "fetched_at": "2026-08-29T03:21:34.397Z", "sha256_text": "208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66", "snapshot_url": "https://ratesandlimits.com/snapshots/amt-exemption/2026/rp-25-32.txt" } }, { "key": "phaseout-threshold-joint", "label": "Exemption phaseout threshold, joint returns or surviving spouses", "value": 1000000, "format": "usd", "formatted": "$1,000,000", "scope": null, "derived": false, "quote": "For taxable years beginning in 2026, the amounts used under § 55(d)(2) to\ndetermine the phaseout of the exemption amounts are:\nFiling status Threshold Phaseout\nAmount\nComplete Phaseout\nAmount\nJoint Returns or Surviving Spouses $1,000,000 $1,280,400", "offset": 26767, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32", "publisher": "IRS", "fetched_at": "2026-08-29T03:21:34.397Z", "sha256_text": "208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66", "snapshot_url": "https://ratesandlimits.com/snapshots/amt-exemption/2026/rp-25-32.txt" } } ], "schedule": null, "explainers": [ { "key": "what-the-amt-is", "heading": "What the alternative minimum tax actually is", "body": "The alternative minimum tax (AMT) is an additional tax that runs alongside the regular income tax. It targets taxpayers who benefit from tax preferences - such as deductions or favorable income treatment - that would otherwise allow them to pay little or no regular tax despite having substantial economic income. The AMT recalculates tax liability using a broader definition of income and a flat rate structure, then requires payment of the higher amount. In effect, it establishes a floor on how much tax a taxpayer owes, preventing extensive use of tax benefits from eliminating tax liability entirely. If your AMT calculation exceeds your regular tax, you owe the difference.", "quote": "The AMT is a separate tax that is\nimposed in addition to your regular tax. It applies to taxpayers\nwho have certain types of income that receive favorable\ntreatment or who qualify for certain deductions under the tax\nlaw. These tax benefits can significantly reduce the regular\ntax of some taxpayers with higher economic incomes. The\nAMT sets a limit on the amount these benefits can be used to\nreduce total tax.", "offset": 2280, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/i6251--2025.pdf", "title": "Instructions for Form 6251 (2025), Alternative Minimum Tax - Individuals", "publisher": "IRS", "fetched_at": "2026-08-29T08:17:08.062Z", "sha256_text": "208a7888473b1c347b163f112f7d2632c27aad6a73d72c4913056bc0ba365150", "snapshot_url": "https://ratesandlimits.com/snapshots/amt-exemption/2026/i6251--2025.txt" } }, { "key": "who-must-file-form-6251", "heading": "When you have to file Form 6251", "body": "Taxpayers must attach Form 6251 to their federal income tax return if any of several conditions are met. The most common trigger is when the tentative minimum tax calculated on line 7 of Form 6251 exceeds the regular tax amount on line 10, meaning the taxpayer actually owes AMT. Additional filing requirements apply if the taxpayer claims certain credits, including the general business credit (when specific line thresholds on Form 3800 are exceeded), the qualified electric vehicle credit, the personal-use portion of the alternative fuel vehicle refueling property credit, or the credit for prior year minimum tax. Form 6251 must also be filed if the total of certain AMT adjustment lines is negative and line 7 would still exceed line 10 without taking those adjustments into account. These rules ensure that the IRS can properly verify AMT calculations and credit limitations for taxpayers who may be subject to the alternative minimum tax system.", "quote": "Who Must File\nAttach Form 6251 to your return if any of the following\nstatements are true.", "offset": 1552, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/i6251--2025.pdf", "title": "Instructions for Form 6251 (2025), Alternative Minimum Tax - Individuals", "publisher": "IRS", "fetched_at": "2026-08-29T08:17:08.062Z", "sha256_text": "208a7888473b1c347b163f112f7d2632c27aad6a73d72c4913056bc0ba365150", "snapshot_url": "https://ratesandlimits.com/snapshots/amt-exemption/2026/i6251--2025.txt" } }, { "key": "exemption-phase-out", "heading": "How the exemption is taken away as income rises", "body": "The AMT exemption is gradually reduced as alternative minimum taxable income (AMTI) rises above a phaseout threshold. Once AMTI exceeds the threshold, the exemption shrinks for each additional dollar of income. If AMTI reaches the level shown in the exemption worksheet for the taxpayer's filing status, the exemption drops to zero entirely and the full alternative minimum taxable income is subject to tax. For 2026, the exemption for joint filers and surviving spouses is $140,200, and the exemption phaseout threshold for joint filers and surviving spouses is $1,000,000. This means that once a married couple's AMTI surpasses $1,000,000, their exemption begins to shrink and eventually disappears, subjecting more of their income to the AMT. The exemption worksheet in the instructions walks taxpayers through the calculation, subtracting the threshold from AMTI and applying a fractional reduction to the exemption.", "quote": "Note: If Form 6251, line 4, is equal to or more than $978,750 if single or head of household, $1,800,700 if married filing jointly or qualifying surviving\nspouse, or $900,350 if married filing separately, your exemption is zero.", "offset": 51122, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/i6251--2025.pdf", "title": "Instructions for Form 6251 (2025), Alternative Minimum Tax - Individuals", "publisher": "IRS", "fetched_at": "2026-08-29T08:17:08.062Z", "sha256_text": "208a7888473b1c347b163f112f7d2632c27aad6a73d72c4913056bc0ba365150", "snapshot_url": "https://ratesandlimits.com/snapshots/amt-exemption/2026/i6251--2025.txt" } }, { "key": "amt-rates", "heading": "The two AMT rates and where the second one starts", "body": "The alternative minimum tax uses two rates for noncorporate taxpayers. The first rate, 26%, applies to the lower portion of taxable excess - the amount on line 6 of Form 6251 after the exemption is subtracted from alternative minimum taxable income. For taxable excess above a threshold, the second rate, 28%, applies to the amount exceeding that threshold. The instructions provide a simplified calculation: multiply the entire line 6 by 28% and subtract a fixed dollar amount to arrive at the same result as applying both rates separately. The threshold at which the higher rate kicks in and the corresponding subtraction amount vary by filing status, with lower thresholds for married individuals filing separately. These two brackets ensure that the AMT imposes a progressively higher burden as the amount of taxable excess increases.", "quote": "multiplying line 6 by 26% (0.26). Otherwise, figure the\namount to enter on line 7 by multiplying line 6 by 28% (0.28)\nand subtracting $4,782 ($2,391 if married filing separately)\nfrom the result.", "offset": 54203, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/i6251--2025.pdf", "title": "Instructions for Form 6251 (2025), Alternative Minimum Tax - Individuals", "publisher": "IRS", "fetched_at": "2026-08-29T08:17:08.062Z", "sha256_text": "208a7888473b1c347b163f112f7d2632c27aad6a73d72c4913056bc0ba365150", "snapshot_url": "https://ratesandlimits.com/snapshots/amt-exemption/2026/i6251--2025.txt" } } ], "estimate": null }, { "program": "bonus-depreciation-percentage", "name": "Bonus Depreciation Percentage", "category": "deductions-and-credits", "agency": "IRS", "year": 2026, "state": null, "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-29", "published_at": "2026-08-29T14:30:19.188Z", "canonical_url": "https://ratesandlimits.com/bonus-depreciation-percentage/", "figures": [ { "key": "special-depreciation-allowance", "label": "Special depreciation allowance", "value": 100, "format": "percent", "formatted": "100%", "scope": "after January 19, 2025", "derived": false, "quote": "replaced the annual phasedown of the applicable percentage\nfor the § 168(k) additional first year depreciation deduction with a permanent\n100 percent additional first year depreciation deduction for qualified property acquired,\nor specified plants planted or grafted, after January 19, 2025.", "offset": 4478, "source": { "url": "https://www.irs.gov/pub/irs-drop/n-26-11.pdf", "title": "Notice 2026-11", "publisher": "IRS", "fetched_at": "2026-08-29T03:23:50.551Z", "sha256_text": "bf30146efb5a75654db49e911c742ac0ac2246fb4d3927a2a61733d50e183ad0", "snapshot_url": "https://ratesandlimits.com/snapshots/bonus-depreciation-percentage/2026/n-26-11.txt" } } ], "schedule": null, "explainers": [ { "key": "depreciable-basis-and-remaining-cost", "heading": "What the percentage is applied to, and what is left afterwards", "body": "This passage explains the mechanical relationship between the special depreciation allowance (bonus depreciation) and regular MACRS depreciation. After you calculate the bonus depreciation amount for your qualified property or qualified production property, the remaining cost - that is, the original cost minus the allowance - becomes the basis on which you compute regular MACRS depreciation. In practical terms, you must first subtract the special depreciation allowance from the property's depreciable basis before applying the applicable MACRS rate to what is left. For 2026, the special depreciation allowance is 100%. Because the allowance is taken upfront, the basis available for year-by-year regular depreciation is reduced by that same 100% amount. Once the full 100% allowance has been deducted in the year the property is placed in service, there is no remaining cost left to depreciate under MACRS for that asset. The passage makes clear that the two steps are sequential: figure the allowance first, reduce basis, then figure regular depreciation on the reduced amount.", "quote": "Depreciating the remaining cost. After you figure your\nspecial depreciation allowance for your qualified property\nor qualified production property, you can use the remain-\ning cost to figure your regular MACRS depreciation de-\nduction (discussed in chapter 4). Therefore, you must re-\nduce the depreciable basis of the property by the special\ndepreciation allowance before figuring your regular\nMACRS depreciation deduction.", "offset": 116950, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/p946--2025.pdf", "title": "Publication 946 (2025), How To Depreciate Property", "publisher": "IRS", "fetched_at": "2026-08-29T08:17:39.165Z", "sha256_text": "3f08bab5aaae6e3e4a4a36926a22b941a3e9c37c66226ef42c2d030119eaf7eb", "snapshot_url": "https://ratesandlimits.com/snapshots/bonus-depreciation-percentage/2026/p946--2025.txt" } }, { "key": "election-not-to-claim", "heading": "Electing out, by class of property", "body": "Taxpayers are not required to take the special depreciation allowance if they prefer to depreciate the entire cost of their property over time under regular MACRS. The IRS permits an election to opt out, but the election must be made on a class-by-class basis. You cannot pick and choose individual assets; you must elect out for every item of property that falls within the same asset class placed in service during that tax year. To make the election, you must attach a statement to your tax return that clearly identifies which class of property you are electing out of. Each person who owns qualified property - such as a partnership, an S corporation, or a member of a consolidated group - must make the election separately. The election is generally due on a timely filed return, including extensions, for the year the property is placed in service. Once made, the election is irrevocable without IRS consent.", "quote": "You can elect, for any class of property, not to deduct any\nspecial depreciation allowances for all property in such\nclass placed in service during the tax year.", "offset": 119076, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/p946--2025.pdf", "title": "Publication 946 (2025), How To Depreciate Property", "publisher": "IRS", "fetched_at": "2026-08-29T08:17:39.165Z", "sha256_text": "3f08bab5aaae6e3e4a4a36926a22b941a3e9c37c66226ef42c2d030119eaf7eb", "snapshot_url": "https://ratesandlimits.com/snapshots/bonus-depreciation-percentage/2026/p946--2025.txt" } }, { "key": "recapture-on-disposition", "heading": "Recapture when you dispose of the property", "body": "When you sell or otherwise dispose of property for which a special depreciation allowance was previously claimed, the tax code requires you to recapture part or all of the gain as ordinary income rather than capital gain. The recapture amount is limited to the total special depreciation allowance that was allowed or allowable on the property. In other words, you cannot treat as capital gain any portion of the sale proceeds that represents a recovery of the accelerated depreciation you already deducted. For 2026, the special depreciation allowance is 100% of the property's basis, so the recapture potential can be substantial. If you sell the property for more than its original cost, any gain above the amount of the special depreciation allowance may qualify for capital gain treatment, but the portion of gain equal to the allowance is always ordinary income. Taxpayers should consult the rules on MACRS depreciation recapture for detailed guidance on calculating the recapture amount.", "quote": "When you dispose of property for which you claimed a\nspecial depreciation allowance, any gain on the disposi-\ntion is generally recaptured (included in income) as ordi-\nnary income up to the amount of the special depreciation\nallowance previously allowed or allowable.", "offset": 120605, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/p946--2025.pdf", "title": "Publication 946 (2025), How To Depreciate Property", "publisher": "IRS", "fetched_at": "2026-08-29T08:17:39.165Z", "sha256_text": "3f08bab5aaae6e3e4a4a36926a22b941a3e9c37c66226ef42c2d030119eaf7eb", "snapshot_url": "https://ratesandlimits.com/snapshots/bonus-depreciation-percentage/2026/p946--2025.txt" } } ], "estimate": null }, { "program": "capital-gains-tax-rate", "name": "Capital Gains Tax Rate", "category": "brackets-and-rates", "agency": "IRS", "year": 2026, "state": null, "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-09-01", "published_at": "2026-09-01T03:34:53.581Z", "canonical_url": "https://ratesandlimits.com/capital-gains-tax-rate/", "figures": [ { "key": "zero-rate-max-married", "label": "Top of the 0% bracket, joint filers", "value": 98900, "format": "usd", "formatted": "$98,900", "scope": null, "derived": false, "quote": "Married Individuals Filing Joint Returns and\nSurviving Spouse\n$98,900", "offset": 21925, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32", "publisher": "IRS", "fetched_at": "2026-08-27T13:34:55.305Z", "sha256_text": "208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66", "snapshot_url": "https://ratesandlimits.com/snapshots/capital-gains-tax-rate/2026/rp-25-32.txt" } }, { "key": "fifteen-rate-max-married", "label": "Top of the 15% bracket, joint filers", "value": 613700, "format": "usd", "formatted": "$613,700", "scope": null, "derived": false, "quote": "Married Individuals Filing Joint Returns and\nSurviving Spouse\n$98,900 $613,700", "offset": 21925, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32", "publisher": "IRS", "fetched_at": "2026-08-27T13:34:55.305Z", "sha256_text": "208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66", "snapshot_url": "https://ratesandlimits.com/snapshots/capital-gains-tax-rate/2026/rp-25-32.txt" } }, { "key": "zero-rate-max-separate", "label": "Top of the 0% bracket, married filing separately", "value": 49450, "format": "usd", "formatted": "$49,450", "scope": null, "derived": false, "quote": "Married Individuals Filing Separate Returns $49,450", "offset": 22004, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32", "publisher": "IRS", "fetched_at": "2026-08-27T13:34:55.305Z", "sha256_text": "208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66", "snapshot_url": "https://ratesandlimits.com/snapshots/capital-gains-tax-rate/2026/rp-25-32.txt" } }, { "key": "fifteen-rate-max-separate", "label": "Top of the 15% bracket, married filing separately", "value": 306850, "format": "usd", "formatted": "$306,850", "scope": null, "derived": false, "quote": "Married Individuals Filing Separate Returns $49,450 $306,850", "offset": 22004, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32", "publisher": "IRS", "fetched_at": "2026-08-27T13:34:55.305Z", "sha256_text": "208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66", "snapshot_url": "https://ratesandlimits.com/snapshots/capital-gains-tax-rate/2026/rp-25-32.txt" } }, { "key": "zero-rate-max-hoh", "label": "Top of the 0% bracket, heads of household", "value": 66200, "format": "usd", "formatted": "$66,200", "scope": null, "derived": false, "quote": "Heads of Household $66,200", "offset": 22065, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32", "publisher": "IRS", "fetched_at": "2026-08-27T13:34:55.305Z", "sha256_text": "208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66", "snapshot_url": "https://ratesandlimits.com/snapshots/capital-gains-tax-rate/2026/rp-25-32.txt" } }, { "key": "fifteen-rate-max-hoh", "label": "Top of the 15% bracket, heads of household", "value": 579600, "format": "usd", "formatted": "$579,600", "scope": null, "derived": false, "quote": "Heads of Household $66,200 $579,600", "offset": 22065, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32", "publisher": "IRS", "fetched_at": "2026-08-27T13:34:55.305Z", "sha256_text": "208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66", "snapshot_url": "https://ratesandlimits.com/snapshots/capital-gains-tax-rate/2026/rp-25-32.txt" } }, { "key": "zero-rate-max-single", "label": "Top of the 0% bracket, single filers", "value": 49450, "format": "usd", "formatted": "$49,450", "scope": null, "derived": false, "quote": "All Other Individuals $49,450", "offset": 22101, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32", "publisher": "IRS", "fetched_at": "2026-08-27T13:34:55.305Z", "sha256_text": "208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66", "snapshot_url": "https://ratesandlimits.com/snapshots/capital-gains-tax-rate/2026/rp-25-32.txt" } }, { "key": "fifteen-rate-max-single", "label": "Top of the 15% bracket, single filers", "value": 545500, "format": "usd", "formatted": "$545,500", "scope": null, "derived": false, "quote": "All Other Individuals $49,450 $545,500", "offset": 22101, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32", "publisher": "IRS", "fetched_at": "2026-08-27T13:34:55.305Z", "sha256_text": "208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66", "snapshot_url": "https://ratesandlimits.com/snapshots/capital-gains-tax-rate/2026/rp-25-32.txt" } }, { "key": "zero-rate-max-estates", "label": "Top of the 0% bracket, estates and trusts", "value": 3300, "format": "usd", "formatted": "$3,300", "scope": null, "derived": false, "quote": "Estates and Trusts $3,300", "offset": 22140, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32", "publisher": "IRS", "fetched_at": "2026-08-27T13:34:55.305Z", "sha256_text": "208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66", "snapshot_url": "https://ratesandlimits.com/snapshots/capital-gains-tax-rate/2026/rp-25-32.txt" } }, { "key": "fifteen-rate-max-estates", "label": "Top of the 15% bracket, estates and trusts", "value": 16250, "format": "usd", "formatted": "$16,250", "scope": null, "derived": false, "quote": "Estates and Trusts $3,300 $16,250", "offset": 22140, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32", "publisher": "IRS", "fetched_at": "2026-08-27T13:34:55.305Z", "sha256_text": "208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66", "snapshot_url": "https://ratesandlimits.com/snapshots/capital-gains-tax-rate/2026/rp-25-32.txt" } }, { "key": "fifteen-rate", "label": "Rate above the 0% bracket", "value": 15, "format": "percent", "formatted": "15%", "scope": null, "derived": false, "quote": "For taxable years beginning in\n2026, the maximum zero rate amounts and maximum 15 percent rate amounts under\n§ 1(j)(5)(B), as adjusted for inflation, are as follows:", "offset": 21697, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32", "publisher": "IRS", "fetched_at": "2026-08-27T13:34:55.305Z", "sha256_text": "208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66", "snapshot_url": "https://ratesandlimits.com/snapshots/capital-gains-tax-rate/2026/rp-25-32.txt" } }, { "key": "twenty-rate", "label": "Rate above the 15% bracket", "value": 20, "format": "percent", "formatted": "20%", "scope": null, "derived": false, "quote": "However, a capital gains rate of 20% applies to the extent that your taxable income exceeds the thresholds set for the 15% capital gain rate.", "offset": 7725, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32", "publisher": "IRS", "fetched_at": "2026-08-27T13:34:55.305Z", "sha256_text": "208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66", "snapshot_url": "https://ratesandlimits.com/snapshots/capital-gains-tax-rate/2026/rp-25-32.txt" } } ], "schedule": null, "explainers": [ { "key": "net-capital-gain-gets-the-rate", "heading": "What the lower rates actually apply to", "body": "For 2026, the reduced capital gains rates of 15%, 20%, 25%, and 28% apply only to net capital gain, not to all investment proceeds. The IRS defines net capital gain as the amount by which your net long-term capital gain for the year exceeds your net short-term capital loss. You must first net your long-term gains and losses separately from your short-term gains and losses. Only if the long-term side produces a positive result that is larger than any net short-term loss do you have a net capital gain eligible for the preferential rates. For most taxpayers, \"other gain\" from assets like stocks and mutual funds falls into the 15% or 20% brackets depending on taxable income, or the 0% bracket for those in the lowest ordinary rate brackets. For single filers in 2026, the top of the 0% bracket is $49,450 and the top of the 15% bracket is $545,500; above that threshold, the 20% rate applies. For joint filers, the 0% bracket tops out at $98,900 and the 15% bracket at $613,700. Gains from collectibles and certain qualified small business stock are taxed at 28%, and unrecaptured section 1250 gain is taxed at 25%. If the regular tax computation produces a lower tax than the maximum capital gain rate computation, the regular computation applies instead.", "quote": "These\nlower rates are called the maximum capital gain rates.\nThe term “net capital gain” means the amount by which\nyour net long-term capital gain for the year is more than\nyour net short-term capital loss.\nFor 2025, the maximum capital gain rates are 0%, 15%,\n20%, 25%, and 28%.", "offset": 536624, "verified_at": "2026-09-01", "source": { "url": "https://www.irs.gov/pub/irs-prior/p550--2025.pdf", "title": "Publication 550 (2025), Investment Income and Expenses", "publisher": "IRS", "fetched_at": "2026-08-29T07:59:43.927Z", "sha256_text": "3dab5502193cea63c91eded67e97825ed6d092fe1739dd07ca32ba16e3125978", "snapshot_url": "https://ratesandlimits.com/snapshots/capital-gains-tax-rate/2026/p550--2025.txt" } }, { "key": "holding-period", "heading": "How long you must hold to get the long-term rate", "body": "For 2026, your holding period determines whether a capital gain or loss from investment property is short-term or long-term, which in turn determines whether the reduced maximum capital gain rates apply. You hold investment property more than 1 year if the period from the day after you acquired it through the day you disposed of it is longer than 1 year; in that case, any capital gain or loss is long-term and may qualify for the preferential rates. If you hold the property 1 year or less, the gain or loss is short-term and is taxed at ordinary income rates. Counting begins the day after the acquisition date, and the disposition date is included in the holding period. For securities traded on an established market, use the trade date rather than the settlement date for both the start and end of the period. Special rules apply to digital assets, which are treated as property and follow the same holding period principles.", "quote": "If you hold investment prop-\nerty more than 1 year, any capital gain or loss is a\nlong-term capital gain or loss. If you hold the property 1\nyear or less, any capital gain or loss is a short-term capital\ngain or loss.", "offset": 417564, "verified_at": "2026-09-01", "source": { "url": "https://www.irs.gov/pub/irs-prior/p550--2025.pdf", "title": "Publication 550 (2025), Investment Income and Expenses", "publisher": "IRS", "fetched_at": "2026-08-29T07:59:43.927Z", "sha256_text": "3dab5502193cea63c91eded67e97825ed6d092fe1739dd07ca32ba16e3125978", "snapshot_url": "https://ratesandlimits.com/snapshots/capital-gains-tax-rate/2026/p550--2025.txt" } }, { "key": "capital-loss-limit-and-carryover", "heading": "How much of a loss you can deduct in one year", "body": "When your capital losses exceed your capital gains in a tax year, you can deduct the net loss against other income, but only up to a limit. The allowable capital loss deduction is the lesser of $3,000 ($1,500 if married filing separately) or your total net loss shown on line 16 of Schedule D (Form 1040). This means you can reduce your ordinary income dollar for dollar by up to $3,000 of net capital loss each year. If your total net loss is greater than $3,000, the excess is not lost - it carries over to the next tax year and is treated as if incurred in that year. You can continue carrying over unused losses to later years until they are completely used up. When you carry a loss forward, it keeps its original character: a long-term capital loss carried over reduces the next year's long-term capital gains before it reduces short-term capital gains. The carryover amount equals your total net loss minus the lesser of your allowable deduction for the year or your taxable income increased by that allowable deduction. Losses carried over from a joint return filed in a prior year can only be deducted on the return of the spouse who actually incurred the loss if you now file separately.", "quote": "Limit on deduction. Your allowable capital loss deduc-\ntion, figured on Schedule D (Form 1040), is the lesser of:\n• $3,000 ($1,500 if you are married and file a separate\nreturn), or\n• Your total net loss as shown on line 16 of Schedule D\n(Form 1040).", "offset": 529729, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/p550--2025.pdf", "title": "Publication 550 (2025), Investment Income and Expenses", "publisher": "IRS", "fetched_at": "2026-08-29T07:59:43.927Z", "sha256_text": "3dab5502193cea63c91eded67e97825ed6d092fe1739dd07ca32ba16e3125978", "snapshot_url": "https://ratesandlimits.com/snapshots/capital-gains-tax-rate/2026/p550--2025.txt" } }, { "key": "net-investment-income-tax", "heading": "The extra tax on top of the capital gain rate", "body": "In addition to the regular capital gains tax, certain taxpayers owe the Net Investment Income Tax, also known as NIIT. The NIIT is a 3.8% tax on the lesser of your net investment income or the amount by which your modified adjusted gross income exceeds a threshold that depends on your filing status. For married taxpayers filing jointly or qualifying surviving spouses, the threshold is $250,000. For married taxpayers filing separately, the threshold is $125,000. For single filers and heads of household, the threshold is $200,000. Estates and trusts are also subject to the NIIT on undistributed net investment income to the extent it exceeds the dollar amount at which the highest tax bracket begins for an estate or trust. The NIIT is imposed under Code section 1411 and reported on Form 8960. Because capital gains are included in net investment income, the 3.8% NIIT is added on top of whatever capital gain rate applies, whether 15% or 20%. For example, a joint filer with modified adjusted gross income above $250,000 who has long-term capital gains taxed at 15% will also owe the additional 3.8% on the lesser of net investment income or the amount of modified adjusted gross income over $250,000.", "quote": "Net investment income tax (NIIT). The NIIT is a 3.8%\ntax on the lesser of your net investment income or the\namount of your modified adjusted gross income (MAGI)\nthat is over a threshold amount based on your filing status.\nFiling Status Threshold Amount\nMarried Filing Jointly or Qualifying\nSurviving Spouse\n$250,000\nMarried Filing Separately $125,000\nSingle or Head of Household $200,000", "offset": 12683, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/p550--2025.pdf", "title": "Publication 550 (2025), Investment Income and Expenses", "publisher": "IRS", "fetched_at": "2026-08-29T07:59:43.927Z", "sha256_text": "3dab5502193cea63c91eded67e97825ed6d092fe1739dd07ca32ba16e3125978", "snapshot_url": "https://ratesandlimits.com/snapshots/capital-gains-tax-rate/2026/p550--2025.txt" } }, { "key": "wash-sales", "heading": "The loss you cannot deduct if you buy back in", "body": "If you sell stock or securities at a loss and buy substantially identical stock or securities within 30 days before or after the sale, the loss is disallowed under the wash sale rules. The 30-day window runs both directions, so buying 30 days before the sale triggers the rule just as buying 30 days after does. The rule also applies if your spouse or a corporation you control buys the substantially identical stock, if you acquire the replacement through a fully taxable trade, if you acquire a contract or option to buy substantially identical stock, or if you acquire substantially identical stock inside an IRA or Roth IRA. The loss is not permanently forfeited. Instead, the disallowed loss is added to the cost basis of the replacement stock, and the holding period of the replacement includes the holding period of the stock sold. This postpones the deduction until the new stock is eventually disposed of. Wash sale rules apply to losses on contracts and options to acquire stock or securities, but not to losses on commodity futures contracts or foreign currencies.", "quote": "A wash sale occurs when you sell or trade stock or se-\ncurities at a loss and within 30 days before or after the\nsale you:\n1. Buy substantially identical stock or securities,\n2. Acquire substantially identical stock or securities in a\nfully taxable trade,\n3. Acquire a contract or option to buy substantially iden-\ntical stock or securities, or\n4. Acquire substantially identical stock for your individual\nretirement arrangement (IRA) or Roth IRA.", "offset": 447191, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/p550--2025.pdf", "title": "Publication 550 (2025), Investment Income and Expenses", "publisher": "IRS", "fetched_at": "2026-08-29T07:59:43.927Z", "sha256_text": "3dab5502193cea63c91eded67e97825ed6d092fe1739dd07ca32ba16e3125978", "snapshot_url": "https://ratesandlimits.com/snapshots/capital-gains-tax-rate/2026/p550--2025.txt" } } ], "estimate": null }, { "program": "child-tax-credit", "name": "Child Tax Credit", "category": "deductions-and-credits", "agency": "IRS", "year": 2026, "state": null, "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-09-01", "published_at": "2026-09-01T03:35:31.597Z", "canonical_url": "https://ratesandlimits.com/child-tax-credit/", "figures": [ { "key": "maximum-credit", "label": "Limit per child", "value": 2200, "format": "usd", "formatted": "$2,200", "scope": null, "derived": false, "quote": "(1) Maximum amount of the credit. For taxable years beginning in 2026, the\nmaximum amount of the credit allowed under § 24(a) is $2,200.", "offset": 23120, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32", "publisher": "IRS", "fetched_at": "2026-08-27T13:29:20.827Z", "sha256_text": "208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66", "snapshot_url": "https://ratesandlimits.com/snapshots/child-tax-credit/2026/rp-25-32.txt" } }, { "key": "refundable-portion", "label": "Refundable per child", "value": 1700, "format": "usd", "formatted": "$1,700", "scope": null, "derived": false, "quote": "(2) Refundable portion. For taxable years beginning in 2026, the amount used in\n§ 24(d)(1)(A) to determine the amount of the credit under § 24 that may be refundable is\n$1,700.", "offset": 23257, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32", "publisher": "IRS", "fetched_at": "2026-08-27T13:29:20.827Z", "sha256_text": "208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66", "snapshot_url": "https://ratesandlimits.com/snapshots/child-tax-credit/2026/rp-25-32.txt" } }, { "key": "income-limit-full-credit-joint", "label": "Income threshold, joint filers", "value": 400000, "format": "usd", "formatted": "$400,000", "scope": "married filing jointly", "derived": false, "quote": "your total income will be $200,000 or less ($400,000 or less if\nmarried filing jointly):\n(a) Multiply the number of qualifying children under age 17 by\n$2,200", "offset": 2997, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32", "publisher": "IRS", "fetched_at": "2026-08-27T13:29:20.827Z", "sha256_text": "208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66", "snapshot_url": "https://ratesandlimits.com/snapshots/child-tax-credit/2026/rp-25-32.txt" } }, { "key": "income-limit-full-credit", "label": "Income threshold", "value": 200000, "format": "usd", "formatted": "$200,000", "scope": null, "derived": false, "quote": "your total income will be $200,000 or less ($400,000 or less if\nmarried filing jointly):\n(a) Multiply the number of qualifying children under age 17 by\n$2,200", "offset": 2997, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32", "publisher": "IRS", "fetched_at": "2026-08-27T13:29:20.827Z", "sha256_text": "208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66", "snapshot_url": "https://ratesandlimits.com/snapshots/child-tax-credit/2026/rp-25-32.txt" } } ], "schedule": null, "explainers": [ { "key": "improper-claim-ban", "heading": "Two years, or ten", "body": "For the 2026 Child Tax Credit, the IRS imposes a disallowance period on taxpayers who improperly claim the credit. If you erroneously claim the CTC and the IRS determines that your mistake resulted from reckless or intentional disregard of the credit's rules, you lose the ability to claim the CTC for two years, even if you would otherwise qualify. A longer penalty applies when the error is traced to fraud: you will be barred from claiming the credit for 10 years. In either situation, you may also owe additional penalties beyond the loss of the credit itself. If you disagree with the IRS determination that triggers the 2-year or 10-year ban, you can appeal the disallowance period through the process described in the Instructions for Form 8862, Information To Claim Certain Credits After Disallowance. That form may be required when you seek to reclaim the credit after the ban period ends. The credit amount subject to these rules is up to $2,200 per child for 2026, with as much as $1,700 per child available as a refundable portion.", "quote": "If you erroneously claim the CTC, ACTC, or ODC and it is later\ndetermined that your error was due to reckless or intentional\ndisregard of the CTC, ACTC, or ODC rules, you will not be\nallowed to claim any of these credits for 2 years even if you are\notherwise eligible to do so. If it is determined that your error was\ndue to fraud, you will not be allowed to claim any of these credits\nfor 10 years. You may also have to pay penalties.", "offset": 5468, "verified_at": "2026-09-01", "source": { "url": "https://www.irs.gov/pub/irs-pdf/i1040s8.pdf", "title": "2025 Instructions for Schedule 8812", "publisher": "IRS", "fetched_at": "2026-08-29T07:27:15.626Z", "sha256_text": "484020e8ec873d4f8c9c2bdd9134c9a5971fb2d8a643029480d15c9f17dac9a8", "snapshot_url": "https://ratesandlimits.com/snapshots/child-tax-credit/2026/i1040s8.txt" } }, { "key": "ssn-required", "heading": "Which SSN the credit requires", "body": "Starting in tax year 2025, claiming the child tax credit or the additional child tax credit requires a valid Social Security number. On a joint return, only one spouse needs the valid SSN; the other spouse must have either an SSN or an ITIN that was issued on or before the return's due date. If neither spouse has a qualifying SSN by that deadline, the couple cannot claim either credit for the year. The requirement applies to the taxpayer (or at least one spouse on a joint return) - it is not enough for the child to have an SSN. Taxpayers who file without a qualifying number may need to amend, and in some cases the IRS may request additional documentation before allowing the credit. This rule is separate from the credit amounts and income thresholds that determine how much a family receives once eligibility is established.", "quote": "Beginning in tax year 2025, you must have a valid SSN to claim\nthe CTC or ACTC.", "offset": 1224, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/i1040s8.pdf", "title": "2025 Instructions for Schedule 8812", "publisher": "IRS", "fetched_at": "2026-08-29T07:27:15.626Z", "sha256_text": "484020e8ec873d4f8c9c2bdd9134c9a5971fb2d8a643029480d15c9f17dac9a8", "snapshot_url": "https://ratesandlimits.com/snapshots/child-tax-credit/2026/i1040s8.txt" } }, { "key": "child-under-17", "heading": "The age test is 17, measured at year end", "body": "A child must be under age 17 at the close of the tax year to count as a qualifying child for the child tax credit or the additional child tax credit. The IRS measures age as of December 31. A child who turns 17 on December 30 of the tax year has not met the test and cannot be used to claim either credit, even if the child is otherwise a dependent and a U.S. citizen. This is a bright-line rule: the day after the 17th birthday is too late, and the credit is lost for that year. Children who are 17 or older at year end may still qualify a taxpayer for the credit for other dependents, but not for the larger CTC or the refundable ACTC. The age test applies separately to each child claimed, so a family with multiple children may use some but not others depending on each child's date of birth. Taxpayers should verify each child's age as of the last day of the year before completing the credit section of the return.", "quote": "Example 1. Your child turned 17 on December 30, 2025, and\nis a citizen of the United States and claimed as a dependent on\nyour return. You can’t use the child to claim the CTC or ACTC\nbecause the child was not under age 17 at the end of 2025.", "offset": 7660, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/i1040s8.pdf", "title": "2025 Instructions for Schedule 8812", "publisher": "IRS", "fetched_at": "2026-08-29T07:27:15.626Z", "sha256_text": "484020e8ec873d4f8c9c2bdd9134c9a5971fb2d8a643029480d15c9f17dac9a8", "snapshot_url": "https://ratesandlimits.com/snapshots/child-tax-credit/2026/i1040s8.txt" } }, { "key": "modified-agi-phaseout", "heading": "Where the credit starts shrinking", "body": "The child tax credit begins to phase out when a taxpayer's modified adjusted gross income exceeds the threshold for their filing status. For married couples filing jointly, the phaseout starts when modified AGI exceeds $400,000. For all other filing statuses - including single, head of household, and married filing separately - the threshold is $200,000. Modified AGI for this purpose is the amount calculated on line 3 of Schedule 8812. The phaseout reduces the credit amount dollar for dollar as income rises above the applicable threshold, eventually reducing the credit to zero. Taxpayers whose income falls below the threshold receive the full credit amount for each qualifying child, subject to the per-child limit. The phaseout applies to both the nonrefundable child tax credit and the credit for other dependents, though the additional child tax credit (the refundable portion) has its own separate calculation rules that apply after the nonrefundable credit is determined.", "quote": "Married filing jointly –$400,000\n• All other filing statuses –$200,000", "offset": 10604, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/i1040s8.pdf", "title": "2025 Instructions for Schedule 8812", "publisher": "IRS", "fetched_at": "2026-08-29T07:27:15.626Z", "sha256_text": "484020e8ec873d4f8c9c2bdd9134c9a5971fb2d8a643029480d15c9f17dac9a8", "snapshot_url": "https://ratesandlimits.com/snapshots/child-tax-credit/2026/i1040s8.txt" } }, { "key": "actc-refund-timing", "heading": "Why the refund is held", "body": "The IRS is prohibited from issuing refunds before mid-February 2026 for any tax return that claims the additional child tax credit. This delay applies to the entire refund amount, not just the portion attributable to the ACTC. The rule exists to give the IRS additional time to verify claims and reduce fraudulent refunds tied to this credit. Taxpayers who are expecting a refund and have claimed the ACTC on their return should not plan on receiving the money in late January or early February; the earliest they can expect it is mid-February. Even if the return is e-filed early and shows no other issues, the refund will be held until the IRS is permitted to release it. Taxpayers who do not claim the ACTC - for example, those who only claim the nonrefundable child tax credit - are not subject to this delay and may receive their refunds on the normal schedule. The timing rule applies to the whole refund, so taxpayers who are due both a regular refund and an ACTC portion will wait for the full amount until the mid-February release date.", "quote": "The IRS can’t\nissue refunds before mid-February 2026 for returns that properly\nclaim ACTC.", "offset": 1875, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/i1040s8.pdf", "title": "2025 Instructions for Schedule 8812", "publisher": "IRS", "fetched_at": "2026-08-29T07:27:15.626Z", "sha256_text": "484020e8ec873d4f8c9c2bdd9134c9a5971fb2d8a643029480d15c9f17dac9a8", "snapshot_url": "https://ratesandlimits.com/snapshots/child-tax-credit/2026/i1040s8.txt" } } ], "estimate": null }, { "program": "clean-vehicle-tax-credit", "name": "Clean Vehicle Tax Credit", "category": "deductions-and-credits", "agency": "IRS", "year": 2026, "state": null, "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-30", "published_at": "2026-08-30T07:16:54.078Z", "canonical_url": "https://ratesandlimits.com/clean-vehicle-tax-credit/", "figures": [], "schedule": null, "explainers": [ { "key": "acquired-by-september-30-2025", "heading": "The credit ends for vehicles acquired after September 30, 2025", "body": "The New Clean Vehicle Credit ended on September 30, 2025. A vehicle is only eligible if you acquired it on or before that date. You can demonstrate acquisition by entering into a binding written contract and making a payment on the vehicle on or before September 30, 2025. Additionally, the vehicle must be placed in service (you must take possession of it). If you placed the vehicle in service after September 30, 2025, you still must have acquired it on or before September 30, 2025, to qualify. The IRS does not make exceptions for vehicles placed in service after that date without prior acquisition.", "quote": "Update: The New Clean Vehicle Credit is not available for vehicles acquired after Sept. 30, 2025. The vehicle must be placed in service for you to claim the credit. If a vehicle is placed in service after Sept. 30, 2025, you must have acquired the vehicle on or before Sept. 30, 2025, to be eligible for the credit.", "offset": 4936, "verified_at": "2026-08-30", "source": { "url": "https://www.irs.gov/credits-deductions/credits-for-new-clean-vehicles-purchased-in-2023-or-after", "title": "Credits for new clean vehicles purchased in 2023 or after", "publisher": "IRS", "fetched_at": "2026-08-29T02:51:51.881Z", "sha256_text": "bf5e7dd267c4e36c2eaf39da7d708dccfb0287024679cef3820f2a668ba3dc69", "snapshot_url": "https://ratesandlimits.com/snapshots/clean-vehicle-tax-credit/2026/credits-for-new-clean-vehicles-purchased-in-2023-or-after.txt" } }, { "key": "income-limits", "heading": "The income limits, and the two years you may choose between", "body": "To qualify for the federal Clean Vehicle Tax Credit, your modified adjusted gross income (AGI) must fall within certain limits. The threshold is $300,000 for married couples filing jointly or a surviving spouse, $225,000 for heads of households, and $150,000 for all other filers. You have a choice of which year's income to use: you may use your modified AGI from the year you take delivery of the vehicle or from the year before, whichever results in the lower figure. If your modified AGI falls below the applicable threshold in either of those two years, you meet the income requirement and can claim the credit. This flexibility means that a taxpayer whose income spikes in one year but was lower the year before can still qualify by choosing the more favorable year.", "quote": "In addition, your modified adjusted gross income (AGI) may not exceed: $300,000 for married couples filing jointly or a surviving spouse $225,000 for heads of households $150,000 for all other filers You can use your modified AGI from the year you take delivery of the vehicle or the year before, whichever is less. If your modified AGI is below the threshold in 1 of the 2 years, you can claim the credit.", "offset": 6647, "verified_at": "2026-08-30", "source": { "url": "https://www.irs.gov/credits-deductions/credits-for-new-clean-vehicles-purchased-in-2023-or-after", "title": "Credits for new clean vehicles purchased in 2023 or after", "publisher": "IRS", "fetched_at": "2026-08-29T02:51:51.881Z", "sha256_text": "bf5e7dd267c4e36c2eaf39da7d708dccfb0287024679cef3820f2a668ba3dc69", "snapshot_url": "https://ratesandlimits.com/snapshots/clean-vehicle-tax-credit/2026/credits-for-new-clean-vehicles-purchased-in-2023-or-after.txt" } }, { "key": "msrp-caps", "heading": "The sticker price ceiling the vehicle must stay under", "body": "A vehicle's manufacturer suggested retail price (MSRP) must stay below certain caps to qualify for the Clean Vehicle Tax Credit. For vans, sport utility vehicles, and pickup trucks, the MSRP cannot exceed $80,000. For all other vehicles, the cap is $55,000. The MSRP is the retail price suggested by the manufacturer and includes factory-installed options, accessories, and trim. It excludes destination fees. Importantly, the MSRP is not necessarily the price you actually pay for the vehicle. You can verify your vehicle's MSRP on the window sticker along with other qualifying information such as weight, battery capacity, and final assembly location. If the vehicle's MSRP exceeds the applicable cap, it does not qualify for the federal credit regardless of other factors.", "quote": "In addition, the vehicle's manufacturer suggested retail price (MSRP) can't exceed: $80,000 for vans, sport utility vehicles and pickup trucks $55,000 for other vehicles MSRP is the retail price of the automobile suggested by the manufacturer, including manufacturer installed options, accessories and trim but excluding destination fees. It isn't necessarily the price you pay.", "offset": 8973, "verified_at": "2026-08-30", "source": { "url": "https://www.irs.gov/credits-deductions/credits-for-new-clean-vehicles-purchased-in-2023-or-after", "title": "Credits for new clean vehicles purchased in 2023 or after", "publisher": "IRS", "fetched_at": "2026-08-29T02:51:51.881Z", "sha256_text": "bf5e7dd267c4e36c2eaf39da7d708dccfb0287024679cef3820f2a668ba3dc69", "snapshot_url": "https://ratesandlimits.com/snapshots/clean-vehicle-tax-credit/2026/credits-for-new-clean-vehicles-purchased-in-2023-or-after.txt" } }, { "key": "nonrefundable", "heading": "The credit cannot exceed the tax you owe", "body": "The federal Clean Vehicle Tax Credit is nonrefundable if you do not transfer it. This means that when you file your taxes, the credit can reduce your tax liability but cannot reduce it below zero. You cannot receive a refund for any portion of the credit that exceeds the amount of taxes you owe. Additionally, you cannot carry forward any unused credit to future tax years. If the credit amount is larger than your tax liability for the year, the excess is lost. This limitation applies only if you claim the credit on your tax return rather than transferring it to the dealer at the point of sale.", "quote": "If you do not transfer the credit, it is nonrefundable when you file your taxes, so you can't get back more on the credit than you owe in taxes. You can't apply any excess credit to future tax years.", "offset": 7054, "verified_at": "2026-08-30", "source": { "url": "https://www.irs.gov/credits-deductions/credits-for-new-clean-vehicles-purchased-in-2023-or-after", "title": "Credits for new clean vehicles purchased in 2023 or after", "publisher": "IRS", "fetched_at": "2026-08-29T02:51:51.881Z", "sha256_text": "bf5e7dd267c4e36c2eaf39da7d708dccfb0287024679cef3820f2a668ba3dc69", "snapshot_url": "https://ratesandlimits.com/snapshots/clean-vehicle-tax-credit/2026/credits-for-new-clean-vehicles-purchased-in-2023-or-after.txt" } } ], "estimate": null }, { "program": "corporate-tax-rate", "name": "Corporate Tax Rate", "category": "brackets-and-rates", "agency": "IRS", "year": 2026, "state": null, "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-29", "published_at": "2026-08-29T16:15:38.613Z", "canonical_url": "https://ratesandlimits.com/corporate-tax-rate/", "figures": [ { "key": "rate", "label": "Rate", "value": 21, "format": "percent", "formatted": "21%", "scope": null, "derived": false, "quote": "Corporations, including qualified personal service corpo-\nrations, figure their tax by multiplying taxable income by\n21% (0.21).", "offset": 71328, "source": { "url": "https://www.irs.gov/pub/irs-pdf/p542.pdf", "title": "Publication 542 (Rev. January 2024), Corporations", "publisher": "IRS", "fetched_at": "2026-08-29T02:29:29.340Z", "sha256_text": "a88ea7970067df95538d89b3b76bdf6b5e95f7e3f8fd53a16ad03c64f6c1e29f", "snapshot_url": "https://ratesandlimits.com/snapshots/corporate-tax-rate/2026/p542.txt" } } ], "schedule": null, "explainers": [ { "key": "who-must-file", "heading": "Which entities pay this rate, including an LLC that elects it", "body": "An LLC with more than one owner is generally treated as a partnership for federal income tax purposes and files Form 1065. A single-member LLC is generally disregarded as an entity separate from its owner and reports its income and deductions on the owner's federal income tax return. However, the LLC can file a Form 1120 only if it has filed Form 8832 to elect to be treated as an association taxable as a corporation. Once an LLC makes this election to be taxed as a corporation, it is subject to the corporate tax rate of 21% for 2026. For more information about LLCs, see Pub. 3402, Taxation of Limited Liability Companies.", "quote": "The LLC can file a Form 1120 only if it\nhas filed Form 8832 to elect to be treated as an association\ntaxable as a corporation.", "offset": 11501, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/i1120.pdf", "title": "2025 Instructions for Form 1120, U.S. Corporation Income Tax Return", "publisher": "IRS", "fetched_at": "2026-08-29T08:02:00.143Z", "sha256_text": "315d0fd952b574cbd9e549c1eb69b078ac12c851b77bfd3ef4f8c592cabc581e", "snapshot_url": "https://ratesandlimits.com/snapshots/corporate-tax-rate/2026/i1120.txt" } }, { "key": "when-to-file", "heading": "The filing deadline, and the extension", "body": "Generally, a corporation must file its income tax return by the 15th day of the 4th month after the end of its tax year. A new corporation filing a short-period return must generally file by the 15th day of the 4th month after the short period ends. A corporation that has dissolved must generally file by the 15th day of the 4th month after the date it dissolved. However, a corporation with a fiscal tax year ending June 30 must file by the 15th day of the 3rd month after the end of its tax year. If the due date falls on a Saturday, Sunday, or legal holiday, the corporation can file on the next business day. A corporation may request an automatic extension of time to file by filing Form 7004, Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns. Generally, the corporation must file Form 7004 by the regular due date of the return. Note that even if an extension is granted, any tax owed must still be paid by the original due date to avoid penalties and interest.", "quote": "When To File\nGenerally, a corporation must file its income tax return by the\n15th day of the 4th month after the end of its tax year. A new\ncorporation filing a short-period return must generally file by the\n15th day of the 4th month after the short period ends. A\ncorporation that has dissolved must generally file by the 15th day\nof the 4th month after the date it dissolved.\nHowever, a corporation with a fiscal tax year ending June 30\nmust file by the 15th day of the 3rd month after the end of its tax\nyear. A corporation with a short tax year ending anytime in June\nwill be treated as if the short year ended on June 30, and must\nfile by the 15th day of the 3rd month after the end of its tax year.\nIf the due date falls on a Saturday, Sunday, or legal holiday,\nthe corporation can file on the next business day.", "offset": 18021, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/i1120.pdf", "title": "2025 Instructions for Form 1120, U.S. Corporation Income Tax Return", "publisher": "IRS", "fetched_at": "2026-08-29T08:02:00.143Z", "sha256_text": "315d0fd952b574cbd9e549c1eb69b078ac12c851b77bfd3ef4f8c592cabc581e", "snapshot_url": "https://ratesandlimits.com/snapshots/corporate-tax-rate/2026/i1120.txt" } }, { "key": "estimated-tax-payments", "heading": "Corporations pay the tax in four installments", "body": "Corporations must make installment payments of estimated tax if they expect their total tax for the year (less applicable credits) to be $500 or more. The installments are due by the 15th day of the 4th, 6th, 9th, and 12th months of the tax year. This means corporations typically make four estimated tax payments throughout the year, spreading their tax liability across quarterly deadlines rather than paying everything at once when filing their return. If any installment due date falls on a Saturday, Sunday, or legal holiday, the payment is due on the next business day. Corporations must carefully estimate their tax liability to determine if they meet the $500 threshold and calculate appropriate installment amounts. Failure to pay sufficient estimated tax during the year may result in penalties, even if the corporation receives a refund when filing its annual return. Corporations can use Form 2220 to determine if they owe an estimated tax penalty and to figure the amount.", "quote": "The corporation must make installment payments of\nestimated tax if it expects its total tax for the year (less applicable\ncredits) to be $500 or more.", "offset": 26964, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/i1120.pdf", "title": "2025 Instructions for Form 1120, U.S. Corporation Income Tax Return", "publisher": "IRS", "fetched_at": "2026-08-29T08:02:00.143Z", "sha256_text": "315d0fd952b574cbd9e549c1eb69b078ac12c851b77bfd3ef4f8c592cabc581e", "snapshot_url": "https://ratesandlimits.com/snapshots/corporate-tax-rate/2026/i1120.txt" } }, { "key": "personal-service-corporations", "heading": "Personal service corporations pay at the same rate", "body": "A personal service corporation is a corporation whose principal activity for the testing period is the performance of personal services. The testing period for a tax year is generally the prior tax year unless the corporation has just been formed. Personal services include any activity performed in the fields of accounting, actuarial science, architecture, consulting, engineering, health, law, and the performing arts. The services must be substantially performed by employee-owners. Personal service corporations are subject to the same 21% corporate tax rate that applies to other C corporations filing Form 1120. There is no special or higher rate for personal service corporations - the taxable income is multiplied by 21% to determine the income tax liability. Personal service corporations must also check Item A, box 3 on their return to indicate their status. These corporations face additional requirements, including generally using a calendar tax year unless they qualify for specific exceptions or obtain IRS approval for a different tax year.", "quote": "If the corporation is a personal service corporation, check Item\nA, box 3. A personal service corporation is a corporation whose\nprincipal activity for the testing period is the performance of\npersonal services. The testing period for a tax year is generally\nthe prior tax year unless the corporation has just been formed.\nPersonal services include any activity performed in the fields of\naccounting, actuarial science, architecture, consulting,\nengineering, health, law, and the performing arts. The services\nmust be substantially performed by employee-owners.", "offset": 50229, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/i1120.pdf", "title": "2025 Instructions for Form 1120, U.S. Corporation Income Tax Return", "publisher": "IRS", "fetched_at": "2026-08-29T08:02:00.143Z", "sha256_text": "315d0fd952b574cbd9e549c1eb69b078ac12c851b77bfd3ef4f8c592cabc581e", "snapshot_url": "https://ratesandlimits.com/snapshots/corporate-tax-rate/2026/i1120.txt" } }, { "key": "late-filing-penalty", "heading": "What filing late costs", "body": "A corporation that does not file its tax return by the due date, including extensions, may be penalized 5% of the unpaid tax for each month or part of a month the return is late, up to a maximum of 25% of the unpaid tax. This penalty accumulates quickly - a return that is five months or more late will hit the maximum penalty of 25% of the unpaid tax. For tax returns required to be filed in 2026, if the return is more than 60 days late, there is a minimum penalty of the smaller of the tax due or $525. This means that even if the 5% per month calculation would result in a smaller amount, the corporation will owe at least $525 (or the full tax due if that is less than $525) when the return is filed more than 60 days after the deadline. The penalty will not be imposed if the corporation can show that the failure to file on time was due to reasonable cause. Interest is also charged on any unpaid tax and penalties from the due date (including extensions) to the date of payment.", "quote": "Late filing of return. A corporation that does not file its tax\nreturn by the due date, including extensions, may be penalized\n5% of the unpaid tax for each month or part of a month the return\nis late, up to a maximum of 25% of the unpaid tax. The minimum\npenalty for a tax return required to be filed in 2026 that is more\nthan 60 days late is the smaller of the tax due or $525. The\npenalty will not be imposed if the corporation can show that the\nfailure to file on time was due to reasonable cause.", "offset": 30925, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/i1120.pdf", "title": "2025 Instructions for Form 1120, U.S. Corporation Income Tax Return", "publisher": "IRS", "fetched_at": "2026-08-29T08:02:00.143Z", "sha256_text": "315d0fd952b574cbd9e549c1eb69b078ac12c851b77bfd3ef4f8c592cabc581e", "snapshot_url": "https://ratesandlimits.com/snapshots/corporate-tax-rate/2026/i1120.txt" } } ], "estimate": null }, { "program": "defined-benefit-plan-limit", "name": "Defined Benefit Plan Limit", "category": "retirement-limits", "agency": "IRS", "year": 2026, "state": null, "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-09-01", "published_at": "2026-09-01T05:02:43.545Z", "canonical_url": "https://ratesandlimits.com/defined-benefit-plan-limit/", "figures": [ { "key": "annual-benefit", "label": "Annual benefit under a defined benefit plan", "value": 290000, "format": "usd", "formatted": "$290,000", "scope": null, "derived": false, "quote": "Effective January 1, 2026, the limitation on the annual benefit under a defined\nbenefit plan under section 415(b)(1)(A) of the Code is increased from $280,000\nto $290,000.", "offset": 787, "source": { "url": "https://www.irs.gov/pub/irs-drop/n-25-67.pdf", "title": "Notice 2025-67", "publisher": "IRS", "fetched_at": "2026-08-29T03:10:28.363Z", "sha256_text": "dee57a39e72fc363102f1c9fa373d5c5a969a62bc5422076830034732e2f131d", "snapshot_url": "https://ratesandlimits.com/snapshots/defined-benefit-plan-limit/2026/n-25-67.txt" } }, { "key": "defined-contribution", "label": "Defined contribution plan limit", "value": 72000, "format": "usd", "formatted": "$72,000", "scope": null, "derived": false, "quote": "The limitation for defined contribution plans under section 415(c)(1)(A) is\nincreased in 2026 from $70,000 to $72,000.", "offset": 1220, "source": { "url": "https://www.irs.gov/pub/irs-drop/n-25-67.pdf", "title": "Notice 2025-67", "publisher": "IRS", "fetched_at": "2026-08-29T03:10:28.363Z", "sha256_text": "dee57a39e72fc363102f1c9fa373d5c5a969a62bc5422076830034732e2f131d", "snapshot_url": "https://ratesandlimits.com/snapshots/defined-benefit-plan-limit/2026/n-25-67.txt" } } ], "schedule": null, "explainers": [ { "key": "annual-benefit-limit", "heading": "The benefit limit is the lesser of a dollar cap and your average pay", "body": "The IRS limits the annual retirement benefit a participant can receive under a defined benefit plan to the lesser of two amounts: 100% of the participant's average compensation for their highest 3 consecutive calendar years, or a specified dollar cap. For 2026, that dollar cap is $290,000. Because the limit is the lesser of the two figures, a participant whose average pay over their best three-year stretch falls below $290,000 will have their benefit limited to 100% of that lower average instead. The compensation figure is based on the three consecutive calendar years in which the participant earned the most, not necessarily the years immediately before retirement. The limit applies to the benefit payable under the plan's normal benefit formula and is enforced so that tax-qualified defined benefit plans in the United States do not provide disproportionately large retirement benefits to highly compensated participants.", "quote": "participant under a defined benefit plan can't exceed the\nlesser of the following amounts.\n1. 100% of the participant's average compensation for\ntheir highest 3 consecutive calendar years.", "offset": 111292, "verified_at": "2026-09-01", "source": { "url": "https://www.irs.gov/pub/irs-prior/p560--2025.pdf", "title": "Publication 560 (2025), Retirement Plans for Small Business", "publisher": "IRS", "fetched_at": "2026-08-29T08:16:58.056Z", "sha256_text": "a0f10ca7567acf2e701566b47e359f5c62733e6bd179d2f270639ecce5adebff", "snapshot_url": "https://ratesandlimits.com/snapshots/defined-benefit-plan-limit/2026/p560--2025.txt" } }, { "key": "defined-contribution-annual-additions", "heading": "The separate limit on a defined contribution plan", "body": "The IRS places a separate ceiling on defined contribution plans. For 2026, the annual contributions and other additions (excluding earnings) allocated to a participant's account cannot exceed the lesser of 100% of the participant's compensation or $72,000. This limit applies to the total of employer contributions, employee contributions, and forfeitures allocated to the account for the year. Because earnings are excluded from the calculation, investment growth inside the account does not count against the cap. The defined contribution limit operates independently from the defined benefit limit, so each type of plan has its own ceiling. Catch-up contributions made by participants age 50 or older are not subject to this limit and may be added on top of the regular amount.", "quote": "a defined contri-\nbution plan's annual contributions and other additions (ex-\ncluding earnings) to the account of a participant can't ex-\nceed the lesser of the following amounts.\n1. 100% of the participant's compensation.", "offset": 111560, "verified_at": "2026-09-01", "source": { "url": "https://www.irs.gov/pub/irs-prior/p560--2025.pdf", "title": "Publication 560 (2025), Retirement Plans for Small Business", "publisher": "IRS", "fetched_at": "2026-08-29T08:16:58.056Z", "sha256_text": "a0f10ca7567acf2e701566b47e359f5c62733e6bd179d2f270639ecce5adebff", "snapshot_url": "https://ratesandlimits.com/snapshots/defined-benefit-plan-limit/2026/p560--2025.txt" } }, { "key": "what-a-defined-benefit-plan-is", "heading": "What makes a plan a defined benefit plan", "body": "A defined benefit plan is defined as any plan that is not a defined contribution plan. Instead of specifying a fixed annual contribution amount, a defined benefit plan promises participants a specific benefit when they retire. The employer's annual contribution is calculated based on what is needed to fund those promised benefits. Because this calculation requires actuarial assumptions and computations - projecting future obligations and determining present values - ongoing professional assistance is generally required. For 2026, the annual benefit that can be paid to any participant under a defined benefit plan cannot exceed $290,000.", "quote": "A defined benefit plan is any plan that isn't a defined con-\ntribution plan. Contributions to a defined benefit plan are\nbased on what is needed to provide definitely determina-\nble benefits to plan participants.", "offset": 91253, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/p560--2025.pdf", "title": "Publication 560 (2025), Retirement Plans for Small Business", "publisher": "IRS", "fetched_at": "2026-08-29T08:16:58.056Z", "sha256_text": "a0f10ca7567acf2e701566b47e359f5c62733e6bd179d2f270639ecce5adebff", "snapshot_url": "https://ratesandlimits.com/snapshots/defined-benefit-plan-limit/2026/p560--2025.txt" } }, { "key": "compensation-limit", "heading": "The compensation an employer may take into account", "body": "When calculating contributions and deductions for retirement plans, employers cannot use an employee's total pay without restriction. The law caps the amount of compensation that may be considered for each participant. For 2026, the maximum compensation that can be taken into account is $360,000 per employee. If an employee earns more than this amount, only $360,000 of their pay is used in plan calculations such as determining contribution limits or benefit accruals. This cap is adjusted periodically for inflation. The limitation applies across all qualified retirement plans, whether defined benefit or defined contribution, ensuring that highly compensated employees do not receive disproportionately large tax-advantaged retirement benefits based on income above this threshold.", "quote": "The maximum compensation that can be taken into\naccount for each employee in 2025 is $350,000\n($360,000 in 2026).", "offset": 114559, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/p560--2025.pdf", "title": "Publication 560 (2025), Retirement Plans for Small Business", "publisher": "IRS", "fetched_at": "2026-08-29T08:16:58.056Z", "sha256_text": "a0f10ca7567acf2e701566b47e359f5c62733e6bd179d2f270639ecce5adebff", "snapshot_url": "https://ratesandlimits.com/snapshots/defined-benefit-plan-limit/2026/p560--2025.txt" } }, { "key": "actuary-figures-the-deduction", "heading": "Why the deduction has to be figured by an actuary", "body": "Unlike defined contribution plans where the contribution amount is straightforward, defined benefit plans require complex calculations to determine how much the employer must contribute each year. These calculations involve actuarial assumptions about factors such as employee mortality, retirement ages, salary projections, and investment returns. The deduction for contributions to a defined benefit plan is based on actuarial assumptions and computations. Consequently, an actuary must figure your deduction limit. The IRS requires this professional analysis because the contribution amount depends on projecting future benefit obligations and determining the present value of those obligations. Attempting to calculate this deduction without actuarial expertise could result in incorrect figures that do not comply with tax law requirements.", "quote": "The deduction for contributions\nto a defined benefit plan is based on actuarial assump-\ntions and computations. Consequently, an actuary must\nfigure your deduction limit.", "offset": 114696, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/p560--2025.pdf", "title": "Publication 560 (2025), Retirement Plans for Small Business", "publisher": "IRS", "fetched_at": "2026-08-29T08:16:58.056Z", "sha256_text": "a0f10ca7567acf2e701566b47e359f5c62733e6bd179d2f270639ecce5adebff", "snapshot_url": "https://ratesandlimits.com/snapshots/defined-benefit-plan-limit/2026/p560--2025.txt" } } ], "estimate": null }, { "program": "dependent-care-credit", "name": "Child and Dependent Care Credit", "category": "deductions-and-credits", "agency": "IRS", "year": 2026, "state": null, "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-29", "published_at": "2026-08-29T02:31:51.221Z", "canonical_url": "https://ratesandlimits.com/dependent-care-credit/", "figures": [ { "key": "max-rate", "label": "Maximum rate", "value": 50, "format": "percent", "formatted": "50%", "scope": "the maximum credit rate", "derived": false, "quote": "Changes to the child and dependent care\ncredit. For 2026, recent legislation has en-\nhanced the credit for qualifying child and de-\npendent care expenses paid for the care of an\neligible child. The credit amount remains $3,000\n($6,000 for two or more qualifying children) but\nthe maximum credit rate has increased from\n35% to 50% of your qualifying expenses.", "offset": 7649, "source": { "url": "https://www.irs.gov/pub/irs-pdf/p505.pdf", "title": "Publication 505 (2026), Tax Withholding and Estimated Tax", "publisher": "IRS", "fetched_at": "2026-08-29T02:30:11.318Z", "sha256_text": "019a9f19d12eceae00ac3244b69ef2cb9e62aa11cabc1aa148b1f84916c63883", "snapshot_url": "https://ratesandlimits.com/snapshots/dependent-care-credit/2026/p505.txt" } }, { "key": "expense-limit-one", "label": "Expense limit, one person", "value": 3000, "format": "usd", "formatted": "$3,000", "scope": "The credit amount remains", "derived": false, "quote": "Changes to the child and dependent care\ncredit. For 2026, recent legislation has en-\nhanced the credit for qualifying child and de-\npendent care expenses paid for the care of an\neligible child. The credit amount remains $3,000\n($6,000 for two or more qualifying children) but\nthe maximum credit rate has increased from\n35% to 50% of your qualifying expenses.", "offset": 7649, "source": { "url": "https://www.irs.gov/pub/irs-pdf/p505.pdf", "title": "Publication 505 (2026), Tax Withholding and Estimated Tax", "publisher": "IRS", "fetched_at": "2026-08-29T02:30:11.318Z", "sha256_text": "019a9f19d12eceae00ac3244b69ef2cb9e62aa11cabc1aa148b1f84916c63883", "snapshot_url": "https://ratesandlimits.com/snapshots/dependent-care-credit/2026/p505.txt" } }, { "key": "expense-limit-two-or-more", "label": "Expense limit, two or more people", "value": 6000, "format": "usd", "formatted": "$6,000", "scope": "two or more qualifying children", "derived": false, "quote": "Changes to the child and dependent care\ncredit. For 2026, recent legislation has en-\nhanced the credit for qualifying child and de-\npendent care expenses paid for the care of an\neligible child. The credit amount remains $3,000\n($6,000 for two or more qualifying children) but\nthe maximum credit rate has increased from\n35% to 50% of your qualifying expenses.", "offset": 7649, "source": { "url": "https://www.irs.gov/pub/irs-pdf/p505.pdf", "title": "Publication 505 (2026), Tax Withholding and Estimated Tax", "publisher": "IRS", "fetched_at": "2026-08-29T02:30:11.318Z", "sha256_text": "019a9f19d12eceae00ac3244b69ef2cb9e62aa11cabc1aa148b1f84916c63883", "snapshot_url": "https://ratesandlimits.com/snapshots/dependent-care-credit/2026/p505.txt" } } ], "schedule": null, "explainers": [ { "key": "earned-income-limit", "heading": "The credit cannot exceed what you earned", "body": "Even if you paid substantial work-related expenses, the amount you can use to calculate the credit is capped by your earned income for the year. If you are single at the end of the year, your credit base cannot exceed what you personally earned. If you are married at the end of the year, the limit is the smaller of your earned income or your spouse's earned income for the year. Importantly, when applying this married couple rule, you must use your spouse's earned income for the entire year, even if you were married for only part of the year. This prevents married couples from using more than the lower earner actually produced to figure the credit. The earned income considered for this purpose is the same definition used for the separate \"You Must Have Earned Income\" test described elsewhere in the publication.", "quote": "Earned Income Limit\nThe amount of work-related expenses you use to figure\nyour credit can't be more than:\n1. Your earned income for the year if you are single at\nthe end of the year, or\n2. The smaller of your or your spouse's earned income\nfor the year if you are married at the end of the year.", "offset": 45976, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/p503.pdf", "title": "Publication 503 (2025), Child and Dependent Care Expenses", "publisher": "IRS", "fetched_at": "2026-08-29T02:27:33.088Z", "sha256_text": "fa51ae0b04ff9cd95e2e00678ab08d0b2636b0e5ed3f09101e0305b59172659a", "snapshot_url": "https://ratesandlimits.com/snapshots/dependent-care-credit/2026/p503.txt" } }, { "key": "student-or-disabled-spouse", "heading": "The exception for a student or disabled spouse", "body": "When one spouse has little or no earned income, that lower income could shrink or eliminate the credit because of the earned-income limit. The publication provides a special rule to prevent this: a spouse who is a full-time student, or who is physically or mentally unable to care for themselves, is treated as having earned income for each month they meet that condition. To qualify, the spouse must also have lived with the taxpayer for more than half the year. On a joint return, the rule can also apply to the taxpayer. This deemed-earned-income treatment allows the couple to use a higher expense limit when figuring the credit, preserving the benefit even though one spouse did not work during the year. Without this rule, a working spouse with a full-time-student or disabled spouse could lose the credit entirely because the lower-earning spouse's actual earned income would be zero.", "quote": "Rule for student-spouse or spouse not able to care\nfor self. Your spouse is treated as having earned income\nfor any month that they are:\n1. A full-time student, or\n2. Physically or mentally not able to care for themselves.\n(Your spouse must also live with you for more than\nhalf the year.)", "offset": 16445, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/p503.pdf", "title": "Publication 503 (2025), Child and Dependent Care Expenses", "publisher": "IRS", "fetched_at": "2026-08-29T02:27:33.088Z", "sha256_text": "fa51ae0b04ff9cd95e2e00678ab08d0b2636b0e5ed3f09101e0305b59172659a", "snapshot_url": "https://ratesandlimits.com/snapshots/dependent-care-credit/2026/p503.txt" } }, { "key": "joint-return-required", "heading": "Married couples generally must file jointly", "body": "The child and dependent care credit is generally available only to taxpayers who file a joint return when they are married. If you are married at the end of the year, your filing status must typically be married filing jointly to claim the credit. The acceptable filing statuses for taking the credit are single, head of household, or qualifying surviving spouse. Married couples who choose married filing separately are, as a rule, ineligible. An exception exists for certain married taxpayers who lived apart from their spouse and meet specific conditions; those exceptions are described under the filing-status section of the publication. The joint-return requirement ensures that both spouses' income is taken into account when the credit is computed, which matters because the credit's expense base is limited to the lower earned income of the two spouses.", "quote": "5. Joint Return Test. Your filing status may be single,\nhead of household, or qualifying surviving spouse. If\nyou are married, you must file a joint return, unless an\nexception applies to you. See What’s Your Filing Sta-\ntus, later.", "offset": 6743, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/p503.pdf", "title": "Publication 503 (2025), Child and Dependent Care Expenses", "publisher": "IRS", "fetched_at": "2026-08-29T02:27:33.088Z", "sha256_text": "fa51ae0b04ff9cd95e2e00678ab08d0b2636b0e5ed3f09101e0305b59172659a", "snapshot_url": "https://ratesandlimits.com/snapshots/dependent-care-credit/2026/p503.txt" } }, { "key": "provider-identification", "heading": "You must name the provider, or show due diligence", "body": "Every care provider - whether an individual, a daycare center, or another organization - must be identified on the taxpayer's return using Form 2441, Part I. The information required is the provider's name, address, and taxpayer identification number. For an individual provider, that number is a social security number or individual taxpayer identification number; for an organization, it is the employer identification number. Tax-exempt organizations such as churches or schools are an exception: instead of a number, the taxpayer writes \"Tax-Exempt.\" If the taxpayer cannot supply complete or correct information, the credit may be disallowed unless the taxpayer can demonstrate due diligence in trying to obtain it. Due diligence is shown by keeping records such as a completed Form W-10 or another acceptable source of the provider's details. If the provider refuses to provide the information, the taxpayer reports whatever is known, attaches a statement explaining the refusal, and that statement itself serves as evidence of due diligence.", "quote": "Care Provider Identification Test\nYou must identify all persons or organizations that provide\ncare for your child or dependent. Use Form 2441, Part I, to\nshow the information.", "offset": 36661, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/p503.pdf", "title": "Publication 503 (2025), Child and Dependent Care Expenses", "publisher": "IRS", "fetched_at": "2026-08-29T02:27:33.088Z", "sha256_text": "fa51ae0b04ff9cd95e2e00678ab08d0b2636b0e5ed3f09101e0305b59172659a", "snapshot_url": "https://ratesandlimits.com/snapshots/dependent-care-credit/2026/p503.txt" } }, { "key": "benefits-reduce-the-limit", "heading": "Employer benefits shrink the expense limit", "body": "If your employer provides dependent care benefits that you exclude or deduct from your income, the amount excluded or deducted reduces the dollar limit you can use to figure the credit. The normal dollar limits are $3,000 for one qualifying person and $6,000 for two or more qualifying persons. Any tax-free or deductible benefits received under a qualified employer plan must be subtracted from whichever limit applies to you. The reduced dollar limit is computed on Form 2441, Part III. This means employer-provided benefits and the credit share a single ceiling: you cannot use the same dollars both to receive a tax-free benefit and to generate a credit. The dollar limit is reduced dollar for dollar by the amount of benefits excluded or deducted, so the remaining expense base for the credit may be smaller than the full limit, or may even be reduced to zero if the excluded benefits equal or exceed the applicable limit.", "quote": "Reduced Dollar Limit\nIf you received dependent care benefits that you exclude\nor deduct from your income, you must subtract that\namount from the dollar limit that applies to you. Your re-\nduced dollar limit is figured on Form 2441, Part III. See\nDependent Care Benefits, earlier, for information on ex-\ncluding or deducting these benefits.", "offset": 53854, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/p503.pdf", "title": "Publication 503 (2025), Child and Dependent Care Expenses", "publisher": "IRS", "fetched_at": "2026-08-29T02:27:33.088Z", "sha256_text": "fa51ae0b04ff9cd95e2e00678ab08d0b2636b0e5ed3f09101e0305b59172659a", "snapshot_url": "https://ratesandlimits.com/snapshots/dependent-care-credit/2026/p503.txt" } } ], "estimate": null }, { "program": "dependent-care-fsa-limit", "name": "Dependent Care FSA Limit", "category": "health-accounts", "agency": "IRS", "year": 2026, "state": null, "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-29", "published_at": "2026-08-29T10:24:02.627Z", "canonical_url": "https://ratesandlimits.com/dependent-care-fsa-limit/", "figures": [ { "key": "exclusion", "label": "Exclusion limit", "value": 7500, "format": "usd", "formatted": "$7,500", "scope": null, "derived": false, "quote": "Dependent care assistance Exempt3 up to certain limits, $7,500 ($3,750 for married employee filing separate return)", "offset": 25064, "source": { "url": "https://www.irs.gov/pub/irs-pdf/p15b.pdf", "title": "Publication 15-B (2026), Employer's Tax Guide to Fringe Benefits", "publisher": "IRS", "fetched_at": "2026-08-29T02:23:21.948Z", "sha256_text": "1a58dec06e90172de7979624285d6e2da77fd453747140d5fb210da6c4793ce0", "snapshot_url": "https://ratesandlimits.com/snapshots/dependent-care-fsa-limit/2026/p15b.txt" } } ], "schedule": null, "explainers": [ { "key": "what-counts-as-a-benefit", "heading": "What counts as a dependent care benefit", "body": "Three kinds of employer-provided assistance count as dependent care benefits for purposes of the exclusion or deduction. First, cash payments your employer makes directly to you or to your care provider for the care of a qualifying person while you work. Second, the fair market value of care provided in a daycare facility that your employer operates or sponsors. Third, pre-tax salary-reduction contributions you make through a dependent care flexible spending arrangement (FSA). Even though your take-home pay is reduced to fund the FSA contributions, the IRS treats them as dependent care benefits you received from your employer. Your employer reports the total of all such benefits on your wage statement. You then enter that total as the starting point when figuring how much of your benefits you can exclude from income or deduct. A separate set of limits - the smallest of your total benefits, your qualified expenses, your earned income, your spouse's earned income, and the plan maximum - then determines the excludable amount.", "quote": "Dependent care benefits in-\nclude:\n1. Amounts your employer paid directly to either you or\nyour care provider for the care of your qualifying per-\nson while you work,\n2. The fair market value of care in a daycare facility pro-\nvided or sponsored by your employer, and\n3. Pre-tax contributions you made under a dependent\ncare flexible spending arrangement.", "offset": 42811, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/p503.pdf", "title": "Publication 503 (2025), Child and Dependent Care Expenses", "publisher": "IRS", "fetched_at": "2026-08-29T08:00:21.797Z", "sha256_text": "fa51ae0b04ff9cd95e2e00678ab08d0b2636b0e5ed3f09101e0305b59172659a", "snapshot_url": "https://ratesandlimits.com/snapshots/dependent-care-fsa-limit/2026/p503.txt" } }, { "key": "the-smallest-of-five", "heading": "Your exclusion is the smallest of five amounts", "body": "Your dependent care benefits are not automatically fully excludable from income. The IRS caps the exclusion at the smallest of five amounts. First, the total dependent care benefits you received during the year. Second, the total qualified expenses you actually incurred during the year. Third, your earned income for the year. Fourth, your spouse's earned income. Fifth, the maximum amount allowed under your employer's dependent care plan. This means that even if you contributed the maximum to a dependent care flexible spending arrangement, you cannot exclude more than your earned income, your spouse's earned income, or your actual qualified expenses - whichever is lower. For a dependent care assistance program, the plan maximum is $7,500. If any of the other four amounts is smaller than $7,500, that smaller amount becomes your actual exclusion limit. The definition of earned income for this purpose is the same as for the credit, except it does not include any dependent care benefits you receive.", "quote": "The amount you can exclude or deduct is limited to the\nsmallest of:\n1. The total amount of dependent care benefits you re-\nceived during the year,\n2. The total amount of qualified expenses you incurred\nduring the year,\n3. Your earned income,\n4. Your spouse's earned income, or\n5. The maximum amount allowed under your dependent\ncare plan.", "offset": 44250, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/p503.pdf", "title": "Publication 503 (2025), Child and Dependent Care Expenses", "publisher": "IRS", "fetched_at": "2026-08-29T08:00:21.797Z", "sha256_text": "fa51ae0b04ff9cd95e2e00678ab08d0b2636b0e5ed3f09101e0305b59172659a", "snapshot_url": "https://ratesandlimits.com/snapshots/dependent-care-fsa-limit/2026/p503.txt" } }, { "key": "earned-income-limit", "heading": "A spouse with no earned income can wipe out the benefit", "body": "The earned income limit restricts how much of your work-related expenses you can use to figure your dependent care credit. If you are single at the end of the year, your work-related expenses cannot exceed your own earned income for the year. If you are married at the end of the year, your work-related expenses cannot exceed the smaller of your earned income or your spouse's earned income. This means that if your spouse has no earned income during the year, the smaller amount is zero, and you cannot claim any credit for dependent care expenses. Even if you paid thousands of dollars for qualifying care, a spouse with no earned income wipes out the benefit entirely. There is an exception for a spouse who is a full-time student or who is physically or mentally unable to care for themselves, in which case that spouse is deemed to have earned income for each month they meet the condition. For purposes of the married limit, you use your spouse's earned income for the entire year even if you were married for only part of the year.", "quote": "Earned Income Limit\nThe amount of work-related expenses you use to figure\nyour credit can't be more than:\n1. Your earned income for the year if you are single at\nthe end of the year, or\n2. The smaller of your or your spouse's earned income\nfor the year if you are married at the end of the year.", "offset": 45976, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/p503.pdf", "title": "Publication 503 (2025), Child and Dependent Care Expenses", "publisher": "IRS", "fetched_at": "2026-08-29T08:00:21.797Z", "sha256_text": "fa51ae0b04ff9cd95e2e00678ab08d0b2636b0e5ed3f09101e0305b59172659a", "snapshot_url": "https://ratesandlimits.com/snapshots/dependent-care-fsa-limit/2026/p503.txt" } }, { "key": "qualifying-person", "heading": "Which child or adult the care has to be for", "body": "To claim the dependent care credit or exclusion, the care must be for one or more qualifying persons. A qualifying person falls into one of three categories. First, your qualifying child who is your dependent and who was under age 13 when the care was provided. This is the most common category and covers children below the age threshold. Second, your spouse who was not physically or mentally able to care for themselves and who lived with you for more than half the year. Third, any other person who was not physically or mentally able to care for themselves, who lived with you for more than half the year, and who was either your dependent or would have been your dependent except for certain technical reasons such as having too much gross income or filing a joint return. In all cases, the person must have lived with you for more than half the year (except for a child of divorced or separated parents, where special rules may apply). You must identify each qualifying person by name and taxpayer identification number on your tax return.", "quote": "Who Is a Qualifying Person?\nYour child and dependent care expenses must be for the\ncare of one or more qualifying persons.\nA qualifying person is:\n1. Your qualifying child who is your dependent and who\nwas under age 13 when the care was provided (but\nsee Child of divorced or separated parents or parents\nliving apart, later);\n2. Your spouse who wasn't physically or mentally able to\ncare for themselves and lived with you for more than\nhalf the year; or\n3. A person who wasn't physically or mentally able to\ncare for themselves, lived with you for more than half\nthe year, and either:", "offset": 7851, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/p503.pdf", "title": "Publication 503 (2025), Child and Dependent Care Expenses", "publisher": "IRS", "fetched_at": "2026-08-29T08:00:21.797Z", "sha256_text": "fa51ae0b04ff9cd95e2e00678ab08d0b2636b0e5ed3f09101e0305b59172659a", "snapshot_url": "https://ratesandlimits.com/snapshots/dependent-care-fsa-limit/2026/p503.txt" } }, { "key": "effect-on-the-credit", "heading": "Using the FSA shrinks the dependent care credit", "body": "When you receive dependent care benefits through a flexible spending arrangement and exclude those benefits from your income, two consequences follow for the dependent care credit. First, the excluded benefits cannot be counted as work-related expenses when you figure your credit. This means that expenses paid with pre-tax FSA dollars are not eligible for the credit. Second, the excluded benefits reduce the dollar limit that would otherwise apply to your credit. For example, if you would normally be able to claim up to a certain dollar limit of expenses for the credit, the amount you exclude through the FSA shrinks that limit dollar for dollar. This tradeoff is important because the credit rate on remaining expenses may be lower than the tax savings you received from the FSA exclusion. You should compare the tax benefit of excluding FSA amounts against the credit you give up on those same expenses to determine which approach saves you more. The reduced dollar limit is applied after subtracting the excluded benefits from the maximum expense amount, which for 2026 is $7,500.", "quote": "Effect of exclusion on credit. If you exclude dependent\ncare benefits from your income, the amount of the exclu-\nded benefits:\n1. Isn't included in your work-related expenses; and\n2. Reduces the dollar limit, discussed later.", "offset": 45750, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/p503.pdf", "title": "Publication 503 (2025), Child and Dependent Care Expenses", "publisher": "IRS", "fetched_at": "2026-08-29T08:00:21.797Z", "sha256_text": "fa51ae0b04ff9cd95e2e00678ab08d0b2636b0e5ed3f09101e0305b59172659a", "snapshot_url": "https://ratesandlimits.com/snapshots/dependent-care-fsa-limit/2026/p503.txt" } }, { "key": "box-10-and-going-over", "heading": "The statement your employer must give you, and going over the cap", "body": "Your employer must provide you with a Form W-2 or similar statement showing the total amount of dependent care benefits provided to you during the year. This amount appears in box 10 of the form. If the benefits you received exceed the maximum amount allowed to be excluded from income, your employer will include the excess in your wages shown in box 1 of your Form W-2. For 2026, the maximum exclusion for a dependent care assistance program is $7,500. Any amount above $7,500 that your employer contributes to your dependent care FSA is treated as taxable wages and is subject to income tax withholding and employment taxes. You cannot exclude the excess even if you actually spent it on qualifying dependent care expenses. This is why it is important to monitor your FSA contributions throughout the year and not exceed the limit. The excess amount reported in box 1 increases your adjusted gross income and may affect other tax benefits that depend on your income level.", "quote": "Statement for employee. Your employer must give you a\nForm W-2 (or similar statement), showing in box 10 the to-\ntal amount of dependent care benefits provided to you\nduring the year under a qualified plan. Your employer will\nalso include in your wages shown in box 1 of your Form\nW-2 any dependent care benefits that exceed the maxi-\nmum amount of dependent care benefits allowed to be ex-\ncluded.", "offset": 45281, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/p503.pdf", "title": "Publication 503 (2025), Child and Dependent Care Expenses", "publisher": "IRS", "fetched_at": "2026-08-29T08:00:21.797Z", "sha256_text": "fa51ae0b04ff9cd95e2e00678ab08d0b2636b0e5ed3f09101e0305b59172659a", "snapshot_url": "https://ratesandlimits.com/snapshots/dependent-care-fsa-limit/2026/p503.txt" } } ], "estimate": null }, { "program": "earned-income-tax-credit", "name": "Earned Income Tax Credit", "category": "deductions-and-credits", "agency": "IRS", "year": 2026, "state": null, "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-09-01", "published_at": "2026-09-01T03:43:42.778Z", "canonical_url": "https://ratesandlimits.com/earned-income-tax-credit/", "figures": [ { "key": "max-credit-one-child", "label": "Maximum credit, one child", "value": 4427, "format": "usd", "formatted": "$4,427", "scope": "One", "derived": false, "quote": "Number of Qualifying Children\nItem One Two Three or More None\nEarned Income Amount $13,020 $18,290 $18,290 $8,680\nMaximum Amount of Credit $4,427 $7,316 $8,231 $664", "offset": 24556, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32", "publisher": "IRS", "fetched_at": "2026-08-27T13:19:54.511Z", "sha256_text": "208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66", "snapshot_url": "https://ratesandlimits.com/snapshots/earned-income-tax-credit/2026/rp-25-32.txt" } }, { "key": "max-credit-two-children", "label": "Maximum credit, two children", "value": 7316, "format": "usd", "formatted": "$7,316", "scope": "Two", "derived": false, "quote": "Number of Qualifying Children\nItem One Two Three or More None\nEarned Income Amount $13,020 $18,290 $18,290 $8,680\nMaximum Amount of Credit $4,427 $7,316 $8,231 $664", "offset": 24556, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32", "publisher": "IRS", "fetched_at": "2026-08-27T13:19:54.511Z", "sha256_text": "208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66", "snapshot_url": "https://ratesandlimits.com/snapshots/earned-income-tax-credit/2026/rp-25-32.txt" } }, { "key": "max-credit-three-or-more", "label": "Maximum credit, three or more children", "value": 8231, "format": "usd", "formatted": "$8,231", "scope": "Three or More", "derived": false, "quote": "Number of Qualifying Children\nItem One Two Three or More None\nEarned Income Amount $13,020 $18,290 $18,290 $8,680\nMaximum Amount of Credit $4,427 $7,316 $8,231 $664", "offset": 24556, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32", "publisher": "IRS", "fetched_at": "2026-08-27T13:19:54.511Z", "sha256_text": "208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66", "snapshot_url": "https://ratesandlimits.com/snapshots/earned-income-tax-credit/2026/rp-25-32.txt" } }, { "key": "max-credit-no-children", "label": "Maximum credit, childless filers", "value": 664, "format": "usd", "formatted": "$664", "scope": "None", "derived": false, "quote": "Number of Qualifying Children\nItem One Two Three or More None\nEarned Income Amount $13,020 $18,290 $18,290 $8,680\nMaximum Amount of Credit $4,427 $7,316 $8,231 $664", "offset": 24556, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32", "publisher": "IRS", "fetched_at": "2026-08-27T13:19:54.511Z", "sha256_text": "208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66", "snapshot_url": "https://ratesandlimits.com/snapshots/earned-income-tax-credit/2026/rp-25-32.txt" } }, { "key": "earned-income-amount-one-child", "label": "Earned income amount, one child", "value": 13020, "format": "usd", "formatted": "$13,020", "scope": null, "derived": false, "quote": "Earned Income Amount $13,020", "offset": 24618, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32", "publisher": "IRS", "fetched_at": "2026-08-27T13:19:54.511Z", "sha256_text": "208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66", "snapshot_url": "https://ratesandlimits.com/snapshots/earned-income-tax-credit/2026/rp-25-32.txt" } }, { "key": "earned-income-amount-two-children", "label": "Earned income amount, two children", "value": 18290, "format": "usd", "formatted": "$18,290", "scope": null, "derived": false, "quote": "Earned Income Amount $13,020 $18,290", "offset": 24618, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32", "publisher": "IRS", "fetched_at": "2026-08-27T13:19:54.511Z", "sha256_text": "208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66", "snapshot_url": "https://ratesandlimits.com/snapshots/earned-income-tax-credit/2026/rp-25-32.txt" } }, { "key": "earned-income-amount-three-or-more", "label": "Earned income amount, three or more children", "value": 18290, "format": "usd", "formatted": "$18,290", "scope": null, "derived": false, "quote": "Earned Income Amount $13,020 $18,290 $18,290", "offset": 24618, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32", "publisher": "IRS", "fetched_at": "2026-08-27T13:19:54.511Z", "sha256_text": "208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66", "snapshot_url": "https://ratesandlimits.com/snapshots/earned-income-tax-credit/2026/rp-25-32.txt" } }, { "key": "earned-income-amount-no-children", "label": "Earned income amount, childless filers", "value": 8680, "format": "usd", "formatted": "$8,680", "scope": null, "derived": false, "quote": "Earned Income Amount $13,020 $18,290 $18,290 $8,680", "offset": 24618, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32", "publisher": "IRS", "fetched_at": "2026-08-27T13:19:54.511Z", "sha256_text": "208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66", "snapshot_url": "https://ratesandlimits.com/snapshots/earned-income-tax-credit/2026/rp-25-32.txt" } } ], "schedule": null, "explainers": [ { "key": "threshold-phaseout-amount", "heading": "Where the credit starts shrinking, and which income counts", "body": "For 2026, the Earned Income Tax Credit reaches its full value once a taxpayer's earned income hits the earned income amount: $13,020 for one child, $18,290 for two or three or more children, or $8,680 for childless filers. Once income rises past the threshold phaseout amount, however, the credit is no longer at its maximum. Instead, it shrinks by a percentage of every additional dollar earned. The threshold is measured against the greater of adjusted gross income or earned income, so a taxpayer cannot avoid the phaseout simply by keeping wages low while other income is high. The maximum credit that begins to phase out at this point is $4,427 for one qualifying child, $7,316 for two children, $8,231 for three or more children, and $664 for filers with no qualifying children. The credit continues to shrink until income reaches the completed phaseout amount, at which point it drops to zero.", "quote": "The \"threshold phaseout amount\" is the amount of\nadjusted gross income (or, if greater, earned income) above which the maximum\namount of the credit begins to phase out.", "offset": 23732, "verified_at": "2026-09-01", "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32", "publisher": "IRS", "fetched_at": "2026-08-27T13:19:54.511Z", "sha256_text": "208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66", "snapshot_url": "https://ratesandlimits.com/snapshots/earned-income-tax-credit/2026/rp-25-32.txt" } }, { "key": "completed-phaseout-amount", "heading": "The income at which the credit reaches zero", "body": "For 2026, once a taxpayer's income reaches the completed phaseout amount, the Earned Income Tax Credit falls to zero — no credit is allowed at all. Like the threshold that begins the reduction, this ceiling looks at the greater of adjusted gross income or earned income, so neither measure can be used in isolation to stay eligible. Between the threshold phaseout amount and the completed phaseout amount, the credit shrinks with each additional dollar of income. The maximum credit that would be available before the phaseout begins is $8,231 for three or more qualifying children, $7,316 for two children, $4,427 for one child, and $664 for a childless filer. Those full amounts are reached at earned income levels of $18,290 (for two or for three or more children), $13,020 (for one child), or $8,680 (for childless filers). Beyond the completed phaseout amount, none of that credit remains regardless of family size.", "quote": "The \"completed phaseout amount\" is the\namount of adjusted gross income (or, if greater, earned income) at or above which no\ncredit is allowed.", "offset": 23901, "verified_at": "2026-09-01", "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32", "publisher": "IRS", "fetched_at": "2026-08-27T13:19:54.511Z", "sha256_text": "208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66", "snapshot_url": "https://ratesandlimits.com/snapshots/earned-income-tax-credit/2026/rp-25-32.txt" } }, { "key": "earned-income-amount", "heading": "The income at which the credit stops growing", "body": "The earned income amount is the level of earned income at which the credit reaches its maximum value. Below this point, the credit grows as earned income rises; at or above this point, the taxpayer receives the full maximum credit for their number of qualifying children. For 2026, the earned income amounts are $13,020 for one child, $18,290 for two children, $18,290 for three or more children, and $8,680 for childless filers. This is not a phaseout threshold - it is the floor of earned income needed to qualify for the top credit. Once earned income reaches this figure, the credit stays at the maximum ($4,427 for one child, $7,316 for two children, $8,231 for three or more children, or $664 for childless filers) until adjusted gross income (or, if greater, earned income) passes the higher threshold phaseout amount, where the credit then begins to shrink. In short, the earned income amount marks the end of the credit's growth phase and the beginning of the plateau where the full maximum is available.", "quote": "The \"earned income\namount\" is the amount of earned income at or above which the maximum amount of the\nearned income credit is allowed.", "offset": 23597, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32", "publisher": "IRS", "fetched_at": "2026-08-27T13:19:54.511Z", "sha256_text": "208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66", "snapshot_url": "https://ratesandlimits.com/snapshots/earned-income-tax-credit/2026/rp-25-32.txt" } }, { "key": "married-joint-higher-thresholds", "heading": "Married filing jointly gets a higher phaseout range", "body": "Married taxpayers filing a joint return receive higher phaseout thresholds and completed phaseout amounts than other filers. This means a married couple filing jointly can earn more before their credit begins to shrink and before it reaches zero entirely. For 2026 the threshold phaseout amounts for joint filers are $31,160 for one, two, or three-or-more children and $18,140 for childless filers. The completed phaseout amounts for joint filers are $58,863 for one child, $65,899 for two children, $70,244 for three or more children, and $26,820 for childless filers. These joint amounts include an inflation-adjusted increase provided by § 32(b)(2)(B). By contrast, all other filing statuses have thresholds of $23,890 for one, two, or three-or-more children and $10,860 for childless filers, with completed phaseout amounts of $51,593, $58,629, $62,974, and $19,540 respectively. The higher joint range recognizes that married couples often combine their earnings and need a broader income band to receive comparable credit amounts.", "quote": "Threshold Phaseout Amount\n(Married Filing Jointly)\n$31,160 $31,160 $31,160 $18,140\nCompleted Phaseout\nAmount (Married Filing\nJointly)\n$58,863 $65,899 $70,244 $26,820\nThreshold Phaseout Amount\n(All other filing statuses)\n$23,890 $23,890 $23,890 $10,860\nCompleted Phaseout\nAmount (All other filing\nstatuses)\n$51,593 $58,629 $62,974 $19,540", "offset": 24721, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32", "publisher": "IRS", "fetched_at": "2026-08-27T13:19:54.511Z", "sha256_text": "208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66", "snapshot_url": "https://ratesandlimits.com/snapshots/earned-income-tax-credit/2026/rp-25-32.txt" } }, { "key": "investment-income-disqualifier", "heading": "Too much investment income disqualifies you outright", "body": "Taxpayers whose investment income is too high are disqualified from the earned income credit entirely, regardless of how much earned income they have or how many qualifying children they claim. For taxable years beginning in 2026, the credit is not allowed if aggregate investment income exceeds $12,200. Investment income includes interest, dividends, capital gains, rental and royalty income, and other passive income items. This limit acts as an absolute screen: if a taxpayer's investment income crosses the $12,200 line, the credit is zero even if the taxpayer would otherwise qualify based on earned income and adjusted gross income. The threshold is indexed for inflation and applies uniformly across all filing statuses and family sizes. Taxpayers who are close to the limit should review their investment income carefully, because even a small amount above $12,200 eliminates the credit completely rather than reducing it gradually.", "quote": "investment income exceeds $12,200.", "offset": 25353, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32", "publisher": "IRS", "fetched_at": "2026-08-27T13:19:54.511Z", "sha256_text": "208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66", "snapshot_url": "https://ratesandlimits.com/snapshots/earned-income-tax-credit/2026/rp-25-32.txt" } }, { "key": "where-to-look-up-your-credit", "heading": "Why your credit is read off a table, not multiplied out", "body": "The earned income credit is not calculated by a simple formula that taxpayers multiply out on their return. Instead, the IRS publishes detailed tables that show the exact credit amount for every combination of filing status, number of qualifying children, and income level. These tables appear in the instructions for the Form 1040 series and are organized so that a taxpayer can look up their credit directly rather than computing a phaseout manually. The tables reflect the earned income amount, the threshold phaseout amount, the completed phaseout amount, and the statutory phaseout rates for each category. Because the credit phases out in increments and depends on multiple thresholds, using the tables ensures accuracy and consistency across all returns. Taxpayers and tax preparers should consult the applicable table rather than attempting to derive the credit from the raw phaseout formulas.", "quote": "earned income credit for each type of taxpayer.", "offset": 25142, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32", "publisher": "IRS", "fetched_at": "2026-08-27T13:19:54.511Z", "sha256_text": "208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66", "snapshot_url": "https://ratesandlimits.com/snapshots/earned-income-tax-credit/2026/rp-25-32.txt" } } ], "estimate": null }, { "program": "educator-expense-deduction", "name": "Educator Expense Deduction", "category": "deductions-and-credits", "agency": "IRS", "year": 2026, "state": null, "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-29", "published_at": "2026-08-29T20:17:21.557Z", "canonical_url": "https://ratesandlimits.com/educator-expense-deduction/", "figures": [ { "key": "maximum-deduction", "label": "Maximum deduction", "value": 350, "format": "usd", "formatted": "$350", "scope": null, "derived": false, "quote": "the amount of the deduction allowed\nunder § 162 that consists of expenses paid or incurred by an eligible educator in\nconnection with books, supplies (other than nonathletic supplies for courses of\ninstruction in health or physical education), computer equipment (including related\nsoftware and services) and other equipment, and supplementary materials used by the\neligible educator in the classroom is $350.", "offset": 27675, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32", "publisher": "IRS", "fetched_at": "2026-08-27T13:29:20.837Z", "sha256_text": "208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66", "snapshot_url": "https://ratesandlimits.com/snapshots/educator-expense-deduction/2026/rp-25-32.txt" } } ], "schedule": null, "explainers": [ { "key": "who-is-an-eligible-educator", "heading": "The 900 hour rule, and who counts as an educator", "body": "The IRS defines an eligible educator as someone who works in a classroom setting from kindergarten through grade 12. This includes teachers, instructors, counselors, principals, and aides. The key requirement is that you must work in a school for at least 900 hours during a school year. This threshold applies to the time you spend in the school building and classroom, not just teaching time. If you work fewer than 900 hours in the school year, you do not qualify for the deduction, even if you are otherwise employed in an educational role. The deduction applies to educators who work in public, private, or religious schools that provide elementary or secondary education as determined under state law. College professors and other post-secondary educators do not qualify for this particular deduction. The 900-hour test is applied on a school-year basis, not a calendar-year basis, so it accounts for the typical academic schedule that educators follow.", "quote": "An eligible educa-\ntor is a kindergarten through grade 12\nteacher, instructor, counselor, principal,\nor aide who worked in a school for at\nleast 900 hours during a school year.", "offset": 465410, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/i1040gi.pdf", "title": "2025 Instructions for Form 1040, U.S. Individual Income Tax Return", "publisher": "IRS", "fetched_at": "2026-08-29T08:10:15.853Z", "sha256_text": "dde5eae8f689fec7453d88a38d4404aba18bc454f4423485b8f3df5c49bcffe6", "snapshot_url": "https://ratesandlimits.com/snapshots/educator-expense-deduction/2026/i1040gi.txt" } }, { "key": "what-does-not-count", "heading": "Home schooling and health class supplies are out", "body": "Two categories of expense are expressly excluded from the deduction. First, you may not deduct any amount paid for home schooling, even if you are also a classroom teacher. The expenses must be incurred in your capacity as an educator working in a school, not as a parent teaching your own children at home. Second, you may not deduct expenses for non-athletic supplies used in courses in health or physical education. Athletic equipment for those classes remains eligible, but items such as posters, handouts, or instructional materials for a health or physical education course do not qualify. If you teach both a regular classroom subject and a health or physical education course, you must allocate your supply costs and claim only the portion that is not tied to the excluded courses. These exclusions apply regardless of whether the expenses would otherwise meet the ordinary and necessary test.", "quote": "Qualified expenses don’t include ex-\npenses for home schooling or for non-\nathletic supplies for courses in health or\nphysical education.", "offset": 466356, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/i1040gi.pdf", "title": "2025 Instructions for Form 1040, U.S. Individual Income Tax Return", "publisher": "IRS", "fetched_at": "2026-08-29T08:10:15.853Z", "sha256_text": "dde5eae8f689fec7453d88a38d4404aba18bc454f4423485b8f3df5c49bcffe6", "snapshot_url": "https://ratesandlimits.com/snapshots/educator-expense-deduction/2026/i1040gi.txt" } }, { "key": "reductions-you-must-make", "heading": "Four amounts that cut the deduction first", "body": "Even if you paid qualified expenses during the year, you must first subtract any tax-free educational benefits you received that relate to those same costs. Four specific amounts reduce your qualified expenses before the deduction limit is applied. First, subtract any excludable interest from U.S. series EE and I savings bonds that you reported on Form 8815. Second, subtract any nontaxable earnings or distributions from a qualified tuition program. Third, subtract any nontaxable distribution of earnings from a Coverdell education savings account. Fourth, subtract any reimbursement your employer paid for these expenses that was not included in box 1 of your Form W-2. The result is the net qualified expense amount you may deduct, subject to the overall dollar limit. You cannot use the same expense to support both a tax-free benefit and the educator expense deduction.", "quote": "You must reduce your qualified ex-\npenses by the following amounts.\n• Excludable U.S. series EE and I\nsavings bond interest from Form 8815.\n• Nontaxable qualified tuition pro-\ngram earnings or distributions.\n• Any nontaxable distribution of\nCoverdell education savings account\nearnings.\n• Any reimbursements you received\nfor these expenses that weren’t reported\nto you in box 1 of your Form W-2.", "offset": 466494, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/i1040gi.pdf", "title": "2025 Instructions for Form 1040, U.S. Individual Income Tax Return", "publisher": "IRS", "fetched_at": "2026-08-29T08:10:15.853Z", "sha256_text": "dde5eae8f689fec7453d88a38d4404aba18bc454f4423485b8f3df5c49bcffe6", "snapshot_url": "https://ratesandlimits.com/snapshots/educator-expense-deduction/2026/i1040gi.txt" } }, { "key": "qualified-expenses", "heading": "What you may actually deduct", "body": "Once you qualify as an eligible educator, you may deduct only qualified expenses. The deduction covers ordinary and necessary amounts you pay for professional development courses directly related to the curriculum you teach or the students you serve. It also covers books, supplies, equipment - including computer equipment, software, and related services - and other materials used in your classroom. An ordinary expense is one that is common and accepted in your educational field. A necessary expense is one that is helpful and appropriate for your work as an educator; it does not need to be strictly required to qualify. Additionally, amounts paid in 2025 for personal protective equipment, disinfectant, and other supplies used to prevent the spread of coronavirus also count as qualified expenses. You must pay these costs yourself; any amount reimbursed by your employer or paid with tax-advantaged education funds must be subtracted before you calculate your deduction.", "quote": "Qualified expenses include ordinary\nand necessary expenses paid:\n• For professional development\ncourses you have taken related to the\ncurriculum you teach or to the students\nyou teach; or\n• In connection with books, sup-\nplies, equipment (including computer\nequipment, software, and services), and\nother materials used in the classroom.", "offset": 465587, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/i1040gi.pdf", "title": "2025 Instructions for Form 1040, U.S. Individual Income Tax Return", "publisher": "IRS", "fetched_at": "2026-08-29T08:10:15.853Z", "sha256_text": "dde5eae8f689fec7453d88a38d4404aba18bc454f4423485b8f3df5c49bcffe6", "snapshot_url": "https://ratesandlimits.com/snapshots/educator-expense-deduction/2026/i1040gi.txt" } } ], "estimate": null }, { "program": "energy-efficient-home-improvement-credit", "name": "Energy Efficient Home Improvement Credit", "category": "deductions-and-credits", "agency": "IRS", "year": 2026, "state": null, "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-30", "published_at": "2026-08-30T07:22:01.131Z", "canonical_url": "https://ratesandlimits.com/energy-efficient-home-improvement-credit/", "figures": [], "schedule": null, "explainers": [ { "key": "termination-after-2025", "heading": "The credit ends with 2025", "body": "The IRS confirms that the energy efficient home improvement credit ends with 2025. Taxpayers cannot claim the credit for any expenditures, or for any property placed in service, after December 31, 2025. This termination applies specifically to the energy efficient home improvement credit reported on Form 5695; a separate termination rule applies to residential clean energy credits for expenditures made after the same date. The effect is that 2025 is the final year in which qualifying improvements—such as exterior doors, windows, insulation, heat pumps, biomass stoves, and home energy audits—can generate a federal credit under this provision. Costs paid or incurred in 2026 and later are ineligible, regardless of when the underlying contract was signed or the improvement was ordered. Taxpayers planning improvements should therefore time purchases and installation so that expenditure or placed-in-service occurs on or before December 31, 2025, if they intend to rely on this credit.", "quote": "You can’t\nclaim energy efficient home improvement credits for expenditures or\nproperty placed in service after December 31, 2025.", "offset": 475, "verified_at": "2026-08-30", "source": { "url": "https://www.irs.gov/pub/irs-pdf/i5695.pdf", "title": "2025 Instructions for Form 5695", "publisher": "IRS", "fetched_at": "2026-08-29T02:51:29.584Z", "sha256_text": "028f32075ab23df51b88bf9ac8d2ccc2f47bfb6200988e5eb82f33dfa01e05a6", "snapshot_url": "https://ratesandlimits.com/snapshots/energy-efficient-home-improvement-credit/2026/i5695.txt" } }, { "key": "per-item-sublimits", "heading": "The annual limit is a ceiling over smaller ceilings", "body": "The federal Energy Efficient Home Improvement Credit has a total combined annual limit, but within that total, individual categories have their own smaller ceilings. For qualifying exterior doors, the credit limit is $250 for any single door, and the total for all exterior doors combined cannot exceed $500. These per-item sublimits apply regardless of how much the taxpayer actually spends on the improvements. The structure means that even if a homeowner installs multiple exterior doors or spends more than the per-item caps, the credit is restricted to these specific dollar amounts. Taxpayers must track spending by category to determine the maximum credit available, as exceeding a sublimit does not allow the excess to be applied to other categories or to increase the overall credit beyond its total annual cap.", "quote": "A credit limit of $250 for any qualifying exterior door and $500\ntotal for all qualifying exterior doors.", "offset": 13686, "verified_at": "2026-08-30", "source": { "url": "https://www.irs.gov/pub/irs-pdf/i5695.pdf", "title": "2025 Instructions for Form 5695", "publisher": "IRS", "fetched_at": "2026-08-29T02:51:29.584Z", "sha256_text": "028f32075ab23df51b88bf9ac8d2ccc2f47bfb6200988e5eb82f33dfa01e05a6", "snapshot_url": "https://ratesandlimits.com/snapshots/energy-efficient-home-improvement-credit/2026/i5695.txt" } }, { "key": "heat-pump-separate-limit", "heading": "Heat pumps get their own bucket", "body": "Under the federal Energy Efficient Home Improvement Credit, heat pumps and heat pump water heaters, along with biomass stoves and biomass boilers, receive a separate annual credit limit of $2,000. This separate bucket is distinct from the general annual limit that applies to other qualified energy property items. The $2,000 limit for these specific heating and biomass equipment has no lifetime limitation, which replaces the prior lifetime limitation of $500 that existed before the credit was modified. This means taxpayers can claim up to $2,000 each year they make qualifying expenditures on heat pumps, heat pump water heaters, biomass stoves, or biomass boilers, without being restricted by the general annual cap that applies to other improvements like insulation, windows, or doors.", "quote": "Heat pumps and heat pump water heaters, biomass stoves and\nbiomass boilers have a separate annual credit limit of $2,000 with no\nlifetime limitation, which replaces the prior lifetime limitation of $500.", "offset": 2886, "verified_at": "2026-08-30", "source": { "url": "https://www.irs.gov/pub/irs-pdf/i5695.pdf", "title": "2025 Instructions for Form 5695", "publisher": "IRS", "fetched_at": "2026-08-29T02:51:29.584Z", "sha256_text": "028f32075ab23df51b88bf9ac8d2ccc2f47bfb6200988e5eb82f33dfa01e05a6", "snapshot_url": "https://ratesandlimits.com/snapshots/energy-efficient-home-improvement-credit/2026/i5695.txt" } }, { "key": "qmid-required", "heading": "The manufacturer number you must have", "body": "Beginning January 1, 2025, taxpayers claiming the federal Energy Efficient Home Improvement Credit for specified property placed into service in 2025 must include the qualified manufacturer identification number (QMID) for each item. The QMID is a four-character alphanumeric code that uniquely identifies the manufacturer of the qualified property. This requirement ensures that the property meets the energy efficiency standards necessary for the credit. Taxpayers should obtain the QMID from the manufacturer or retailer at the time of purchase and include it on Form 5695 when filing their federal tax return. Without the proper QMID, the credit may be disallowed, so it is essential to verify that the product documentation includes this identification number before claiming the credit.", "quote": "Beginning\nJanuary 1, 2025, if you are claiming the energy efficient home\nimprovement credit for specified property placed into service in\n2025, you must include the four-character alphanumeric unique\nqualified manufacturer identification number (QMID) for each item.", "offset": 920, "verified_at": "2026-08-30", "source": { "url": "https://www.irs.gov/pub/irs-pdf/i5695.pdf", "title": "2025 Instructions for Form 5695", "publisher": "IRS", "fetched_at": "2026-08-29T02:51:29.584Z", "sha256_text": "028f32075ab23df51b88bf9ac8d2ccc2f47bfb6200988e5eb82f33dfa01e05a6", "snapshot_url": "https://ratesandlimits.com/snapshots/energy-efficient-home-improvement-credit/2026/i5695.txt" } }, { "key": "subsidized-financing-excluded", "heading": "Subsidised money does not count", "body": "Under the federal Energy Efficient Home Improvement Credit, any amounts provided by subsidized energy financing cannot be used to calculate the credit. Subsidized energy financing refers to funding received under a federal, state, or local program where a principal purpose is to provide subsidized financing for projects designed to conserve energy or produce energy. This means that if a taxpayer receives low-interest loans, grants, rebates, or other financial assistance from government energy programs to pay for qualifying improvements, those subsidized amounts are excluded from the credit calculation. Only the taxpayer's own out-of-pocket expenses that are not covered by subsidized financing can be included when determining the credit amount. This rule prevents double benefits where taxpayers would receive both subsidized funding and a tax credit for the same expenditures.", "quote": "Subsidized energy financing. Any amounts provided for by\nsubsidized energy financing can't be used to figure the energy\nefficient home improvement credit. This is financing provided under\na federal, state, or local program, a principal purpose of which is to\nprovide subsidized financing for projects designed to conserve or\nproduce energy.", "offset": 13948, "verified_at": "2026-08-30", "source": { "url": "https://www.irs.gov/pub/irs-pdf/i5695.pdf", "title": "2025 Instructions for Form 5695", "publisher": "IRS", "fetched_at": "2026-08-29T02:51:29.584Z", "sha256_text": "028f32075ab23df51b88bf9ac8d2ccc2f47bfb6200988e5eb82f33dfa01e05a6", "snapshot_url": "https://ratesandlimits.com/snapshots/energy-efficient-home-improvement-credit/2026/i5695.txt" } } ], "estimate": null }, { "program": "estate-tax-exemption", "name": "Estate Tax Exemption", "category": "estate-and-gift", "agency": "IRS", "year": 2026, "state": null, "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-29", "published_at": "2026-08-29T13:37:01.435Z", "canonical_url": "https://ratesandlimits.com/estate-tax-exemption/", "figures": [ { "key": "basic-exclusion", "label": "Basic exclusion amount", "value": 15000000, "format": "usd", "formatted": "$15,000,000", "scope": null, "derived": false, "quote": "Section 70106 of the OBBBA amends § 2010(c)(3) by increasing the basic\nexclusion amount to $15,000,000 for calendar year 2026.", "offset": 14276, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32", "publisher": "IRS", "fetched_at": "2026-08-27T13:30:44.360Z", "sha256_text": "208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66", "snapshot_url": "https://ratesandlimits.com/snapshots/estate-tax-exemption/2026/rp-25-32.txt" } } ], "schedule": null, "explainers": [ { "key": "what-the-gross-estate-includes", "heading": "What counts toward the exemption", "body": "The gross estate includes all property in which the decedent had an interest, including property outside the United States. Beyond direct ownership, the gross estate also captures certain transfers made during the decedent's life without adequate and full consideration, annuities, the includible portion of joint estates with right of survivorship and tenancies by the entirety, certain life insurance proceeds even when payable to beneficiaries other than the estate, digital assets, property over which the decedent held a general power of appointment, dower or curtesy interests of the surviving spouse, and community property to the extent of the decedent's interest under applicable law. These rules mean the gross estate for federal estate tax purposes is typically much larger than the probate estate, and executors must account for all of these categories when determining whether the estate exceeds the basic exclusion amount and whether Form 706 must be filed.", "quote": "The gross estate includes all property in which the decedent\nhad an interest (including property outside the United\nStates).", "offset": 6193, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/i706--2025.pdf", "title": "Instructions for Form 706 (Rev. September 2025), United States Estate (and Generation-Skipping Transfer) Tax Return", "publisher": "IRS", "fetched_at": "2026-08-29T07:59:55.844Z", "sha256_text": "f6c7ea696e1563a842ba0447c68094dea5991904fe00b43294c7098564f8dc86", "snapshot_url": "https://ratesandlimits.com/snapshots/estate-tax-exemption/2026/i706--2025.txt" } }, { "key": "nine-month-deadline", "heading": "The nine-month deadline and the extension", "body": "Form 706 must be filed within 9 months after the date of the decedent's death. If the executor cannot meet this deadline, an automatic 6-month extension of time to file is available by submitting Form 4768, Application for Extension of Time To File a Return and/or Pay U.S. Estate (and Generation-Skipping Transfer) Taxes. The extension request does not require showing cause; it is granted automatically upon timely filing of Form 4768. However, the extension of time to file does not extend the time to pay any estate tax due. Interest accrues on unpaid tax from the original 9-month due date, and a separate extension to pay may be needed if the estate lacks liquid assets. Executors should file Form 4768 well before the 9-month deadline to ensure the extension is in place.", "quote": "You must file Form 706 to report estate and/or GST tax within\n9 months after the date of the decedent’s death. If you are\nunable to file Form 706 by the due date, you may receive an\nextension of time to file. Use Form 4768, Application for\nExtension of Time To File a Return and/or Pay U.S. Estate\n(and Generation-Skipping Transfer) Taxes, to apply for an\nautomatic 6-month extension of time to file.", "offset": 10939, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/i706--2025.pdf", "title": "Instructions for Form 706 (Rev. September 2025), United States Estate (and Generation-Skipping Transfer) Tax Return", "publisher": "IRS", "fetched_at": "2026-08-29T07:59:55.844Z", "sha256_text": "f6c7ea696e1563a842ba0447c68094dea5991904fe00b43294c7098564f8dc86", "snapshot_url": "https://ratesandlimits.com/snapshots/estate-tax-exemption/2026/i706--2025.txt" } }, { "key": "portability-election", "heading": "Carrying an unused exemption to a surviving spouse", "body": "The portability election allows an executor to transfer the deceased spousal unused exclusion (DSUE) amount to the surviving spouse, effectively allowing the survivor to use both their own basic exclusion amount and the unused portion of the deceased spouse's exclusion. To make this election, the executor must file Form 706 timely - that is, within 9 months of the decedent's date of death or, if an extension was granted, before the 6-month extension period ends. If the estate has no filing requirement under section 6018(a) but wants to elect portability, the return must still be filed within this window. Executors who miss the deadline may be eligible for relief under Revenue Procedure 2022-32, which permits filing Form 706 on or before the fifth anniversary of the decedent's death, provided the return includes a specific statement at the top indicating it is being filed under that procedure to elect portability.", "quote": "An executor can only elect to transfer\nthe DSUE amount to the surviving spouse if the Form 706 is\nfiled timely, that is, within 9 months of the decedent’s date of\ndeath or, if you have received an extension of time to file,\nbefore the 6-month extension period ends.", "offset": 11362, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/i706--2025.pdf", "title": "Instructions for Form 706 (Rev. September 2025), United States Estate (and Generation-Skipping Transfer) Tax Return", "publisher": "IRS", "fetched_at": "2026-08-29T07:59:55.844Z", "sha256_text": "f6c7ea696e1563a842ba0447c68094dea5991904fe00b43294c7098564f8dc86", "snapshot_url": "https://ratesandlimits.com/snapshots/estate-tax-exemption/2026/i706--2025.txt" } } ], "estimate": null }, { "program": "foreign-earned-income-exclusion", "name": "Foreign Earned Income Exclusion", "category": "deductions-and-credits", "agency": "IRS", "year": 2026, "state": null, "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-09-01", "published_at": "2026-09-01T03:57:09.966Z", "canonical_url": "https://ratesandlimits.com/foreign-earned-income-exclusion/", "figures": [ { "key": "exclusion", "label": "Exclusion amount", "value": 132900, "format": "usd", "formatted": "$132,900", "scope": null, "derived": false, "quote": "For taxable years beginning in 2026, the\nforeign earned income exclusion amount under § 911(b)(2)(D)(i) is $132,900.", "offset": 40017, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32", "publisher": "IRS", "fetched_at": "2026-08-27T13:21:04.600Z", "sha256_text": "208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66", "snapshot_url": "https://ratesandlimits.com/snapshots/foreign-earned-income-exclusion/2026/rp-25-32.txt" } } ], "schedule": null, "explainers": [ { "key": "choosing-and-revoking", "heading": "The election sticks until you revoke it", "body": "The federal foreign earned income exclusion is not a one-time formality that you renew every year. Once you elect the exclusion on Form 2555 with your return, that election continues automatically for that year and every later year until you revoke it. Because the election stays in place, you must make the same choice in each subsequent year; if you decide to claim the foreign tax credit, the additional child tax credit, or the earned income credit instead, the IRS treats that inconsistent choice as a revocation of the exclusion election for that year. You do not need to file a formal revocation if you simply have no foreign earned income or foreign housing costs for the year. You can revoke by attaching a statement to your return or amended return for the first year you no longer wish to claim the exclusion, specifying which choice you are revoking. If you do revoke the election and then want to elect the exclusion again in a later year, you must apply for IRS approval by requesting a ruling from the Associate Chief Counsel (International). The IRS may consider facts such as a period of U.S. residence, a move to a country with different tax rates, a substantial change in the foreign country's tax laws, or a change of employer when deciding whether to allow you to re-elect.", "quote": "Once you choose the foreign earned income exclusion\nelection or foreign housing exclusion election, that choice\nremains in effect for that year and all later years unless\nyou revoke it. This means you must make the same choice\nin a subsequent year. Otherwise, it will be considered as a\nrevocation of your foreign earned income exclusion elec-\ntion or foreign housing exclusion election for that year.", "offset": 83760, "verified_at": "2026-09-01", "source": { "url": "https://www.irs.gov/pub/irs-pdf/p54.pdf", "title": "Publication 54 (2025), Tax Guide for U.S. Citizens and Resident Aliens Abroad", "publisher": "IRS", "fetched_at": "2026-08-29T08:01:58.422Z", "sha256_text": "cf01d849a30e28781aa93325ea95ed099913c0037d435a2f04aee2e5f2bf84b6", "snapshot_url": "https://ratesandlimits.com/snapshots/foreign-earned-income-exclusion/2026/p54.txt" } }, { "key": "tax-home-abroad", "heading": "Your tax home has to be in a foreign country", "body": "To claim the foreign earned income exclusion, you must have a tax home in a foreign country. Your tax home is generally your principal place of business, employment, or post of duty, regardless of where you maintain your family home. This means that even if your family continues to live in the United States, your tax home can still be considered to be in a foreign country if that is where you primarily work. The tax home requirement is separate from the other eligibility tests - you must also live in or be present in a foreign country, have foreign earned income from personal services performed there, and meet either the bona fide residence test or the physical presence test. If your tax home is not in a foreign country, you cannot qualify for the $132,900 exclusion, no matter how many days you spend abroad or how long you have lived overseas.", "quote": "To claim the foreign earned income exclusion, the foreign\nhousing exclusion, and/or the foreign housing deduction,\nyou must meet the following requirements.\n1. Tax home. You must have a tax home in a foreign\ncountry (or countries). Generally, your tax home is your\nprincipal place of business, employment, or post of duty,\nregardless of where you maintain your family home.", "offset": 80664, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/p54.pdf", "title": "Publication 54 (2025), Tax Guide for U.S. Citizens and Resident Aliens Abroad", "publisher": "IRS", "fetched_at": "2026-08-29T08:01:58.422Z", "sha256_text": "cf01d849a30e28781aa93325ea95ed099913c0037d435a2f04aee2e5f2bf84b6", "snapshot_url": "https://ratesandlimits.com/snapshots/foreign-earned-income-exclusion/2026/p54.txt" } }, { "key": "bona-fide-residence-test", "heading": "The bona fide residence test", "body": "The bona fide residence test requires you to be a bona fide resident of a foreign country for an uninterrupted period that includes an entire tax year. This test is only available to U.S. citizens and U.S. resident aliens who are citizens or nationals of countries with which the United States has an income tax treaty in effect. You do not automatically become a bona fide resident just by living abroad for one year - the nature and quality of your residence matters. The test looks at factors like your intention, the type of housing you maintain, whether you participate in the community, and your ties to the foreign country. If you meet this test, you can claim the foreign earned income exclusion of $132,900 for that tax year, along with the foreign housing exclusion if applicable.", "quote": "a. Bona fide residence. You must be a bona fide resident\nof a foreign country (or countries) for an uninterrupted pe-\nriod that includes an entire tax year. You use the bona fide\nresidence test only if you are either:\n• a U.S. citizen, or\n• a U.S. resident alien who is a citizen or national of a\ncountry with which the United States has an income\ntax treaty in effect.", "offset": 81798, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/p54.pdf", "title": "Publication 54 (2025), Tax Guide for U.S. Citizens and Resident Aliens Abroad", "publisher": "IRS", "fetched_at": "2026-08-29T08:01:58.422Z", "sha256_text": "cf01d849a30e28781aa93325ea95ed099913c0037d435a2f04aee2e5f2bf84b6", "snapshot_url": "https://ratesandlimits.com/snapshots/foreign-earned-income-exclusion/2026/p54.txt" } }, { "key": "physical-presence-test", "heading": "330 full days in any 12 months", "body": "The physical presence test requires you to be physically present in a foreign country or countries for 330 full days during any period of 12 consecutive months. The 330 days do not have to be consecutive - you can leave and return to the foreign country, as long as you accumulate enough full days within the 12-month period. Unlike the bona fide residence test, the physical presence test does not require you to establish residence or demonstrate intent to remain abroad. It is based solely on how long you actually stay in a foreign country. The test is available to all U.S. citizens and resident aliens who meet the other requirements, including having a tax home in a foreign country. If you meet this test, you can claim the foreign earned income exclusion of $132,900 for the qualifying period.", "quote": "Alternatively, U.S. citizens and res-\nident aliens must be physically present in a foreign country\n(or countries) for 330 full days during a period of 12 con-\nsecutive months. The 330 days don’t have to be consecu-\ntive.", "offset": 82380, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/p54.pdf", "title": "Publication 54 (2025), Tax Guide for U.S. Citizens and Resident Aliens Abroad", "publisher": "IRS", "fetched_at": "2026-08-29T08:01:58.422Z", "sha256_text": "cf01d849a30e28781aa93325ea95ed099913c0037d435a2f04aee2e5f2bf84b6", "snapshot_url": "https://ratesandlimits.com/snapshots/foreign-earned-income-exclusion/2026/p54.txt" } }, { "key": "housing-exclusion", "heading": "The separate foreign housing exclusion", "body": "The foreign housing exclusion allows you to exclude a limited amount of income used for housing expenses from U.S. tax. This is separate from the foreign earned income exclusion and provides an additional benefit for taxpayers living abroad. You can either deduct part of your housing expenses from your income or treat a limited amount of income used for housing expenses as not taxable by the United States. To qualify for either the foreign earned income exclusion or the foreign housing exclusion, you must have a tax home in a foreign country, earn income from personal services performed in a foreign country, and meet either the physical presence or bona fide residence test. The housing exclusion amount is limited and depends on your foreign earned income and the location of your tax home. For 2026, the foreign earned income exclusion is $132,900, and the housing exclusion provides additional tax relief on top of that amount.", "quote": "These ben-\nefits are called the foreign earned income exclusion and\nthe foreign housing deduction and exclusion.\nTo qualify, you must have a tax home in a foreign coun-\ntry, earn income from personal services performed in a\nforeign country, and meet either the physical presence or\nbona fide residence test.", "offset": 14854, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/p54.pdf", "title": "Publication 54 (2025), Tax Guide for U.S. Citizens and Resident Aliens Abroad", "publisher": "IRS", "fetched_at": "2026-08-29T08:01:58.422Z", "sha256_text": "cf01d849a30e28781aa93325ea95ed099913c0037d435a2f04aee2e5f2bf84b6", "snapshot_url": "https://ratesandlimits.com/snapshots/foreign-earned-income-exclusion/2026/p54.txt" } } ], "estimate": null }, { "program": "fsa-contribution-limit", "name": "FSA Contribution Limit", "category": "health-accounts", "agency": "IRS", "year": 2026, "state": null, "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-29", "published_at": "2026-08-29T09:26:40.720Z", "canonical_url": "https://ratesandlimits.com/fsa-contribution-limit/", "figures": [ { "key": "health-fsa", "label": "Health FSA salary reduction limit", "value": 3400, "format": "usd", "formatted": "$3,400", "scope": null, "derived": false, "quote": "For taxable years beginning in 2026, the dollar limitation under\n§ 125(i) on voluntary employee salary reductions for contributions to health flexible\nspending arrangements is $3,400.", "offset": 29714, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32", "publisher": "IRS", "fetched_at": "2026-08-27T13:30:44.382Z", "sha256_text": "208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66", "snapshot_url": "https://ratesandlimits.com/snapshots/fsa-contribution-limit/2026/rp-25-32.txt" } }, { "key": "carryover", "label": "Maximum carryover", "value": 680, "format": "usd", "formatted": "$680", "scope": null, "derived": false, "quote": "If the cafeteria plan permits the carryover of unused\namounts, the maximum carryover amount is $680.", "offset": 29898, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32", "publisher": "IRS", "fetched_at": "2026-08-27T13:30:44.382Z", "sha256_text": "208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66", "snapshot_url": "https://ratesandlimits.com/snapshots/fsa-contribution-limit/2026/rp-25-32.txt" } } ], "schedule": null, "explainers": [ { "key": "who-can-have-one", "heading": "Self-employed people cannot have a health FSA", "body": "A health FSA is an employer-established benefit plan, typically offered as part of a cafeteria plan alongside other employer-provided benefits. Because the plan must be established by an employer, self-employed persons aren't eligible for FSAs. If you are self-employed - whether as a sole proprietor, independent contractor, or partner in a partnership - you cannot set up or participate in a health FSA. There is no workaround through a spousal employer either; eligibility flows from being a common-law employee of the sponsoring employer. Note that even among eligible employees, certain limitations may apply to highly compensated participants or key employees.", "quote": "Self-employed persons aren’t eligible for FSAs.", "offset": 71404, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/p969.pdf", "title": "Publication 969 (2025), Health Savings Accounts and Other Tax-Favored Health Plans", "publisher": "IRS", "fetched_at": "2026-08-29T08:00:26.585Z", "sha256_text": "22d6765606878d9f0279b999099c6c793b01e51aa8d2d7b0e8a165011e6d52be", "snapshot_url": "https://ratesandlimits.com/snapshots/fsa-contribution-limit/2026/p969.txt" } }, { "key": "election-is-locked-for-the-year", "heading": "You elect once a year and cannot change it at will", "body": "At the beginning of each plan year you must designate how much you want to contribute for the entire year. Your employer then deducts that amount from your pay periodically, generally every payday, in accordance with your annual election. Once the plan year begins, you generally cannot change or revoke your contribution election; a change is permitted only if it is specifically allowed by law and by the plan itself, such as after a qualifying change in family or employment status. This means the salary reduction amount you locked in at open enrollment controls what goes into your health FSA for the full year, up to the annual limit of $3,400.", "quote": "At the beginning of the plan year, you must designate how\nmuch you want to contribute. Then your employer will de-\nduct amounts periodically (generally, every payday) in ac-\ncordance with your annual election. You can change or re-\nvoke your election only if specifically allowed by law and\nthe plan.", "offset": 72080, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/p969.pdf", "title": "Publication 969 (2025), Health Savings Accounts and Other Tax-Favored Health Plans", "publisher": "IRS", "fetched_at": "2026-08-29T08:00:26.585Z", "sha256_text": "22d6765606878d9f0279b999099c6c793b01e51aa8d2d7b0e8a165011e6d52be", "snapshot_url": "https://ratesandlimits.com/snapshots/fsa-contribution-limit/2026/p969.txt" } }, { "key": "spend-before-you-fund", "heading": "The whole election is available on day one", "body": "A health FSA is not an account you slowly build up over the year. As soon as coverage begins, you must be able to receive the maximum amount of reimbursement for the year - the full amount you elected to contribute - even though your paycheck has only funded a small fraction of it at that point. The maximum amount you can receive tax free is the total amount you elected to contribute for the year. So if you elect $3,400 and incur a large qualified medical expense in January, the plan can reimburse you the entire $3,400 even though only a few pay periods of contributions have been made. Distributions must still be used to reimburse qualified medical expenses you incur during the coverage period.", "quote": "You must be able\nto receive the maximum amount of reimbursement (the\namount you have elected to contribute for the year) at any\ntime during the coverage period, regardless of the amount\nyou have actually contributed. The maximum amount you\ncan receive tax free is the total amount you elected to con-\ntribute to the health FSA for the year.", "offset": 72912, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/p969.pdf", "title": "Publication 969 (2025), Health Savings Accounts and Other Tax-Favored Health Plans", "publisher": "IRS", "fetched_at": "2026-08-29T08:00:26.585Z", "sha256_text": "22d6765606878d9f0279b999099c6c793b01e51aa8d2d7b0e8a165011e6d52be", "snapshot_url": "https://ratesandlimits.com/snapshots/fsa-contribution-limit/2026/p969.txt" } }, { "key": "use-it-or-lose-it", "heading": "Use it or lose it, and the two escapes from it", "body": "FSAs are generally \"use-it-or-lose-it\" plans: amounts left in the account at the end of the plan year are forfeited. The plan can soften this rule in one of two ways, but not both. First, the plan may offer a grace period of up to 2 1/2 months after the end of the plan year, during which leftover funds can still reimburse qualified medical expenses incurred in that extension window; any remaining balance still cannot be refunded to you. Second, the plan may allow a carryover of up to $680 of unused amounts into the next plan year; any amount above that threshold is forfeited. The carryover does not reduce or affect the maximum salary reduction contributions you are permitted to make in the new year.", "quote": "FSAs are generally “use-it-or-lose-it” plans. This means\nthat amounts in the account at the end of the plan year\ncan’t generally be carried over to the next year. However,\nthe plan can provide for either a grace period or a carry-\nover.\nThe plan can provide for a grace period of up to 2 1/2\nmonths after the end of the plan year.", "offset": 76485, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/p969.pdf", "title": "Publication 969 (2025), Health Savings Accounts and Other Tax-Favored Health Plans", "publisher": "IRS", "fetched_at": "2026-08-29T08:00:26.585Z", "sha256_text": "22d6765606878d9f0279b999099c6c793b01e51aa8d2d7b0e8a165011e6d52be", "snapshot_url": "https://ratesandlimits.com/snapshots/fsa-contribution-limit/2026/p969.txt" } }, { "key": "qualified-medical-expenses", "heading": "What the money may be spent on, and what it may not", "body": "Health FSA funds may be used only to reimburse qualified medical expenses incurred by you, your spouse, all dependents you claim on your tax return, certain dependents you could have claimed but for specific exceptions, and your child under age 27 at the end of your tax year. The IRS explicitly lists three categories of expenses for which you can't receive distributions from your FSA: amounts paid for health insurance premiums, amounts paid for long-term care, and amounts that are covered under another health plan. Because FSA reimbursements are already tax-free, you cannot also claim those same expenses as an itemized medical deduction on Schedule A. In short, the money must pay for eligible medical costs of covered individuals and cannot double-dip with other coverage or deductions.", "quote": "You can’t receive distributions from your FSA for the fol-\nlowing expenses.\n• Amounts paid for health insurance premiums.\n• Amounts paid for long-term care.\n• Amounts that are covered under another health plan.", "offset": 75049, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/p969.pdf", "title": "Publication 969 (2025), Health Savings Accounts and Other Tax-Favored Health Plans", "publisher": "IRS", "fetched_at": "2026-08-29T08:00:26.585Z", "sha256_text": "22d6765606878d9f0279b999099c6c793b01e51aa8d2d7b0e8a165011e6d52be", "snapshot_url": "https://ratesandlimits.com/snapshots/fsa-contribution-limit/2026/p969.txt" } } ], "estimate": null }, { "program": "futa-wage-base", "name": "FUTA Wage Base", "category": "payroll-and-wages", "agency": "IRS", "year": 2026, "state": null, "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-29", "published_at": "2026-08-29T19:55:55.230Z", "canonical_url": "https://ratesandlimits.com/futa-wage-base/", "figures": [ { "key": "wage-base", "label": "Wage base", "value": 7000, "format": "usd", "formatted": "$7,000", "scope": null, "derived": false, "quote": "Figuring FUTA tax. For 2026, the FUTA tax rate is 6.0%.\nThe tax applies to the first $7,000 you pay to each em-\nployee as wages during the year. The $7,000 is the federal\nwage base.", "offset": 239002, "source": { "url": "https://www.irs.gov/pub/irs-pdf/p15.pdf", "title": "Publication 15 (2026), (Circular E), Employer's Tax Guide", "publisher": "IRS", "fetched_at": "2026-08-29T02:24:07.206Z", "sha256_text": "a6a2abda337ce85ee1553bafc21f07b6650b895ee4ef9b658508ccd00aed0e2d", "snapshot_url": "https://ratesandlimits.com/snapshots/futa-wage-base/2026/p15.txt" } } ], "schedule": null, "explainers": [ { "key": "who-must-file", "heading": "The $1,500 quarter test and the 20 week test", "body": "An employer must file Form 940 for 2025 if it meets either of two tests during 2024 or 2025. The first test looks at wages: if the employer paid $1,500 or more in wages to employees in any single calendar quarter, the filing threshold is met. The second test looks at duration: if the employer had one or more employees for at least some part of a day in 20 or more different weeks, the threshold is met. When counting weeks for the second test, all full-time, part-time, and temporary employees are included, but partners in a partnership are not counted. Answering \"Yes\" to either question means the employer must file. The FUTA tax itself applies only to the first $7,000 paid to each employee during the calendar year, after subtracting any payments that are exempt from FUTA tax.", "quote": "Who Must File Form 940?\nExcept as noted below, if you answer “Yes” to either one of\nthese questions, you must file Form 940.\n• Did you pay wages of $1,500 or more to employees in\nany calendar quarter during 2024 or 2025?\n• Did you have one or more employees for at least some\npart of a day in any 20 or more different weeks in 2024 or\n20 or more different weeks in 2025? Count all full-time,\npart-time, and temporary employees.", "offset": 15426, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/i940.pdf", "title": "2025 Instructions for Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return", "publisher": "IRS", "fetched_at": "2026-08-29T08:00:54.282Z", "sha256_text": "0c72a4ebf1b847354d0da1fff845b90c4731906b585fef8a261c8bc4b2d9ec28", "snapshot_url": "https://ratesandlimits.com/snapshots/futa-wage-base/2026/i940.txt" } }, { "key": "credit-reduction-states", "heading": "Why employers in some states pay more", "body": "Employers in credit reduction states owe additional FUTA tax because the state has not repaid money it borrowed from the federal government to pay unemployment benefits. The U.S. Department of Labor determines which states are credit reduction states. If an employer pays wages subject to the unemployment tax laws of a credit reduction state, that employer must pay additional federal unemployment tax when filing Form 940. The credit against federal unemployment tax is reduced based on the credit reduction rate for that state. For 2025, there are credit reduction states. Employers who paid wages subject to a credit reduction state's unemployment compensation laws must use Schedule A (Form 940) to figure the credit reduction. This additional tax is separate from the regular FUTA tax and applies on top of any other FUTA tax owed.", "quote": "If\nan employer pays wages that are subject to the\nunemployment tax laws of a credit reduction state, that\nemployer must pay additional federal unemployment tax\nwhen filing its Form 940.", "offset": 2601, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/i940.pdf", "title": "2025 Instructions for Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return", "publisher": "IRS", "fetched_at": "2026-08-29T08:00:54.282Z", "sha256_text": "0c72a4ebf1b847354d0da1fff845b90c4731906b585fef8a261c8bc4b2d9ec28", "snapshot_url": "https://ratesandlimits.com/snapshots/futa-wage-base/2026/i940.txt" } }, { "key": "household-employees", "heading": "Household employers are tested separately", "body": "Household employers are subject to different filing thresholds than other employers. A household employer must pay FUTA tax on wages paid to household employees only if the employer paid cash wages of $1,000 or more in any calendar quarter in 2024 or 2025. This dollar threshold is lower than the general quarterly test that applies to other employers. A household employee performs household work in a private home, local college club, or local chapter of a college fraternity or sorority. Generally, employers of household employees must file Schedule H (Form 1040) instead of Form 940. However, if the household employer has other employees in addition to household employees, the employer can choose to include the FUTA taxes for household employees on Form 940 instead of filing Schedule H. If the employer chooses to include household employees on Form 940, the employer must also file Form 941 for those employees. Household employers are tested separately, meaning the $1,000 quarterly threshold applies only to household employee wages and does not combine with wages paid to other types of employees.", "quote": "If you’re a household employer, you must pay FUTA tax on\nwages that you paid to your household employees only if\nyou paid cash wages of $1,000 or more in any calendar\nquarter in 2024 or 2025.", "offset": 16772, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/i940.pdf", "title": "2025 Instructions for Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return", "publisher": "IRS", "fetched_at": "2026-08-29T08:00:54.282Z", "sha256_text": "0c72a4ebf1b847354d0da1fff845b90c4731906b585fef8a261c8bc4b2d9ec28", "snapshot_url": "https://ratesandlimits.com/snapshots/futa-wage-base/2026/i940.txt" } }, { "key": "when-to-deposit", "heading": "The $500 rule that decides when you deposit", "body": "Although Form 940 covers a calendar year, employers may have to deposit FUTA tax before filing the return. If your FUTA tax is more than $500 for the calendar year, you must deposit at least one quarterly payment. You must determine when to deposit based on your quarterly tax liability. If your FUTA tax is $500 or less in a quarter, you carry it over to the next quarter. You continue carrying your tax liability over until your cumulative tax is more than $500. At that point, you must deposit your tax for the quarter by the last day of the month after the end of the quarter. If your tax for the next quarter is $500 or less, you're not required to deposit again until the cumulative amount exceeds $500. For fourth quarter liabilities, if your FUTA tax for the fourth quarter plus any undeposited amounts from earlier quarters is more than $500, you must deposit the entire amount by the due date of Form 940. The $500 threshold determines whether you must make quarterly deposits or can wait until you file your annual return.", "quote": "If your\nFUTA tax is more than $500 for the calendar year, you\nmust deposit at least one quarterly payment.\nYou must determine when to deposit your tax based on\nthe amount of your quarterly tax liability. If your FUTA tax is\n$500 or less in a quarter, carry it over to the next quarter.", "offset": 25817, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/i940.pdf", "title": "2025 Instructions for Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return", "publisher": "IRS", "fetched_at": "2026-08-29T08:00:54.282Z", "sha256_text": "0c72a4ebf1b847354d0da1fff845b90c4731906b585fef8a261c8bc4b2d9ec28", "snapshot_url": "https://ratesandlimits.com/snapshots/futa-wage-base/2026/i940.txt" } } ], "estimate": null }, { "program": "gift-tax-exclusion", "name": "Gift Tax Exclusion", "category": "estate-and-gift", "agency": "IRS", "year": 2026, "state": null, "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-29", "published_at": "2026-08-29T13:41:32.838Z", "canonical_url": "https://ratesandlimits.com/gift-tax-exclusion/", "figures": [ { "key": "annual-exclusion", "label": "Annual exclusion per recipient", "value": 19000, "format": "usd", "formatted": "$19,000", "scope": null, "derived": false, "quote": "For calendar year 2026, the first $19,000 of gifts to any person (other than gifts\nof future interests in property) are not included in the total amount of taxable gifts under\n§ 2503 made during that year.", "offset": 40975, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32", "publisher": "IRS", "fetched_at": "2026-08-27T13:31:24.474Z", "sha256_text": "208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66", "snapshot_url": "https://ratesandlimits.com/snapshots/gift-tax-exclusion/2026/rp-25-32.txt" } } ], "schedule": null, "explainers": [ { "key": "who-does-not-need-to-file", "heading": "When a gift needs no return at all", "body": "You do not need to file Form 709 if you satisfy every one of three conditions. First, you made no gifts to your spouse during the year. Second, the total value of what you gave to any single person did not exceed $19,000. Third, every gift you made was a present interest, meaning the recipient had an immediate right to use or enjoy the property. If any one of these conditions is not met, you must file a return even if no tax is ultimately owed. For example, a gift of a future interest must be reported regardless of its value. Charitable gifts that are fully deductible also do not require a return.", "quote": "Who does not need to file. If you meet all of the following\nrequirements, you are not required to file Form 709.\n• You made no gifts during the year to your spouse.\n• You did not give more than $19,000 to any one donee.\n• All the gifts you made were of present interests.", "offset": 9615, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/i709--2025.pdf", "title": "2025 Instructions for Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return", "publisher": "IRS", "fetched_at": "2026-08-29T07:59:46.512Z", "sha256_text": "83566a05b839ffd8d7d3833f7a5c0148505bccbe420e46bf5e6d5a3a402be2ab", "snapshot_url": "https://ratesandlimits.com/snapshots/gift-tax-exclusion/2026/i709--2025.txt" } }, { "key": "present-interest-required", "heading": "The gifts the exclusion does not cover", "body": "The $19,000 annual exclusion applies only to gifts of present interests. A present interest exists when the donee has an immediate right to use, possess, or enjoy the property or its income. A future interest, by contrast, is one where those rights will not begin until some later date, such as a remainder or reversion. Gifts of future interests cannot be excluded under the annual exclusion and must be reported on Form 709 even if their value is below $19,000. This rule ensures that only gifts that immediately benefit the recipient qualify for the exclusion.", "quote": "A gift of a future interest cannot be excluded under the annual\nexclusion.", "offset": 19821, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/i709--2025.pdf", "title": "2025 Instructions for Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return", "publisher": "IRS", "fetched_at": "2026-08-29T07:59:46.512Z", "sha256_text": "83566a05b839ffd8d7d3833f7a5c0148505bccbe420e46bf5e6d5a3a402be2ab", "snapshot_url": "https://ratesandlimits.com/snapshots/gift-tax-exclusion/2026/i709--2025.txt" } }, { "key": "donor-pays-the-tax", "heading": "Who actually owes the gift tax", "body": "The person who makes the gift is the one who owes any gift tax that is due. The recipient generally has no tax liability from receiving the gift. However, if the donor fails to pay the tax, the IRS may collect it from the person who received the gift. This means the donee has a contingent obligation, even though the primary responsibility always rests with the donor. If the donor dies before filing the required return, the donor's executor must file it.", "quote": "The donor is responsible for paying the gift tax. However, if\nthe donor does not pay the tax, the person receiving the gift\nmay have to pay the tax.", "offset": 9381, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/i709--2025.pdf", "title": "2025 Instructions for Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return", "publisher": "IRS", "fetched_at": "2026-08-29T07:59:46.512Z", "sha256_text": "83566a05b839ffd8d7d3833f7a5c0148505bccbe420e46bf5e6d5a3a402be2ab", "snapshot_url": "https://ratesandlimits.com/snapshots/gift-tax-exclusion/2026/i709--2025.txt" } }, { "key": "splitting-gifts-with-a-spouse", "heading": "Splitting a gift with your spouse", "body": "A married couple may elect to treat gifts made by either spouse to third parties as if each spouse made one-half of the gift. This \"gift splitting\" allows the couple to combine their annual exclusions, effectively doubling the amount that can pass tax-free to each donee in a year. To split, both spouses must consent on a timely filed Form 709; the non-donor spouse signs the consent on the return. Once the election is made, it applies to all gifts made by both spouses during the entire year to all third-party donees. You cannot pick and choose which gifts to split; the only exception is a gift over which you gave your spouse a general power of appointment. Because the election binds all gifts for the year, it must be made on a return filed by the due date, including extensions.", "quote": "Generally, if you elect to split your gifts, you must split all gifts\nmade by you and your spouse to third-party donees. The only\nexception is if you gave your spouse a general power of\nappointment over a gift you made.", "offset": 73286, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/i709--2025.pdf", "title": "2025 Instructions for Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return", "publisher": "IRS", "fetched_at": "2026-08-29T07:59:46.512Z", "sha256_text": "83566a05b839ffd8d7d3833f7a5c0148505bccbe420e46bf5e6d5a3a402be2ab", "snapshot_url": "https://ratesandlimits.com/snapshots/gift-tax-exclusion/2026/i709--2025.txt" } }, { "key": "when-to-file", "heading": "When the return is due", "body": "Form 709 is due annually. You may file it any time after January 1 of the year following the year you made the gift, but it must be filed by April 15. If April 15 falls on a weekend or legal holiday, the deadline moves to the next business day. If the donor dies during the year, the executor must file the return by the earlier of the estate tax return due date or April 15 of the following year. Extensions may be available, but the return cannot be filed before January 1.", "quote": "Generally, you must file Form 709 no earlier than January 1,\nbut not later than April 15, of the year after the gift was made.", "offset": 29164, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/i709--2025.pdf", "title": "2025 Instructions for Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return", "publisher": "IRS", "fetched_at": "2026-08-29T07:59:46.512Z", "sha256_text": "83566a05b839ffd8d7d3833f7a5c0148505bccbe420e46bf5e6d5a3a402be2ab", "snapshot_url": "https://ratesandlimits.com/snapshots/gift-tax-exclusion/2026/i709--2025.txt" } } ], "estimate": null }, { "program": "gsa-per-diem-rate", "name": "GSA Per Diem Rate", "category": "mileage-and-misc", "agency": "GSA", "year": 2026, "state": null, "status": "official", "effective_date": "2025-10-01", "date_basis": "effective", "verified_at": "2026-08-31", "published_at": "2026-08-31T10:33:51.822Z", "canonical_url": "https://ratesandlimits.com/gsa-per-diem-rate/", "figures": [ { "key": "standard-lodging", "label": "Standard CONUS lodging rate", "value": 110, "format": "usd", "formatted": "$110", "scope": null, "derived": false, "quote": "the standard lodging rate also remains\nunchanged at $110.", "offset": 2231, "source": { "url": "https://www.federalregister.gov/documents/full_text/text/2025/08/19/2025-15771.txt", "title": "Maximum Per Diem Reimbursement Rates for the Continental United States (CONUS), FY 2026 (GSA Per Diem Bulletin FTR 26-01)", "publisher": "GSA", "fetched_at": "2026-08-31T10:33:33.467Z", "sha256_text": "3196d1af3603dc9e73ac9520f4b28203b37f33956c4880b557869563ce4e637a", "snapshot_url": "https://ratesandlimits.com/snapshots/gsa-per-diem-rate/2026/2025-15771.txt" } }, { "key": "standard-mie", "label": "Standard CONUS M&IE rate", "value": 68, "format": "usd", "formatted": "$68", "scope": null, "derived": false, "quote": "the standard M&IE rate is unchanged at $68.", "offset": 2380, "source": { "url": "https://www.federalregister.gov/documents/full_text/text/2025/08/19/2025-15771.txt", "title": "Maximum Per Diem Reimbursement Rates for the Continental United States (CONUS), FY 2026 (GSA Per Diem Bulletin FTR 26-01)", "publisher": "GSA", "fetched_at": "2026-08-31T10:33:33.467Z", "sha256_text": "3196d1af3603dc9e73ac9520f4b28203b37f33956c4880b557869563ce4e637a", "snapshot_url": "https://ratesandlimits.com/snapshots/gsa-per-diem-rate/2026/2025-15771.txt" } }, { "key": "mie-tier-lowest", "label": "Lowest M&IE rate tier", "value": 68, "format": "usd", "formatted": "$68", "scope": null, "derived": false, "quote": "The M&IE reimbursement rate tiers for FY 2026 are unchanged at $68-$92,", "offset": 2304, "source": { "url": "https://www.federalregister.gov/documents/full_text/text/2025/08/19/2025-15771.txt", "title": "Maximum Per Diem Reimbursement Rates for the Continental United States (CONUS), FY 2026 (GSA Per Diem Bulletin FTR 26-01)", "publisher": "GSA", "fetched_at": "2026-08-31T10:33:33.467Z", "sha256_text": "3196d1af3603dc9e73ac9520f4b28203b37f33956c4880b557869563ce4e637a", "snapshot_url": "https://ratesandlimits.com/snapshots/gsa-per-diem-rate/2026/2025-15771.txt" } }, { "key": "mie-tier-highest", "label": "Highest M&IE rate tier", "value": 92, "format": "usd", "formatted": "$92", "scope": null, "derived": false, "quote": "The M&IE reimbursement rate tiers for FY 2026 are unchanged at $68-$92,", "offset": 2304, "source": { "url": "https://www.federalregister.gov/documents/full_text/text/2025/08/19/2025-15771.txt", "title": "Maximum Per Diem Reimbursement Rates for the Continental United States (CONUS), FY 2026 (GSA Per Diem Bulletin FTR 26-01)", "publisher": "GSA", "fetched_at": "2026-08-31T10:33:33.467Z", "sha256_text": "3196d1af3603dc9e73ac9520f4b28203b37f33956c4880b557869563ce4e637a", "snapshot_url": "https://ratesandlimits.com/snapshots/gsa-per-diem-rate/2026/2025-15771.txt" } } ], "schedule": null, "explainers": [ { "key": "first-and-last-travel-day", "heading": "The first and last day of a trip pay three quarters of the M&IE rate", "body": "A trip's first and last day are not reimbursed at the full meals and incidental expenses rate. GSA pays three quarters of the M&IE rate for the traveller's temporary duty location on each of those two days, on the reasoning that a departure day and a return day do not each contain a full day of meals away from home. The rate that gets cut is the one for the place being travelled to, not the one for the traveller's own official duty station, which is the part people get wrong when they work a reimbursement out by hand. GSA publishes the already-reduced amount for every location in the meal breakdown table on its own site, under a heading for the first and last day of travel, so the arithmetic does not have to be redone.", "quote": "On the first and last travel day, Federal employees are only eligible for 75 percent of the total M&IE rate for their temporary duty travel location (not the official duty station location).", "offset": 20602, "verified_at": "2026-08-31", "source": { "url": "https://www.gsa.gov/travel/plan-a-trip/per-diem-rates/faqs", "title": "Per diem rates frequently asked questions", "publisher": "GSA", "fetched_at": "2026-08-31T10:33:35.731Z", "sha256_text": "9ce8361f6494689fb1d36e9b2b1dc42c3d91635cb1da022466e8b70d3e91f4fe", "snapshot_url": "https://ratesandlimits.com/snapshots/gsa-per-diem-rate/2026/faqs.txt" } }, { "key": "actual-expense-ceiling", "heading": "What happens when no room can be had at the maximum rate", "body": "The lodging figure on this page is a ceiling on ordinary reimbursement, not a promise that a room exists at that price. Where a federal traveller cannot find one within the established rate, the Federal Travel Regulation lets the employing agency authorise the actual expense allowance instead and reimburse what the room actually cost, up to triple the established per diem rate for that location. It is an authorisation rather than an entitlement: the agency has to approve it, normally before the travel happens, and GSA's own guidance asks the traveller to check FedRooms first to confirm that nothing is available at the per diem rate. The Federal Travel Regulation sets the allowance out in its own actual expense subpart, which is the part of the rules an agency travel manager will point to when approving one.", "quote": "In addition, if a Federal employee cannot find a room within the established per diem rates, the travel policy allows the agency to reimburse the actual hotel charges up to 300 percent of the established per diem rates.", "offset": 13727, "verified_at": "2026-08-31", "source": { "url": "https://www.gsa.gov/travel/plan-a-trip/per-diem-rates/faqs", "title": "Per diem rates frequently asked questions", "publisher": "GSA", "fetched_at": "2026-08-31T10:33:35.731Z", "sha256_text": "9ce8361f6494689fb1d36e9b2b1dc42c3d91635cb1da022466e8b70d3e91f4fe", "snapshot_url": "https://ratesandlimits.com/snapshots/gsa-per-diem-rate/2026/faqs.txt" } }, { "key": "standard-locations-and-unlisted-cities", "heading": "Standard locations, non-standard areas, and the city that is on neither list", "body": "GSA sets a rate of its own for the non-standard areas, which are the places the federal community travels to often enough for GSA to review them every year. Everywhere else is a standard CONUS location, and standard locations are deliberately not listed one by one on the per diem site. So an address that returns nothing from GSA's lookup has not been left out by mistake. Check the county first: where the city is unlisted but its county is listed, the county's rate governs the whole county, that city included. Where neither the city nor the county appears, the location takes the standard CONUS rate published at the top of this page. That is why the standard rate is what most federal travel is actually reimbursed against, rather than an obscure fallback.", "quote": "If the city is not listed, but the county is, then the per diem rate is the rate for that entire county. If the city and the county are not listed, then that area receives the standard CONUS location rate.", "offset": 17958, "verified_at": "2026-08-31", "source": { "url": "https://www.gsa.gov/travel/plan-a-trip/per-diem-rates/faqs", "title": "Per diem rates frequently asked questions", "publisher": "GSA", "fetched_at": "2026-08-31T10:33:35.731Z", "sha256_text": "9ce8361f6494689fb1d36e9b2b1dc42c3d91635cb1da022466e8b70d3e91f4fe", "snapshot_url": "https://ratesandlimits.com/snapshots/gsa-per-diem-rate/2026/faqs.txt" } } ], "estimate": null }, { "program": "gst-exemption", "name": "GST Exemption", "category": "estate-and-gift", "agency": "IRS", "year": 2026, "state": null, "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-29", "published_at": "2026-08-29T15:15:35.943Z", "canonical_url": "https://ratesandlimits.com/gst-exemption/", "figures": [ { "key": "lifetime-exemption", "label": "Lifetime GST exemption", "value": 15000000, "format": "usd", "formatted": "$15,000,000", "scope": null, "derived": false, "quote": "For calendar year 2026, the generation-skipping transfer exemption amount under\n§ 2631(c) is equal to $15,000,000.", "offset": 14684, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32", "publisher": "IRS", "fetched_at": "2026-08-29T03:06:55.106Z", "sha256_text": "208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66", "snapshot_url": "https://ratesandlimits.com/snapshots/gst-exemption/2026/rp-25-32.txt" } } ], "schedule": null, "explainers": [ { "key": "transfers-subject-to-gst-tax", "heading": "Which transfers the GST tax reaches", "body": "A generation-skipping transfer occurs when someone gives property directly to a skip person - typically a grandchild or more remote descendant - and the recipient is two or more generations below the donor. For lifetime (inter vivos) transfers, this is called an inter vivos direct skip, and it is the only kind of GST that must be reported on Form 709. For the transfer to qualify as an inter vivos direct skip, it must satisfy all three conditions: it must be subject to the gift tax, it must be of an interest in property, and it must be made to a skip person. Transfers that do not have to be reported on Schedule A of Form 709, such as annual-exclusion gifts, educational or medical payments, and most transfers to a spouse, are not subject to the GST tax. The donor may apply the lifetime GST exemption of $15,000,000 to these transfers to reduce or eliminate the tax.", "quote": "Transfers Subject to the GST Tax\nYou must report on Form 709 the GST tax imposed on inter vivos\ndirect skips. An inter vivos direct skip is a transfer made during\nthe donor’s lifetime that is:\n• Subject to the gift tax,\n• Of an interest in property, and\n• Made to a skip person.", "offset": 22936, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/i709.pdf", "title": "2025 Instructions for Form 709", "publisher": "IRS", "fetched_at": "2026-08-29T15:14:02.786Z", "sha256_text": "83566a05b839ffd8d7d3833f7a5c0148505bccbe420e46bf5e6d5a3a402be2ab", "snapshot_url": "https://ratesandlimits.com/snapshots/gst-exemption/2026/i709.txt" } }, { "key": "automatic-allocation-and-electing-out", "heading": "The exemption allocates itself to direct skips unless you elect out", "body": "When a donor makes an inter vivos direct skip during lifetime, the IRS will automatically apply a portion of the donor's unused GST exemption to the transferred property. This automatic allocation happens by operation of law unless the donor takes affirmative steps to prevent it. To opt out of the automatic allocation, the donor must file Form 709 and attach a written statement that clearly describes the transaction and specifies the extent to which the automatic allocation should not apply. Simply reporting the direct skip on a timely filed Form 709 and paying any GST tax due on the transfer will also prevent the automatic allocation from taking effect. This rule gives donors flexibility but requires them to monitor their transfers carefully, since failing to elect out means the exemption of $15,000,000 will be consumed automatically, leaving less available for other planning purposes.", "quote": "In the case of inter vivos direct skips, a portion of the donor’s\nunused exemption is automatically allocated to the transferred\nproperty unless the donor elects otherwise. To elect out of the\nautomatic allocation of exemption, you must file Form 709 and\nattach a statement to it clearly describing the transaction and the\nextent to which the automatic allocation is not to apply.", "offset": 117446, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/i709.pdf", "title": "2025 Instructions for Form 709", "publisher": "IRS", "fetched_at": "2026-08-29T15:14:02.786Z", "sha256_text": "83566a05b839ffd8d7d3833f7a5c0148505bccbe420e46bf5e6d5a3a402be2ab", "snapshot_url": "https://ratesandlimits.com/snapshots/gst-exemption/2026/i709.txt" } }, { "key": "allocation-is-irrevocable", "heading": "Allocating the exemption is a one-way decision", "body": "The donor can apply this exemption to inter vivos transfers (that is, transfers made during the donor's life) on Form 709. The executor can apply the exemption on Form 706 to transfers taking effect at death. An allocation is irrevocable. Once a donor or executor allocates any portion of the GST exemption to a particular transfer, that allocation cannot be undone or modified in a later year. This means the allocation decision is permanent: if you allocate too much exemption to one transfer, you cannot reclaim the excess for another transfer; if you allocate too little, you cannot go back and increase it later. The irrevocability rule applies regardless of whether the allocation was made on a timely filed return, on an amended return, or through a late allocation. Because the allocation cannot be reversed, donors should carefully consider which transfers receive exemption and how much, especially since the lifetime GST exemption of $15,000,000 is a finite resource that must be allocated strategically across all generation-skipping transfers during the donor's life and at death.", "quote": "The donor can apply this exemption to inter vivos transfers\n(that is, transfers made during the donor’s life) on Form 709. The\nexecutor can apply the exemption on Form 706 to transfers\ntaking effect at death. An allocation is irrevocable.", "offset": 117207, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/i709.pdf", "title": "2025 Instructions for Form 709", "publisher": "IRS", "fetched_at": "2026-08-29T15:14:02.786Z", "sha256_text": "83566a05b839ffd8d7d3833f7a5c0148505bccbe420e46bf5e6d5a3a402be2ab", "snapshot_url": "https://ratesandlimits.com/snapshots/gst-exemption/2026/i709.txt" } }, { "key": "notice-of-allocation", "heading": "Allocating to a transfer not reported on this return", "body": "When allocating GST exemption to transfers that are not reported on the current Form 709 - such as prior-year gifts, transfers made in earlier years, or late allocations - the donor must attach a written statement to the return. This statement must be titled \"Notice of Allocation\" and must include specific information for each trust or other transfer: clear identification of the trust (including its EIN if known), the year the original transfer was reported on Form 709 (if this is a late allocation), the value of the trust assets at the effective date of the allocation, the amount of GST exemption being allocated to each gift, and the inclusion ratio of the trust after the allocation. The total of all exemption allocations must be calculated and entered on line 6 of the return. This procedure allows donors to allocate exemption to transfers after the fact, which is important because the allocation of the lifetime GST exemption of $15,000,000 to a transfer permanently reduces the GST tax on that transfer. Without a proper Notice of Allocation, the IRS may not recognize the allocation, leaving the transfer exposed to GST tax.", "quote": "Notice of Allocation. To allocate your exemption to such\ntransfers, attach a statement to this Form 709 and entitle it\n“Notice of Allocation.” The notice must contain the following for\neach trust (or other transfer).", "offset": 118543, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/i709.pdf", "title": "2025 Instructions for Form 709", "publisher": "IRS", "fetched_at": "2026-08-29T15:14:02.786Z", "sha256_text": "83566a05b839ffd8d7d3833f7a5c0148505bccbe420e46bf5e6d5a3a402be2ab", "snapshot_url": "https://ratesandlimits.com/snapshots/gst-exemption/2026/i709.txt" } } ], "estimate": null }, { "program": "highly-compensated-employee-threshold", "name": "Highly Compensated Employee Threshold", "category": "retirement-limits", "agency": "IRS", "year": 2026, "state": null, "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-29", "published_at": "2026-08-29T09:41:05.225Z", "canonical_url": "https://ratesandlimits.com/highly-compensated-employee-threshold/", "figures": [ { "key": "hce-threshold", "label": "Highly compensated employee threshold", "value": 160000, "format": "usd", "formatted": "$160,000", "scope": null, "derived": false, "quote": "The threshold used in the definition of “highly compensated employee” under\nsection 414(q)(1)(B) remains $160,000.", "offset": 4323, "source": { "url": "https://www.irs.gov/pub/irs-drop/n-25-67.pdf", "title": "Notice 2025-67", "publisher": "IRS", "fetched_at": "2026-08-27T13:21:38.848Z", "sha256_text": "dee57a39e72fc363102f1c9fa373d5c5a969a62bc5422076830034732e2f131d", "snapshot_url": "https://ratesandlimits.com/snapshots/highly-compensated-employee-threshold/2026/n-25-67.txt" } }, { "key": "key-employee-threshold", "label": "Key employee threshold", "value": 235000, "format": "usd", "formatted": "$235,000", "scope": null, "derived": false, "quote": "The threshold under section 416(i)(1)(A)(i) concerning the definition of “key\nemployee” for top-heavy plan purposes is increased from $230,000 to $235,000.", "offset": 4438, "source": { "url": "https://www.irs.gov/pub/irs-drop/n-25-67.pdf", "title": "Notice 2025-67", "publisher": "IRS", "fetched_at": "2026-08-27T13:21:38.848Z", "sha256_text": "dee57a39e72fc363102f1c9fa373d5c5a969a62bc5422076830034732e2f131d", "snapshot_url": "https://ratesandlimits.com/snapshots/highly-compensated-employee-threshold/2026/n-25-67.txt" } } ], "schedule": null, "explainers": [ { "key": "five-percent-owner", "heading": "The 5% owner test ignores what you are paid", "body": "Under the first prong of the highly compensated employee definition, an individual is classified as a highly compensated employee if they owned more than 5% of the interest in the business at any time during the year or the preceding year. This ownership test applies regardless of how much compensation that person earned or received. In other words, even if a 5% owner's pay for the year falls well below the $160,000 compensation threshold used for 2026, they are still treated as a highly compensated employee solely because of their ownership stake. The test looks only at whether the ownership level was exceeded at any point during the relevant period - not at salary, bonuses, or other forms of pay. Employers must count such owners when determining which employees are subject to the stricter nondiscrimination limits that apply to highly compensated employees in retirement plans.", "quote": "Owned more than 5% of the interest in your business\nat any time during the year or the preceding year, re-\ngardless of how much compensation that person\nearned or received;", "offset": 30381, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/p560.pdf", "title": "Publication 560 (2025), Retirement Plans for Small Business", "publisher": "IRS", "fetched_at": "2026-08-29T08:00:43.309Z", "sha256_text": "a0f10ca7567acf2e701566b47e359f5c62733e6bd179d2f270639ecce5adebff", "snapshot_url": "https://ratesandlimits.com/snapshots/highly-compensated-employee-threshold/2026/p560.txt" } }, { "key": "top-paid-group-election", "heading": "The top 20% election an employer may make", "body": "Under the second prong of the highly compensated employee definition, an employee may be classified as highly compensated based on compensation alone. For 2026, the compensation threshold is $160,000. However, the employer has the option to narrow this prong by also requiring that the employee be in the top 20% of all employees when ranked by compensation. This is known as the top-paid group election. If the employer chooses to apply it, an employee who earned more than $160,000 in the preceding year is not treated as a highly compensated employee unless that employee also falls within the top 20% of the workforce by pay. Without this election, every employee who exceeded the dollar threshold in the preceding year is automatically classified as highly compensated. The election gives the employer a tool to limit the size of the highly compensated employee group, which can make nondiscrimination testing easier to pass.", "quote": "For the preceding year, received compensation from\nyou of more than $155,000 (if the preceding year is\n2024, and increased to $160,000 for 2025 and 2026),\nand, if you so choose, was in the top 20% of employ-\nees when ranked by compensation.", "offset": 30559, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/p560.pdf", "title": "Publication 560 (2025), Retirement Plans for Small Business", "publisher": "IRS", "fetched_at": "2026-08-29T08:00:43.309Z", "sha256_text": "a0f10ca7567acf2e701566b47e359f5c62733e6bd179d2f270639ecce5adebff", "snapshot_url": "https://ratesandlimits.com/snapshots/highly-compensated-employee-threshold/2026/p560.txt" } }, { "key": "key-employees-and-top-heavy", "heading": "Key employees and the 60% top-heavy test", "body": "A plan is classified as top-heavy for a plan year if, for the preceding plan year, the total value of accrued benefits or account balances of key employees is more than 60% of the total value of accrued benefits or account balances of all employees. This 60% threshold is the key test that determines whether a plan has top-heavy status. Key employees include certain highly compensated individuals, including those earning above $235,000. When a plan is determined to be top-heavy, additional requirements apply, primarily to provide minimum benefits or contributions for non-key employees covered by the plan. The purpose of these rules is to ensure that retirement plans do not disproportionately favor owners and highly compensated workers at the expense of rank-and-file employees. Most qualified plans must include provisions that meet the top-heavy requirements, which take effect automatically in any plan year where the test is met.", "quote": "is more than 60% of the total\nvalue of accrued benefits or account balances of all em-\nployees.", "offset": 102288, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/p560.pdf", "title": "Publication 560 (2025), Retirement Plans for Small Business", "publisher": "IRS", "fetched_at": "2026-08-29T08:00:43.309Z", "sha256_text": "a0f10ca7567acf2e701566b47e359f5c62733e6bd179d2f270639ecce5adebff", "snapshot_url": "https://ratesandlimits.com/snapshots/highly-compensated-employee-threshold/2026/p560.txt" } }, { "key": "safe-harbor-skips-the-test", "heading": "A safe harbor plan skips the test entirely", "body": "When an employer establishes a safe harbor 401(k) plan that meets all of the IRS requirements, the plan is exempt from the annual ADP and ACP nondiscrimination tests that other 401(k) plans must satisfy. Instead of performing these tests each year, the employer makes either matching or nonelective contributions according to formulas prescribed by the IRS. Because the safe harbor design builds in protections for non-highly compensated employees through these required contributions, the plan automatically passes the nondiscrimination requirements that would otherwise apply. This means that highly compensated employees can contribute the maximum elective deferral amounts without concern that the plan will fail testing and require corrective distributions. Safe harbor plans must also satisfy other general 401(k) requirements, including vesting rules and notice requirements to participants. While the safe harbor approach eliminates the need for annual testing, the employer must commit to making the required contributions each year.", "quote": "If you meet the requirements for a safe harbor 401(k) plan,\nyou don't have to satisfy the ADP test or the ACP test if\ncertain additional requirements are met.", "offset": 134474, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/p560.pdf", "title": "Publication 560 (2025), Retirement Plans for Small Business", "publisher": "IRS", "fetched_at": "2026-08-29T08:00:43.309Z", "sha256_text": "a0f10ca7567acf2e701566b47e359f5c62733e6bd179d2f270639ecce5adebff", "snapshot_url": "https://ratesandlimits.com/snapshots/highly-compensated-employee-threshold/2026/p560.txt" } } ], "estimate": null }, { "program": "hsa-contribution-limit", "name": "HSA Contribution Limit", "category": "health-accounts", "agency": "IRS", "year": 2026, "state": null, "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-28", "published_at": "2026-08-28T16:44:15.231Z", "canonical_url": "https://ratesandlimits.com/hsa-contribution-limit/", "figures": [ { "key": "self-only", "label": "Self-only", "value": 4400, "format": "usd", "formatted": "$4,400", "scope": null, "derived": false, "quote": "For calendar year 2026, the annual limitation on\ndeductions under § 223(b)(2)(A) for an individual with self-only coverage under a high\ndeductible health plan is $4,400.", "offset": 649, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-19.pdf", "title": "Rev. Proc. 2025-19", "publisher": "IRS", "fetched_at": "2026-08-27T12:31:14.653Z", "sha256_text": "c0b5b8ea568516f125f863a1144e1cc1682f8f2679d8911b0e1e5fcc33fa4641", "snapshot_url": "https://ratesandlimits.com/snapshots/hsa-contribution-limit/2026/rp-25-19.txt" } }, { "key": "family", "label": "Family", "value": 8750, "format": "usd", "formatted": "$8,750", "scope": null, "derived": false, "quote": "For calendar year 2026, the annual limitation on\ndeductions under § 223(b)(2)(B) for an individual with family coverage under a high\ndeductible health plan is $8,750.", "offset": 819, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-19.pdf", "title": "Rev. Proc. 2025-19", "publisher": "IRS", "fetched_at": "2026-08-27T12:31:14.653Z", "sha256_text": "c0b5b8ea568516f125f863a1144e1cc1682f8f2679d8911b0e1e5fcc33fa4641", "snapshot_url": "https://ratesandlimits.com/snapshots/hsa-contribution-limit/2026/rp-25-19.txt" } }, { "key": "hdhp-min-deductible-self-only", "label": "HDHP minimum deductible, self-only", "value": 1700, "format": "usd", "formatted": "$1,700", "scope": "self-only coverage", "derived": false, "quote": "For calendar year 2026, a “high deductible health\nplan” is defined under § 223(c)(2)(A) as a health plan with an annual deductible that is\nnot less than $1,700 for self-only coverage or $3,400 for family coverage", "offset": 1019, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-19.pdf", "title": "Rev. Proc. 2025-19", "publisher": "IRS", "fetched_at": "2026-08-27T12:31:14.653Z", "sha256_text": "c0b5b8ea568516f125f863a1144e1cc1682f8f2679d8911b0e1e5fcc33fa4641", "snapshot_url": "https://ratesandlimits.com/snapshots/hsa-contribution-limit/2026/rp-25-19.txt" } }, { "key": "hdhp-min-deductible-family", "label": "HDHP minimum deductible, family", "value": 3400, "format": "usd", "formatted": "$3,400", "scope": "family coverage", "derived": false, "quote": "For calendar year 2026, a “high deductible health\nplan” is defined under § 223(c)(2)(A) as a health plan with an annual deductible that is\nnot less than $1,700 for self-only coverage or $3,400 for family coverage", "offset": 1019, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-19.pdf", "title": "Rev. Proc. 2025-19", "publisher": "IRS", "fetched_at": "2026-08-27T12:31:14.653Z", "sha256_text": "c0b5b8ea568516f125f863a1144e1cc1682f8f2679d8911b0e1e5fcc33fa4641", "snapshot_url": "https://ratesandlimits.com/snapshots/hsa-contribution-limit/2026/rp-25-19.txt" } }, { "key": "hdhp-out-of-pocket-max-self-only", "label": "HDHP out-of-pocket maximum, self-only", "value": 8500, "format": "usd", "formatted": "$8,500", "scope": "self-only coverage", "derived": false, "quote": "the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but\nnot premiums) do not exceed $8,500 for self-only coverage or $17,000 for family\ncoverage.", "offset": 1247, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-19.pdf", "title": "Rev. Proc. 2025-19", "publisher": "IRS", "fetched_at": "2026-08-27T12:31:14.653Z", "sha256_text": "c0b5b8ea568516f125f863a1144e1cc1682f8f2679d8911b0e1e5fcc33fa4641", "snapshot_url": "https://ratesandlimits.com/snapshots/hsa-contribution-limit/2026/rp-25-19.txt" } }, { "key": "hdhp-out-of-pocket-max-family", "label": "HDHP out-of-pocket maximum, family", "value": 17000, "format": "usd", "formatted": "$17,000", "scope": "family\ncoverage", "derived": false, "quote": "the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but\nnot premiums) do not exceed $8,500 for self-only coverage or $17,000 for family\ncoverage.", "offset": 1247, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-19.pdf", "title": "Rev. Proc. 2025-19", "publisher": "IRS", "fetched_at": "2026-08-27T12:31:14.653Z", "sha256_text": "c0b5b8ea568516f125f863a1144e1cc1682f8f2679d8911b0e1e5fcc33fa4641", "snapshot_url": "https://ratesandlimits.com/snapshots/hsa-contribution-limit/2026/rp-25-19.txt" } } ], "schedule": null, "explainers": [ { "key": "eligibility-and-hdhp", "heading": "Who can contribute, and what counts as an HDHP", "body": "To put money into a health savings account for 2026 you must be an eligible individual: covered by a high deductible health plan on the first day of the month, with no other health coverage beyond what the rules permit, not enrolled in Medicare, and not claimable as a dependent on someone else's return. The plan itself does most of the work in that test. Publication 969 describes an HDHP as a plan with a higher annual deductible than typical health plans and a maximum limit on the sum of the annual deductible and the out-of-pocket medical expenses you must pay for covered expenses. Co-payments and other similar amounts count toward that out-of-pocket limit, but premiums do not. A plan can still pay preventive care before the deductible is met without losing HDHP status. Whether your HDHP coverage is self-only or family then decides which contribution ceiling binds you: $4,400 or $8,750.", "quote": "High deductible health plan (HDHP). An HDHP has:\n• A higher annual deductible than typical health plans,\nand\n• A maximum limit on the sum of the annual deductible\nand out-of-pocket medical expenses that you must\npay for covered expenses. Out-of-pocket expenses in-\nclude co-payments and other amounts but don’t in-\nclude premiums.", "offset": 13460, "verified_at": "2026-08-28", "source": { "url": "https://www.irs.gov/pub/irs-pdf/p969.pdf", "title": "Publication 969 (2025), Health Savings Accounts and Other Tax-Favored Health Plans", "publisher": "IRS", "fetched_at": "2026-08-28T06:19:12.650Z", "sha256_text": "22d6765606878d9f0279b999099c6c793b01e51aa8d2d7b0e8a165011e6d52be", "snapshot_url": "https://ratesandlimits.com/snapshots/hsa-contribution-limit/2026/p969.txt" } }, { "key": "catch-up-55", "heading": "The age 55 catch-up contribution", "body": "An eligible individual who is age 55 or older at the end of the tax year may put in more than the standard ceiling. Publication 969 states that the contribution limit for such a person is increased by $1,000. Because the test looks at your age at the end of the year rather than on the first day, you qualify for the full increase in the year you turn 55, not only in later years. The catch-up attaches to the person, not the household or the account: if both spouses are eligible individuals and both meet the age requirement, each spouse's limit rises, and each must make the additional contribution to their own HSA rather than to one shared account. Enrolling in Medicare ends your status as an eligible individual, so the catch-up is available only while you still qualify to contribute at all. For 2026 it sits on top of the $4,400 self-only or $8,750 family limit.", "quote": "Additional contribution. If you are an eligible individual\nwho is age 55 or older at the end of your tax year, your\ncontribution limit is increased by $1,000.", "offset": 26590, "verified_at": "2026-08-28", "source": { "url": "https://www.irs.gov/pub/irs-pdf/p969.pdf", "title": "Publication 969 (2025), Health Savings Accounts and Other Tax-Favored Health Plans", "publisher": "IRS", "fetched_at": "2026-08-28T06:19:12.650Z", "sha256_text": "22d6765606878d9f0279b999099c6c793b01e51aa8d2d7b0e8a165011e6d52be", "snapshot_url": "https://ratesandlimits.com/snapshots/hsa-contribution-limit/2026/p969.txt" } }, { "key": "excess-contributions", "heading": "Excess contributions and the 6% excise tax", "body": "Contributions above the limit that applies to you are excess contributions. They are not deductible, and an excess put in by your employer is included in your gross income; if it is not already reported in Form W-2, box 1, you report it yourself as other income. Generally you must pay a 6% excise tax on the excess, figured on Form 5329, and that tax applies again for each tax year the excess remains in the account rather than being charged only once. You can avoid the excise tax on an amount you take back out if you withdraw the excess by the due date of your return for the year the contribution was made, including extensions, and also withdraw any income the excess earned and report those earnings as other income. Because every source counts against the same ceiling of $4,400 or $8,750, employer money can push you over without any action of your own.", "quote": "Excess contributions. You will have excess contribu-\ntions if the contributions to your HSA for the year are\ngreater than the limits discussed earlier. Excess contribu-\ntions aren’t deductible. Excess contributions made by your\nemployer are included in your gross income. If the excess\ncontribution isn’t included in Form W-2, box 1 you must re-\nport the excess as “Other income” on your tax return.\nGenerally, you must pay a 6% excise tax on excess\ncontributions. See Form 5329, Additional Taxes on Quali-\nfied Plans (Including IRAs) and Other Tax-Favored Ac-\ncounts, to figure the excise tax. The excise tax applies to\neach tax year the excess contribution remains in the ac-\ncount.", "offset": 36380, "verified_at": "2026-08-28", "source": { "url": "https://www.irs.gov/pub/irs-pdf/p969.pdf", "title": "Publication 969 (2025), Health Savings Accounts and Other Tax-Favored Health Plans", "publisher": "IRS", "fetched_at": "2026-08-28T06:19:12.650Z", "sha256_text": "22d6765606878d9f0279b999099c6c793b01e51aa8d2d7b0e8a165011e6d52be", "snapshot_url": "https://ratesandlimits.com/snapshots/hsa-contribution-limit/2026/p969.txt" } }, { "key": "last-month-rule", "heading": "The last-month rule and its testing period", "body": "If you are an eligible individual on the first day of the last month of your tax year, December 1 for most taxpayers, the last-month rule treats you as an eligible individual for the entire year. You are also treated as having the same HDHP coverage you held on that date, provided you did not otherwise have coverage. That lets someone who becomes eligible partway through 2026 contribute the full annual amount, $4,400 for self-only coverage or $8,750 for family coverage, rather than a monthly fraction of it. The rule carries a condition. The testing period begins with the last month of your tax year and ends on the last day of the 12th month following that month. If you fail to remain an eligible individual during the testing period, for reasons other than death or becoming disabled, you must include in income the contributions that would not have been made except for the last-month rule, in the year you fail the test.", "quote": "Last-month rule. Under the last-month rule, if you are an\neligible individual on the first day of the last month of your\ntax year (December 1 for most taxpayers), you are consid-\nered an eligible individual for the entire year. You are trea-\nted as having the same HDHP coverage for the entire year\nas you had on the first day of the last month if you didn’t\notherwise have coverage.\nTesting period. If contributions were made to your\nHSA based on you being an eligible individual for the en-\ntire year under the last-month rule, you must remain an eli-\ngible individual during the testing period. For the\nlast-month rule, the testing period begins with the last\nmonth of your tax year and ends on the last day of the\n12th month following that month (for example, December\n1, 2025, through December 31, 2026).", "offset": 22500, "verified_at": "2026-08-28", "source": { "url": "https://www.irs.gov/pub/irs-pdf/p969.pdf", "title": "Publication 969 (2025), Health Savings Accounts and Other Tax-Favored Health Plans", "publisher": "IRS", "fetched_at": "2026-08-28T06:19:12.650Z", "sha256_text": "22d6765606878d9f0279b999099c6c793b01e51aa8d2d7b0e8a165011e6d52be", "snapshot_url": "https://ratesandlimits.com/snapshots/hsa-contribution-limit/2026/p969.txt" } }, { "key": "non-qualified-distributions", "heading": "The 20% tax on non-qualified distributions", "body": "Money leaves an HSA tax free only when it pays or reimburses qualified medical expenses you incurred after establishing the account. Take a distribution for anything else and the amount is included in your income, and there is an additional 20% tax on the part of your distributions not used for qualified medical expenses. You figure that tax on Form 8889 and file it with your Form 1040, 1040-SR, or 1040-NR. The additional tax sits on top of ordinary income tax rather than replacing it, which is what makes a casual withdrawal expensive. Exceptions exist: there is no additional tax on distributions made after the date you are disabled, reach age 65, or die, though the distribution can still be taxable income. Since unspent balances carry over from year to year, there is no deadline pressure that would force a non-qualified withdrawal.", "quote": "Additional tax. There is an additional 20% tax on the\npart of your distributions not used for qualified medical ex-\npenses. Figure the tax on Form 8889 and file it with your\nForm 1040, 1040-SR, or 1040-NR.\nExceptions. There is no additional tax on distribu-\ntions made after the date you are disabled, reach age 65,\nor die.", "offset": 44687, "verified_at": "2026-08-28", "source": { "url": "https://www.irs.gov/pub/irs-pdf/p969.pdf", "title": "Publication 969 (2025), Health Savings Accounts and Other Tax-Favored Health Plans", "publisher": "IRS", "fetched_at": "2026-08-28T06:19:12.650Z", "sha256_text": "22d6765606878d9f0279b999099c6c793b01e51aa8d2d7b0e8a165011e6d52be", "snapshot_url": "https://ratesandlimits.com/snapshots/hsa-contribution-limit/2026/p969.txt" } } ], "estimate": null }, { "program": "ira-contribution-limit", "name": "IRA Contribution Limit", "category": "retirement-limits", "agency": "IRS", "year": 2026, "state": null, "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-09-01", "published_at": "2026-09-01T04:14:48.668Z", "canonical_url": "https://ratesandlimits.com/ira-contribution-limit/", "figures": [ { "key": "ira-contribution", "label": "Annual contribution limit", "value": 7500, "format": "usd", "formatted": "$7,500", "scope": null, "derived": false, "quote": "The deductible amount under section 219(b)(5)(A), which limits the amount of an\nindividual’s deductible qualified retirement contributions for a taxable year is\nincreased from $7,000 to $7,500.", "offset": 8568, "source": { "url": "https://www.irs.gov/pub/irs-drop/n-25-67.pdf", "title": "Notice 2025-67", "publisher": "IRS", "fetched_at": "2026-08-27T13:22:37.588Z", "sha256_text": "dee57a39e72fc363102f1c9fa373d5c5a969a62bc5422076830034732e2f131d", "snapshot_url": "https://ratesandlimits.com/snapshots/ira-contribution-limit/2026/n-25-67.txt" } }, { "key": "ira-catch-up", "label": "Catch-up contribution limit, age 50 and over", "value": 1100, "format": "usd-delta", "formatted": "+$1,100", "scope": null, "derived": false, "quote": "The deductible amount pursuant to\nsection 219(b)(5)(B)(ii) for individuals who have attained age 50 before the close\nof the taxable year is increased from $1,000 to $1,100.", "offset": 8762, "source": { "url": "https://www.irs.gov/pub/irs-drop/n-25-67.pdf", "title": "Notice 2025-67", "publisher": "IRS", "fetched_at": "2026-08-27T13:22:37.588Z", "sha256_text": "dee57a39e72fc363102f1c9fa373d5c5a969a62bc5422076830034732e2f131d", "snapshot_url": "https://ratesandlimits.com/snapshots/ira-contribution-limit/2026/n-25-67.txt" } } ], "schedule": null, "explainers": [ { "key": "catch-up-at-age-50", "heading": "The extra amount once you reach 50", "body": "Once you reach age 50, the IRS allows you to contribute an additional catch-up amount on top of the regular annual limit. For 2026, individuals age 50 or older may contribute an extra $1,100, bringing their total contribution capacity to $8,600. This catch-up provision recognizes that older savers may need extra time to build retirement assets as they approach retirement age. The catch-up amount is not a separate type of contribution but rather an allowance that permits higher contributions to your IRA. To qualify, you must be at least age 50 by the end of the tax year. Both traditional and Roth IRAs are eligible for the catch-up contribution. Keep in mind that the total of all your IRA contributions for the year cannot exceed the applicable limit, whether that is the standard $7,500 or the catch-up amount of $8,600 if you meet the age requirement. The catch-up provision helps older workers who may be behind on retirement savings build up their accounts more quickly in the years just before they retire.", "quote": "in 2026, the IRA contribution limit is increased to $7,500\n($8,600 for individuals age 50 or older)", "offset": 5047, "verified_at": "2026-09-01", "source": { "url": "https://www.irs.gov/pub/irs-prior/p590a--2025.pdf", "title": "Publication 590-A (2025), Contributions to Individual Retirement Arrangements (IRAs)", "publisher": "IRS", "fetched_at": "2026-08-29T07:59:16.288Z", "sha256_text": "6144301edc878bb89ea80a916fe064d561457c6e4483931950296ab5ed5e37bb", "snapshot_url": "https://ratesandlimits.com/snapshots/ira-contribution-limit/2026/p590a--2025.txt" } }, { "key": "excess-contributions", "heading": "The 6% tax on contributing too much", "body": "A 6% excise tax applies to any excess contribution to a Roth IRA. Excess contributions are amounts you contribute that exceed the annual contribution limits or that are not properly allocated to the correct tax year. This penalty is designed to discourage overfunding retirement accounts beyond the limits set by Congress. The 6% tax applies each year the excess remains in your account, meaning the penalty continues annually until you correct the error. You can withdraw the excess contribution and any earnings on it before the due date of your tax return (including extensions) to avoid the penalty for that year. If you fail to remove the excess, the 6% tax applies again the following year on the same amount, creating a compounding penalty. The excess contribution tax must be reported on Form 5329, and you should monitor your contributions carefully to ensure you do not exceed the applicable limits for your age and situation.", "quote": "A 6% excise tax applies to any excess contribution to a\nRoth IRA.", "offset": 187592, "verified_at": "2026-09-01", "source": { "url": "https://www.irs.gov/pub/irs-prior/p590a--2025.pdf", "title": "Publication 590-A (2025), Contributions to Individual Retirement Arrangements (IRAs)", "publisher": "IRS", "fetched_at": "2026-08-29T07:59:16.288Z", "sha256_text": "6144301edc878bb89ea80a916fe064d561457c6e4483931950296ab5ed5e37bb", "snapshot_url": "https://ratesandlimits.com/snapshots/ira-contribution-limit/2026/p590a--2025.txt" } }, { "key": "compensation-caps-the-contribution", "heading": "You cannot contribute more than you earned", "body": "The IRA contribution limit applies to what the IRS defines as compensation, which is generally what you earn from working. This includes wages, salaries, tips, professional fees, bonuses, and other amounts you receive for providing personal services. It also includes commissions, self-employment income, nontaxable combat pay, military differential pay, taxable alimony and separate maintenance payments, and taxable non-tuition fellowship and stipend payments. However, certain items are excluded, such as conservation reserve program payments and amounts you exclude from income like foreign earned income. The compensation requirement means you cannot contribute more to your IRA than you actually earned during the year, even though the annual limit is $7,500. If you are age 50 or older, you can make an additional catch-up contribution of $1,100. But if your compensation is less than the contribution limit, your maximum contribution is limited to your compensation amount.", "quote": "What Is Compensation?\nGenerally, compensation is what you earn from working.\nFor a summary of what compensation does and doesn’t\ninclude, see Table 1-1. Compensation includes all of the\nitems discussed next (even if you have more than one\ntype).\nWages, salaries, etc. Wages, salaries, tips, professional\nfees, bonuses, and other amounts you receive for provid-\ning personal services are compensation.", "offset": 21664, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/p590a--2025.pdf", "title": "Publication 590-A (2025), Contributions to Individual Retirement Arrangements (IRAs)", "publisher": "IRS", "fetched_at": "2026-08-29T07:59:16.288Z", "sha256_text": "6144301edc878bb89ea80a916fe064d561457c6e4483931950296ab5ed5e37bb", "snapshot_url": "https://ratesandlimits.com/snapshots/ira-contribution-limit/2026/p590a--2025.txt" } }, { "key": "deduction-phaseout-if-covered-at-work", "heading": "Why a workplace plan can take the deduction away", "body": "If you or your spouse is covered by an employer retirement plan at work, your ability to deduct traditional IRA contributions may be reduced or eliminated based on your income. The deduction phaseout rules apply when you are covered by an employer retirement plan and did not receive any social security retirement benefits. Your IRA deduction may be reduced or eliminated depending on your filing status and modified adjusted gross income. The phaseout begins when your income rises above a certain amount and is eliminated altogether when it reaches a higher amount. These income thresholds vary depending on your filing status, such as single, married filing jointly, or married filing separately. If your spouse is covered by a plan but you are not, different phaseout rules may apply to you. Even if your deduction is reduced or eliminated due to the phaseout, you may still be able to make nondeductible contributions to your traditional IRA up to the annual limit of $7,500 (or $7,500 plus $1,100 catch-up if age 50 or older).", "quote": "Covered by a retirement plan. If you are covered by an\nemployer retirement plan and you didn’t receive any social\nsecurity retirement benefits, your IRA deduction may be\nreduced or eliminated depending on your filing status and\nmodified AGI, as shown in Table 1-2.", "offset": 56201, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/p590a--2025.pdf", "title": "Publication 590-A (2025), Contributions to Individual Retirement Arrangements (IRAs)", "publisher": "IRS", "fetched_at": "2026-08-29T07:59:16.288Z", "sha256_text": "6144301edc878bb89ea80a916fe064d561457c6e4483931950296ab5ed5e37bb", "snapshot_url": "https://ratesandlimits.com/snapshots/ira-contribution-limit/2026/p590a--2025.txt" } }, { "key": "contribution-deadline", "heading": "How late you can still contribute for a year", "body": "You do not have to wait until December 31 to make your IRA contribution for a tax year. Instead, you have until the due date of your federal income tax return for that year, which is typically April 15 of the following year. This deadline does not include any filing extensions you may have requested. For example, contributions for the 2026 tax year can be made until April 15, 2027 (or the next business day if April 15 falls on a weekend or holiday). If you miss this deadline, you cannot make a contribution for that tax year, even if you have not yet filed your return. The contribution counts for the prior tax year only if you designate it as such when you make it. This gives taxpayers extra time beyond the calendar year to fund their retirement accounts and potentially reduce their tax liability for the year.", "quote": "You can open a traditional IRA at any time. However, the\ntime for making contributions for any year is limited. See\nWhen Can Contributions Be Made, later.", "offset": 25905, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/p590a--2025.pdf", "title": "Publication 590-A (2025), Contributions to Individual Retirement Arrangements (IRAs)", "publisher": "IRS", "fetched_at": "2026-08-29T07:59:16.288Z", "sha256_text": "6144301edc878bb89ea80a916fe064d561457c6e4483931950296ab5ed5e37bb", "snapshot_url": "https://ratesandlimits.com/snapshots/ira-contribution-limit/2026/p590a--2025.txt" } } ], "estimate": null }, { "program": "kiddie-tax-threshold", "name": "Kiddie Tax Threshold", "category": "deductions-and-credits", "agency": "IRS", "year": 2026, "state": null, "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-09-01", "published_at": "2026-09-01T04:15:35.864Z", "canonical_url": "https://ratesandlimits.com/kiddie-tax-threshold/", "figures": [ { "key": "unearned-income-threshold", "label": "Unearned income threshold", "value": 1350, "format": "usd", "formatted": "$1,350", "scope": null, "derived": false, "quote": "For taxable\nyears beginning in 2026, the amount in § 1(g)(4)(A)(ii)(I), which is used to reduce the\nnet unearned income reported on the child's return that is subject to the \"kiddie tax,\" is\n$1,350.", "offset": 20289, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32", "publisher": "IRS", "fetched_at": "2026-08-27T13:42:13.037Z", "sha256_text": "208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66", "snapshot_url": "https://ratesandlimits.com/snapshots/kiddie-tax-threshold/2026/rp-25-32.txt" } } ], "schedule": null, "explainers": [ { "key": "the-support-test", "heading": "The support test that decides whether an older child is caught", "body": "For the kiddie tax to apply in 2026, an older child must meet a support test. If the child was age 18 at the end of the year, or was a full-time student at least age 19 and under age 24, the tax only applies if the child did not have earned income that was more than half of the child's support. This means that if an older teenager or young adult earns enough from working to pay for more than half of their own living expenses, they are generally not subject to the kiddie tax rules. Support includes amounts spent to provide the child with food, lodging, clothing, education, medical and dental care, recreation, transportation, and similar necessities. A scholarship received by a full-time student is not counted as support. If the child's earned income exceeds half of their total support, the special rules for taxing a child's unearned income at the parent's rate do not apply.", "quote": "Was age 18 at the end of 2025 and didn’t have earned\nincome that was more than half of the child's support", "offset": 1689, "verified_at": "2026-09-01", "source": { "url": "https://www.irs.gov/pub/irs-pdf/i8615.pdf", "title": "2025 Instructions for Form 8615, Tax for Certain Children Who Have Unearned Income", "publisher": "IRS", "fetched_at": "2026-08-29T08:02:14.346Z", "sha256_text": "c0cefc1ee2f9227ba031338a29338580e62acb5cf69d06d007a30bc3df802601", "snapshot_url": "https://ratesandlimits.com/snapshots/kiddie-tax-threshold/2026/i8615.txt" } }, { "key": "who-must-file", "heading": "The five conditions, and the three age tests", "body": "A child is subject to the Kiddie Tax and must file Form 8615 only if all five of the following conditions are met: (1) the child had more than $2,700 of unearned income; (2) the child is required to file a tax return; (3) the child satisfies one of three age tests; (4) at least one parent was alive at the end of the year; and (5) the child does not file a joint return. The three age tests in condition 3 are: (a) the child was under age 18 at the end of 2025; (b) the child was age 18 and did not have earned income exceeding half of his or her support; or (c) the child was a full-time student at least age 19 and under age 24 and did not have earned income exceeding half of his or her support. The term \"child\" includes a legally adopted child and a stepchild. These rules apply whether or not the child is a dependent, but they do not apply if neither parent was living at the end of the year.", "quote": "Form 8615 must be filed for any child who meets all of the following\nconditions.\n1. The child had more than $2,700 of unearned income.\n2. The child is required to file a tax return.\n3. The child either:\na. Was under age 18 at the end of 2025,\nb. Was age 18 at the end of 2025 and didn’t have earned\nincome that was more than half of the child's support, or\nc. Was a full-time student at least age 19 and under age 24 at\nthe end of 2025 and didn’t have earned income that was\nmore than half of the child's support.\n(Earned income is defined later. Support is defined below.)\n4. At least one of the child's parents was alive at the end of 2025.\n5. The child doesn’t file a joint return for 2025.", "offset": 1443, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/i8615.pdf", "title": "2025 Instructions for Form 8615, Tax for Certain Children Who Have Unearned Income", "publisher": "IRS", "fetched_at": "2026-08-29T08:02:14.346Z", "sha256_text": "c0cefc1ee2f9227ba031338a29338580e62acb5cf69d06d007a30bc3df802601", "snapshot_url": "https://ratesandlimits.com/snapshots/kiddie-tax-threshold/2026/i8615.txt" } }, { "key": "what-unearned-income-is", "heading": "What counts as unearned income", "body": "Unearned income is generally all income other than salaries, wages, and other amounts received as pay for work actually performed (earned income). It includes taxable interest, dividends, capital gains (including capital gain distributions), rents, royalties, pension and annuity income, taxable scholarship and fellowship grants not reported on Form W-2, unemployment compensation, alimony, the taxable part of social security and pension payments, and income (other than earned income) received as the beneficiary of a trust. In other words, any income the child receives from investments, government benefits, or trusts counts as unearned income, while income from working for wages or salary is excluded. For 2026, the Kiddie Tax applies when a child's unearned income exceeds $1,350. The distinction between earned and unearned income determines whether the special tax rate applies to a child's investment returns, retirement distributions, or trust income.", "quote": "Unearned income is generally all income other than salaries, wages,\nand other amounts received as pay for work actually performed\n(earned income). It includes taxable interest, dividends, capital gains\n(including capital gain distributions), rents, royalties, pension and\nannuity income, taxable scholarship and fellowship grants not\nreported on Form W-2, unemployment compensation, alimony, the\ntaxable part of social security and pension payments, and income\n(other than earned income) received as the beneficiary of a trust.", "offset": 686, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/i8615.pdf", "title": "2025 Instructions for Form 8615, Tax for Certain Children Who Have Unearned Income", "publisher": "IRS", "fetched_at": "2026-08-29T08:02:14.346Z", "sha256_text": "c0cefc1ee2f9227ba031338a29338580e62acb5cf69d06d007a30bc3df802601", "snapshot_url": "https://ratesandlimits.com/snapshots/kiddie-tax-threshold/2026/i8615.txt" } }, { "key": "parents-election", "heading": "Reporting the child's income on the parent's return instead", "body": "Under the Kiddie Tax rules, a child who meets all of the conditions for filing Form 8615 may avoid that filing if the parent makes an election. A parent may elect to report the child's interest, ordinary dividends, and capital gain distributions directly on the parent's own return. If the parent makes this election, the child does not have to file a tax return or Form 8615 at all. However, the federal income tax on the child's income, including qualified dividends and capital gain distributions, may be higher if this election is made. For complete details on the requirements and consequences of this election, the parent should consult Form 8814, Parents' Election To Report Child's Interest and Dividends.", "quote": "The parent may be able to elect to report the child’s interest,\nordinary dividends, and capital gain distributions on the parent’s\nreturn. If the parent makes this election, the child won’t have to file a\nreturn or Form 8615. However, the federal income tax on the child’s\nincome, including qualified dividends and capital gain distributions,\nmay be higher if this election is made. For more details, see Form\n8814, Parents’ Election To Report Child's Interest and Dividends.", "offset": 3495, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/i8615.pdf", "title": "2025 Instructions for Form 8615, Tax for Certain Children Who Have Unearned Income", "publisher": "IRS", "fetched_at": "2026-08-29T08:02:14.346Z", "sha256_text": "c0cefc1ee2f9227ba031338a29338580e62acb5cf69d06d007a30bc3df802601", "snapshot_url": "https://ratesandlimits.com/snapshots/kiddie-tax-threshold/2026/i8615.txt" } }, { "key": "how-the-tax-is-figured", "heading": "Why the child's own bracket is not the end of it", "body": "The Kiddie Tax exists to prevent families from shifting investment income to children in lower tax brackets. For children under age 18 and certain older children who meet the Who Must File conditions, unearned income over $2,700 is taxed at the parent's rate if the parent's rate is higher than the child's. If the child's unearned income is more than $2,700, use Form 8615 to figure the child's tax. This means the child's own tax bracket is not necessarily the final answer - instead, the IRS looks at what rate the parent would pay on that same income and applies the higher of the two rates. For 2026, the unearned income threshold is $1,350. The purpose is to ensure that investment income earned by a child is taxed at least as heavily as it would be if the parent had earned it directly, rather than allowing the income to be taxed at a child's typically lower rate.", "quote": "For children under age 18 and certain older children described\nbelow in Who Must File, unearned income over $2,700 is taxed at\nthe parent's rate if the parent's rate is higher than the child's. If the\nchild's unearned income is more than $2,700, use Form 8615 to\nfigure the child's tax.", "offset": 383, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/i8615.pdf", "title": "2025 Instructions for Form 8615, Tax for Certain Children Who Have Unearned Income", "publisher": "IRS", "fetched_at": "2026-08-29T08:02:14.346Z", "sha256_text": "c0cefc1ee2f9227ba031338a29338580e62acb5cf69d06d007a30bc3df802601", "snapshot_url": "https://ratesandlimits.com/snapshots/kiddie-tax-threshold/2026/i8615.txt" } } ], "estimate": null }, { "program": "lifetime-learning-credit", "name": "Lifetime Learning Credit", "category": "deductions-and-credits", "agency": "IRS", "year": 2026, "state": null, "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-29", "published_at": "2026-08-29T10:37:31.450Z", "canonical_url": "https://ratesandlimits.com/lifetime-learning-credit/", "figures": [ { "key": "maximum", "label": "Maximum credit", "value": 2000, "format": "usd", "formatted": "$2,000", "scope": null, "derived": false, "quote": "LLC allows a credit up to $2,000 per return.", "offset": 9157, "source": { "url": "https://www.irs.gov/credits-deductions/individuals/education-credits-aotc-llc", "title": "Education credits - AOTC and LLC", "publisher": "IRS", "fetched_at": "2026-08-29T02:32:44.420Z", "sha256_text": "6dfc0e60e0ff2842f4b6a13e2eeb68cc20e6362711efb0dd1af53626a35fa568", "snapshot_url": "https://ratesandlimits.com/snapshots/lifetime-learning-credit/2026/education-credits-aotc-llc.txt" } }, { "key": "rate", "label": "Rate on qualified expenses", "value": 20, "format": "percent", "formatted": "20%", "scope": null, "derived": false, "quote": "LLC is 20% of the first $10,000 of qualified expenses paid for all students claimed on the return.", "offset": 9202, "source": { "url": "https://www.irs.gov/credits-deductions/individuals/education-credits-aotc-llc", "title": "Education credits - AOTC and LLC", "publisher": "IRS", "fetched_at": "2026-08-29T02:32:44.420Z", "sha256_text": "6dfc0e60e0ff2842f4b6a13e2eeb68cc20e6362711efb0dd1af53626a35fa568", "snapshot_url": "https://ratesandlimits.com/snapshots/lifetime-learning-credit/2026/education-credits-aotc-llc.txt" } }, { "key": "qualified-expenses-limit", "label": "Qualified expenses limit", "value": 10000, "format": "usd", "formatted": "$10,000", "scope": null, "derived": false, "quote": "LLC is 20% of the first $10,000 of qualified expenses paid for all students claimed on the return.", "offset": 9202, "source": { "url": "https://www.irs.gov/credits-deductions/individuals/education-credits-aotc-llc", "title": "Education credits - AOTC and LLC", "publisher": "IRS", "fetched_at": "2026-08-29T02:32:44.420Z", "sha256_text": "6dfc0e60e0ff2842f4b6a13e2eeb68cc20e6362711efb0dd1af53626a35fa568", "snapshot_url": "https://ratesandlimits.com/snapshots/lifetime-learning-credit/2026/education-credits-aotc-llc.txt" } } ], "schedule": null, "explainers": [ { "key": "per-return-not-per-student", "heading": "The cap is per tax return, not per student", "body": "Unlike the American Opportunity Tax Credit, which is calculated per eligible student, the Lifetime Learning Credit cap applies at the tax return level. This means that even if multiple students in the same household have qualifying expenses, the combined credit for the return cannot exceed $2,000. The $2,000 maximum is reached when the return includes $10,000 in total qualified expenses across all students, because the credit rate is 20%. Taxpayers should total all eligible expenses for every student listed on the return before calculating the credit, keeping in mind that the $10,000 expense base and resulting $2,000 ceiling are shared by the entire return rather than being available separately for each student.", "quote": "LLC allows a credit up to $2,000 per return. LLC is 20% of the first $10,000 of qualified expenses paid for all students claimed on the return.", "offset": 9157, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/credits-deductions/individuals/education-credits-aotc-llc", "title": "Education credits - AOTC and LLC", "publisher": "IRS", "fetched_at": "2026-08-29T02:32:44.420Z", "sha256_text": "6dfc0e60e0ff2842f4b6a13e2eeb68cc20e6362711efb0dd1af53626a35fa568", "snapshot_url": "https://ratesandlimits.com/snapshots/lifetime-learning-credit/2026/education-credits-aotc-llc.txt" } }, { "key": "nonrefundable", "heading": "It can wipe out your tax but never pays you back", "body": "The Lifetime Learning Credit is nonrefundable, meaning it can reduce the federal income tax you owe but cannot produce a refund beyond that. If the credit amount exceeds your tax liability, the excess is simply lost; you do not receive the unused portion as a refund. This is different from the American Opportunity Tax Credit, which is partially refundable and can return a portion of the credit to you even when no tax is owed. Because the LLC is nonrefundable, its value depends on having enough tax liability to absorb it. A taxpayer whose total tax is less than the credit will only benefit up to the amount of tax owed. The maximum possible credit is $2,000, calculated as 20% of up to $10,000 in qualified expenses.", "quote": "AOTC is partially refundable, 40%. LLC is non-refundable.", "offset": 9327, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/credits-deductions/individuals/education-credits-aotc-llc", "title": "Education credits - AOTC and LLC", "publisher": "IRS", "fetched_at": "2026-08-29T02:32:44.420Z", "sha256_text": "6dfc0e60e0ff2842f4b6a13e2eeb68cc20e6362711efb0dd1af53626a35fa568", "snapshot_url": "https://ratesandlimits.com/snapshots/lifetime-learning-credit/2026/education-credits-aotc-llc.txt" } }, { "key": "no-limit-on-years", "heading": "There is no cap on how many years you claim it", "body": "There is no cap on how many years you can claim the Lifetime Learning Credit. Unlike the American Opportunity Tax Credit, which is limited to a set number of years per student, the LLC is available for an unlimited number of tax years. As long as you continue to pay qualified expenses and meet the income requirements, you may claim the credit every year without running out of eligibility. This makes the LLC suitable for students who are in school for an extended period or for working adults who take courses over many years to maintain or enhance their professional skills. The credit amount per year remains 20% of up to $10,000 in qualified expenses, and the maximum credit available each year is $2,000 per return.", "quote": "AOTC is available ONLY for 4 years per eligible student. LLC is available for an unlimited number of tax years.", "offset": 7722, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/credits-deductions/individuals/education-credits-aotc-llc", "title": "Education credits - AOTC and LLC", "publisher": "IRS", "fetched_at": "2026-08-29T02:32:44.420Z", "sha256_text": "6dfc0e60e0ff2842f4b6a13e2eeb68cc20e6362711efb0dd1af53626a35fa568", "snapshot_url": "https://ratesandlimits.com/snapshots/lifetime-learning-credit/2026/education-credits-aotc-llc.txt" } }, { "key": "job-skills-no-degree-needed", "heading": "A single course to improve job skills qualifies", "body": "The Lifetime Learning Credit does not require the student to be enrolled in a degree program. The student must take a course to acquire or improve job skills, but is not required to pursue a program leading to a degree or other recognized education credential. Even a single course at a qualified educational institution can qualify, as long as it helps the student gain or sharpen skills for their work. This makes the LLC available to a broader range of learners than the American Opportunity Tax Credit, which is restricted to students pursuing a degree within their first years of postsecondary education. Whether the coursework is part of a graduate program, a professional certificate, or simply a standalone class for career development, the expenses may be eligible for the credit at 20% of up to $10,000 in qualified expenses.", "quote": "The student must take a course to acquire or improve job skills. The student is not required to pursue a program leading to a degree or other recognized education credential.", "offset": 6220, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/credits-deductions/individuals/education-credits-aotc-llc", "title": "Education credits - AOTC and LLC", "publisher": "IRS", "fetched_at": "2026-08-29T02:32:44.420Z", "sha256_text": "6dfc0e60e0ff2842f4b6a13e2eeb68cc20e6362711efb0dd1af53626a35fa568", "snapshot_url": "https://ratesandlimits.com/snapshots/lifetime-learning-credit/2026/education-credits-aotc-llc.txt" } }, { "key": "not-both-credits-same-student", "heading": "One student, one credit, one year", "body": "You can claim only one education credit per qualifying student in a given tax year. If you have multiple students, you can claim the American Opportunity Tax Credit for one student and the Lifetime Learning Credit for another on the same return, but you cannot claim both credits for the same student in the same year. This rule prevents double-dipping on education benefits for a single student. You must choose which credit provides the greater tax benefit for each student and claim only that credit. The restriction applies per student, not per return, so a family with two college students could potentially claim both credits if they are for different students and different expenses.", "quote": "You can claim only one of the credits per qualifying student. You can claim both the AOTC and LLC on the same return only if they are not for the same student and the same expenses.", "offset": 4706, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/credits-deductions/individuals/education-credits-aotc-llc", "title": "Education credits - AOTC and LLC", "publisher": "IRS", "fetched_at": "2026-08-29T02:32:44.420Z", "sha256_text": "6dfc0e60e0ff2842f4b6a13e2eeb68cc20e6362711efb0dd1af53626a35fa568", "snapshot_url": "https://ratesandlimits.com/snapshots/lifetime-learning-credit/2026/education-credits-aotc-llc.txt" } }, { "key": "income-cutoff", "heading": "The income at which you lose the credit entirely", "body": "To qualify for the Lifetime Learning Credit, your modified adjusted gross income must be below the phase-out threshold. If your income reaches or exceeds $180,000 when filing as married filing jointly, you cannot claim the credit at all. The same $90,000 threshold applies to single filers. The credit phases out gradually as income approaches these amounts, and once you hit the upper limit, eligibility ends entirely regardless of how much you spent on qualified education expenses. Both the AOTC and LLC share the same income ceiling. This means higher-income taxpayers who exceed the limit cannot benefit from either education credit, even if they otherwise meet all other eligibility requirements.", "quote": "LLC is non-refundable. Is there an income limit to qualify for the credit? Your modified adjusted gross income must be less than $90,000, ($180,000 if married filing jointly).", "offset": 9362, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/credits-deductions/individuals/education-credits-aotc-llc", "title": "Education credits - AOTC and LLC", "publisher": "IRS", "fetched_at": "2026-08-29T02:32:44.420Z", "sha256_text": "6dfc0e60e0ff2842f4b6a13e2eeb68cc20e6362711efb0dd1af53626a35fa568", "snapshot_url": "https://ratesandlimits.com/snapshots/lifetime-learning-credit/2026/education-credits-aotc-llc.txt" } } ], "estimate": null }, { "program": "medicare-part-b-deductible", "name": "Medicare Part B Deductible", "category": "health-accounts", "agency": "CMS", "year": 2026, "state": null, "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-29", "published_at": "2026-08-29T08:21:51.441Z", "canonical_url": "https://ratesandlimits.com/medicare-part-b-deductible/", "figures": [ { "key": "deductible", "label": "Deductible", "value": 283, "format": "usd", "formatted": "$283", "scope": null, "derived": false, "quote": "Deductible $283 before Original Medicare starts to pay.", "offset": 3127, "source": { "url": "https://www.medicare.gov/basics/costs/medicare-costs", "title": "Medicare costs", "publisher": "Medicare", "fetched_at": "2026-08-27T23:26:33.790Z", "sha256_text": "e7dd3b0bb4d262ad4b7415a3a304a40f3c4851554780c94fbb7cd6f0041828d4", "snapshot_url": "https://ratesandlimits.com/snapshots/medicare-part-b-deductible/2026/medicare-costs.txt" } }, { "key": "premium", "label": "Standard premium", "value": 202.9, "format": "usd", "formatted": "$202.90", "scope": null, "derived": false, "quote": "Premium $202.90 each month (or higher depending on your income).", "offset": 2593, "source": { "url": "https://www.medicare.gov/basics/costs/medicare-costs", "title": "Medicare costs", "publisher": "Medicare", "fetched_at": "2026-08-27T23:26:33.790Z", "sha256_text": "e7dd3b0bb4d262ad4b7415a3a304a40f3c4851554780c94fbb7cd6f0041828d4", "snapshot_url": "https://ratesandlimits.com/snapshots/medicare-part-b-deductible/2026/medicare-costs.txt" } } ], "schedule": null, "explainers": [ { "key": "what-part-b-covers", "heading": "What the Part B deductible applies to", "body": "Medicare Part B covers physicians' services, outpatient hospital services, certain home health services, durable medical equipment, and certain other medical and health services not covered by Medicare Part A. The Part B deductible is the amount beneficiaries must pay out-of-pocket each year for these covered services before Medicare begins to pay its share. In 2026, the annual Part B deductible is $283. This deductible applies once per calendar year across all Part B-covered services, meaning that after a beneficiary has paid $283 toward eligible medical expenses, Medicare starts covering its portion of additional Part B services for the remainder of the year. The standard monthly Part B premium for 2026 is $202.90, which is separate from and in addition to the deductible. Beneficiaries should understand that the Part B deductible and the Part B premium are two different costs: the premium is paid monthly to maintain coverage, while the deductible is an annual out-of-pocket threshold that must be met before Medicare's cost-sharing begins.", "quote": "Medicare Part B covers physicians’ services, outpatient hospital services, certain home health services, durable medical equipment, and certain other medical and health services not covered by Medicare Part A.", "offset": 3099, "verified_at": "2026-08-29", "source": { "url": "https://www.cms.gov/newsroom/fact-sheets/2026-medicare-parts-b-premiums-deductibles", "title": "2026 Medicare Parts A & B Premiums and Deductibles", "publisher": "CMS", "fetched_at": "2026-08-29T08:20:43.342Z", "sha256_text": "ae80b275f46810bec369556293906b6fb2c9a6f2f8b54a16d13a881fa96fb8ac", "snapshot_url": "https://ratesandlimits.com/snapshots/medicare-part-b-deductible/2026/2026-medicare-parts-b-premiums-deductibles.txt" } }, { "key": "what-part-a-covers", "heading": "Part A has its own separate deductible", "body": "Medicare Part A covers inpatient hospital, skilled nursing facility, hospice, inpatient rehabilitation, and some home health care services. This is fundamentally different from what Part B covers, and Part A has its own separate deductible that operates independently from the Part B deductible. While the Part B deductible for 2026 is $283 and applies to outpatient and physician services, the Part A deductible applies when a beneficiary is admitted to a hospital as an inpatient. These two deductibles function separately: meeting one does not satisfy or reduce the other. A beneficiary could owe the Part A deductible for a hospital stay and also owe the $283 Part B deductible for outpatient services in the same year. Understanding this separation is important because many people mistakenly believe there is a single Medicare deductible, when in fact the program maintains distinct cost-sharing requirements for its different parts.", "quote": "Medicare Part A covers inpatient hospital, skilled nursing facility, hospice, inpatient rehabilitation, and some home health care services.", "offset": 992, "verified_at": "2026-08-29", "source": { "url": "https://www.cms.gov/newsroom/fact-sheets/2026-medicare-parts-b-premiums-deductibles", "title": "2026 Medicare Parts A & B Premiums and Deductibles", "publisher": "CMS", "fetched_at": "2026-08-29T08:20:43.342Z", "sha256_text": "ae80b275f46810bec369556293906b6fb2c9a6f2f8b54a16d13a881fa96fb8ac", "snapshot_url": "https://ratesandlimits.com/snapshots/medicare-part-b-deductible/2026/2026-medicare-parts-b-premiums-deductibles.txt" } }, { "key": "premium-free-part-a", "heading": "Why most people pay no Part A premium", "body": "Approximately 99% of Medicare beneficiaries do not have a Part A premium since they have at least 40 quarters of Medicare-covered employment, as determined by the Social Security Administration. This means that the vast majority of people who worked and paid Medicare taxes for the required number of quarters qualify for premium-free Part A coverage when they enroll in Medicare. The 40-quarter requirement is a threshold that, once met, eliminates the monthly Part A premium entirely. Only a small percentage of beneficiaries who do not meet this work history requirement must pay a premium for Part A coverage. Those who fall short of 40 quarters may still enroll in Part A but will owe a monthly premium based on their work history. This system reflects the insurance nature of Medicare Part A, where benefits are earned through decades of payroll tax contributions rather than purchased directly at enrollment. The standard monthly Part B premium for 2026 is $202.90, but Part A premium-free eligibility is based on work history, not income or current employment status.", "quote": "Approximately 99% of Medicare beneficiaries do not have a Part A premium since they have at least 40 quarters of Medicare-covered employment, as determined by the Social Security Administration.", "offset": 1132, "verified_at": "2026-08-29", "source": { "url": "https://www.cms.gov/newsroom/fact-sheets/2026-medicare-parts-b-premiums-deductibles", "title": "2026 Medicare Parts A & B Premiums and Deductibles", "publisher": "CMS", "fetched_at": "2026-08-29T08:20:43.342Z", "sha256_text": "ae80b275f46810bec369556293906b6fb2c9a6f2f8b54a16d13a881fa96fb8ac", "snapshot_url": "https://ratesandlimits.com/snapshots/medicare-part-b-deductible/2026/2026-medicare-parts-b-premiums-deductibles.txt" } }, { "key": "deductible-per-benefit-period", "heading": "The Part A deductible is per benefit period, not per year", "body": "Part A inpatient hospital deductible covers beneficiaries' share of costs for the first 60 days of Medicare-covered inpatient hospital care in a benefit period. This language is critical because it means the Part A deductible resets with each new benefit period, not simply once per calendar year. A benefit period begins when a beneficiary is admitted to a hospital or skilled nursing facility and ends when they have not received inpatient care for 60 consecutive days. If a beneficiary is hospitalized, discharged, and then readmitted after 60 days have passed, a new benefit period begins and the Part A deductible applies again. This is fundamentally different from how the Part B deductible works, which resets only once per year regardless of how many separate medical episodes occur. Beneficiaries with multiple hospitalizations in a year could owe the Part A deductible more than once, making it important to understand the benefit period concept when planning for potential out-of-pocket costs.", "quote": "Part A inpatient hospital deductible covers beneficiaries’ share of costs for the first 60 days of Medicare-covered inpatient hospital care in a benefit period.", "offset": 1492, "verified_at": "2026-08-29", "source": { "url": "https://www.cms.gov/newsroom/fact-sheets/2026-medicare-parts-b-premiums-deductibles", "title": "2026 Medicare Parts A & B Premiums and Deductibles", "publisher": "CMS", "fetched_at": "2026-08-29T08:20:43.342Z", "sha256_text": "ae80b275f46810bec369556293906b6fb2c9a6f2f8b54a16d13a881fa96fb8ac", "snapshot_url": "https://ratesandlimits.com/snapshots/medicare-part-b-deductible/2026/2026-medicare-parts-b-premiums-deductibles.txt" } }, { "key": "irmaa-married-filing-separately", "heading": "Married, living together, filing separately: the income surcharge jumps", "body": "Premiums for high-income beneficiaries with full Part B coverage who are married and lived with their spouse at any time during the taxable year, but file a separate return, are as follows. This rule addresses a specific filing status that triggers significantly higher income-related monthly adjustment amounts (IRMAA). Married couples who lived together at any point during the year but choose to file separate tax returns face much stricter income thresholds for IRMAA surcharges compared to those who file jointly. For separate filers, the standard monthly Part B premium of $202.90 increases substantially once modified adjusted gross income exceeds certain low thresholds. These thresholds are far lower than the thresholds for married couples filing jointly, meaning separate filers encounter IRMAA surcharges at much lower income levels. The policy is designed to prevent married couples from avoiding income-related premium adjustments by filing separately while still living together. Beneficiaries in this situation should be aware that their filing status can result in dramatically higher Medicare premiums compared to other married couples with similar household incomes.", "quote": "Premiums for high-income beneficiaries with full Part B coverage who are married and lived with their spouse at any time during the taxable year, but file a separate return, are as follows:", "offset": 6925, "verified_at": "2026-08-29", "source": { "url": "https://www.cms.gov/newsroom/fact-sheets/2026-medicare-parts-b-premiums-deductibles", "title": "2026 Medicare Parts A & B Premiums and Deductibles", "publisher": "CMS", "fetched_at": "2026-08-29T08:20:43.342Z", "sha256_text": "ae80b275f46810bec369556293906b6fb2c9a6f2f8b54a16d13a881fa96fb8ac", "snapshot_url": "https://ratesandlimits.com/snapshots/medicare-part-b-deductible/2026/2026-medicare-parts-b-premiums-deductibles.txt" } } ], "estimate": null }, { "program": "mileage-rate", "name": "Standard Mileage Rate", "category": "mileage-and-misc", "agency": "IRS", "year": 2026, "state": null, "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-29", "published_at": "2026-08-29T10:24:52.394Z", "canonical_url": "https://ratesandlimits.com/mileage-rate/", "figures": [ { "key": "business", "label": "Business use", "value": 72.5, "format": "cents", "formatted": "72.5¢", "scope": null, "derived": false, "quote": "72.5 cents per mile driven for business use", "offset": 5443, "source": { "url": "https://www.irs.gov/newsroom/irs-sets-2026-business-standard-mileage-rate-at-725-cents-per-mile-up-25-cents", "title": "IR-2025-128", "publisher": "IRS", "fetched_at": "2026-08-27T15:22:50.343Z", "sha256_text": "25d27a5a889140ae2c8fbed0611370a96f0846cf77cb2d2004ede340b2f36804", "snapshot_url": "https://ratesandlimits.com/snapshots/mileage-rate/2026/irs-sets-2026-business-standard-mileage-rate-at-725-cents-per-mile-up-25-cents.txt" } }, { "key": "medical-moving", "label": "Medical or moving", "value": 20.5, "format": "cents", "formatted": "20.5¢", "scope": null, "derived": false, "quote": "20.5 cents per mile driven for medical purposes", "offset": 5512, "source": { "url": "https://www.irs.gov/newsroom/irs-sets-2026-business-standard-mileage-rate-at-725-cents-per-mile-up-25-cents", "title": "IR-2025-128", "publisher": "IRS", "fetched_at": "2026-08-27T15:22:50.343Z", "sha256_text": "25d27a5a889140ae2c8fbed0611370a96f0846cf77cb2d2004ede340b2f36804", "snapshot_url": "https://ratesandlimits.com/snapshots/mileage-rate/2026/irs-sets-2026-business-standard-mileage-rate-at-725-cents-per-mile-up-25-cents.txt" } }, { "key": "charitable", "label": "Charitable service", "value": 14, "format": "cents", "formatted": "14¢", "scope": null, "derived": false, "quote": "14 cents per mile driven in service of charitable organizations", "offset": 5784, "source": { "url": "https://www.irs.gov/newsroom/irs-sets-2026-business-standard-mileage-rate-at-725-cents-per-mile-up-25-cents", "title": "IR-2025-128", "publisher": "IRS", "fetched_at": "2026-08-27T15:22:50.343Z", "sha256_text": "25d27a5a889140ae2c8fbed0611370a96f0846cf77cb2d2004ede340b2f36804", "snapshot_url": "https://ratesandlimits.com/snapshots/mileage-rate/2026/irs-sets-2026-business-standard-mileage-rate-at-725-cents-per-mile-up-25-cents.txt" } } ], "schedule": [ { "from": "2026-07-01", "verified_at": "2026-08-29", "figures": [ { "key": "business", "label": "Business use", "value": 76, "format": "cents", "formatted": "76¢", "scope": null, "derived": false, "quote": "(1) Business 76 cents per mile", "offset": 66151, "source": { "url": "https://www.irs.gov/irb/2026-29_irb", "title": "Announcement 2026-11, Internal Revenue Bulletin 2026-29", "publisher": "IRS", "fetched_at": "2026-08-27T15:25:35.089Z", "sha256_text": "a157cb9b8d95f8e5cf20fb861d19efefb4950cb8511f9899a03bd52f3ad7c5c3", "snapshot_url": "https://ratesandlimits.com/snapshots/mileage-rate/2026/2026-29_irb.txt" } }, { "key": "medical-moving", "label": "Medical or moving", "value": 23.5, "format": "cents", "formatted": "23.5¢", "scope": null, "derived": false, "quote": "(2) Medical and moving 23.5 cents per mile", "offset": 66182, "source": { "url": "https://www.irs.gov/irb/2026-29_irb", "title": "Announcement 2026-11, Internal Revenue Bulletin 2026-29", "publisher": "IRS", "fetched_at": "2026-08-27T15:25:35.089Z", "sha256_text": "a157cb9b8d95f8e5cf20fb861d19efefb4950cb8511f9899a03bd52f3ad7c5c3", "snapshot_url": "https://ratesandlimits.com/snapshots/mileage-rate/2026/2026-29_irb.txt" } }, { "key": "charitable", "label": "Charitable service", "value": 14, "format": "cents", "formatted": "14¢", "scope": null, "derived": false, "quote": "The mileage rate that applies to the deduction for charitable contributions is fixed under § 170(i) of the Internal Revenue Code at 14 cents per mile.", "offset": 66225, "source": { "url": "https://www.irs.gov/irb/2026-29_irb", "title": "Announcement 2026-11, Internal Revenue Bulletin 2026-29", "publisher": "IRS", "fetched_at": "2026-08-27T15:25:35.089Z", "sha256_text": "a157cb9b8d95f8e5cf20fb861d19efefb4950cb8511f9899a03bd52f3ad7c5c3", "snapshot_url": "https://ratesandlimits.com/snapshots/mileage-rate/2026/2026-29_irb.txt" } } ] } ], "explainers": [ { "key": "what-the-rate-already-covers", "heading": "What the rate covers, and what you may add to it", "body": "The 2026 standard mileage rates of 72.5¢ per mile for business, 20.5¢ per mile for medical or moving, and 14¢ per mile for charitable service are meant to cover the general costs of operating your car for those purposes, such as gas, maintenance, insurance, and depreciation. However, the rates do not cover everything. In addition to using the standard mileage rate, you can separately deduct any business-related parking fees and tolls you actually pay during the trip. These out-of-pocket costs are added on top of the mileage deduction and are not already baked into the per-mile figure. One important exception: parking fees you pay to park your car at your regular place of work are treated as nondeductible commuting expenses and cannot be claimed, even though other business parking fees and all tolls remain fully deductible.", "quote": "In addition to using the standard\nmileage rate, you can deduct any business-related park-\ning fees and tolls. (Parking fees you pay to park your car at\nyour place of work are nondeductible commuting expen-\nses.)", "offset": 101589, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/p463--2025.pdf", "title": "Publication 463 (2025), Travel, Gift, and Car Expenses", "publisher": "IRS", "fetched_at": "2026-08-29T07:59:29.736Z", "sha256_text": "0a5429073865a7862157d21a9835d60d29a10145a5b15ee55b29d15cee020183", "snapshot_url": "https://ratesandlimits.com/snapshots/mileage-rate/2026/p463--2025.txt" } }, { "key": "first-year-election", "heading": "You must choose the standard rate in the car's first year", "body": "The standard mileage rate is not an automatic election you can flip year to year at will. For a car you own, you must choose the standard mileage rate in the first year the car is available for use in your business. That first-year choice is binding in a specific sense: if you skip the standard rate in the car's first year of business use and instead use the actual-expense method, you lose the option to switch to the standard rate for that car in any later year. In later years, after having used the standard rate in the first year, you may alternate freely between the standard rate and actual expenses. For a leased car, the rule is even stricter - you must use the standard mileage rate for the entire lease period; you cannot switch to actual expenses mid-lease. So the decision in year one determines your flexibility for the life of that vehicle. For 2026, the business rate is 72.5¢ per mile.", "quote": "Choosing the standard mileage rate. If you want to\nuse the standard mileage rate for a car you own, you must\nchoose to use it in the first year the car is available for use\nin your business. Then, in later years, you can choose to\nuse either the standard mileage rate or actual expenses.\nIf you want to use the standard mileage rate for a car\nyou lease, you must use it for the entire lease period.", "offset": 95783, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/p463--2025.pdf", "title": "Publication 463 (2025), Travel, Gift, and Car Expenses", "publisher": "IRS", "fetched_at": "2026-08-29T07:59:29.736Z", "sha256_text": "0a5429073865a7862157d21a9835d60d29a10145a5b15ee55b29d15cee020183", "snapshot_url": "https://ratesandlimits.com/snapshots/mileage-rate/2026/p463--2025.txt" } }, { "key": "five-or-more-cars", "heading": "Why a fleet cannot use the standard rate", "body": "The IRS limits the standard mileage rate to taxpayers who are using a modest number of vehicles. If you own or lease five or more cars that are used for business at the same time, you cannot use the standard mileage rate for the business use of any of them. The rule applies to the whole fleet: once the threshold of five vehicles in simultaneous business use is reached, every one of those cars must be accounted for under the actual-expense method, with depreciation, lease payments, fuel, insurance, repairs, and registration tracked separately for each. The policy rationale is that the standard rate is a simplified method intended for individual vehicles; once a taxpayer is operating a fleet, the IRS expects the more precise actual-expense accounting. Note the trigger is \"at the same time\" - seasonal or staggered use that never puts five cars in service concurrently may keep you under the limit. If you are in the actual-expense method because of this rule, you still keep records of miles driven per vehicle.", "quote": "Five or more cars. If you own or lease five or more\ncars that are used for business at the same time, you can’t\nuse the standard mileage rate for the business use of any\ncar. However, you may be able to deduct your actual ex-\npenses for operating each of the cars in your business.", "offset": 97795, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/p463--2025.pdf", "title": "Publication 463 (2025), Travel, Gift, and Car Expenses", "publisher": "IRS", "fetched_at": "2026-08-29T07:59:29.736Z", "sha256_text": "0a5429073865a7862157d21a9835d60d29a10145a5b15ee55b29d15cee020183", "snapshot_url": "https://ratesandlimits.com/snapshots/mileage-rate/2026/p463--2025.txt" } }, { "key": "commuting-is-not-business-mileage", "heading": "The drive to work is never deductible mileage", "body": "No matter what vehicle expenses you claim - whether the standard mileage rate or actual expenses - the miles between your home and your main or regular place of work are never deductible. The IRS treats these as personal commuting expenses, and the rule is absolute: distance does not matter, and working during the trip does not change the character of the miles. Making business phone calls on a hands-free device while driving to the office, or having a business discussion with a passenger who is riding along to work, does not convert a personal commute into a business trip. Only once you arrive at your regular workplace and begin driving to a second, temporary work location, or to a client meeting away from your regular office, do the miles become business miles eligible for the 2026 rate of 72.5¢ per mile. The same bright-line treatment applies to medical, moving, and charitable miles - only the portion of driving beyond the home-to-work commute counts.", "quote": "Commuting expenses. You can’t deduct the costs of\ntaking a bus, trolley, subway, or taxi, or of driving a car be-\ntween your home and your main or regular place of work.\nThese costs are personal commuting expenses. You can’t\ndeduct commuting expenses no matter how far your home\nis from your regular place of work. You can’t deduct com-\nmuting expenses even if you work during the commuting\ntrip.", "offset": 89633, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/p463--2025.pdf", "title": "Publication 463 (2025), Travel, Gift, and Car Expenses", "publisher": "IRS", "fetched_at": "2026-08-29T07:59:29.736Z", "sha256_text": "0a5429073865a7862157d21a9835d60d29a10145a5b15ee55b29d15cee020183", "snapshot_url": "https://ratesandlimits.com/snapshots/mileage-rate/2026/p463--2025.txt" } }, { "key": "splitting-business-and-personal-miles", "heading": "Splitting a car between business and personal use", "body": "Most vehicles serve more than one purpose during the year. When a car is used for both business and personal purposes, the IRS requires you to divide your expenses between the two uses. The approved way to make the split is by miles: you total the miles driven for business and the miles driven for all other reasons during the year, and then claim only the business portion. The source document illustrates this with a contractor who drives a mix of business and personal miles and may claim only the business percentage of the car's operating costs. The same logic applies if you use the standard mileage rate rather than actual expenses: you apply the 2026 business rate of 72.5¢ per mile only to the business miles, not to the total odometer reading. Accurate mileage logs - showing the date, destination, purpose, and number of miles for each trip - are what support the business share in the event of an IRS examination.", "quote": "Business and personal use. If you use your car for both\nbusiness and personal purposes, you must divide your ex-\npenses between business and personal use. You can di-\nvide your expense based on the miles driven for each pur-\npose.", "offset": 102476, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/p463--2025.pdf", "title": "Publication 463 (2025), Travel, Gift, and Car Expenses", "publisher": "IRS", "fetched_at": "2026-08-29T07:59:29.736Z", "sha256_text": "0a5429073865a7862157d21a9835d60d29a10145a5b15ee55b29d15cee020183", "snapshot_url": "https://ratesandlimits.com/snapshots/mileage-rate/2026/p463--2025.txt" } } ], "estimate": null }, { "program": "minimum-wage", "name": "Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "alabama", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-09-01", "published_at": "2026-09-01T07:21:57.786Z", "canonical_url": "https://ratesandlimits.com/minimum-wage/alabama/", "figures": [ { "key": "hourly", "label": "Hourly", "value": 7.25, "format": "usd", "formatted": "$7.25", "scope": null, "derived": false, "quote": "Alabama\nNo state minimum wage law.\nEmployers subject to the Fair Labor Standards Act must pay the current Federal minimum wage of $7.25 per hour.", "offset": 2094, "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:04.935Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/alabama/2026/state.txt" } } ], "schedule": null, "explainers": [ { "key": "state-rate-below-the-federal-floor", "heading": "Why the federal rate applies when the state rate is lower", "body": "Alabama has no minimum wage law of its own, which does not mean there is no minimum wage in Alabama. The Fair Labor Standards Act reaches most employment directly, and an employer subject to it must pay the federal minimum of $7.25 per hour whatever the state does. That is the rate on this page, and it is federal law rather than Alabama law that puts it there. The practical difference shows up at the edges. A worker whose employer is genuinely outside the FLSA has no state floor to fall back on, where a worker in a state with its own law would. And a complaint about it is a federal complaint: the Wage and Hour Division enforces it, because there is no Alabama statute to enforce.", "quote": "Alabama\nNo state minimum wage law.\nEmployers subject to the Fair Labor Standards Act must pay the current Federal minimum wage of $7.25 per hour.", "offset": 2094, "verified_at": "2026-09-01", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:04.935Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/alabama/2026/state.txt" } }, { "key": "who-can-be-paid-less", "heading": "Minors, students and training wages: who may be paid less than the rate on this page", "body": "The federal minimum wage of $7.25 per hour is the baseline that applies to covered employers nationwide. However, the Fair Labor Standards Act and many state laws create exceptions that allow certain workers to be paid a rate lower than the standard minimum. States may authorize subminimum wages for particular categories of workers - most commonly minors (young workers who have not yet reached a specified age threshold) and students (including full-time learners in certain work-study or learner positions). In addition, some states provide a training wage for new hires, meaning an employer may pay a reduced rate during an employee's initial training period. Because these subminimum provisions vary widely by jurisdiction and by the type of work being performed, the state-by-state table on this page does not list them. Workers and employers who need to know whether a lower rate is permitted for a given employee should review the rules of the state in which the work is performed and, where applicable, confirm with the state's labor office.", "quote": "Some states set subminimum rates for minors and/or students or exempt them from coverage or have a training wage for new hires.", "offset": 17053, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:04.935Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/alabama/2026/state.txt" } }, { "key": "local-rates-can-be-higher", "heading": "When a city or county sets a higher minimum wage", "body": "The state-by-state minimum wages shown on this page reflect each state's general floor, but they are not always the highest rate an employer must pay. Many cities, counties, and other local jurisdictions have enacted their own minimum wage laws that set a rate higher than the state minimum. When a local rate exceeds the state rate, employers in that locality are generally required to pay the higher local rate to covered workers. Because local minimum wages vary by city or county and can change frequently, this page does not display them in the state table. Workers and employers who need to know the minimum wage that applies at a specific work location should check whether the city or county where the work is performed has its own minimum wage ordinance, in addition to the state and federal rules.", "quote": "Some local governments set minimum wage rates higher than their respective state minimum\nwage.", "offset": 17181, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:04.935Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/alabama/2026/state.txt" } }, { "key": "overtime-premium", "heading": "Overtime is paid at one and one-half times the regular rate", "body": "The table on this page lists, for many states, a threshold of daily or weekly hours after which premium pay is required. The footnote to the table explains how that premium is calculated: once an employee works more than the designated number of hours, each additional hour must be paid at one and one-half times the employee's regular rate. This is the standard overtime premium under the Fair Labor Standards Act, which requires overtime pay for hours worked beyond a standard workweek unless a state sets a different daily or weekly trigger. The footnote also notes that the rate may differ where another rule applies, so the one-and-one-half multiplier is the default but not absolute. For a state listed in the table, the specific daily or weekly hour threshold shown next to that state's entry tells the reader when the overtime premium begins. The verified federal minimum wage of $7.25 per hour is the base on which the overtime premium is calculated for employees paid at the federal floor.", "quote": "The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified.", "offset": 17528, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:04.935Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/alabama/2026/state.txt" } }, { "key": "who-to-ask-about-this-rate", "heading": "Who to ask about this rate, and where to take a wage complaint", "body": "The Wage and Hour Division maintains the state minimum wage table on this page, but the information is provided as a reference and the division recommends that individuals confirm the rules that apply to their specific situation. Because state and local wage laws change frequently and may contain special provisions for particular industries, workers and employers with questions about a specific rate should consult the relevant state labor office for official information. State labor offices can provide authoritative guidance on which minimum wage applies, whether any exemptions or subminimum rates are available, and how overtime rules operate in that jurisdiction. If a worker believes an employer has failed to pay the correct minimum wage or required overtime, the state labor office or the U.S. Department of Labor's Wage and Hour Division is the appropriate place to raise a wage complaint.", "quote": "The Wage and Hour Division tries to ensure that the information on this page is accurate, but individuals should consult the relevant state labor office for official information.", "offset": 17338, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:04.935Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/alabama/2026/state.txt" } } ], "estimate": null }, { "program": "minimum-wage", "name": "Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "alaska", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-29", "published_at": "2026-08-29T10:17:00.176Z", "canonical_url": "https://ratesandlimits.com/minimum-wage/alaska/", "figures": [ { "key": "hourly", "label": "Hourly", "value": 14, "format": "usd", "formatted": "$14", "scope": null, "derived": false, "quote": "Alaska\nBasic Minimum Rate (per hour): $14.00", "offset": 2240, "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:06.709Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/alaska/2026/state.txt" } } ], "schedule": null, "explainers": [ { "key": "who-can-be-paid-less", "heading": "Minors, students and training wages: who may be paid less than the rate on this page", "body": "The rate shown on this page is the general minimum wage for covered workers, but several categories of employees may lawfully be paid less under special subminimum provisions. Many states allow employers to pay minors or students a lower hourly wage than the standard adult rate, and some jurisdictions also maintain a training wage for newly hired employees during an introductory period. Other states exempt certain groups from minimum wage coverage altogether. These subminimum rates, exemptions, and training wages are not displayed in the DOL table and vary from state to state. Employers and workers in those situations must check their own state's rules to determine which category applies and what reduced rate, if any, is permitted. The federal subminimum wage for tipped employees and for workers with disabilities under special certificates are separate programs that also exist alongside the regular minimum wage. When in doubt, consult the state labor office to confirm whether a subminimum rate is lawful for a particular employee.", "quote": "Some states set subminimum rates for minors and/or students or exempt them from coverage or have a training wage for new hires.", "offset": 17053, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:06.709Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/alaska/2026/state.txt" } }, { "key": "local-rates-can-be-higher", "heading": "When a city or county sets a higher minimum wage", "body": "Many cities, counties, and other local jurisdictions have enacted their own minimum wage laws that set a higher hourly rate than the state minimum wage shown on this page. When a local rate exceeds the state rate, non-exempt employees working within that locality must generally be paid the higher local rate. Because local minimum wage rates are adopted and updated independently, they can change more frequently than state rates and may apply only within specific municipal boundaries. The DOL table of state minimum wage rates does not display these local differential provisions, so the state figure alone may understate what an employer in a covered locality is actually required to pay. Workers and employers should determine whether a city or county ordinance applies at the work site and verify the current local rate with the local government or the relevant state labor office. Where federal, state, and local minimum wages all apply, the highest rate governs.", "quote": "Some local governments set minimum wage rates higher than their respective state minimum\nwage.", "offset": 17181, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:06.709Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/alaska/2026/state.txt" } }, { "key": "overtime-premium", "heading": "Overtime is paid at one and one-half times the regular rate", "body": "The table on this page includes a column titled \"Premium Pay After Designated Hours\" for states that require overtime premium pay. A footnote to the table states the general rule: the overtime premium rate is one and one-half times the employee's regular rate of pay, unless the state specifies a different multiplier. The \"regular rate\" used in that calculation is not limited to the base hourly minimum wage; it can include commissions, nondiscretionary bonuses, and other forms of compensation, so the actual overtime dollar amount may exceed a simple one-and-one-half calculation on the $14 hourly minimum wage shown for 2026. Some states define daily overtime thresholds in addition to the more common weekly overtime, and a few states set thresholds that differ from the weekly norm, but the one-and-one-half multiplier is the default applied across the table wherever a state mandates premium pay. Workers who believe they are owed overtime should confirm both the applicable threshold and the regular-rate calculation with the relevant state labor office.", "quote": "The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified.", "offset": 17528, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:06.709Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/alaska/2026/state.txt" } }, { "key": "who-to-ask-about-this-rate", "heading": "Who to ask about this rate, and where to take a wage complaint", "body": "The Wage and Hour Division, an agency within the U.S. Department of Labor, maintains this page and states that it tries to ensure the information presented is accurate. However, because state minimum-wage laws are amended regularly and the page itself does not capture every subminimum, local, or exempted-worker provision, individuals who need authoritative guidance are directed to consult the relevant state labor office for official information. A worker who believes an employer is paying less than the required state rate, or an employer that wants to confirm the current dollar amount before the next payroll, should therefore contact the labor department of the state where the work is performed rather than relying on this table alone. The state labor office can confirm whether the $14 hourly rate shown here for 2026 still applies, whether a local ordinance sets a higher floor, and where to file a formal wage complaint if pay has fallen short of what the law requires.", "quote": "The Wage and Hour Division tries to ensure that the information on this page is accurate, but individuals should consult the relevant state labor office for official information.", "offset": 17338, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:06.709Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/alaska/2026/state.txt" } } ], "estimate": null }, { "program": "minimum-wage", "name": "Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "arizona", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-29", "published_at": "2026-08-29T10:15:11.155Z", "canonical_url": "https://ratesandlimits.com/minimum-wage/arizona/", "figures": [ { "key": "hourly", "label": "Hourly", "value": 15.15, "format": "usd", "formatted": "$15.15", "scope": null, "derived": false, "quote": "Basic Minimum Rate (per hour): $15.15", "offset": 2721, "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-27T15:08:08.101Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/arizona/2026/state.txt" } } ], "schedule": null, "explainers": [ { "key": "who-can-be-paid-less", "heading": "Minors, students and training wages: who may be paid less than the rate on this page", "body": "In addition to the standard minimum wage, some states allow employers to pay certain workers a lower, subminimum hourly rate. These reduced rates typically apply to minors, students, or employees who are newly hired and undergoing training. Some states also exempt particular categories of workers from minimum-wage coverage altogether. The table on this page does not list those special rates or exemptions because they vary by state and depend on the worker's age, enrollment status, or length of employment. Employers who may qualify for a subminimum wage should check their own state's rules before paying less than the rate shown here. Workers who believe they have been paid below the lawful rate should contact their state labor office or the federal Wage and Hour Division for guidance.", "quote": "Some states set subminimum rates for minors and/or students or exempt them from coverage or have a training wage for new hires.", "offset": 17053, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-27T15:08:08.101Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/arizona/2026/state.txt" } }, { "key": "local-rates-can-be-higher", "heading": "When a city or county sets a higher minimum wage", "body": "Cities, counties, and other local governments may establish their own minimum wage that is higher than the state minimum. When a local rate exceeds the state rate, employers in that locality generally must pay the higher local rate, not the lower state rate. The table on this page shows only statewide rates; it does not list the many local minimum wages that may apply in specific cities or counties. Workers and employers in areas with local minimum-wage ordinances should check the local government's website or labor department to find the rate that actually applies to them. If a local, state, and federal rate all differ, the highest of the three rates governs the employee's pay.", "quote": "Some local governments set minimum wage rates higher than their respective state minimum\nwage.", "offset": 17181, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-27T15:08:08.101Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/arizona/2026/state.txt" } }, { "key": "overtime-premium", "heading": "Overtime is paid at one and one-half times the regular rate", "body": "When a covered non-exempt employee works more than the designated number of hours in a work period, the employer must pay an overtime premium. The overtime premium rate is one and one-half times the employee's regular rate. Unless a state table specifies a different trigger, overtime is calculated on a weekly basis. The premium is added on top of the regular rate; it does not replace it. Some states set daily, rather than weekly, overtime thresholds, and a few use a different multiplier for certain hours, so the exact premium owed can depend on state law. Where the state table on this page shows a weekly threshold, any hours worked beyond that threshold in the workweek must be paid at one and one-half times the regular rate.", "quote": "The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified.", "offset": 17528, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-27T15:08:08.101Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/arizona/2026/state.txt" } }, { "key": "who-to-ask-about-this-rate", "heading": "Who to ask about this rate, and where to take a wage complaint", "body": "This page summarizes state minimum wage rates and related provisions, but the figures shown may not reflect every special rule, local rate, or recent change. For authoritative, up-to-date information about the rate that applies in a particular state, individuals should consult the relevant state labor office. The state labor office can confirm the current minimum wage, any subminimum or training rates, overtime rules, and coverage requirements. Employers or employees with questions or concerns about whether they are being paid the correct wage can bring a complaint to that office. The Wage and Hour Division of the U.S. Department of Labor also provides contact information and resources on its website for workers seeking help with wage issues.", "quote": "The Wage and Hour Division tries to ensure that the information on this page is accurate, but individuals should consult the relevant state labor office for official information.", "offset": 17338, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-27T15:08:08.101Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/arizona/2026/state.txt" } } ], "estimate": null }, { "program": "minimum-wage", "name": "Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "arkansas", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-29", "published_at": "2026-08-29T10:16:12.495Z", "canonical_url": "https://ratesandlimits.com/minimum-wage/arkansas/", "figures": [ { "key": "hourly", "label": "Hourly", "value": 11, "format": "usd", "formatted": "$11", "scope": null, "derived": false, "quote": "Arkansas\nApplicable to employers with 4 or more employees\nBasic Minimum Rate (per hour): $11.00", "offset": 2759, "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:08.801Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/arkansas/2026/state.txt" } } ], "schedule": null, "explainers": [ { "key": "who-can-be-paid-less", "heading": "Minors, students and training wages: who may be paid less than the rate on this page", "body": "This page lists each state's general minimum wage, but the figures shown do not reflect every special rate a state may apply. Several states authorize employers to pay certain categories of workers less than the standard minimum. Typical examples include minors (young workers below a specified age), students employed in certain seasonal or retail jobs, and newly hired employees during a short initial training period. A state may also exempt an entire class of workers from its minimum-wage coverage. Because those subminimum, training, and exemption rules vary widely from state to state, they are not displayed in this table. Workers and employers who need to know whether a particular employee qualifies for a lower rate should check the rules that apply in their state.", "quote": "Some states set subminimum rates for minors and/or students or exempt them from coverage or have a training wage for new hires.", "offset": 17053, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:08.801Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/arkansas/2026/state.txt" } }, { "key": "local-rates-can-be-higher", "heading": "When a city or county sets a higher minimum wage", "body": "The rates shown in this table are each state's baseline minimum wage, but they do not include ordinances enacted by cities, counties, or other local jurisdictions. Some local governments set minimum wage rates higher than their respective state minimum wage. When a city or county has adopted its own floor, employers in that locality must pay the higher local rate, not the state rate listed here. Those locally adopted rates differ from place to place and change frequently, so the table does not attempt to display them. Workers and employers should check with the city or county where the work is performed to determine whether a local minimum wage applies in addition to, or instead of, the state figure shown.", "quote": "Some local governments set minimum wage rates higher than their respective state minimum\nwage.", "offset": 17181, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:08.801Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/arkansas/2026/state.txt" } }, { "key": "overtime-premium", "heading": "Overtime is paid at one and one-half times the regular rate", "body": "When a non-exempt employee works more than the hours defined as regular under state law, the employer must pay an overtime premium on those extra hours. Under the standard rule referenced by the footnote on this page, that premium is one and one-half times the employee's regular rate of pay. The table on this page reports only the basic minimum hourly rate; it does not calculate what an overtime hour costs, because overtime pay depends on the worker's own regular rate, which can be above the minimum. Some states impose a daily overtime threshold, so that hours beyond a set number in a single day trigger premium pay in addition to any weekly threshold. Employers must apply whichever formula produces the greater premium for the employee, unless a specific exemption removes the obligation entirely. The footnote's language - unless otherwise specified - signals that a few states depart from this multiplier for certain workers or industries, and those departures are noted in the individual state entries rather than in the footnote itself.", "quote": "The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified.", "offset": 17528, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:08.801Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/arkansas/2026/state.txt" } }, { "key": "who-to-ask-about-this-rate", "heading": "Who to ask about this rate, and where to take a wage complaint", "body": "The Wage and Hour Division maintains this table as a reference, but it cannot serve as the final word on any state's current rate. Because state minimum wages are set by each state's own legislature and agencies, the authoritative source for any given state is that state's labor department. The page therefore advises that individuals should consult the relevant state labor office for official information. A state labor office can confirm the current rate, any applicable subminimum or training rates, local ordinances that may raise the floor, and how to file a wage complaint if an employer is not paying what is owed. Contact details for each state's labor office are available through the DOL's State Labor Offices directory.", "quote": "The Wage and Hour Division tries to ensure that the information on this page is accurate, but individuals should consult the relevant state labor office for official information.", "offset": 17338, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:08.801Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/arkansas/2026/state.txt" } } ], "estimate": null }, { "program": "minimum-wage", "name": "Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "california", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-09-01", "published_at": "2026-09-01T07:23:23.362Z", "canonical_url": "https://ratesandlimits.com/minimum-wage/california/", "figures": [ { "key": "hourly", "label": "Hourly", "value": 16.9, "format": "usd", "formatted": "$16.90", "scope": null, "derived": false, "quote": "California\nBasic Minimum Rate (per hour): $16.90", "offset": 2906, "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:10.417Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/california/2026/state.txt" } } ], "schedule": null, "explainers": [ { "key": "annual-inflation-adjustment", "heading": "How the rate is adjusted each year, and who announces it", "body": "The $16.90 on this page is not a figure the California legislature set and left. State law adjusts the minimum wage annually by a formula, so the rate changes at the start of the year without a new bill each time, and the number you were paid last year is not evidence of what you are owed now. Two things follow for anyone checking a payslip. The rate is dated: a payslip covering the changeover carries hours at both rates, and an employer paying the old figure after the change is underpaying even though the figure was right a week earlier. And the next rate is normally announced before it takes effect, so it can be checked against the California labour department rather than guessed at from inflation.", "quote": "The minimum wage will be adjusted annually based upon a set formula.", "offset": 3596, "verified_at": "2026-09-01", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:10.417Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/california/2026/state.txt" } }, { "key": "who-can-be-paid-less", "heading": "Minors, students and training wages: who may be paid less than the rate on this page", "body": "The $16.90 per hour rate shown on this page is California's basic minimum wage. It is not a nationwide figure. Beyond the federal and state baselines displayed here, some states allow employers to pay certain workers less. States may set subminimum rates for minors or students, fully exempt certain workers from coverage, or offer a training wage for new hires. These special rates and exemptions are not shown in the table. If you are a young worker, a student, or a new hire, your employer may legally pay you a rate lower than the standard state minimum, depending on your state's rules. You must check your own state's labor law to know whether a subminimum, exemption, or training wage applies to your situation. The table on this page only shows the general basic minimum rate for each state and any overtime threshold.", "quote": "Some states set subminimum rates for minors and/or students or exempt them from coverage or have a training wage for new hires.", "offset": 17053, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:10.417Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/california/2026/state.txt" } }, { "key": "local-rates-can-be-higher", "heading": "When a city or county sets a higher minimum wage", "body": "The $16.90 per hour minimum wage shown on this page is California's state rate, not a national or local floor. Even within a single state, individual cities and counties may set their own minimum wage rates that are higher than the state rate. For example, many California cities have local minimum wages above the state figure. These local provisions are not displayed in the table on this page. Employers must pay whichever rate is highest: the federal, state, or local minimum. If you work in a city or county that has enacted a higher rate, your employer is required to pay the local rate. You should check your local government's website or labor office to find out if a higher rate applies in your area. The state-level table on this page does not reflect those local differences.", "quote": "Some local governments set minimum wage rates higher than their respective state minimum\nwage. Such differential provisions are not displayed in this table.", "offset": 17181, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:10.417Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/california/2026/state.txt" } }, { "key": "overtime-premium", "heading": "Overtime is paid at one and one-half times the regular rate", "body": "When an employee works more than the designated number of hours in a workweek or workday, the overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified. This means that for every hour worked beyond the applicable weekly or daily threshold, the worker must receive at least one and one-half times their normal hourly pay. The exact threshold varies by state. Some states set the premium only on a weekly basis, while others also require premium pay after a certain number of hours in a single day. California goes further, requiring premium pay for work beyond eight hours in one day and double time for work beyond twelve hours in one day. The table on this page shows each state's premium pay threshold, but the underlying calculation rule is the one and one-half times multiplier stated in the footnote to the table.", "quote": "The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified.", "offset": 17528, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:10.417Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/california/2026/state.txt" } }, { "key": "who-to-ask-about-this-rate", "heading": "Who to ask about this rate, and where to take a wage complaint", "body": "The Wage and Hour Division tries to ensure that the information on this page is accurate, but the official source for any state's minimum wage is that state's own labor office. Because state minimum wage rates change on different schedules and may have special rules for small employers, tipped workers, or other categories, individuals should consult the relevant state labor office for official information rather than relying solely on this table. If you believe your employer is not paying the correct minimum wage, or if you need to file a wage complaint, your state labor office is the place to start. You can also contact the federal Wage and Hour Division, which enforces the Fair Labor Standards Act. The table on this page is a reference tool, but it is not a legal authority; the state labor office can confirm the current rate and your rights under state law.", "quote": "The Wage and Hour Division tries to ensure that the information on this page is accurate, but individuals should consult the relevant state labor office for official information.", "offset": 17338, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:10.417Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/california/2026/state.txt" } } ], "estimate": null }, { "program": "minimum-wage", "name": "Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "colorado", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-29", "published_at": "2026-08-29T08:38:52.105Z", "canonical_url": "https://ratesandlimits.com/minimum-wage/colorado/", "figures": [ { "key": "hourly", "label": "Hourly", "value": 15.16, "format": "usd", "formatted": "$15.16", "scope": null, "derived": false, "quote": "Colorado\nBasic Minimum Rate (per hour): $15.16", "offset": 3846, "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-27T15:05:56.007Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/colorado/2026/state.txt" } } ], "schedule": null, "explainers": [ { "key": "who-can-be-paid-less", "heading": "Minors, students and training wages: who may be paid less than the rate on this page", "body": "The $15.16 hourly rate shown on this page is the general minimum wage, but certain workers may be paid less. Some states have subminimum rates that apply specifically to minors or to students. Other states allow employers to pay a separate, lower training wage to newly hired employees for a limited period. In still other states, minors or students are entirely exempt from the state minimum wage, meaning the state’s standard floor does not apply to them at all. These special provisions exist alongside, but are not listed in, the main state-by-state table on this page. Employers covered by the Fair Labor Standards Act must still pay at least the federal minimum, but when a state provides a subminimum rate, exemption, or training wage for a defined group of workers, that lower rate may apply to those workers in place of the regular state minimum. Anyone hiring a minor, a student, or a new trainee should check their state’s specific rules to see whether a reduced rate is available and what conditions must be met to use it.", "quote": "Some states set subminimum rates for minors and/or students or exempt them from coverage or have a training wage for new hires.", "offset": 17053, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-27T15:05:56.007Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/colorado/2026/state.txt" } }, { "key": "local-rates-can-be-higher", "heading": "When a city or county sets a higher minimum wage", "body": "The $15.16 hourly rate on this page reflects state minimum wage laws, but in many places the actual minimum wage an employer must pay is higher. Cities and counties are allowed to set their own minimum wage rates above the state level, and when they do, the local rate controls for employers within that jurisdiction. These locally higher rates are not displayed in the state-by-state table on this page, which shows only the state statutory minimums. As a result, an employer operating in a city or county with its own minimum wage ordinance may owe workers more than the $15.16 state rate. Employees and employers should check with the local government to find out whether a city or county has adopted a higher minimum wage that applies in addition to, or instead of, the statewide floor.", "quote": "Some local governments set minimum wage rates higher than their respective state minimum\nwage.", "offset": 17181, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-27T15:05:56.007Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/colorado/2026/state.txt" } }, { "key": "overtime-premium", "heading": "Overtime is paid at one and one-half times the regular rate", "body": "Under the Fair Labor Standards Act, covered nonexempt employees who work overtime must receive a premium above their regular hourly wage. The standard overtime premium rate is one and one-half times the employee's regular rate of pay. For an employee earning the verified 2026 minimum wage of $15.16 per hour, each overtime hour must be paid at a rate that is one and one-half times that base figure. This rule is a footnote to the state minimum wage table on this page and applies unless a state or other provision specifies a different standard. Some states set their own overtime thresholds - for example, daily overtime after a certain number of hours in a day - and those variations are listed in the table for each state under the heading \"Premium Pay After Designated Hours.\" When a state rule is more generous to the worker, the more favorable standard controls. Employers should review both the federal requirement and the rules of the state where their employees work to determine the correct overtime premium.", "quote": "The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified.", "offset": 17528, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-27T15:05:56.007Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/colorado/2026/state.txt" } }, { "key": "who-to-ask-about-this-rate", "heading": "Who to ask about this rate, and where to take a wage complaint", "body": "The Wage and Hour Division, which is the part of the U.S. Department of Labor that publishes this page, tries to keep the information accurate but directs people with questions to their state labor office. Anyone who wants to confirm the $15.16 rate, learn about a local higher minimum wage, find out whether a subminimum rate applies, or report a possible wage violation should consult the relevant state labor office for official information. The state labor office is the authoritative source for state-specific minimum wage rates, overtime rules, exemptions, and enforcement procedures. Contact details for state labor offices are available through the Department of Labor's resources. Wage complaints are handled at the state level for matters arising under state law, while the federal Wage and Hour Division handles complaints involving the federal minimum wage and the Fair Labor Standards Act.", "quote": "The Wage and Hour Division tries to ensure that the information on this page is accurate, but individuals should consult the relevant state labor office for official information.", "offset": 17338, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-27T15:05:56.007Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/colorado/2026/state.txt" } } ], "estimate": null }, { "program": "minimum-wage", "name": "Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "connecticut", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-29", "published_at": "2026-08-29T08:39:49.212Z", "canonical_url": "https://ratesandlimits.com/minimum-wage/connecticut/", "figures": [ { "key": "hourly", "label": "Hourly", "value": 16.94, "format": "usd", "formatted": "$16.94", "scope": null, "derived": false, "quote": "Connecticut\nBasic Minimum Rate (per hour): $16.94", "offset": 4114, "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:12.060Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/connecticut/2026/state.txt" } } ], "schedule": null, "explainers": [ { "key": "who-can-be-paid-less", "heading": "Minors, students and training wages: who may be paid less than the rate on this page", "body": "The $16.94 hourly rate shown on this page is the general minimum wage that applies to most covered workers. However, certain categories of employees may lawfully be paid less than that amount. Some states establish subminimum wage rates specifically for minors (young workers under a specified age) and for students, allowing employers to pay them a lower hourly amount. Other states provide a training wage for newly hired employees during an initial period. In some cases, these groups are entirely exempt from the state minimum wage law rather than being paid a reduced subminimum rate. Because these special rates and exemptions vary by state and are not reflected in the single figure on this page, employers and workers should check their own state's rules to determine whether a lower wage is permitted for a particular employee category.", "quote": "Some states set subminimum rates for minors and/or students or exempt them from coverage or have a training wage for new hires.", "offset": 17053, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:12.060Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/connecticut/2026/state.txt" } }, { "key": "local-rates-can-be-higher", "heading": "When a city or county sets a higher minimum wage", "body": "In addition to the state minimum wage, many cities, counties, and other local jurisdictions have enacted their own minimum wage ordinances that require employers within their boundaries to pay a higher hourly rate than the state figure. When a local minimum wage exceeds the state rate, covered employers in that locality must pay the higher local amount. The table on this page displays only the statewide rates and does not list these local differences. As a result, the $16.94 figure (or whatever rate is shown for a given state) may not be the actual minimum that applies to a worker employed within a city or county that has set its own, higher floor. Workers and employers in areas with local minimum wage laws should look up the rate that applies in their specific locality to determine the correct amount owed.", "quote": "Some local governments set minimum wage rates higher than their respective state minimum\nwage. Such differential provisions are not displayed in this table.", "offset": 17181, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:12.060Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/connecticut/2026/state.txt" } }, { "key": "overtime-premium", "heading": "Overtime is paid at one and one-half times the regular rate", "body": "When a covered, non-exempt employee works beyond the weekly overtime threshold, the Fair Labor Standards Act requires that those extra hours be compensated at an overtime premium rate. That premium rate is one and one-half times the employee's regular rate of pay. For example, a worker earning the $16.94 minimum wage would receive a premium rate equal to one and one-half times that figure for each overtime hour. Some states impose additional daily overtime rules or require premium pay after a certain number of hours worked in a single day, and certain alternative workweek schedules approved by a state labor agency may shift when overtime begins. The footnote on this page clarifies that, unless a state entry specifies a different threshold, the overtime premium is calculated as one and one-half times the worker's regular rate. The table on this page displays only the basic minimum wage for each state; it does not itself list every state's overtime threshold or any daily overtime provisions that some states impose on top of the weekly rule.", "quote": "Footnote\n1 The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified.", "offset": 17517, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:12.060Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/connecticut/2026/state.txt" } }, { "key": "who-to-ask-about-this-rate", "heading": "Who to ask about this rate, and where to take a wage complaint", "body": "The Wage and Hour Division makes efforts to keep the state minimum wage figures on this page current, but the table is provided for general reference and may not reflect the very latest changes or local variations. For official, authoritative information about the minimum wage that applies in a particular state - including any subminimum rates, exemptions, or local higher rates - individuals should consult the relevant state labor office. State labor offices can confirm the exact rate in effect, explain any special provisions, and advise on how to file a wage complaint if an employer has failed to pay the correct amount. Reaching out to the state office directly ensures that a worker or employer is relying on the most up-to-date and legally controlling guidance for their jurisdiction.", "quote": "The Wage and Hour Division tries to ensure that the information on this page is accurate, but individuals should consult the relevant state labor office for official information.", "offset": 17338, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:12.060Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/connecticut/2026/state.txt" } } ], "estimate": null }, { "program": "minimum-wage", "name": "Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "delaware", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-09-01", "published_at": "2026-09-01T08:57:51.441Z", "canonical_url": "https://ratesandlimits.com/minimum-wage/delaware/", "figures": [ { "key": "hourly", "label": "Hourly", "value": 15, "format": "usd", "formatted": "$15", "scope": null, "derived": false, "quote": "Delaware\nBasic Minimum Rate (per hour): $15.00", "offset": 4353, "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:13.687Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/delaware/2026/state.txt" } } ], "schedule": null, "explainers": [ { "key": "state-rate-below-the-federal-floor", "heading": "Why the federal rate applies when the state rate is lower", "body": "Under Delaware law, the state minimum wage is currently $15.00 per hour. However, the state also adopts the federal minimum wage rate by reference whenever the federal rate exceeds Delaware's own rate. This means that if Congress raises the federal minimum wage above $15.00, Delaware employers must pay the higher federal amount automatically, without waiting for the state legislature to act. Workers in Delaware are therefore guaranteed whichever rate is higher - the state rate or the federal rate - at any given time. This safeguard ensures that Delaware employees never fall below the national floor, even if the state's own rate were somehow set lower than the federal standard.", "quote": "Delaware\nBasic Minimum Rate (per hour): $15.00\nThe State adopts the federal minimum wage rate by reference if the federal rate is greater than the State rate.", "offset": 4353, "verified_at": "2026-09-01", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:13.687Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/delaware/2026/state.txt" } }, { "key": "federal-and-state-rate-together", "heading": "State minimum wage laws that give more than the federal rate", "body": "Delaware pays $15.00 an hour, above the federal minimum, and state law also provides that the federal figure takes over should the federal one ever be the greater. Both halves matter. Today the state figure is the higher, so $15.00 is what an employer in Delaware owes and the federal rate has no practical effect. The other clause is insurance: if Congress raised the federal minimum past $15.00, Delaware would follow it up without needing to legislate. Nothing in either rule lets an employer pay the lower of the two. Where federal and state minimum wage law both apply to a job, the employee is owed the higher rate, and that is the whole of the interaction.", "quote": "The State adopts the federal minimum wage rate by reference if the federal rate is greater than the State rate.", "offset": 4400, "verified_at": "2026-09-01", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:13.687Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/delaware/2026/state.txt" } }, { "key": "who-can-be-paid-less", "heading": "Minors, students and training wages: who may be paid less than the rate on this page", "body": "Many states allow employers to pay certain workers less than the standard minimum wage that applies to most employees. These special lower rates typically apply to minors, students, or newly hired employees who are still in a training period. Some states also completely exempt these categories of workers from minimum wage coverage. The table on this page does not display these differential provisions, so workers and employers should check their individual state's rules to determine whether a subminimum or training wage applies in a particular situation.", "quote": "Some states set subminimum rates for minors and/or students or exempt them from coverage or have a training wage for new hires.", "offset": 17053, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:13.687Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/delaware/2026/state.txt" } }, { "key": "local-rates-can-be-higher", "heading": "When a city or county sets a higher minimum wage", "body": "Even when a state sets a minimum wage, a city or county within that state is free to adopt its own, higher floor. Workers who perform their jobs inside such a locality are entitled to the local rate when it exceeds the state figure, regardless of what the state table shows. This table deliberately omits those local ordinances because they change frequently and apply only within specific municipal or county boundaries. An employer operating in a metropolitan area must therefore look beyond the statewide rate to determine whether a local ordinance imposes a higher obligation. Employees who believe they are owed more than their employer is paying should research whether their city or county has enacted its own minimum wage, since that local rate - not the state rate - would control their pay.", "quote": "Some local governments set minimum wage rates higher than their respective state minimum\nwage. Such differential provisions are not displayed in this table.", "offset": 17181, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:13.687Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/delaware/2026/state.txt" } }, { "key": "overtime-premium", "heading": "Overtime is paid at one and one-half times the regular rate", "body": "The general rule for overtime pay on this page is that hours worked beyond the standard full-time threshold must be compensated at an elevated rate rather than the employee's usual hourly pay. A footnote to the table clarifies that the overtime premium is calculated by multiplying the employee's regular rate by one and one-half. This multiplier applies unless a state's own overtime provision specifies a different figure or a different daily or weekly threshold. Several states listed in the table set their own premium-pay thresholds (such as after a certain number of hours in a day or after a full workweek) and a few require double time after even longer stretches. Employers must therefore compare the footnote rule with any state-specific provision that appears alongside a particular state's entry to determine the correct overtime rate.", "quote": "The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified.", "offset": 17528, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:13.687Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/delaware/2026/state.txt" } }, { "key": "who-to-ask-about-this-rate", "heading": "Who to ask about this rate, and where to take a wage complaint", "body": "The Wage and Hour Division, an agency within the U.S. Department of Labor, publishes this table as a reference but directs readers to state authorities for definitive guidance on any particular rate. Individuals who need to confirm the current minimum wage, learn about subminimum provisions, or file a wage complaint should reach out to the labor office in their own state rather than relying solely on this page. That state office maintains the authoritative record of any recent legislative changes, local ordinances, or special exemptions that may not yet be reflected here. Contact information for each state's labor office is available through the DOL's State Labor Offices directory, which is linked from the navigation menu on this site.", "quote": "The Wage and Hour Division tries to ensure that the information on this page is accurate, but individuals should consult the relevant state labor office for official information.", "offset": 17338, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:13.687Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/delaware/2026/state.txt" } } ], "estimate": null }, { "program": "minimum-wage", "name": "Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "district-of-columbia", "status": "official", "effective_date": "2026-07-01", "date_basis": "as-of", "verified_at": "2026-09-01", "published_at": "2026-09-01T07:24:09.656Z", "canonical_url": "https://ratesandlimits.com/minimum-wage/district-of-columbia/", "figures": [ { "key": "hourly", "label": "Hourly", "value": 18.4, "format": "usd", "formatted": "$18.40", "scope": null, "derived": false, "quote": "District of Columbia\nBasic Minimum Rate (per hour): $18.40", "offset": 4512, "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:15.392Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/district-of-columbia/2026/state.txt" } } ], "schedule": null, "explainers": [ { "key": "annual-inflation-adjustment", "heading": "How the rate is adjusted each year, and who announces it", "body": "The $18.40 on this page is not a figure the District of Columbia legislature set and left. State law adjusts the minimum wage annually by a formula, so the rate changes on July 1 without a new bill each time, and the number you were paid last year is not evidence of what you are owed now. Two things follow for anyone checking a payslip. The rate is dated: a payslip covering the changeover carries hours at both rates, and an employer paying the old figure after the change is underpaying even though the figure was right a week earlier. And the next rate is normally announced before it takes effect, so it can be checked against the District of Columbia labour department rather than guessed at from inflation.", "quote": "The minimum wage is adjusted annually on July 1 based on a set formula.", "offset": 4622, "verified_at": "2026-09-01", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:15.392Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/district-of-columbia/2026/state.txt" } }, { "key": "who-can-be-paid-less", "heading": "Minors, students and training wages: who may be paid less than the rate on this page", "body": "Employers covered by the Fair Labor Standards Act must pay at least the federal minimum wage. However, certain categories of workers may be paid less than the standard rate. Some states establish subminimum wage rates specifically for minors and students, recognizing that younger or less experienced workers may be compensated at a lower hourly rate. Additionally, some states provide exemptions that remove these workers from minimum wage coverage entirely. Other states permit a training wage for newly hired employees, allowing employers to pay a reduced rate during an initial employment period. These special provisions vary significantly by state and are separate from the $18.40 hourly rate shown on this page. Workers and employers should verify whether any subminimum, training, or exemption rules apply in their jurisdiction, as these exceptions are not reflected in the general rate tables.", "quote": "Some states set subminimum rates for minors and/or students or exempt them from coverage or have a training wage for new hires.", "offset": 17053, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:15.392Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/district-of-columbia/2026/state.txt" } }, { "key": "local-rates-can-be-higher", "heading": "When a city or county sets a higher minimum wage", "body": "In addition to state minimum wage laws, many cities and counties enact their own local minimum wage ordinances. When a local government sets a minimum wage rate that is higher than the state minimum wage, employers within that locality must generally pay the higher local rate rather than the lower state rate. This means that workers in certain cities or counties may be entitled to earn more than the state minimum wage, even if the state rate is already above the federal level. The wage table on this page displays state-level rates only and does not show these local variations. Employers operating in multiple jurisdictions must comply with whichever minimum wage is highest among the federal, state, and local rates that apply to their workers. Employees should check whether their city or county has enacted a higher minimum wage that supersedes the state rate.", "quote": "Some local governments set minimum wage rates higher than their respective state minimum\nwage.", "offset": 17181, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:15.392Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/district-of-columbia/2026/state.txt" } }, { "key": "overtime-premium", "heading": "Overtime is paid at one and one-half times the regular rate", "body": "Under federal law, non-exempt employees who work overtime hours are entitled to receive increased compensation for those extra hours. The overtime premium rate is calculated as one and one-half times the employee's regular hourly rate. This means that for each overtime hour worked, the employee receives their normal rate plus an additional half of that rate as premium pay. For example, an employee earning $18.40 per hour would receive additional premium compensation for overtime hours based on this multiplier. The exact overtime threshold and calculation method may vary under state law or specific employment agreements. This footnote clarifies that the premium multiplier applies unless a different standard is specified by regulation or contract. Employers must ensure they calculate overtime pay correctly according to applicable federal and state requirements.", "quote": "The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified.", "offset": 17528, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:15.392Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/district-of-columbia/2026/state.txt" } }, { "key": "who-to-ask-about-this-rate", "heading": "Who to ask about this rate, and where to take a wage complaint", "body": "The Wage and Hour Division of the U.S. Department of Labor maintains this wage information page and makes reasonable efforts to keep the data accurate. However, because minimum wage laws change frequently and vary by jurisdiction, individuals should not rely solely on this page for official guidance. For authoritative and current information about minimum wage requirements in a specific state, workers and employers should consult the relevant state labor office. State labor offices can provide official interpretations of wage laws, explain any special provisions that may apply, and help resolve wage disputes. If an employee believes they have not been paid the correct minimum wage or overtime compensation, they may file a complaint with the Wage and Hour Division or contact their state labor office directly to seek assistance and enforcement of their rights under applicable wage laws.", "quote": "The Wage and Hour Division tries to ensure that the information on this page is accurate, but individuals should consult the relevant state labor office for official information.", "offset": 17338, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:15.392Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/district-of-columbia/2026/state.txt" } } ], "estimate": null }, { "program": "minimum-wage", "name": "Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "federal", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-09-01", "published_at": "2026-09-01T09:01:17.728Z", "canonical_url": "https://ratesandlimits.com/minimum-wage/federal/", "figures": [ { "key": "hourly", "label": "Hourly", "value": 7.25, "format": "usd", "formatted": "$7.25", "scope": null, "derived": false, "quote": "The federal minimum wage is $7.25 per hour", "offset": 2339, "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage", "title": "Minimum Wage", "publisher": "DOL", "fetched_at": "2026-08-29T02:45:54.600Z", "sha256_text": "9fa426e2a3eaa8f9710f078c3bee225a9286e8c372f7340963c7cede6c563c8e", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/federal/2026/minimum-wage.txt" } } ], "schedule": null, "explainers": [ { "key": "state-rate-below-the-federal-floor", "heading": "Why the federal rate applies when the state rate is lower", "body": "The federal minimum wage in the federal jurisdiction is $7.25 per hour. Many states also set their own minimum wage rates. When a state sets a rate below $7.25, the federal floor controls: a covered employer must still pay at least $7.25 an hour. Where a state sets a higher rate, the employer must pay that higher amount instead. In practice, a worker in a state whose minimum falls short of the federal figure still receives $7.25, because the employer must satisfy both layers of law and the higher of the two rates applies.", "quote": "Many states also have minimum wage laws. Some state laws provide greater employee protections; employers must comply with both. The FLSA does not provide wage payment collection procedures for an employee’s usual or promised wages or commissions in excess of those required by the FLSA.", "offset": 2407, "verified_at": "2026-09-01", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage", "title": "Minimum Wage", "publisher": "DOL", "fetched_at": "2026-08-29T02:45:54.600Z", "sha256_text": "9fa426e2a3eaa8f9710f078c3bee225a9286e8c372f7340963c7cede6c563c8e", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/federal/2026/minimum-wage.txt" } }, { "key": "federal-and-state-rate-together", "heading": "State minimum wage laws that give more than the federal rate", "body": "The $7.25 federal minimum is a floor and not a ceiling, and for most workers in the United States it is not the operative number. Many states set their own minimum wage, some of them well above the federal one, and where a state gives greater protection the employer must comply with both laws - which in practice means paying the higher rate. Nothing in the federal act preempts the more generous state rule; it sets the minimum below which no covered employer may go. Two consequences worth carrying. Your own rate is the highest of the federal, state and local figures that reach your job, so the number to look up is your state's and your city's rather than this one. And a job that pays exactly $7.25 in a state with a higher minimum is not a lawful federal-rate job; it is an underpaid one.", "quote": "Many states also have minimum wage laws. Some state laws provide greater employee protections; employers must comply with both.", "offset": 2407, "verified_at": "2026-09-01", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage", "title": "Minimum Wage", "publisher": "DOL", "fetched_at": "2026-08-29T02:45:54.600Z", "sha256_text": "9fa426e2a3eaa8f9710f078c3bee225a9286e8c372f7340963c7cede6c563c8e", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/federal/2026/minimum-wage.txt" } }, { "key": "who-to-ask-about-this-rate", "heading": "Who to ask about this rate, and where to take a wage complaint", "body": "The federal Fair Labor Standards Act sets the minimum wage floor but does not create a procedure for employees to collect wages that exceed what the FLSA requires, such as higher promised wages or commissions. If a worker believes an employer owes wages beyond the federal minimum, the FLSA itself does not offer a claims process for those amounts. However, many states have their own labor laws that allow employees to file claims for unpaid wages, and in some cases those state laws also cover fringe benefits. Workers who have a wage complaint should contact their state labor office or state department of labor to learn whether state law provides a remedy. The U.S. Department of Labor's Wage and Hour Division enforces the federal minimum wage, but disputes over wages above that floor often need to be pursued through state channels.", "quote": "The FLSA does not provide wage payment collection procedures for an employee’s usual or promised wages or commissions in excess of those required by the FLSA. However, some states do have laws under which such claims (sometimes including fringe benefits) may be filed.", "offset": 2535, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage", "title": "Minimum Wage", "publisher": "DOL", "fetched_at": "2026-08-29T02:45:54.600Z", "sha256_text": "9fa426e2a3eaa8f9710f078c3bee225a9286e8c372f7340963c7cede6c563c8e", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/federal/2026/minimum-wage.txt" } } ], "estimate": null }, { "program": "minimum-wage", "name": "Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "florida", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-29", "published_at": "2026-08-29T08:26:03.421Z", "canonical_url": "https://ratesandlimits.com/minimum-wage/florida/", "figures": [ { "key": "hourly", "label": "Hourly", "value": 14, "format": "usd", "formatted": "$14", "scope": null, "derived": false, "quote": "Florida\nBasic Minimum Rate (per hour): $14.00", "offset": 4694, "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-27T14:49:19.306Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/florida/2026/state.txt" } } ], "schedule": [ { "from": "2026-09-30", "verified_at": "2026-08-27", "figures": [ { "key": "hourly", "label": "Hourly", "value": 15, "format": "usd", "formatted": "$15", "scope": null, "derived": false, "quote": "Effective September 30th, 2021, the existing state Minimum Wage shall increase to $10.00 per hour, and then increase each September 30th thereafter by $1.00 per hour, until the Minimum Wage reaches $15.00 per hour on September 30th, 2026.", "offset": 289442, "source": { "url": "https://www.flsenate.gov/Laws/Constitution", "title": "Florida Constitution, Article X, Section 24", "publisher": "Florida Senate", "fetched_at": "2026-08-27T14:50:10.734Z", "sha256_text": "fb6d2d9b2412eb3c388c568640e97f436d8fc84c1920239e539a112ce72b60ac", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/florida/2026/Constitution.txt" } } ] } ], "explainers": [ { "key": "who-can-be-paid-less", "heading": "Minors, students and training wages: who may be paid less than the rate on this page", "body": "The federal minimum wage is not the only rate that can apply. Certain states allow employers to pay some workers less than the full state minimum. This most commonly affects minors, students, and employees who are still in a training period for a new job. A state may also completely exempt particular categories of workers from its minimum-wage rules. Because the table on this page shows only the basic statewide rate, it does not list every one of these special lower rates. If you are a young worker, a student, or a new hire in a training position, the state that governs your job may authorize a subminimum figure that is lower than the general rate shown here. To find out whether a lower rate applies to you, check your own state's rules rather than relying on the figures displayed in this table.", "quote": "Some states set subminimum rates for minors and/or students or exempt them from coverage or have a training wage for new hires.", "offset": 17053, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-27T14:49:19.306Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/florida/2026/state.txt" } }, { "key": "local-rates-can-be-higher", "heading": "When a city or county sets a higher minimum wage", "body": "The minimum wage shown on this page for each state is the statewide floor, but it is not always the highest rate an employer must pay. Cities and counties within a state are sometimes free to adopt their own minimum wage that is higher than the state figure. When a local rate exceeds the state rate, employers in that locality generally must follow the local rule. Because the table on this page lists only the state-level minimum, it does not show these higher local rates. Workers should check whether their city or county has enacted a minimum wage above the state figure shown here, because that local rate would be the one that applies to them.", "quote": "Some local governments set minimum wage rates higher than their respective state minimum\nwage.", "offset": 17181, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-27T14:49:19.306Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/florida/2026/state.txt" } }, { "key": "who-to-ask-about-this-rate", "heading": "Who to ask about this rate, and where to take a wage complaint", "body": "The Wage and Hour Division of the U.S. Department of Labor maintains the table on this page, but it is not the final authority on what any individual employer must pay. State labor offices set and enforce their own minimum-wage rules, and their guidance is what governs most wage disputes within the state. If a worker believes an employer is paying less than the required minimum, the worker should contact the relevant state labor office to file a complaint or request an official determination. The state labor office for each state can confirm the current enforceable rate, any special provisions that apply to the worker's situation, and the procedure for pursuing a wage claim.", "quote": "The Wage and Hour Division tries to ensure that the information on this page is accurate, but individuals should consult the relevant state labor office for official information.", "offset": 17338, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-27T14:49:19.306Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/florida/2026/state.txt" } }, { "key": "overtime-premium", "heading": "Overtime is paid at one and one-half times the regular rate", "body": "Under the Fair Labor Standards Act, non-exempt employees who work beyond the designated weekly hours must receive overtime pay at a premium rate. The standard overtime premium is one and one-half times the employee's regular hourly rate for each hour worked past the threshold. This premium applies on top of whatever minimum wage the employee is entitled to receive, including the $14 per hour rate. The DOL's table shows the basic minimum rate; the overtime calculation is made against the employee's actual regular rate of pay, which may be higher than the minimum. Different states may set their own overtime thresholds or use daily measures, and the \"unless otherwise specified\" language in the rule means those state-specific provisions can control instead of the default weekly standard. Employers must track all hours worked and apply the one-and-one-half multiplier whenever an employee exceeds the applicable threshold, whether that threshold is set by federal or state law.", "quote": "The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified.", "offset": 17528, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-27T14:49:19.306Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/florida/2026/state.txt" } } ], "estimate": null }, { "program": "minimum-wage", "name": "Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "georgia", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-09-01", "published_at": "2026-09-01T08:55:30.421Z", "canonical_url": "https://ratesandlimits.com/minimum-wage/georgia/", "figures": [ { "key": "hourly", "label": "Hourly", "value": 5.15, "format": "usd", "formatted": "$5.15", "scope": null, "derived": false, "quote": "Georgia\nApplicable to employers of 6 or more employees\nBasic Minimum Rate (per hour): $5.15", "offset": 4740, "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:17.379Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/georgia/2026/state.txt" } } ], "schedule": null, "explainers": [ { "key": "federal-and-state-rate-together", "heading": "State minimum wage laws that give more than the federal rate", "body": "In Georgia, the state minimum wage is $5.15 per hour and applies to employers of 6 or more employees. However, Georgia's law works together with federal law in a specific way: the state law excludes from coverage any employment that is subject to the federal Fair Labor Standards Act when the federal rate is greater than the state rate. This means that most workers in Georgia are actually covered by federal law rather than state law, because the federal minimum wage is higher than Georgia's state rate. Employers who are subject to the Fair Labor Standards Act must pay the current federal minimum wage of $7.25 per hour, not the lower Georgia rate of $5.15. For Georgia workers, this means you are entitled to at least $7.25 per hour if your employer is covered by federal law, which includes most businesses engaged in interstate commerce. The $5.15 state rate only applies in the rare case where your job is not covered by the federal Fair Labor Standards Act.", "quote": "Georgia\nApplicable to employers of 6 or more employees\nBasic Minimum Rate (per hour): $5.15\nThe State law excludes from coverage any employment that is subject to the federal Fair Labor Standards Act when the federal rate is greater than the State rate.\nEmployers subject to the Fair Labor Standards Act must pay the current Federal minimum wage of $7.25 per hour.", "offset": 4740, "verified_at": "2026-09-01", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:17.379Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/georgia/2026/state.txt" } }, { "key": "state-rate-below-the-federal-floor", "heading": "Why the federal rate applies when the state rate is lower", "body": "Georgia sets its own minimum at $5.15 an hour, and most people working in Georgia are not paid that. The state law steps out of the way for any employment the Fair Labor Standards Act covers when the federal rate is the greater of the two, and the federal minimum of $7.25 is greater. So for an FLSA-covered job the answer is $7.25, and the $5.15 figure applies only where the federal act does not reach - a narrow set of employers, small and wholly local. Read the state number as the floor beneath the floor rather than as what your employer may pay you. If you are unsure which side of the line your job falls on, the federal test is about the business rather than about you: its annual volume, and whether it does interstate work.", "quote": "The State law excludes from coverage any employment that is subject to the federal Fair Labor Standards Act when the federal rate is greater than the State rate.\nEmployers subject to the Fair Labor Standards Act must pay the current Federal minimum wage of $7.25 per hour.", "offset": 4832, "verified_at": "2026-09-01", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:17.379Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/georgia/2026/state.txt" } }, { "key": "who-can-be-paid-less", "heading": "Minors, students and training wages: who may be paid less than the rate on this page", "body": "Employers covered by the Fair Labor Standards Act must pay at least the federal minimum wage, but certain workers may be paid less under specific circumstances. Minors, students, and new hires may qualify for subminimum wage rates depending on state law. Some states establish reduced hourly rates for young workers or students, while others provide a training wage for newly hired employees during an initial employment period. Some states also exempt these categories of workers from minimum wage coverage entirely. These special wage provisions vary significantly by state and are not reflected in the federal rate shown on this page. Workers and employers should check their state's specific rules to determine whether a subminimum wage, training wage, or exemption applies to a particular situation.", "quote": "Some states set subminimum rates for minors and/or students or exempt them from coverage or have a training wage for new hires.", "offset": 17053, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:17.379Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/georgia/2026/state.txt" } }, { "key": "local-rates-can-be-higher", "heading": "When a city or county sets a higher minimum wage", "body": "In addition to the federal and state minimum wages, many cities and counties have enacted their own minimum wage ordinances that set a higher hourly rate than what the state requires. When a local government establishes a higher minimum wage, employers in that jurisdiction must pay the local rate rather than the state rate. These local wage floors can differ significantly from one municipality to another, even within the same state. Because local minimum wage laws are not captured in this table, employers and employees should verify whether their city or county has adopted a higher rate that would apply to their workplace.", "quote": "Some local governments set minimum wage rates higher than their respective state minimum\nwage.", "offset": 17181, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:17.379Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/georgia/2026/state.txt" } }, { "key": "who-to-ask-about-this-rate", "heading": "Who to ask about this rate, and where to take a wage complaint", "body": "Because state and local minimum wage laws vary and may differ from the federal rate, individuals who need authoritative information about the wage that applies to them should consult the relevant state labor office. The state labor office is the best resource for confirming the current minimum wage, any subminimum or training wages, local ordinances, and overtime rules that apply in a particular jurisdiction. Workers who believe they have not been paid the correct wage can file a wage complaint with their state labor office or with the U.S. Department of Labor's Wage and Hour Division. The Wage and Hour Division enforces the Fair Labor Standards Act at the federal level and can assist with questions about federal minimum wage and overtime requirements.", "quote": "individuals should consult the relevant state labor office for official information.", "offset": 17432, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:17.379Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/georgia/2026/state.txt" } } ], "estimate": null }, { "program": "minimum-wage", "name": "Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "guam", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-29", "published_at": "2026-08-29T08:42:57.473Z", "canonical_url": "https://ratesandlimits.com/minimum-wage/guam/", "figures": [ { "key": "hourly", "label": "Hourly", "value": 9.25, "format": "usd", "formatted": "$9.25", "scope": null, "derived": false, "quote": "Guam\nBasic Minimum Rate (per hour): $9.25", "offset": 5105, "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:19.018Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/guam/2026/state.txt" } } ], "schedule": null, "explainers": [ { "key": "who-can-be-paid-less", "heading": "Minors, students and training wages: who may be paid less than the rate on this page", "body": "Under the Fair Labor Standards Act, certain states are permitted to establish wage rates below the standard minimum for specific categories of workers. These subminimum provisions typically apply to minors, students, or newly hired employees who are still in a training period. An employer operating in such a state may pay these workers less than the general minimum wage if the state's subminimum wage law allows it. Workers who believe they fall into one of these categories should verify whether their state has such a provision before accepting a lower wage, as the rules governing subminimum wages vary significantly from state to state.", "quote": "Some states set subminimum rates for minors and/or students or exempt them from coverage or have a training wage for new hires.", "offset": 17053, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:19.018Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/guam/2026/state.txt" } }, { "key": "local-rates-can-be-higher", "heading": "When a city or county sets a higher minimum wage", "body": "Cities and counties have the authority to establish minimum wage rates that exceed the state minimum wage. When a local government enacts a higher minimum wage, employers within that jurisdiction must pay the local rate rather than the lower state rate. This means workers in different cities within the same state may be entitled to different minimum wages depending on where they work. These local wage ordinances are not reflected in the federal or state rate tables, so employers and employees must check municipal regulations separately. Local minimum wages can apply to all employers in the jurisdiction or may be phased in based on business size or other factors.", "quote": "Some local governments set minimum wage rates higher than their respective state minimum\nwage.", "offset": 17181, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:19.018Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/guam/2026/state.txt" } }, { "key": "overtime-premium", "heading": "Overtime is paid at one and one-half times the regular rate", "body": "Under federal law, covered nonexempt employees must receive overtime pay for hours worked beyond a full-time workweek. The overtime premium is calculated as one and one-half times the employee's regular hourly rate. For example, an employee earning $9.25 per hour would see that regular rate multiplied by one and one-half to determine each overtime hour's pay. This premium applies to all qualifying overtime hours in a single workweek, regardless of whether the extra hours occur on weekends or holidays. Some states have daily overtime rules or higher premium rates, and certain employees may be exempt from overtime requirements based on their job duties and salary level. Employers must track hours accurately and apply the correct premium rate.", "quote": "The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified.", "offset": 17528, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:19.018Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/guam/2026/state.txt" } }, { "key": "who-to-ask-about-this-rate", "heading": "Who to ask about this rate, and where to take a wage complaint", "body": "When questions arise about minimum wage rates, exemptions, or wage complaints, individuals should contact the appropriate state labor office. While the Wage and Hour Division maintains federal wage information, state labor agencies provide official guidance on state-specific minimum wage laws, overtime rules, and worker protections. State offices can clarify whether subminimum wage provisions apply, explain local wage ordinances, and assist with filing wage complaints. Workers who believe they have not been paid the correct minimum wage or overtime should document their hours and contact their state labor office to learn about their rights and options for resolution.", "quote": "The Wage and Hour Division tries to ensure that the information on this page is accurate, but individuals should consult the relevant state labor office for official information.", "offset": 17338, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:19.018Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/guam/2026/state.txt" } } ], "estimate": null }, { "program": "minimum-wage", "name": "Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "hawaii", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-29", "published_at": "2026-08-29T08:44:41.637Z", "canonical_url": "https://ratesandlimits.com/minimum-wage/hawaii/", "figures": [ { "key": "hourly", "label": "Hourly", "value": 16, "format": "usd", "formatted": "$16", "scope": null, "derived": false, "quote": "Hawaii\nBasic Minimum Rate (per hour): $16.00", "offset": 5198, "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:20.587Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/hawaii/2026/state.txt" } } ], "schedule": null, "explainers": [ { "key": "who-can-be-paid-less", "heading": "Minors, students and training wages: who may be paid less than the rate on this page", "body": "The federal minimum wage does not always apply to every worker at every rate. Some states authorize employers to pay certain categories of workers less than the standard minimum wage. These categories typically include minors, students, and new hires who are still in a training period. In some states, young workers or students may be entirely exempt from minimum wage coverage, while other states create a separate, lower training wage that applies only during an employee's first hours or days on the job. The page you are reading does not list these special state-by-state rules. If you are a young worker, a student, or starting a training position, you need to check your own state's labor laws to find out whether a subminimum rate applies to you and what conditions the employer must meet before paying that lower rate.", "quote": "Some states set subminimum rates for minors and/or students or exempt them from coverage or have a training wage for new hires.", "offset": 17053, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:20.587Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/hawaii/2026/state.txt" } }, { "key": "local-rates-can-be-higher", "heading": "When a city or county sets a higher minimum wage", "body": "The federal minimum wage floor does not prevent cities, counties, or other local jurisdictions from setting a higher wage for workers within their boundaries. When a local government enacts its own minimum wage that exceeds both the state and federal rates, employers in that locality must pay the higher local rate. This page shows only the statewide and federal minimum wages; it does not display local ordinances that may require an even higher hourly rate. Workers should check with their city or county government to determine whether a local minimum wage applies where they work, because that local rate would control over the state figure shown on this page.", "quote": "Some local governments set minimum wage rates higher than their respective state minimum\nwage.", "offset": 17181, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:20.587Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/hawaii/2026/state.txt" } }, { "key": "overtime-premium", "heading": "Overtime is paid at one and one-half times the regular rate", "body": "Under the Fair Labor Standards Act, covered non-exempt employees must receive overtime pay for all hours worked beyond the standard workweek threshold. The overtime premium rate is one and one-half times the employee's regular rate of pay. This means an employee earning the 2026 minimum wage of $16 per hour would earn a multiplied overtime rate for each overtime hour worked. The overtime calculation is based on the individual employee's actual regular rate, not the minimum wage, so higher-paid workers also receive the same multiplier. A few occupations or pay arrangements may specify a different overtime formula, but the default rule across covered employers is the one-and-one-half multiplier described here. Workers who believe they have not been paid the correct overtime amount should contact their state labor office or the federal Wage and Hour Division.", "quote": "The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified.", "offset": 17528, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:20.587Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/hawaii/2026/state.txt" } }, { "key": "who-to-ask-about-this-rate", "heading": "Who to ask about this rate, and where to take a wage complaint", "body": "The Wage and Hour Division, part of the U.S. Department of Labor, maintains the information on this page, but it warns that the table may not reflect every state-specific rule. For official and current information about your state's minimum wage, subminimum rates, training wages, or any other wage requirement, you should consult the relevant state labor office. Your state labor office can confirm the exact rate that applies to your job, tell you whether any exemptions affect your wages, and accept a wage complaint if you believe you have been underpaid. The Wage and Hour Division also operates a toll-free hotline where workers can ask questions about federal wage law or get help finding their state office.", "quote": "The Wage and Hour Division tries to ensure that the information on this page is accurate, but individuals should consult the relevant state labor office for official information.", "offset": 17338, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:20.587Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/hawaii/2026/state.txt" } } ], "estimate": null }, { "program": "minimum-wage", "name": "Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "idaho", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-29", "published_at": "2026-08-29T08:43:46.067Z", "canonical_url": "https://ratesandlimits.com/minimum-wage/idaho/", "figures": [ { "key": "hourly", "label": "Hourly", "value": 7.25, "format": "usd", "formatted": "$7.25", "scope": null, "derived": false, "quote": "Idaho\nBasic Minimum Rate (per hour): $7.25", "offset": 5710, "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:22.184Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/idaho/2026/state.txt" } } ], "schedule": null, "explainers": [ { "key": "who-can-be-paid-less", "heading": "Minors, students and training wages: who may be paid less than the rate on this page", "body": "Some states establish subminimum wage rates that apply specifically to minors, students, or newly hired employees undergoing training. These special rates can be lower than the state's general minimum wage, and in some cases these workers may be completely exempt from state minimum wage coverage. The table on this page does not display these differential state provisions, so workers and employers in those categories need to check their specific state's rules rather than relying solely on the general rate shown here. The federal minimum wage of $7.25 per hour still applies to employers covered by the Fair Labor Standards Act, but state subminimum provisions may create additional complexity beyond the baseline figures displayed.", "quote": "Some states set subminimum rates for minors and/or students or exempt them from coverage or have a training wage for new hires.", "offset": 17053, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:22.184Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/idaho/2026/state.txt" } }, { "key": "local-rates-can-be-higher", "heading": "When a city or county sets a higher minimum wage", "body": "Cities, counties, and other local jurisdictions sometimes enact their own minimum wage ordinances that exceed the state minimum wage. When a local rate is higher, employers in that locality generally must pay the higher local rate rather than the lower state rate. This page does not display those local differential provisions, so workers and employers need to check whether their city or county has adopted a higher minimum wage that applies to them. The table shows only the state-level rates. The federal minimum wage of $7.25 per hour remains in effect for covered employers, but if a local rate exceeds both the state and federal rates, the highest applicable rate governs.", "quote": "Some local governments set minimum wage rates higher than their respective state minimum\nwage. Such differential provisions are not displayed in this table.", "offset": 17181, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:22.184Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/idaho/2026/state.txt" } }, { "key": "overtime-premium", "heading": "Overtime is paid at one and one-half times the regular rate", "body": "Under the Fair Labor Standards Act, non-exempt employees must receive overtime premium pay for hours worked beyond the weekly threshold. The overtime premium rate is one and one-half times the employee's regular rate of pay. Some states, as noted in the table, also require premium pay after a designated number of daily hours. The footnote on this page applies to the premium pay requirements referenced throughout the table, and the rate of one and one-half times the regular rate is the standard unless a specific state provision specifies a different multiplier or threshold. Workers who believe their overtime pay was calculated incorrectly should consult their state labor office.", "quote": "1 The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified.", "offset": 17526, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:22.184Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/idaho/2026/state.txt" } }, { "key": "who-to-ask-about-this-rate", "heading": "Who to ask about this rate, and where to take a wage complaint", "body": "The Wage and Hour Division maintains the information on this page but directs individuals who need official, authoritative information about minimum wage rates to consult the relevant state labor office. State labor offices are the proper source for confirming current rates, including any subminimum rates, local wage ordinances, or special provisions that may apply. Workers who believe they have not been paid the correct minimum wage or who have questions about their rights should contact their state labor office for guidance. The Wage and Hour Division of the U.S. Department of Labor also enforces federal minimum wage requirements under the Fair Labor Standards Act.", "quote": "The Wage and Hour Division tries to ensure that the information on this page is accurate, but individuals should consult the relevant state labor office for official information.", "offset": 17338, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:22.184Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/idaho/2026/state.txt" } } ], "estimate": null }, { "program": "minimum-wage", "name": "Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "illinois", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-29", "published_at": "2026-08-29T08:27:10.343Z", "canonical_url": "https://ratesandlimits.com/minimum-wage/illinois/", "figures": [ { "key": "hourly", "label": "Hourly", "value": 15, "format": "usd", "formatted": "$15", "scope": null, "derived": false, "quote": "Illinois\nApplicable to employers of 4 or more employees, excluding family members\nBasic Minimum Rate (per hour): $15.00", "offset": 5753, "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-27T15:07:31.114Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/illinois/2026/state.txt" } } ], "schedule": null, "explainers": [ { "key": "who-can-be-paid-less", "heading": "Minors, students and training wages: who may be paid less than the rate on this page", "body": "Certain categories of workers may receive less than the standard minimum wage under specific circumstances. Minors, students, and new hires may qualify for subminimum rates or training wages depending on state regulations. Some states also exempt these worker categories entirely from minimum wage coverage. These special wage provisions vary significantly by jurisdiction and are not displayed in the standard federal or state minimum wage tables. Employers must verify whether their state allows reduced rates for these worker groups and under what conditions. The $15 hourly rate shown on this page applies to covered employees who do not qualify for these special exemptions or reduced rates.", "quote": "Some states set subminimum rates for minors and/or students or exempt them from coverage or have a training wage for new hires.", "offset": 17053, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-27T15:07:31.114Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/illinois/2026/state.txt" } }, { "key": "local-rates-can-be-higher", "heading": "When a city or county sets a higher minimum wage", "body": "Cities, counties, and other local jurisdictions may establish minimum wage rates that exceed their state's minimum wage. When local governments set higher rates, employers must pay the greater amount. These local wage floors are not displayed in standard state and federal minimum wage tables, so workers and employers need to check with their local government offices to determine the applicable rate. The $15 hourly rate shown on this page represents the standard minimum, but local ordinances may require payment of a higher amount.", "quote": "Some local governments set minimum wage rates higher than their respective state minimum\nwage.", "offset": 17181, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-27T15:07:31.114Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/illinois/2026/state.txt" } }, { "key": "overtime-premium", "heading": "Overtime is paid at one and one-half times the regular rate", "body": "Employees who work overtime must receive premium pay calculated as a multiple of their regular hourly rate. The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified. This means that for every hour worked beyond the designated weekly threshold, the employee earns significantly more than their standard hourly wage. For example, if a worker earns the $15 minimum wage, their overtime pay would be substantially higher per hour. The premium applies to each overtime hour, not just to total weekly pay. Some state laws may establish different overtime thresholds or calculation methods, but the federal standard requires the one-and-one-half multiplier. Employers who fail to pay the correct overtime premium violate federal wage law. The footnote clarifying this rate applies to the overtime provisions noted in the state table displayed on the page.", "quote": "The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified.", "offset": 17528, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-27T15:07:31.114Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/illinois/2026/state.txt" } }, { "key": "who-to-ask-about-this-rate", "heading": "Who to ask about this rate, and where to take a wage complaint", "body": "Workers with questions about minimum wage rates or who need to file a wage complaint should consult the relevant state labor office for official information. While the Wage and Hour Division tries to ensure that the information on this page is accurate, state labor offices maintain the authoritative records of applicable wage rates, exemptions, and overtime requirements. These offices can provide guidance on whether an employer is subject to federal or state minimum wage laws, verify the correct rate for specific worker categories, and accept formal complaints about wage violations. Contact information for state labor offices is available through state government websites.", "quote": "individuals should consult the relevant state labor office for official information.", "offset": 17432, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-27T15:07:31.114Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/illinois/2026/state.txt" } } ], "estimate": null }, { "program": "minimum-wage", "name": "Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "indiana", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-29", "published_at": "2026-08-29T08:44:49.156Z", "canonical_url": "https://ratesandlimits.com/minimum-wage/indiana/", "figures": [ { "key": "hourly", "label": "Hourly", "value": 7.25, "format": "usd", "formatted": "$7.25", "scope": null, "derived": false, "quote": "Indiana\nApplicable to employers of 2 or more employees\nBasic Minimum Rate (per hour): $7.25", "offset": 5924, "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:23.822Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/indiana/2026/state.txt" } } ], "schedule": null, "explainers": [ { "key": "who-can-be-paid-less", "heading": "Minors, students and training wages: who may be paid less than the rate on this page", "body": "The federal minimum wage of $7.25 per hour does not always apply to every worker. Some states have rules that allow employers to pay certain categories of workers less than the full minimum wage. These categories typically include minors (young workers below a certain age), students (particularly full-time students in retail or agriculture), and new hires during an initial training period. A state may also completely exempt such workers from minimum wage coverage. Because these subminimum rates, exemptions, and training wages vary by state and are not shown on this page, workers and employers in those situations need to check their own state's specific rules to determine the correct rate that applies.", "quote": "Some states set subminimum rates for minors and/or students or exempt them from coverage or have a training wage for new hires.", "offset": 17053, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:23.822Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/indiana/2026/state.txt" } }, { "key": "local-rates-can-be-higher", "heading": "When a city or county sets a higher minimum wage", "body": "The federal minimum wage of $7.25 per hour is a floor, not a ceiling. Cities, counties, and other local jurisdictions are free to establish their own minimum wage that exceeds the state or federal rate. When a local minimum wage is higher, employers in that locality must pay the higher local rate to covered workers. Because these local differential provisions are numerous and change frequently, they are not displayed in the table on this page. Workers and employers should check with their city or county government to determine whether a higher local minimum wage applies in their area.", "quote": "Some local governments set minimum wage rates higher than their respective state minimum\nwage.", "offset": 17181, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:23.822Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/indiana/2026/state.txt" } }, { "key": "overtime-premium", "heading": "Overtime is paid at one and one-half times the regular rate", "body": "Covered non-exempt employees must receive overtime pay for hours worked beyond a full workweek. The overtime premium is calculated as one and one-half times the employee's regular hourly rate of pay. This means that for every overtime hour, the worker earns their normal hourly wage plus an additional half of that wage as a premium. This is a minimum requirement under the Fair Labor Standards Act; an employer may pay more if a collective bargaining agreement, employment contract, or state law requires a higher premium. Some occupations or situations may be subject to different overtime rules, so the phrase \"unless otherwise specified\" leaves room for those exceptions. Workers who believe they have not received proper overtime pay should consult their state labor office or the Wage and Hour Division.", "quote": "The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified.", "offset": 17528, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:23.822Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/indiana/2026/state.txt" } }, { "key": "who-to-ask-about-this-rate", "heading": "Who to ask about this rate, and where to take a wage complaint", "body": "The Wage and Hour Division of the U.S. Department of Labor maintains this page and attempts to keep its information accurate, but it is not the final authority on what an individual worker is owed. For official, binding information about the minimum wage that applies in a particular state, individuals should consult the relevant state labor office. State agencies administer their own minimum wage laws and can provide guidance on state-specific rates, subminimum wages for particular worker categories, and local variations. If a worker believes they have not been paid the correct wage, the state labor office is the appropriate place to file a complaint or seek clarification.", "quote": "The Wage and Hour Division tries to ensure that the information on this page is accurate, but individuals should consult the relevant state labor office for official information.", "offset": 17338, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:23.822Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/indiana/2026/state.txt" } } ], "estimate": null }, { "program": "minimum-wage", "name": "Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "iowa", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-09-01", "published_at": "2026-09-01T07:22:07.686Z", "canonical_url": "https://ratesandlimits.com/minimum-wage/iowa/", "figures": [ { "key": "hourly", "label": "Hourly", "value": 7.25, "format": "usd", "formatted": "$7.25", "scope": null, "derived": false, "quote": "Iowa\nBasic Minimum Rate (per hour): $7.25", "offset": 6067, "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:25.520Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/iowa/2026/state.txt" } } ], "schedule": null, "explainers": [ { "key": "state-rate-below-the-federal-floor", "heading": "Why the federal rate applies when the state rate is lower", "body": "Iowa does not keep its minimum wage independent of the federal one: state law takes the federal figure by reference where the federal rate is the higher of the two. The rate on this page is $7.25 an hour, and it moves when the federal minimum moves rather than when Iowa legislates. That is worth knowing for two reasons. It means no Iowa bill is needed for your rate to rise - a federal increase reaches you automatically. And it means an employer cannot pay less by pointing at a lower state figure, because there is no lower state figure to point at. Where a state rate is the higher one, the state rate is what applies; that is simply not the position in Iowa today.", "quote": "The Iowa minimum wage equals the federal minimum wage rate if it is set below the federal rate.", "offset": 6109, "verified_at": "2026-09-01", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:25.520Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/iowa/2026/state.txt" } }, { "key": "who-can-be-paid-less", "heading": "Minors, students and training wages: who may be paid less than the rate on this page", "body": "While the federal minimum wage applies broadly, certain categories of workers may be paid less than the standard rate under specific circumstances. Some states authorize subminimum wages for minors and students, recognizing that younger or less experienced workers may have different employment arrangements. Additionally, some states provide exemptions from minimum wage coverage entirely for certain workers, or they establish a separate training wage for new hires during an initial employment period. These special provisions are determined at the state level and are not reflected in the federal minimum wage table. Workers who are minors, full-time students, or new employees in a training program should verify whether a lower wage rate applies in their state. Employers must still comply with the federal minimum wage unless a specific exemption applies. For detailed information on these exceptions, individuals should check with their state's labor office, as rules vary significantly by jurisdiction.", "quote": "Some states set subminimum rates for minors and/or students or exempt them from coverage or have a training wage for new hires.", "offset": 17053, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:25.520Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/iowa/2026/state.txt" } }, { "key": "local-rates-can-be-higher", "heading": "When a city or county sets a higher minimum wage", "body": "The federal minimum wage sets a baseline, but many cities and counties establish their own minimum wage rates that exceed the federal or state level. When a local government sets a higher minimum wage, employers within that jurisdiction must pay the higher local rate to their workers. This creates a patchwork of different minimum wage requirements across the country, where workers in neighboring cities may be entitled to different hourly wages based on local ordinances. These local wage laws operate independently of state and federal minimum wage requirements. Employers with operations in multiple locations must track and comply with the minimum wage requirements applicable to each specific city or county where they have employees. The local minimum wage provisions are not displayed in the federal minimum wage table, so workers and employers need to research the specific requirements in their local area to determine the correct wage rate that applies.", "quote": "Some local governments set minimum wage rates higher than their respective state minimum\nwage.", "offset": 17181, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:25.520Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/iowa/2026/state.txt" } }, { "key": "overtime-premium", "heading": "Overtime is paid at one and one-half times the regular rate", "body": "Workers covered by the Fair Labor Standards Act are entitled to overtime pay when they work beyond their designated weekly hours. The overtime premium rate is one and one-half times the employee's regular rate of pay. This means an employee earning the federal minimum wage of $7.25 per hour would receive a premium rate of one and one-half times that hourly amount for every overtime hour worked. The exact threshold for when overtime begins varies by state, and the footnote on the DOL page notes this rate applies unless otherwise specified. Some states have their own overtime rules or higher premium requirements. Workers should check with their state labor office to understand the overtime rules that apply in their specific jurisdiction. Employers must track hours worked and calculate overtime pay correctly to comply with both federal and applicable state requirements.", "quote": "The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified.", "offset": 17528, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:25.520Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/iowa/2026/state.txt" } }, { "key": "who-to-ask-about-this-rate", "heading": "Who to ask about this rate, and where to take a wage complaint", "body": "When workers have questions about minimum wage rates or need to file a wage complaint, they should contact the appropriate labor authorities. For official information about minimum wage requirements, individuals should consult the relevant state labor office in their jurisdiction. The Wage and Hour Division of the U.S. Department of Labor tries to ensure that the information on the federal minimum wage page is accurate, but state labor offices provide authoritative guidance on state-specific minimum wage laws and requirements. Workers who believe their employer has failed to pay the correct minimum wage, or who need clarification about whether certain exemptions apply to their situation, should reach out to their state labor office. These offices can provide information about filing wage complaints, understanding applicable minimum wage rates, and learning about worker rights under both federal and state law. Contact information for the Wage and Hour Division is also available for federal minimum wage questions and concerns.", "quote": "The Wage and Hour Division tries to ensure that the information on this page is accurate, but individuals should consult the relevant state labor office for official information.", "offset": 17338, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:25.520Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/iowa/2026/state.txt" } } ], "estimate": null }, { "program": "minimum-wage", "name": "Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "kansas", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-09-01", "published_at": "2026-09-01T07:22:05.539Z", "canonical_url": "https://ratesandlimits.com/minimum-wage/kansas/", "figures": [ { "key": "hourly", "label": "Hourly", "value": 7.25, "format": "usd", "formatted": "$7.25", "scope": null, "derived": false, "quote": "Kansas\nBasic Minimum Rate (per hour): $7.25", "offset": 6205, "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:27.182Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/kansas/2026/state.txt" } } ], "schedule": null, "explainers": [ { "key": "state-rate-below-the-federal-floor", "heading": "Why the federal rate applies when the state rate is lower", "body": "The Kansas minimum wage is $7.25 an hour, the same figure as the federal minimum, and that is not a coincidence anyone in Kansas should rely on. State law excludes from its coverage any employment subject to the Fair Labor Standards Act, so for most jobs in Kansas the operative rule is the federal one and the state rule never applies at all. What that means in practice: when Congress changes the federal minimum, the rate you are owed changes with it, without Kansas legislating anything. And when you have a complaint, it belongs to the federal Wage and Hour Division for a covered job. The state figure matters only for work the federal act does not reach.", "quote": "Kansas\nBasic Minimum Rate (per hour): $7.25\nThe State law excludes from coverage any employment that is subject to the federal Fair Labor Standards Act.", "offset": 6205, "verified_at": "2026-09-01", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:27.182Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/kansas/2026/state.txt" } }, { "key": "who-can-be-paid-less", "heading": "Minors, students and training wages: who may be paid less than the rate on this page", "body": "The federal minimum wage is $7.25 per hour, but that rate does not apply uniformly to every worker in every state. Many states have their own rules that let employers pay a lower wage to certain categories of workers. Subminimum rates may apply to minors, full-time students, or other designated groups. Some states also allow a training wage - a reduced hourly rate paid to new hires during an introductory period. A few states go further and exempt those workers from minimum-wage coverage altogether. Because these special rates and exemptions differ from state to state and are not shown in the table above, workers and employers should check with the state labor office to confirm which wage applies.", "quote": "Some states set subminimum rates for minors and/or students or exempt them from coverage or have a training wage for new hires.", "offset": 17053, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:27.182Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/kansas/2026/state.txt" } }, { "key": "local-rates-can-be-higher", "heading": "When a city or county sets a higher minimum wage", "body": "The federal minimum wage is $7.25 per hour, but state rates can be higher, and local rates can be higher still. Many cities and counties have adopted their own minimum wages that exceed the state rate, and in those places the local rate controls. The table above does not show these local variations because they change often and are issued by many different jurisdictions. Workers in cities or counties with their own minimum wage should look up the local ordinance to find the rate that actually applies to them, and should confirm it with the relevant state or local labor office.", "quote": "Some local governments set minimum wage rates higher than their respective state minimum\nwage.", "offset": 17181, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:27.182Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/kansas/2026/state.txt" } }, { "key": "overtime-premium", "heading": "Overtime is paid at one and one-half times the regular rate", "body": "Under the Fair Labor Standards Act, covered non-exempt employees who work beyond their regular weekly hours must be paid overtime. The federal overtime premium is one and one-half times the employee's regular hourly rate. For a worker paid the federal minimum wage of $7.25 an hour, each overtime hour must be paid at no less than one and one-half times that regular rate. A few states set a different threshold for when overtime begins, or require a higher premium; in those states the state rule applies if it is more protective than the federal one. The table above shows which states have weekly overtime thresholds, and those thresholds vary from state to state.", "quote": "The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified.", "offset": 17528, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:27.182Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/kansas/2026/state.txt" } }, { "key": "who-to-ask-about-this-rate", "heading": "Who to ask about this rate, and where to take a wage complaint", "body": "This page is maintained by the U.S. Department of Labor's Wage and Hour Division, but it is a summary, not an official state source. State minimum wage rates, exemptions, posting requirements and enforcement procedures can change at any time, so anyone who needs definitive information should contact the labor office of the state where they work. Workers who believe they have been paid less than the required rate can generally file a complaint with either the state labor office or the federal Wage and Hour Division, which enforces the Fair Labor Standards Act.", "quote": "The Wage and Hour Division tries to ensure that the information on this page is accurate, but individuals should consult the relevant state labor office for official information.", "offset": 17338, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:27.182Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/kansas/2026/state.txt" } } ], "estimate": null }, { "program": "minimum-wage", "name": "Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "kentucky", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-09-01", "published_at": "2026-09-01T07:22:08.819Z", "canonical_url": "https://ratesandlimits.com/minimum-wage/kentucky/", "figures": [ { "key": "hourly", "label": "Hourly", "value": 7.25, "format": "usd", "formatted": "$7.25", "scope": null, "derived": false, "quote": "Kentucky\nBasic Minimum Rate (per hour): $7.25", "offset": 6358, "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:28.872Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/kentucky/2026/state.txt" } } ], "schedule": null, "explainers": [ { "key": "state-rate-below-the-federal-floor", "heading": "Why the federal rate applies when the state rate is lower", "body": "Kentucky does not keep its minimum wage independent of the federal one: state law takes the federal figure by reference where the federal rate is the higher of the two. The rate on this page is $7.25 an hour, and it moves when the federal minimum moves rather than when Kentucky legislates. That is worth knowing for two reasons. It means no Kentucky bill is needed for your rate to rise - a federal increase reaches you automatically. And it means an employer cannot pay less by pointing at a lower state figure, because there is no lower state figure to point at. Where a state rate is the higher one, the state rate is what applies; that is simply not the position in Kentucky today.", "quote": "The state adopts the federal minimum wage rate by reference if the federal rate is greater than the State rate.", "offset": 6881, "verified_at": "2026-09-01", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:28.872Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/kentucky/2026/state.txt" } }, { "key": "who-can-be-paid-less", "heading": "Minors, students and training wages: who may be paid less than the rate on this page", "body": "The $7.25 federal minimum wage is not the lowest hourly figure every employer may pay. Many states allow employers to pay certain workers less than the full minimum rate - typically minors, students, or newly hired employees during a short training period. Some states go further and exempt these groups from the minimum wage entirely. Because each state sets its own subminimum and training-wage rules, the actual floor for a teenage worker, a student employee, or a new hire can differ from the number shown on this page. Employers who want to use a subminimum rate must follow the conditions their state labor agency publishes, such as age limits, the maximum number of hours that qualify, or the length of the training period. Workers and employers who are unsure whether a lower rate applies to a particular job should check directly with the relevant state labor office rather than assume the federal or statewide minimum applies to every employee.", "quote": "Some states set subminimum rates for minors and/or students or exempt them from coverage or have a training wage for new hires.", "offset": 17053, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:28.872Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/kentucky/2026/state.txt" } }, { "key": "local-rates-can-be-higher", "heading": "When a city or county sets a higher minimum wage", "body": "A city, county, or other local government can set a minimum wage that is higher than the state minimum wage shown on this page. When a local rate is higher, employers covered by that local law must pay the local rate to workers within the local jurisdiction - the state figure on this page is not the floor in those areas. Because local minimum wage ordinances vary widely and change frequently, the table on this page does not list them. Workers and employers who need to know the correct rate for a specific city or county should look up the local ordinance or contact the local government directly. The Wage and Hour Division does not enforce local minimum wage laws; those are administered by the locality itself. In places with more than one applicable minimum wage, workers are generally entitled to the highest rate available among the federal, state, and local laws that cover them.", "quote": "Some local governments set minimum wage rates higher than their respective state minimum\nwage. Such differential provisions are not displayed in this table.", "offset": 17181, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:28.872Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/kentucky/2026/state.txt" } }, { "key": "overtime-premium", "heading": "Overtime is paid at one and one-half times the regular rate", "body": "Where a state table entry lists a premium-pay rule, the standard overtime premium rate is one and one-half times the employee's regular rate of pay, unless the entry specifically notes a different multiplier. That means for each hour worked beyond the threshold shown in the entry, the employee must receive at least the regular hourly rate plus an additional half of that regular rate for the overtime hour. A few states trigger the premium on a daily basis rather than only after a full workweek; the entry for each state shows which rule applies. The footnote applies to every state whose entry mentions premium pay, so the regular rate must be calculated first and then multiplied by the overtime factor stated in the footnote to find the minimum overtime hourly rate owed for those hours.", "quote": "Footnote\n1 The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified.", "offset": 17517, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:28.872Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/kentucky/2026/state.txt" } }, { "key": "who-to-ask-about-this-rate", "heading": "Who to ask about this rate, and where to take a wage complaint", "body": "The Wage and Hour Division publishes the table as a reference, but it is not the final word on what a worker is owed under any particular state's law. Individuals who need a definitive answer about their state's current rate, its exemptions, or its overtime rules should consult the relevant state labor office for official information. That office is the proper place to confirm the figures before making payroll decisions or filing a wage complaint about a state-law violation. For questions about the federal minimum wage, or to file a complaint under the Fair Labor Standards Act, the U.S. Department of Labor's Wage and Hour Division can be reached by telephone or through its website. State and federal contacts each handle their own set of rules, so choose the one that matches the law at issue.", "quote": "The Wage and Hour Division tries to ensure that the information on this page is accurate, but individuals should consult the relevant state labor office for official information.", "offset": 17338, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:28.872Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/kentucky/2026/state.txt" } } ], "estimate": null }, { "program": "minimum-wage", "name": "Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "louisiana", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-09-01", "published_at": "2026-09-01T07:21:58.792Z", "canonical_url": "https://ratesandlimits.com/minimum-wage/louisiana/", "figures": [ { "key": "hourly", "label": "Hourly", "value": 7.25, "format": "usd", "formatted": "$7.25", "scope": null, "derived": false, "quote": "Louisiana\nNo state minimum wage law.\nEmployers subject to the Fair Labor Standards Act must pay the current Federal minimum wage of $7.25 per hour.", "offset": 7220, "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:30.589Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/louisiana/2026/state.txt" } } ], "schedule": null, "explainers": [ { "key": "state-rate-below-the-federal-floor", "heading": "Why the federal rate applies when the state rate is lower", "body": "Louisiana has no minimum wage law of its own, which does not mean there is no minimum wage in Louisiana. The Fair Labor Standards Act reaches most employment directly, and an employer subject to it must pay the federal minimum of $7.25 per hour whatever the state does. That is the rate on this page, and it is federal law rather than Louisiana law that puts it there. The practical difference shows up at the edges. A worker whose employer is genuinely outside the FLSA has no state floor to fall back on, where a worker in a state with its own law would. And a complaint about it is a federal complaint: the Wage and Hour Division enforces it, because there is no Louisiana statute to enforce.", "quote": "Louisiana\nNo state minimum wage law.\nEmployers subject to the Fair Labor Standards Act must pay the current Federal minimum wage of $7.25 per hour.", "offset": 7220, "verified_at": "2026-09-01", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:30.589Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/louisiana/2026/state.txt" } }, { "key": "who-can-be-paid-less", "heading": "Minors, students and training wages: who may be paid less than the rate on this page", "body": "The federal minimum wage of $7.25 per hour is the baseline, but certain workers may legally be paid less under specific circumstances. Some states authorize subminimum wage rates for minors, which allows employers to pay younger workers below the standard rate. Similarly, some states permit subminimum rates for students, often in roles like retail or service jobs where they are still learning. Beyond these age-based exceptions, certain states provide exemptions that remove specific categories of workers from minimum wage coverage entirely. Additionally, some states establish a training wage for new hires, permitting employers to pay a lower rate during an initial employment period. These special provisions vary significantly by state and are not reflected in the federal table. Employers and workers should verify whether any of these exceptions apply in their jurisdiction, as state rules determine eligibility for subminimum rates, exemptions, or training wages.", "quote": "Some states set subminimum rates for minors and/or students or exempt them from coverage or have a training wage for new hires.", "offset": 17053, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:30.589Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/louisiana/2026/state.txt" } }, { "key": "local-rates-can-be-higher", "heading": "When a city or county sets a higher minimum wage", "body": "While the federal minimum wage sets a nationwide floor of $7.25 per hour, local governments such as cities and counties can establish their own minimum wage rates that exceed the state level. When a locality enacts a higher minimum wage, employers within that jurisdiction must pay the higher local rate rather than the state rate. These local ordinances are becoming increasingly common across the country. The federal table does not display these local variations, so workers and employers need to check whether their city or county has enacted a minimum wage that differs from the state rate. The highest applicable rate among federal, state, and local law governs the pay an employer must provide.", "quote": "Some local governments set minimum wage rates higher than their respective state minimum\nwage.", "offset": 17181, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:30.589Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/louisiana/2026/state.txt" } }, { "key": "overtime-premium", "heading": "Overtime is paid at one and one-half times the regular rate", "body": "Under the Fair Labor Standards Act, covered nonexempt employees are entitled to overtime pay when they work more than a full workweek's worth of hours. The overtime premium rate is one and one-half times the employee's regular rate of pay. This multiplier applies to every hour worked beyond the weekly threshold established by federal law. For an employee earning the federal minimum of $7.25 per hour, each overtime hour must be paid at not less than one and one-half times that regular hourly amount. The regular rate used for this calculation includes all remuneration for employment, which may encompass certain bonuses and other compensation in addition to the base hourly wage. Some states or specific industry agreements may establish different overtime thresholds or higher premium multipliers, but the federal floor is set at the one and one-half times standard referenced in the footnote to this page.", "quote": "The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified.", "offset": 17528, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:30.589Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/louisiana/2026/state.txt" } }, { "key": "who-to-ask-about-this-rate", "heading": "Who to ask about this rate, and where to take a wage complaint", "body": "While the federal table provides a general overview of minimum wage rates by state, individuals should consult the relevant state labor office for official information. State labor offices maintain the authoritative and current records on minimum wage rates, overtime rules, exemptions, and special provisions such as subminimum wages for minors or students. Because state laws can change and local jurisdictions may impose additional requirements, the state labor office is the definitive resource for confirming what rate applies in a particular situation. Workers who believe their employer is not paying the correct minimum wage can file a complaint with their state labor office or with the federal Wage and Hour Division, which enforces the Fair Labor Standards Act.", "quote": "The Wage and Hour Division tries to ensure that the information on this page is accurate, but individuals should consult the relevant state labor office for official information.", "offset": 17338, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:30.589Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/louisiana/2026/state.txt" } } ], "estimate": null }, { "program": "minimum-wage", "name": "Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "maine", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-09-01", "published_at": "2026-09-01T09:30:03.833Z", "canonical_url": "https://ratesandlimits.com/minimum-wage/maine/", "figures": [ { "key": "hourly", "label": "Hourly", "value": 15.1, "format": "usd", "formatted": "$15.10", "scope": null, "derived": false, "quote": "Maine\nBasic Minimum Rate (per hour): $15.10", "offset": 7368, "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:32.177Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/maine/2026/state.txt" } } ], "schedule": null, "explainers": [ { "key": "who-can-be-paid-less", "heading": "Minors, students and training wages: who may be paid less than the rate on this page", "body": "In Maine, the state minimum wage for 2026 is $15.10 per hour. However, not every worker is entitled to the full rate. Maine law allows employers to pay certain categories of workers less than the standard minimum. These include minors, students, and employees who are new hires in a training program. The exact subminimum amounts, eligibility criteria, and durations for these lower rates are set by state rules and are not shown on this page. Workers in those categories — for example, a teenager in their first job or a student employed part-time — may lawfully receive an hourly wage below $15.10. Employers in Maine should check with the Maine Department of Labor to confirm which employees qualify and what the applicable subminimum rate is for each situation. This page lists only the general minimum wage that applies to covered workers who do not fall into one of those special categories.", "quote": "Some states set subminimum rates for minors and/or students or exempt them from coverage or have a training wage for new hires. Some local governments set minimum wage rates higher than their respective state minimum\nwage. Such differential provisions are not displayed in this table.", "offset": 17053, "verified_at": "2026-09-01", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:32.177Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/maine/2026/state.txt" } }, { "key": "local-rates-can-be-higher", "heading": "When a city or county sets a higher minimum wage", "body": "Maine’s state minimum wage for 2026 is $15.10 per hour. However, that figure does not tell the whole story for workers in Maine’s cities and towns. Some local governments set minimum wage rates higher than their respective state minimum wage. When a Maine municipality adopts a local minimum wage that exceeds the state rate, covered employers in that locality must pay the higher local rate instead. The state figure on this page reflects Maine’s baseline, not any municipal premium. Workers in cities such as Portland, which has its own local minimum wage schedule, may be entitled to an hourly rate greater than $15.10. Employers operating in multiple Maine locations must track which rate applies in each jurisdiction and pay the highest applicable minimum to employees working there. The Wage and Hour Division does not display local differential provisions on this table, so employers and workers should consult the relevant local ordinance for the rate in their specific city or town.", "quote": "Some local governments set minimum wage rates higher than their respective state minimum\nwage. Such differential provisions are not displayed in this table.", "offset": 17181, "verified_at": "2026-09-01", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:32.177Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/maine/2026/state.txt" } }, { "key": "overtime-premium", "heading": "Overtime is paid at one and one-half times the regular rate", "body": "In Maine, covered employees who work beyond the state’s designated weekly hours must receive overtime premium pay. Maine designates weekly hours as the trigger for overtime, so premium pay is calculated on a workweek basis rather than a daily basis. The overtime premium rate is one and one-half times the employee’s regular rate, unless otherwise specified. For a worker earning Maine’s minimum wage of $15.10 per hour, overtime hours must be paid at one and one-half times that regular rate. This means that an employer in Maine does not owe a premium simply because an employee worked a long single day; the premium applies only once total hours worked in the workweek pass the designated threshold. The one and one-half multiplier applies to each employee’s own regular rate of pay, so workers earning more than the minimum wage receive a correspondingly higher overtime rate. Employers in Maine must track total weekly hours and apply the premium to all hours that exceed the designated weekly limit. Workers should review their pay stubs each week to confirm that any excess hours were compensated at the required overtime rate rather than the straight-time rate.", "quote": "The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified.", "offset": 17528, "verified_at": "2026-09-01", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:32.177Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/maine/2026/state.txt" } }, { "key": "state-rate-below-the-federal-floor", "heading": "Why the federal rate applies when the state rate is lower", "body": "Maine’s 2026 state minimum wage is $15.10 per hour, which is above the current federal floor. Under Maine law, if the highest federal minimum wage is increased in excess of the State minimum wage in effect, then the State minimum wage will increase to the same amount, effective on the same date as the increase in the federal minimum wage. This means that if Congress raises the federal minimum wage above $15.10 in the future, Maine’s rate will automatically rise to match it on the same effective date, rather than staying at the lower state level. Until that happens, the higher state rate of $15.10 applies to covered workers in Maine. The reverse situation — where a state rate falls below the federal rate — is handled by federal law: covered employers must pay at least the federal minimum wage. For now, Maine workers benefit from a state rate that exceeds the federal floor, and the state’s automatic escalation clause ensures it will never drop below whatever the federal government requires.", "quote": "If the highest federal minimum wage is increased in excess of the State minimum wage in effect, then the State minimum wage will increase to the same amount, effective on the same date as the increase in the\nfederal minimum wage.", "offset": 7463, "verified_at": "2026-09-01", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:32.177Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/maine/2026/state.txt" } }, { "key": "annual-inflation-adjustment", "heading": "How the rate is adjusted each year, and who announces it", "body": "Maine’s minimum wage is not a static number — it is recalculated each year to reflect changes in the cost of living. Under Maine law, the minimum wage is adjusted annually based on a set formula. For 2026, the resulting rate is $15.10 per hour. The state also ties its floor to the federal rate: if the highest federal minimum wage is increased in excess of the State minimum wage in effect, then the State minimum wage will increase to the same amount, effective on the same date as the increase in the federal minimum wage. Each year, the Maine Department of Labor calculates the new rate using the statutory formula and announces it before the new rate takes effect. Employers in Maine must apply the updated rate on its effective date and post the required wage notice. Workers can expect the minimum wage to rise each year in line with inflation, though the exact dollar amount of the increase varies depending on economic conditions. The published rate of $15.10 reflects the most recent annual adjustment.", "quote": "Maine\nBasic Minimum Rate (per hour): $15.10\nPremium Pay After Designated Hours\n1\n: Weekly - 40\nIf the highest federal minimum wage is increased in excess of the State minimum wage in effect, then the State minimum wage will increase to the same amount, effective on the same date as the increase in the\nfederal minimum wage.\nThe minimum wage is adjusted annually based on a set formula.", "offset": 7368, "verified_at": "2026-09-01", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:32.177Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/maine/2026/state.txt" } }, { "key": "federal-and-state-rate-together", "heading": "State minimum wage laws that give more than the federal rate", "body": "Maine pays $15.10 an hour and its law is written to stay above the federal minimum rather than merely to sit above it today. Where federal and state minimum wage law both cover a job - and for most jobs both do - the employer owes the higher of the two rates, so the Maine figure is the one that governs. The federal rate has no effect on your pay while the state rate exceeds it. What the state provision adds is that the gap cannot close by accident: a federal increase pulls the Maine minimum up with it rather than overtaking it. So the number to watch for a job in Maine is the state number, and a local ordinance where one applies, not the federal one.", "quote": "If the highest federal minimum wage is increased in excess of the State minimum wage in effect, then the State minimum wage will increase to the same amount, effective on the same date as the increase in the", "offset": 7463, "verified_at": "2026-09-01", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:32.177Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/maine/2026/state.txt" } }, { "key": "who-to-ask-about-this-rate", "heading": "Who to ask about this rate, and where to take a wage complaint", "body": "Individuals should consult the relevant state labor office for official information about minimum wage rates and requirements. While the Wage and Hour Division tries to ensure that the information on this page is accurate, state labor offices are the authoritative source for official guidance on wage laws. If you have questions about whether your employer is paying the correct minimum wage of $15.10 per hour, or if you need to file a wage complaint, your state labor office can provide assistance. They can clarify specific requirements for your situation and help resolve wage disputes. Contact information for state labor offices is typically available through your state government's website or the U.S. Department of Labor's resources.", "quote": "individuals should consult the relevant state labor office for official information.", "offset": 17432, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:32.177Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/maine/2026/state.txt" } } ], "estimate": null }, { "program": "minimum-wage", "name": "Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "maryland", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-29", "published_at": "2026-08-29T10:17:14.177Z", "canonical_url": "https://ratesandlimits.com/minimum-wage/maryland/", "figures": [ { "key": "hourly", "label": "Hourly", "value": 15, "format": "usd", "formatted": "$15", "scope": null, "derived": false, "quote": "Maryland\nBasic Minimum Rate (per hour): $15.00", "offset": 7755, "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:33.862Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/maryland/2026/state.txt" } } ], "schedule": null, "explainers": [ { "key": "who-can-be-paid-less", "heading": "Minors, students and training wages: who may be paid less than the rate on this page", "body": "The $15 hourly minimum wage shown on this page does not apply to every worker in every circumstance. Several states establish subminimum wage rates that are lower than the standard rate for certain categories of employees, including minors, students, and new hires who are still in a training period. Some states also exempt particular groups of workers from minimum-wage coverage entirely. Because these special rates vary by state and by the employee's age, school status, or training status, they are not listed in the table on this page. Employers who believe a worker qualifies for a subminimum or training wage must confirm the specific conditions set by their state. Workers who are paid below the standard rate should verify with their state labor office whether the lower wage is lawful for their situation.", "quote": "Some states set subminimum rates for minors and/or students or exempt them from coverage or have a training wage for new hires.", "offset": 17053, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:33.862Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/maryland/2026/state.txt" } }, { "key": "local-rates-can-be-higher", "heading": "When a city or county sets a higher minimum wage", "body": "The $15 hourly rate shown on this page is the state or federal baseline, but it may not be the rate an employer must actually pay. Cities and counties are free to adopt their own minimum wage ordinances, and when they do, the local rate can be higher than the state rate. In those jurisdictions, the higher local rate controls, and employers are required to pay it. The table on this page lists only state-level minimum wages; it does not reflect city or county minimums that may exceed them. Workers and employers in areas with a local minimum wage ordinance should check with the city or county government to confirm the rate that applies. If a local rate is higher than the state rate, the employer must pay the higher local rate.", "quote": "Some local governments set minimum wage rates higher than their respective state minimum\nwage.", "offset": 17181, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:33.862Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/maryland/2026/state.txt" } }, { "key": "overtime-premium", "heading": "Overtime is paid at one and one-half times the regular rate", "body": "Hours worked beyond the standard full-time threshold are generally entitled to additional compensation. Under the rule described in the footnote to this table, the overtime premium rate is one and one-half times the employee's regular rate of pay. That means for each overtime hour, the worker must receive at least their normal hourly rate plus an extra half of that rate on top. The footnote notes that this is the default premium and that particular states may specify a different multiplier for certain situations, such as work performed on a holiday or on the seventh consecutive day of a workweek. Because each state's overtime threshold and multiplier can differ, the exact number of hours after which the premium kicks in, and the rate that applies, should be confirmed under the law of the state where the work is performed.", "quote": "The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified.", "offset": 17528, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:33.862Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/maryland/2026/state.txt" } }, { "key": "who-to-ask-about-this-rate", "heading": "Who to ask about this rate, and where to take a wage complaint", "body": "The wage rates and rules listed on this page are compiled by the U.S. Department of Labor's Wage and Hour Division for general reference, but they are not the final official record for any particular state. Each state's labor office is the authoritative source for the current rate, any subminimum rates, training wages, and local ordinances that apply in that state. Workers who believe they have been paid less than they are owed, and employers who want to confirm their obligations, should contact their state labor office directly. The Wage and Hour Division also accepts complaints about unpaid wages and can investigate violations of federal and state wage laws. State labor office contact information is available through the Department of Labor's directory of state labor offices.", "quote": "individuals should consult the relevant state labor office for official information.", "offset": 17432, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:33.862Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/maryland/2026/state.txt" } } ], "estimate": null }, { "program": "minimum-wage", "name": "Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "massachusetts", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-09-01", "published_at": "2026-09-01T09:25:38.061Z", "canonical_url": "https://ratesandlimits.com/minimum-wage/massachusetts/", "figures": [ { "key": "hourly", "label": "Hourly", "value": 15, "format": "usd", "formatted": "$15", "scope": null, "derived": false, "quote": "Massachusetts\nBasic Minimum Rate (per hour): $15.00", "offset": 7853, "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:35.671Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/massachusetts/2026/state.txt" } } ], "schedule": null, "explainers": [ { "key": "who-can-be-paid-less", "heading": "Minors, students and training wages: who may be paid less than the rate on this page", "body": "Massachusetts allows certain workers to be paid below the $15 hourly minimum in specific situations. The state recognizes subminimum wage rates for minors and students, exemptions from coverage for particular categories of employees, and training wages for newly hired workers. These special rates apply only when the worker and the job both fall within one of these narrow categories and the employer has followed the procedural steps required by state law. Employers cannot simply pay any new hire or young worker a reduced rate without meeting the legal conditions. A teenager working a summer job, a student in a work-study program, or a new employee still in training may qualify, but each case depends on the rules the Massachusetts Division of Standards administers. Workers and employers who think one of these exceptions applies should check directly with that office, because the general $15 rate applies to everyone else.", "quote": "Some states set subminimum rates for minors and/or students or exempt them from coverage or have a training wage for new hires.", "offset": 17053, "verified_at": "2026-09-01", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:35.671Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/massachusetts/2026/state.txt" } }, { "key": "local-rates-can-be-higher", "heading": "When a city or county sets a higher minimum wage", "body": "Massachusetts sets a statewide floor of $15 an hour, but individual cities and counties are free to set a higher minimum wage for employers operating within their borders. When a municipality does so, the local rate controls inside that locality, not the lower state figure. A worker in Boston, for example, would be entitled to whatever rate that city has adopted, even though the rest of the state is at $15. Employers with locations in multiple municipalities must pay each site's applicable rate. The table this page draws from does not list those local ordinances, so workers should check with their own city or town hall and employers should verify local rules in every jurisdiction where they have employees. The state rate remains the default everywhere a local government has not acted.", "quote": "Some local governments set minimum wage rates higher than their respective state minimum\nwage. Such differential provisions are not displayed in this table.", "offset": 17181, "verified_at": "2026-09-01", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:35.671Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/massachusetts/2026/state.txt" } }, { "key": "overtime-premium", "heading": "Overtime is paid at one and one-half times the regular rate", "body": "In Massachusetts, overtime hours must be paid at a premium above the worker's regular hourly rate. The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified. This means that any covered non-exempt worker who puts in overtime hours is owed time and a half for each of those hours, calculated on top of whatever that worker's normal pay is. For someone earning the $15 minimum wage, the overtime rate works out to more than $15 per overtime hour. The premium applies whether the worker is paid hourly or on a salary basis, as long as they are not in an exempt occupation. Employers in Massachusetts cannot replace the cash overtime premium with compensatory time off, and the overtime calculation is based on each individual workweek rather than being averaged over a longer period.", "quote": "The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified.", "offset": 17528, "verified_at": "2026-09-01", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:35.671Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/massachusetts/2026/state.txt" } }, { "key": "federal-and-state-rate-together", "heading": "State minimum wage laws that give more than the federal rate", "body": "Massachusetts pays $15.00 an hour and its law is written to stay above the federal minimum rather than merely to sit above it today. Where federal and state minimum wage law both cover a job - and for most jobs both do - the employer owes the higher of the two rates, so the Massachusetts figure is the one that governs. The federal rate has no effect on your pay while the state rate exceeds it. What the state provision adds is that the gap cannot close by accident: a federal increase pulls the Massachusetts minimum up with it rather than overtaking it. So the number to watch for a job in Massachusetts is the state number, and a local ordinance where one applies, not the federal one.", "quote": "In no case shall the Massachusetts minimum wage rate be less than $0.50 higher than the effective federal minimum rate.", "offset": 7956, "verified_at": "2026-09-01", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:35.671Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/massachusetts/2026/state.txt" } }, { "key": "who-to-ask-about-this-rate", "heading": "Who to ask about this rate, and where to take a wage complaint", "body": "The Wage and Hour Division administers and enforces the federal minimum wage and overtime requirements under the Fair Labor Standards Act. However, state minimum wage laws and local ordinances may impose additional requirements beyond federal standards. Workers and employers with questions about which rate applies to a particular situation should contact the relevant state labor office for official information about state and local requirements. State labor offices maintain authoritative information about state-specific minimum wage rates, subminimum wage provisions, coverage exemptions, and enforcement procedures. The Wage and Hour Division provides guidance on federal requirements but does not administer state or local wage laws. Workers who believe they have not been paid the correct minimum wage or overtime can file a complaint with either the federal Wage and Hour Division or their state labor agency, depending on which law applies to their situation. State labor office contact information is typically available through state government websites.", "quote": "The Wage and Hour Division tries to ensure that the information on this page is accurate, but individuals should consult the relevant state labor office for official information.", "offset": 17338, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:35.671Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/massachusetts/2026/state.txt" } } ], "estimate": null }, { "program": "minimum-wage", "name": "Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "michigan", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-09-01", "published_at": "2026-09-01T09:18:52.894Z", "canonical_url": "https://ratesandlimits.com/minimum-wage/michigan/", "figures": [ { "key": "hourly", "label": "Hourly", "value": 13.73, "format": "usd", "formatted": "$13.73", "scope": null, "derived": false, "quote": "Basic Minimum Rate (per hour): $13.73", "offset": 8132, "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-27T15:04:37.178Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/michigan/2026/state.txt" } } ], "schedule": null, "explainers": [ { "key": "federal-and-state-rate-together", "heading": "State minimum wage laws that give more than the federal rate", "body": "Michigan in 2026 sets its minimum wage at $13.73 per hour for employers with two or more employees. This state rate exceeds the federal minimum wage floor, so workers in Michigan receive the higher state amount rather than the lower federal figure. Michigan law specifically provides that employment subject to the federal Fair Labor Standards Act is excluded from state coverage only when the federal rate is higher — meaning the more protective standard always controls. For Michigan workers in 2026, the applicable rate is $13.73 per hour because state law provides greater employee protection than the federal floor. This structure ensures that workers benefit from whichever law — state or federal — gives them the higher wage.", "quote": "Michigan\nApplicable to employers of 2 or more employees\nBasic Minimum Rate (per hour): $13.73\nThe Michigan minimum wage is scheduled to increase on January 1, 2027 to $15.00 per hour and then will be adjusted annually based on a set formula.\nPremium Pay After Designated Hours\n1\n: Weekly - 40\nThe State law excludes from coverage any employment that is subject to the federal Fair Labor Standards Act unless the State wage rate is higher than the federal rate.", "offset": 8076, "verified_at": "2026-09-01", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-27T15:04:37.178Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/michigan/2026/state.txt" } }, { "key": "annual-inflation-adjustment", "heading": "How the rate is adjusted each year, and who announces it", "body": "Michigan's minimum wage is adjusted each year on a schedule written into state law. For 2026 the rate is $13.73 per hour. Beginning January 1, 2027, the rate is scheduled to rise to $15.00 per hour, and from that point forward it will be adjusted annually based on a set formula tied to changes in the cost of living. The adjustment is announced as part of the state's regular update process, and the new rate takes effect at the start of the year specified. Workers and employers in Michigan can look to the state's published schedule to see the next figure; the 2026 amount of $13.73 is the figure in force for this year, and the 2027 figure of $15.00 is already written into law. After 2027, the annual inflation-based adjustment replaces the scheduled step-ups.", "quote": "The Michigan minimum wage is scheduled to increase on January 1, 2027 to $15.00 per hour and then will be adjusted annually based on a set formula.", "offset": 8170, "verified_at": "2026-09-01", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-27T15:04:37.178Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/michigan/2026/state.txt" } }, { "key": "who-can-be-paid-less", "heading": "Minors, students and training wages: who may be paid less than the rate on this page", "body": "The $13.73 hourly rate is the federal minimum that covered non-exempt workers must receive, but it does not apply to every worker in every situation. The Fair Labor Standards Act allows states to establish subminimum wage rates for certain categories of employees. Minors and students may be paid less than the standard minimum under these state provisions. Employers may also be permitted to pay a training wage to new hires during an initial period. In addition, some workers are completely exempt from minimum wage coverage under state law. Because these special rates and exemptions are created at the state level, they are not shown in the federal table. Workers and employers must check their own state's rules to determine whether a lower rate applies to a particular employee or situation.", "quote": "Some states set subminimum rates for minors and/or students or exempt them from coverage or have a training wage for new hires.", "offset": 17053, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-27T15:04:37.178Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/michigan/2026/state.txt" } }, { "key": "local-rates-can-be-higher", "heading": "When a city or county sets a higher minimum wage", "body": "The federal minimum wage sets a floor, but cities and counties are free to establish their own minimum wage rates that exceed the state level. When a local government enacts a higher minimum, employers within that jurisdiction must pay the local rate, even if it is greater than the state minimum. These local ordinances vary widely: some apply only within city limits, others extend to county boundaries, and the covered employers and effective dates differ as well. Because local minimum wage rates change frequently and are not reflected in the federal table, workers and employers must check the rules that apply in their specific city or county to determine the correct rate.", "quote": "Some local governments set minimum wage rates higher than their respective state minimum\nwage.", "offset": 17181, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-27T15:04:37.178Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/michigan/2026/state.txt" } }, { "key": "overtime-premium", "heading": "Overtime is paid at one and one-half times the regular rate", "body": "Under the Fair Labor Standards Act, non-exempt employees who work beyond the designated weekly hours are entitled to overtime pay. The overtime premium rate is one and one-half times the employee's regular rate of pay for each overtime hour worked. The regular rate includes all remuneration for employment, not only the base hourly wage, so the overtime premium is calculated on the employee's full regular rate rather than the posted minimum wage figure alone. Some state laws require daily overtime or use a different multiplier; those state-specific rules are not captured on this page. The footnote applies unless otherwise specified by a particular statute or agreement. Workers should confirm with their state labor office whether additional overtime protections apply beyond the federal standard.", "quote": "The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified.", "offset": 17528, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-27T15:04:37.178Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/michigan/2026/state.txt" } }, { "key": "who-to-ask-about-this-rate", "heading": "Who to ask about this rate, and where to take a wage complaint", "body": "The Wage and Hour Division maintains the information on this page, but it is not a substitute for official guidance. Workers or employers who need to confirm the rate that applies to a particular situation should consult the relevant state labor office, which administers and enforces state minimum wage laws and can provide authoritative information. For federal questions, complaints about unpaid wages, or questions about FLSA coverage, the Wage and Hour Division of the U.S. Department of Labor is the appropriate point of contact. State labor offices can also explain any subminimum rates, training wages, or exemptions that apply within their jurisdiction.", "quote": "individuals should consult the relevant state labor office for official information.", "offset": 17432, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-27T15:04:37.178Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/michigan/2026/state.txt" } } ], "estimate": null }, { "program": "minimum-wage", "name": "Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "minnesota", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-09-01", "published_at": "2026-09-01T08:57:54.670Z", "canonical_url": "https://ratesandlimits.com/minimum-wage/minnesota/", "figures": [ { "key": "hourly", "label": "Hourly", "value": 11.41, "format": "usd", "formatted": "$11.41", "scope": null, "derived": false, "quote": "Minnesota\nBasic Minimum Rate (per hour): $11.41", "offset": 8537, "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:37.376Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/minnesota/2026/state.txt" } } ], "schedule": null, "explainers": [ { "key": "annual-inflation-adjustment", "heading": "How the rate is adjusted each year, and who announces it", "body": "Minnesota adjusts its minimum wage each year using a cost-of-living formula tied to inflation. The state does not require new legislation to change the rate; instead, the formula updates the wage automatically based on changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W. The Minnesota Department of Labor and Industry calculates and announces the new rate before it takes effect. For 2026, the adjusted hourly minimum wage is $11.41. This automatic adjustment prevents the real purchasing power of the wage floor from eroding over time and ensures that covered workers' earnings keep pace with rising prices across the state economy.", "quote": "Minnesota\nBasic Minimum Rate (per hour): $11.41\nPremium Pay After Designated Hours\n1\n: Weekly - 48\nThe minimum wage is adjusted annually based on a set formula.", "offset": 8537, "verified_at": "2026-09-01", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:37.376Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/minnesota/2026/state.txt" } }, { "key": "who-can-be-paid-less", "heading": "Minors, students and training wages: who may be paid less than the rate on this page", "body": "While the federal minimum wage sets a baseline, certain categories of workers may be paid less than the standard rate under specific conditions. Some states authorize employers to pay minors and students a subminimum wage that falls below the regular minimum. Additionally, some states exempt these groups from minimum wage coverage entirely or establish a separate training wage for newly hired employees. These special wage provisions vary by state and are not reflected in the $11.41 hourly rate shown on this page. Workers and employers should verify whether any subminimum or training wage applies in their jurisdiction, as the rules governing youth employment and trainee compensation differ significantly across states.", "quote": "Some states set subminimum rates for minors and/or students or exempt them from coverage or have a training wage for new hires.", "offset": 17053, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:37.376Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/minnesota/2026/state.txt" } }, { "key": "local-rates-can-be-higher", "heading": "When a city or county sets a higher minimum wage", "body": "The minimum wage rates displayed on this page reflect state-level standards, but they do not capture the full picture of local wage requirements. Many cities and counties establish their own minimum wage rates that exceed the state minimum. When a local jurisdiction sets a higher rate, employers within that area must pay the local rate rather than the state rate. These local wage ordinances are not included in the table on this page, so workers and employers should check with their city or county government to determine if a higher local minimum wage applies. The $11.41 hourly rate shown here represents the state standard, but actual pay requirements may be greater in jurisdictions with local wage laws.", "quote": "Some local governments set minimum wage rates higher than their respective state minimum\nwage.", "offset": 17181, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:37.376Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/minnesota/2026/state.txt" } }, { "key": "overtime-premium", "heading": "Overtime is paid at one and one-half times the regular rate", "body": "Federal law requires that covered, nonexempt employees receive overtime pay for hours worked beyond a designated weekly threshold. The overtime premium rate is one and one-half times the employee's regular rate of pay. This means that for each overtime hour worked, the employee must receive at least one and one-half times their normal hourly wage. Some states and local jurisdictions may have different overtime rules or additional requirements, so workers should verify the specific overtime standards that apply in their area. The $11.41 hourly rate shown on this page represents the standard minimum wage, but overtime hours must be calculated at the premium rate based on the employee's actual regular rate of pay.", "quote": "The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified.", "offset": 17528, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:37.376Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/minnesota/2026/state.txt" } }, { "key": "who-to-ask-about-this-rate", "heading": "Who to ask about this rate, and where to take a wage complaint", "body": "If you have questions about minimum wage rates or need to file a wage complaint, the Wage and Hour Division recommends consulting the relevant state labor office for official information. While the federal agency maintains this page and attempts to ensure its accuracy, state labor offices are the authoritative source for wage requirements in each jurisdiction. Workers who believe they have not been paid the correct minimum wage or overtime should contact their state labor office to understand their rights and the proper process for addressing wage violations. The state labor office can provide guidance on both the $11.41 hourly rate and any applicable subminimum wages, local rates, or overtime requirements that may apply to specific situations.", "quote": "The Wage and Hour Division tries to ensure that the information on this page is accurate, but individuals should consult the relevant state labor office for official information.", "offset": 17338, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:37.376Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/minnesota/2026/state.txt" } } ], "estimate": null }, { "program": "minimum-wage", "name": "Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "mississippi", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-09-01", "published_at": "2026-09-01T07:21:59.855Z", "canonical_url": "https://ratesandlimits.com/minimum-wage/mississippi/", "figures": [ { "key": "hourly", "label": "Hourly", "value": 7.25, "format": "usd", "formatted": "$7.25", "scope": null, "derived": false, "quote": "Mississippi\nNo state minimum wage law.\nEmployers subject to the Fair Labor Standards Act must pay the current Federal minimum wage of $7.25 per hour.", "offset": 8698, "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:39.113Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/mississippi/2026/state.txt" } } ], "schedule": null, "explainers": [ { "key": "state-rate-below-the-federal-floor", "heading": "Why the federal rate applies when the state rate is lower", "body": "Mississippi has no minimum wage law of its own, which does not mean there is no minimum wage in Mississippi. The Fair Labor Standards Act reaches most employment directly, and an employer subject to it must pay the federal minimum of $7.25 per hour whatever the state does. That is the rate on this page, and it is federal law rather than Mississippi law that puts it there. The practical difference shows up at the edges. A worker whose employer is genuinely outside the FLSA has no state floor to fall back on, where a worker in a state with its own law would. And a complaint about it is a federal complaint: the Wage and Hour Division enforces it, because there is no Mississippi statute to enforce.", "quote": "Mississippi\nNo state minimum wage law.\nEmployers subject to the Fair Labor Standards Act must pay the current Federal minimum wage of $7.25 per hour.", "offset": 8698, "verified_at": "2026-09-01", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:39.113Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/mississippi/2026/state.txt" } }, { "key": "who-can-be-paid-less", "heading": "Minors, students and training wages: who may be paid less than the rate on this page", "body": "Under the Fair Labor Standards Act, certain categories of workers may be paid less than the standard federal minimum wage of $7.25 per hour. Some states allow employers to pay subminimum rates to minors and students, while others exempt these groups entirely or provide a separate training wage for newly hired employees. These special provisions are not shown in the federal table, so workers and employers must look to their own state's labor laws to determine whether a lower rate applies to a given situation. The existence of a subminimum or training wage does not mean that every young worker or student automatically receives a lower rate - the rule depends on state law and the specific circumstances of the job. Employers who believe they qualify for one of these exceptions should confirm the requirements with their state labor office before paying less than the standard minimum.", "quote": "Some states set subminimum rates for minors and/or students or exempt them from coverage or have a training wage for new hires.", "offset": 17053, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:39.113Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/mississippi/2026/state.txt" } }, { "key": "local-rates-can-be-higher", "heading": "When a city or county sets a higher minimum wage", "body": "Some local governments set minimum wage rates higher than their respective state minimum wage. Such differential provisions are not displayed in this table.", "quote": "Some local governments set minimum wage rates higher than their respective state minimum\nwage. Such differential provisions are not displayed in this table.", "offset": 17181, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:39.113Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/mississippi/2026/state.txt" } }, { "key": "overtime-premium", "heading": "Overtime is paid at one and one-half times the regular rate", "body": "The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified.", "quote": "The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified.", "offset": 17528, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:39.113Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/mississippi/2026/state.txt" } }, { "key": "who-to-ask-about-this-rate", "heading": "Who to ask about this rate, and where to take a wage complaint", "body": "The Wage and Hour Division tries to ensure that the information on this page is accurate, but individuals should consult the relevant state labor office for official information.", "quote": "The Wage and Hour Division tries to ensure that the information on this page is accurate, but individuals should consult the relevant state labor office for official information.", "offset": 17338, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:39.113Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/mississippi/2026/state.txt" } } ], "estimate": null }, { "program": "minimum-wage", "name": "Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "missouri", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-29", "published_at": "2026-08-29T10:18:16.646Z", "canonical_url": "https://ratesandlimits.com/minimum-wage/missouri/", "figures": [ { "key": "hourly", "label": "Hourly", "value": 15, "format": "usd", "formatted": "$15", "scope": null, "derived": false, "quote": "Missouri\nBasic Minimum Rate (per hour): $15.00", "offset": 8848, "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:40.772Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/missouri/2026/state.txt" } } ], "schedule": null, "explainers": [ { "key": "who-can-be-paid-less", "heading": "Minors, students and training wages: who may be paid less than the rate on this page", "body": "Some states establish subminimum wage rates for minors, students, or new hires in a training program. These workers may legally be paid less than the standard minimum wage. Some states also exempt certain workers entirely from minimum wage coverage. The verified hourly rate on this page does not apply to these subminimum categories when a state permits them. Employers must follow both federal law and the specific rules in their state, which may set a lower hourly rate for youth workers, student learners, or employees in an approved training period. Before paying a subminimum rate, an employer should confirm that the worker meets the state's definition and that any required certificates or exemptions have been obtained. The exact subminimum dollar amount, the age threshold, and the length of time the lower rate may be paid vary by state.", "quote": "Some states set subminimum rates for minors and/or students or exempt them from coverage or have a training wage for new hires.", "offset": 17053, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:40.772Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/missouri/2026/state.txt" } }, { "key": "local-rates-can-be-higher", "heading": "When a city or county sets a higher minimum wage", "body": "Cities, counties, and other local jurisdictions sometimes enact their own minimum wage that exceeds the state rate. When a local minimum wage is higher, covered employers in that locality must pay the higher local rate, not the lower state rate. The table on this page displays only state-level rates; it does not show local minimum wages. Workers in municipalities or counties with a local minimum wage should check their city or county government's website or labor office to find the rate that actually applies to them. If the local rate is higher than both the state and federal rates, the highest rate applies. Employers operating in multiple jurisdictions within the same state must track which locations are subject to a local wage floor and adjust payroll accordingly.", "quote": "Some local governments set minimum wage rates higher than their respective state minimum\nwage.", "offset": 17181, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:40.772Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/missouri/2026/state.txt" } }, { "key": "overtime-premium", "heading": "Overtime is paid at one and one-half times the regular rate", "body": "Under the Fair Labor Standards Act, covered non-exempt employees who work beyond a full-time workweek are entitled to overtime pay. The overtime premium is one and one-half times the employee's regular rate of pay. The regular rate includes all compensation such as hourly wages and non-discretionary bonuses, not just the base hourly rate. If an employee earns the verified hourly rate of $15 for all regular hours, each overtime hour must be paid at a higher amount calculated by multiplying that regular rate by one and one-half. Some states require overtime after a different threshold, such as hours beyond a set number in a single day, or at a different multiplier, and those state-level rules are not reflected on this page. Employers covered by both federal and state overtime rules must apply whichever standard produces the greater pay for the worker. The premium must be paid on the regular payday for the pay period in which the overtime was earned.", "quote": "The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified.", "offset": 17528, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:40.772Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/missouri/2026/state.txt" } }, { "key": "who-to-ask-about-this-rate", "heading": "Who to ask about this rate, and where to take a wage complaint", "body": "The Wage and Hour Division of the U.S. Department of Labor maintains the information on this page and makes reasonable efforts to keep it accurate, but the rates shown are not a substitute for official guidance from the appropriate authorities. Because minimum wage rules can differ significantly by state, locality, and the type of employer or employee involved, individuals who need authoritative information about the wage that applies to them should consult the relevant state labor office. State labor offices can confirm the current minimum wage rate, explain any exemptions or special rates that may apply, and provide guidance on how to file a wage complaint if an employee believes they have not been paid correctly. The Wage and Hour Division also accepts complaints about violations of the federal minimum wage and overtime requirements. Workers with questions or concerns about their pay can contact either the state labor office or the federal Wage and Hour Division to seek assistance.", "quote": "The Wage and Hour Division tries to ensure that the information on this page is accurate, but individuals should consult the relevant state labor office for official information.", "offset": 17338, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:40.772Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/missouri/2026/state.txt" } } ], "estimate": null }, { "program": "minimum-wage", "name": "Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "montana", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-09-01", "published_at": "2026-09-01T09:32:57.735Z", "canonical_url": "https://ratesandlimits.com/minimum-wage/montana/", "figures": [ { "key": "hourly", "label": "Hourly", "value": 10.85, "format": "usd", "formatted": "$10.85", "scope": "Businesses with gross annual sales of more than $110,000", "derived": false, "quote": "Montana\nBusinesses with gross annual sales of more than $110,000\nBasic Minimum Rate (per hour): $10.85", "offset": 9230, "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:42.425Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/montana/2026/state.txt" } } ], "schedule": null, "explainers": [ { "key": "federal-and-state-rate-together", "heading": "State minimum wage laws that give more than the federal rate", "body": "In Montana, employers with gross annual sales above $110,000 must pay at least $10.85 per hour. Employers not covered by the federal Fair Labor Standards Act with gross annual sales of $110,000 or less may pay as little as $4.00 per hour. However, if a worker at one of those smaller businesses is producing goods that cross state lines or is otherwise covered by federal law, the employer must pay whichever is higher: the federal minimum wage or Montana's rate. Workers in Montana should therefore look at both their employer's sales total and whether their own job is federally covered to know which floor applies to them.", "quote": "Montana\nBusinesses with gross annual sales of more than $110,000\nBasic Minimum Rate (per hour): $10.85\nPremium Pay After Designated Hours\n1\n: Weekly - 40\nBusinesses not covered by the Fair Labor Standards Act with gross annual sales of $110,000 or less\nBasic Minimum Rate (per hour): $4.00", "offset": 9230, "verified_at": "2026-09-01", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:42.425Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/montana/2026/state.txt" } }, { "key": "state-rate-below-the-federal-floor", "heading": "Why the federal rate applies when the state rate is lower", "body": "A small Montana employer whose gross annual sales are $110,000 or less and that is not covered by federal law may pay as little as $4.00 per hour. But that $4.00 floor is lower than the federal minimum wage, so if a worker at that business produces goods for interstate commerce or otherwise falls under the federal Fair Labor Standards Act, the employer must pay the higher federal rate instead. The $4.00 state rate therefore only applies to workers whose jobs have no federal coverage; everyone else at the same small business must receive the federal floor.", "quote": "Businesses not covered by the Fair Labor Standards Act with gross annual sales of $110,000 or less\nBasic Minimum Rate (per hour): $4.00", "offset": 9384, "verified_at": "2026-09-01", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:42.425Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/montana/2026/state.txt" } }, { "key": "annual-inflation-adjustment", "heading": "How the rate is adjusted each year, and who announces it", "body": "Montana's minimum wage is adjusted each year based on a set formula. The state's law ties the annual change to changes in the cost of living so the floor keeps pace with inflation without needing a new act of the legislature. After each adjustment, employers in Montana covered by the state wage law must pay the newly announced rate. For 2026, that adjusted rate is $10.85 per hour. Workers can expect the minimum wage to change on an annual cycle rather than remaining fixed until lawmakers choose to act again.", "quote": "However, if an individual employee is producing or moving goods between states\nor otherwise covered by the federal Fair Labor Standards Act, that employee must be paid the greater of either the federal minimum wage or Montana's minimum wage.\nThe minimum wage is adjusted annually based on a set formula.", "offset": 9704, "verified_at": "2026-09-01", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:42.425Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/montana/2026/state.txt" } }, { "key": "who-can-be-paid-less", "heading": "Minors, students and training wages: who may be paid less than the rate on this page", "body": "The rate of $10.85 per hour is the standard minimum wage, but it does not apply to every worker in every situation. Some states set subminimum rates for minors and/or students or exempt them from coverage or have a training wage for new hires. This means that young workers, student employees, or newly hired trainees may legally be paid less than the full minimum wage in certain jurisdictions. Employers need to check whether their state offers a lower rate for these categories of workers before relying on the general figure. The table on this page does not display these differential provisions, so the standard rate shown here may not reflect what a minor, student, or trainee is entitled to or may be paid in a particular state. Workers and employers should look to their state's labor law for the exact subminimum rate or training wage that applies.", "quote": "Some states set subminimum rates for minors and/or students or exempt them from coverage or have a training wage for new hires.", "offset": 17053, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:42.425Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/montana/2026/state.txt" } }, { "key": "local-rates-can-be-higher", "heading": "When a city or county sets a higher minimum wage", "body": "The minimum wage of $10.85 per hour shown on this page reflects the state-level rate, but it may not be the highest wage floor that applies to a particular worker. Some local governments set minimum wage rates higher than their respective state minimum wage. Cities and counties can establish their own wage floors that exceed the state figure, and employers in those jurisdictions must pay the higher local rate. This page does not display those local differential provisions. A worker employed in a city or county with its own minimum wage law may be entitled to more than the state rate. Employers operating in multiple locations within a state should verify whether any municipality where they have employees has enacted a higher minimum wage. The local rate, when it exceeds the state rate, is the one that must be paid.", "quote": "Some local governments set minimum wage rates higher than their respective state minimum\nwage.", "offset": 17181, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:42.425Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/montana/2026/state.txt" } }, { "key": "overtime-premium", "heading": "Overtime is paid at one and one-half times the regular rate", "body": "When an employee works more than the designated weekly hours, the overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified. This means that for every hour worked beyond the standard weekly threshold, the worker must receive at least one and one-half times their normal hourly pay. For a worker earning the minimum wage of $10.85 per hour, the overtime premium means each extra hour is paid at a higher rate than the standard figure shown on this page. The exact overtime threshold and any exceptions depend on state law and whether the employee is covered by the Fair Labor Standards Act. Some states calculate overtime on a daily basis rather than weekly. Employers must track hours carefully and apply the premium to all qualifying overtime hours. Workers who believe they have not received proper overtime pay can file a complaint with the Wage and Hour Division.", "quote": "The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified.", "offset": 17528, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:42.425Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/montana/2026/state.txt" } }, { "key": "who-to-ask-about-this-rate", "heading": "Who to ask about this rate, and where to take a wage complaint", "body": "Although the Wage and Hour Division tries to ensure that the information on this page is accurate, the page itself is not the authoritative source for wage rates. Individuals should consult the relevant state labor office for official information. State labor offices maintain the definitive records of current minimum wage rates, subminimum provisions, training wages, and any local wage ordinances. Workers who have questions about whether their employer is paying the correct rate, or who want to verify the figure of $10.85 per hour shown here, should contact their state labor office directly. Employers seeking to confirm their obligations should do the same. The state labor office can also provide guidance on overtime rules, exemption categories, and record-keeping requirements that go beyond the figures displayed on this page.", "quote": "The Wage and Hour Division tries to ensure that the information on this page is accurate, but individuals should consult the relevant state labor office for official information.", "offset": 17338, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:42.425Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/montana/2026/state.txt" } } ], "estimate": null }, { "program": "minimum-wage", "name": "Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "nebraska", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-09-01", "published_at": "2026-09-01T09:35:23.609Z", "canonical_url": "https://ratesandlimits.com/minimum-wage/nebraska/", "figures": [ { "key": "hourly", "label": "Hourly", "value": 15, "format": "usd", "formatted": "$15", "scope": null, "derived": false, "quote": "Nebraska\nApplicable to employers of 4 or more employees\nBasic Minimum Rate (per hour): $15.00", "offset": 10008, "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:44.140Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/nebraska/2026/state.txt" } } ], "schedule": null, "explainers": [ { "key": "who-can-be-paid-less", "heading": "Minors, students and training wages: who may be paid less than the rate on this page", "body": "Nebraska’s $15 hourly rate does not cover every worker in the state. The Fair Labor Standards Act and Nebraska’s own wage law allow several categories of employees to be paid at a subminimum rate. These include minors, students and trainees hired at a lower training wage for new employees. The U.S. Department of Labor’s Wage and Hour Division does not display these differential provisions in its state-by-state rate table, so workers and employers in Nebraska must consult the relevant state labor office or the Division directly to find out whether a particular employee qualifies for one of these lower rates. When none of these exemptions applies, however, covered employers must pay the full $15 an hour.", "quote": "Some states set subminimum rates for minors and/or students or exempt them from coverage or have a training wage for new hires.", "offset": 17053, "verified_at": "2026-09-01", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:44.140Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/nebraska/2026/state.txt" } }, { "key": "overtime-premium", "heading": "Overtime is paid at one and one-half times the regular rate", "body": "In Nebraska, most non-exempt workers earn overtime premium once they pass the weekly overtime threshold. The footnote that accompanies the state minimum wage table sets the rule: the overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified. That means an employee paid the $15 state minimum wage receives one and one-half times that figure for every overtime hour. Nebraska's own overtime threshold is measured weekly, so employers may not average hours across two or more workweeks to avoid paying the premium. The rule applies whether the worker is paid an hourly wage or a salary, so long as no statutory exemption covers the position. Workers who believe their employer has underpaid overtime can file a complaint with the Nebraska Department of Labor or the federal Wage and Hour Division.", "quote": "The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified.", "offset": 17528, "verified_at": "2026-09-01", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:44.140Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/nebraska/2026/state.txt" } }, { "key": "local-rates-can-be-higher", "heading": "When a city or county sets a higher minimum wage", "body": "Even when a state adopts the federal minimum wage or sets its own statewide rate, a city, county, or other local government within that state may pass an ordinance requiring employers to pay a higher minimum wage. When a local rate exceeds the state rate, employers located within that jurisdiction must pay the local rate to covered workers; the higher local floor takes precedence inside its borders. The table on this page shows only statewide and federal rates, so a local minimum wage that is above the state rate will not appear here. Workers should check their municipal or county government's website or labor department to find out whether their locality has enacted a higher rate, and what the amount is. Employers operating in multiple localities must track each locality's rate and apply the highest one that covers each employee. The existence of a local rate does not reduce or cancel any other wage right, such as overtime coverage or state-mandated paid leave.", "quote": "Some local governments set minimum wage rates higher than their respective state minimum\nwage.", "offset": 17181, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:44.140Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/nebraska/2026/state.txt" } }, { "key": "who-to-ask-about-this-rate", "heading": "Who to ask about this rate, and where to take a wage complaint", "body": "The Wage and Hour Division of the U.S. Department of Labor administers the federal minimum wage, but each state has its own labor office that enforces state minimum-wage laws, which may be higher than the federal rate or apply to employers not covered by federal law. When a worker has a question about which rate applies, how many hours count, or whether an exemption applies, the relevant state labor office is the place to get an authoritative answer for that state. A worker who believes an employer has paid less than the legally required wage may file a complaint with the state labor office, with the federal Wage and Hour Division, or with both, depending on which law was violated. The Wage and Hour Division operates a toll-free helpline and maintains district offices across the country; contact information is available on the Department of Labor's website. Retaliation against a worker for filing a wage complaint or asking about pay rights is itself illegal under federal and most state laws.", "quote": "The Wage and Hour Division tries to ensure that the information on this page is accurate, but individuals should consult the relevant state labor office for official information.", "offset": 17338, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:44.140Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/nebraska/2026/state.txt" } } ], "estimate": null }, { "program": "minimum-wage", "name": "Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "nevada", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-29", "published_at": "2026-08-29T10:19:57.349Z", "canonical_url": "https://ratesandlimits.com/minimum-wage/nevada/", "figures": [ { "key": "hourly", "label": "Hourly", "value": 12, "format": "usd", "formatted": "$12", "scope": null, "derived": false, "quote": "Nevada\nBasic Minimum Rate (per hour): $12.00", "offset": 10102, "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:45.981Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/nevada/2026/state.txt" } } ], "schedule": null, "explainers": [ { "key": "who-can-be-paid-less", "heading": "Minors, students and training wages: who may be paid less than the rate on this page", "body": "The federal minimum wage shown on this page does not apply uniformly to every worker. Some states have special rules that allow employers to pay certain groups less than the standard rate. These groups include minors, students, and new hires who are in a training period. A state may also exempt some workers from minimum wage coverage entirely. These special lower rates are established by state law, not by the federal rules described here. Because they vary from state to state and depend on a worker's age, enrollment status, or how long they have been on the job, they are not listed in the federal table. If you are a young worker, a student, or starting a training position, check your own state's rules to find out whether a lower subminimum or training wage applies to you. The verified figure for 2026 is $12 per hour.", "quote": "Some states set subminimum rates for minors and/or students or exempt them from coverage or have a training wage for new hires.", "offset": 17053, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:45.981Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/nevada/2026/state.txt" } }, { "key": "local-rates-can-be-higher", "heading": "When a city or county sets a higher minimum wage", "body": "Cities and counties have authority to set their own minimum wage rates above the state or federal level. When a local government establishes a higher rate, employers in that jurisdiction must pay the local rate instead. These local variations are not displayed in the DOL table. Workers and employers should verify whether their city or county has enacted a higher minimum wage that applies to them.", "quote": "Some local governments set minimum wage rates higher than their respective state minimum\nwage. Such differential provisions are not displayed in this table.", "offset": 17181, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:45.981Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/nevada/2026/state.txt" } }, { "key": "who-to-ask-about-this-rate", "heading": "Who to ask about this rate, and where to take a wage complaint", "body": "The DOL table provides general information but is not official legal guidance. For authoritative information about minimum wage requirements in a particular state, workers and employers should contact the state labor office directly. State agencies maintain official records of applicable wage rates, exemptions, and special provisions. The Wage and Hour Division attempts to keep information current, but state labor offices provide the definitive source for compliance questions.", "quote": "The Wage and Hour Division tries to ensure that the information on this page is accurate, but individuals should consult the relevant state labor office for official information.", "offset": 17338, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:45.981Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/nevada/2026/state.txt" } } ], "estimate": null }, { "program": "minimum-wage", "name": "Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "new-hampshire", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-09-01", "published_at": "2026-09-01T09:38:06.504Z", "canonical_url": "https://ratesandlimits.com/minimum-wage/new-hampshire/", "figures": [ { "key": "hourly", "label": "Hourly", "value": 7.25, "format": "usd", "formatted": "$7.25", "scope": null, "derived": false, "quote": "New Hampshire\nBasic Minimum Rate (per hour): $7.25", "offset": 10483, "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:47.550Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/new-hampshire/2026/state.txt" } } ], "schedule": null, "explainers": [ { "key": "federal-and-state-rate-together", "heading": "State minimum wage laws that give more than the federal rate", "body": "Under New Hampshire law, the state minimum wage is set at $7.25 per hour. The rule states that when the New Hampshire minimum wage is set below the federal rate, it equals the federal minimum wage instead. This means workers in New Hampshire are protected by whichever rate is higher. As of 2026, both rates are $7.25 per hour, so covered nonexempt employees in the state must be paid at least that amount. If the federal minimum wage were raised above the state rate in the future, New Hampshire employers would automatically be required to pay the higher federal amount. The rule ensures that workers in New Hampshire always receive the benefit of the stronger protection, whether it comes from state or federal law.", "quote": "New Hampshire\nBasic Minimum Rate (per hour): $7.25\nPremium Pay After Designated Hours\n1\n: Weekly - 40\nThe New Hampshire minimum wage equals the federal minimum wage when set below the federal rate.", "offset": 10483, "verified_at": "2026-09-01", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:47.550Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/new-hampshire/2026/state.txt" } }, { "key": "state-rate-below-the-federal-floor", "heading": "Why the federal rate applies when the state rate is lower", "body": "New Hampshire does not keep its minimum wage independent of the federal one: state law takes the federal figure by reference where the federal rate is the higher of the two. The rate on this page is $7.25 an hour, and it moves when the federal minimum moves rather than when New Hampshire legislates. That is worth knowing for two reasons. It means no New Hampshire bill is needed for your rate to rise - a federal increase reaches you automatically. And it means an employer cannot pay less by pointing at a lower state figure, because there is no lower state figure to point at. Where a state rate is the higher one, the state rate is what applies; that is simply not the position in New Hampshire today.", "quote": "The New Hampshire minimum wage equals the federal minimum wage when set below the federal rate.", "offset": 10585, "verified_at": "2026-09-01", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:47.550Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/new-hampshire/2026/state.txt" } }, { "key": "who-can-be-paid-less", "heading": "Minors, students and training wages: who may be paid less than the rate on this page", "body": "The federal minimum wage of $7.25 per hour does not apply uniformly to every worker. Some states establish subminimum wage rates specifically for minors, for students, or for newly hired employees during a training period. Other states exempt these categories of workers from minimum wage coverage entirely. Because these special provisions vary by state and are not shown on this page, employers and workers in those categories should check their own state's rules to determine which rate applies. The federal Fair Labor Standards Act still requires covered employers to pay at least $7.25 per hour unless a valid state subminimum rate or exemption applies.", "quote": "Some states set subminimum rates for minors and/or students or exempt them from coverage or have a training wage for new hires.", "offset": 17053, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:47.550Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/new-hampshire/2026/state.txt" } }, { "key": "local-rates-can-be-higher", "heading": "When a city or county sets a higher minimum wage", "body": "Cities, counties, and other local jurisdictions sometimes enact minimum wage rates that exceed the rate set by their state. When a local rate is higher than the state rate, employers in that locality must pay the higher local rate. This page lists only state-level rates and does not display local minimum wages, so workers and employers in cities or counties with their own wage laws need to look up the local ordinance separately. The local rate, not the state rate, governs the work performed within that jurisdiction.", "quote": "Some local governments set minimum wage rates higher than their respective state minimum\nwage.", "offset": 17181, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:47.550Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/new-hampshire/2026/state.txt" } }, { "key": "overtime-premium", "heading": "Overtime is paid at one and one-half times the regular rate", "body": "Under the Fair Labor Standards Act, covered nonexempt employees must receive overtime premium pay for hours worked beyond a standard weekly threshold. The footnote to this page states that the overtime premium rate is one and one-half times the employee's regular rate of pay, unless a different rate is specified by law. This means the overtime hourly rate is multiplied by a factor of one and one-half compared with the employee's normal hourly earnings. Some states impose daily overtime requirements or higher premium multipliers, but the federal rule described here remains the baseline for employers subject to the FLSA. The overtime calculation is based on the employee's actual regular rate, which may include certain nondiscretionary bonuses and other compensation in addition to the stated hourly wage. Employers must keep accurate records of hours worked to ensure proper overtime payment.", "quote": "The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified.", "offset": 17528, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:47.550Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/new-hampshire/2026/state.txt" } }, { "key": "who-to-ask-about-this-rate", "heading": "Who to ask about this rate, and where to take a wage complaint", "body": "The Wage and Hour Division of the U.S. Department of Labor maintains the information on this page but notes that the data should be confirmed with the relevant state labor office for official and current details. State agencies administer and enforce their own wage laws, which may differ from the federal rate of $7.25 per hour shown here. Workers who believe they have not been paid the correct minimum wage, or employers who need to confirm which rate applies to their workforce, should contact their state labor office directly. The Wage and Hour Division also operates a toll-free helpline for questions about federal wage and hour rules and accepts complaints from workers who believe their rights have been violated. Filing a complaint with the state labor office or the federal Wage and Hour Division is the appropriate step when a wage dispute cannot be resolved directly with the employer.", "quote": "The Wage and Hour Division tries to ensure that the information on this page is accurate, but individuals should consult the relevant state labor office for official information.", "offset": 17338, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:47.550Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/new-hampshire/2026/state.txt" } } ], "estimate": null }, { "program": "minimum-wage", "name": "Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "new-jersey", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-09-01", "published_at": "2026-09-01T09:41:01.891Z", "canonical_url": "https://ratesandlimits.com/minimum-wage/new-jersey/", "figures": [ { "key": "hourly", "label": "Hourly", "value": 15.92, "format": "usd", "formatted": "$15.92", "scope": null, "derived": false, "quote": "New Jersey\nBasic Minimum Rate (per hour): $15.92", "offset": 10681, "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:49.220Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/new-jersey/2026/state.txt" } } ], "schedule": null, "explainers": [ { "key": "annual-inflation-adjustment", "heading": "How the rate is adjusted each year, and who announces it", "body": "In New Jersey, the state minimum wage is adjusted every year through a formula tied to the cost of living, so the rate changes with inflation rather than waiting for the legislature to pass a new figure. The adjustment is announced by the state government before each new year's rate takes effect. For 2026, that adjustment sets New Jersey's hourly minimum wage at $15.92. Because the rate is recalculated annually using a price index, workers and employers in New Jersey can expect the floor under wages to move each year in line with changes in consumer prices, rather than remaining frozen at the same dollar amount until a separate law changes it.", "quote": "New Jersey\nBasic Minimum Rate (per hour): $15.92\nPremium Pay After Designated Hours\n1\n: Weekly - 40\nThe minimum wage is adjusted annually based on a set formula.", "offset": 10681, "verified_at": "2026-09-01", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:49.220Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/new-jersey/2026/state.txt" } }, { "key": "who-can-be-paid-less", "heading": "Minors, students and training wages: who may be paid less than the rate on this page", "body": "This page lists the general minimum wage rates that apply in each state and at the federal level. However, those rates do not apply to every worker in every situation. The document notes that some states establish subminimum wage rates specifically for minors and students, meaning that younger workers or those enrolled in school may legally be paid less than the standard rate shown. In addition, certain states completely exempt these categories of workers from minimum wage coverage, so the standard floor does not apply to them at all. Some states also allow employers to pay a lower training wage to newly hired employees during an initial period, which is separate from the regular minimum. These special provisions vary widely from state to state, and the table on this page does not attempt to display them. Workers or employers who need to know whether a subminimum rate applies should check their specific state's rules, as they can differ significantly from the rates published here.", "quote": "Some states set subminimum rates for minors and/or students or exempt them from coverage or have a training wage for new hires.", "offset": 17053, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:49.220Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/new-jersey/2026/state.txt" } }, { "key": "local-rates-can-be-higher", "heading": "When a city or county sets a higher minimum wage", "body": "This page displays the minimum wage rates set at the state and federal levels. It does not, however, include every local minimum wage that may apply in a given area. Cities, counties, and other local jurisdictions sometimes enact their own minimum wage laws that set a higher hourly floor than the state rate. When a local rate exceeds the state or federal minimum, workers in that locality are generally entitled to the higher amount. Because these local rates change frequently and vary block by block or city by city, this table does not attempt to list them. Workers should check whether their city or county has its own minimum wage ordinance and, if so, at what level it is set. The higher of the applicable federal, state, or local rate governs the pay an employer must provide.", "quote": "Some local governments set minimum wage rates higher than their respective state minimum\nwage. Such differential provisions are not displayed in this table.", "offset": 17181, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:49.220Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/new-jersey/2026/state.txt" } }, { "key": "overtime-premium", "heading": "Overtime is paid at one and one-half times the regular rate", "body": "Under the Fair Labor Standards Act, covered nonexempt employees must receive overtime pay for hours worked beyond a full workweek. The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified. This means that for every hour worked past the weekly threshold, the employee must be paid at least time and a half of whatever their normal hourly rate is. The regular rate includes all earnings such as hourly wages, commissions, and certain bonuses, not just the base hourly amount. With the minimum wage at $15.92 per hour, the overtime premium would bring the minimum overtime rate to a corresponding higher amount based on that figure. The overtime requirement applies on a per-workweek basis, not daily. Some states have their own overtime laws that may require premium pay at different thresholds, and those state-specific rules may offer greater protection to workers. When both federal and state overtime rules apply, the employee is entitled to whichever provides the greater benefit.", "quote": "The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified.", "offset": 17528, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:49.220Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/new-jersey/2026/state.txt" } }, { "key": "who-to-ask-about-this-rate", "heading": "Who to ask about this rate, and where to take a wage complaint", "body": "If you have questions about the minimum wage rate or need to file a wage complaint, you should contact the relevant state labor office. The Wage and Hour Division maintains this information, but individuals should consult with their state labor office for official and current information about minimum wage requirements. State labor offices can provide guidance on both state and local minimum wage rates, overtime rules, and how to file complaints if employers are not paying the correct wages. Contact information for state labor offices is available through the Department of Labor.", "quote": "The Wage and Hour Division tries to ensure that the information on this page is accurate, but individuals should consult the relevant state labor office for official information.", "offset": 17338, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:49.220Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/new-jersey/2026/state.txt" } } ], "estimate": null }, { "program": "minimum-wage", "name": "Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "new-mexico", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-29", "published_at": "2026-08-29T10:20:44.360Z", "canonical_url": "https://ratesandlimits.com/minimum-wage/new-mexico/", "figures": [ { "key": "hourly", "label": "Hourly", "value": 12, "format": "usd", "formatted": "$12", "scope": null, "derived": false, "quote": "New Mexico\nBasic Minimum Rate (per hour): $12.00", "offset": 10977, "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:50.824Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/new-mexico/2026/state.txt" } } ], "schedule": null, "explainers": [ { "key": "who-can-be-paid-less", "heading": "Minors, students and training wages: who may be paid less than the rate on this page", "body": "In 2026, the minimum wage is $12 per hour. However, certain workers may be paid less than this rate under specific circumstances. Some states allow employers to pay minors and students a subminimum wage, which is lower than the standard minimum wage. Additionally, some states have a training wage for new hires, allowing employers to pay a reduced rate during an initial training period. In some cases, minors and students may be completely exempt from minimum wage coverage. These special provisions vary by state, so workers and employers should check their state's specific rules to understand if a subminimum, training, or exempt rate applies.", "quote": "Some states set subminimum rates for minors and/or students or exempt them from coverage or have a training wage for new hires.", "offset": 17053, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:50.824Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/new-mexico/2026/state.txt" } }, { "key": "local-rates-can-be-higher", "heading": "When a city or county sets a higher minimum wage", "body": "While the 2026 minimum wage is $12 per hour at the state level, individual cities and counties have the authority to set their own minimum wage rates that are higher than the state rate. When a local government establishes a higher minimum wage, employers within that jurisdiction must pay the local rate instead of the state rate. These local variations are not displayed in the state minimum wage table, so workers and employers need to check with their local government to determine if a higher rate applies in their area. This means the actual minimum wage someone receives can depend on the specific city or county where they work, not just the state where they are employed.", "quote": "Some local governments set minimum wage rates higher than their respective state minimum\nwage.", "offset": 17181, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:50.824Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/new-mexico/2026/state.txt" } }, { "key": "overtime-premium", "heading": "Overtime is paid at one and one-half times the regular rate", "body": "Under the Fair Labor Standards Act, employees who work overtime are entitled to premium pay. The overtime premium rate is one and one-half times the employee's regular hourly rate. This means that for every hour worked beyond the standard threshold, the employee receives their base rate plus an additional half of that rate as premium pay. For example, if an employee earns the $12 minimum wage, their overtime compensation would be calculated by multiplying $12 by one and one-half. Some states have different overtime thresholds or daily overtime rules that may apply instead of the standard weekly calculation. The general rule is one and one-half times the regular rate unless state law specifies a different calculation method. Workers with questions about overtime pay should contact their state labor office for clarification on the rules that apply to their situation.", "quote": "The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified.", "offset": 17528, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:50.824Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/new-mexico/2026/state.txt" } }, { "key": "who-to-ask-about-this-rate", "heading": "Who to ask about this rate, and where to take a wage complaint", "body": "The Wage and Hour Division works to maintain accurate minimum wage information, but for official and authoritative guidance on wage rates and requirements, individuals should contact their state labor office directly. State labor offices can provide definitive answers about minimum wage rates, overtime rules, subminimum wages, and other employment standards that apply in that specific state. If you have questions about whether you are being paid correctly, need to file a wage complaint, or want to understand your rights under state wage laws, the state labor office is the appropriate resource to consult. They have the official information needed to resolve wage disputes and clarify employment requirements.", "quote": "The Wage and Hour Division tries to ensure that the information on this page is accurate, but individuals should consult the relevant state labor office for official information.", "offset": 17338, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:50.824Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/new-mexico/2026/state.txt" } } ], "estimate": null }, { "program": "minimum-wage", "name": "Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "new-york", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-09-01", "published_at": "2026-09-01T07:22:14.271Z", "canonical_url": "https://ratesandlimits.com/minimum-wage/new-york/", "figures": [ { "key": "hourly", "label": "Hourly", "value": 17, "format": "usd", "formatted": "$17", "scope": "New York City, Nassau County, Suffolk County, & Westchester County", "derived": false, "quote": "New York\nBasic Minimum Rate (per hour): $17.00 (New York City, Nassau County, Suffolk County, & Westchester County); $16.00 (remainder of the state)", "offset": 11077, "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:52.547Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/new-york/2026/state.txt" } } ], "schedule": null, "explainers": [ { "key": "federal-and-state-rate-together", "heading": "State minimum wage laws that give more than the federal rate", "body": "New York pays $17.00 an hour, above the federal minimum, and state law also provides that the federal figure takes over should the federal one ever be the greater. Both halves matter. Today the state figure is the higher, so $17.00 is what an employer in New York owes and the federal rate has no practical effect. The other clause is insurance: if Congress raised the federal minimum past $17.00, New York would follow it up without needing to legislate. Nothing in either rule lets an employer pay the lower of the two. Where federal and state minimum wage law both apply to a job, the employee is owed the higher rate, and that is the whole of the interaction.", "quote": "The New York minimum wage equals the federal minimum wage when set below the federal rate.", "offset": 11277, "verified_at": "2026-09-01", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:52.547Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/new-york/2026/state.txt" } }, { "key": "who-can-be-paid-less", "heading": "Minors, students and training wages: who may be paid less than the rate on this page", "body": "The federal minimum wage applies broadly, but certain categories of workers may be paid less than the standard rate under specific conditions. Some states authorize subminimum wages for minors and students, recognizing that younger or less experienced workers may receive reduced compensation. Additionally, some states provide exemptions from minimum wage coverage entirely for particular worker classifications, or establish a separate training wage for newly hired employees during an initial period. These provisions vary significantly by jurisdiction. Employers must determine whether any applicable state subminimum rate, exemption, or training wage applies to their workers before paying below the standard rate. The general minimum wage of $17 per hour does not automatically apply to every worker in every situation where state law permits a lower rate for defined categories.", "quote": "Some states set subminimum rates for minors and/or students or exempt them from coverage or have a training wage for new hires.", "offset": 17053, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:52.547Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/new-york/2026/state.txt" } }, { "key": "local-rates-can-be-higher", "heading": "When a city or county sets a higher minimum wage", "body": "While the state minimum wage establishes a baseline, cities and counties retain authority to set their own minimum wage rates that exceed the state level. When a local government enacts a higher rate, employers within that jurisdiction must pay the local rate rather than the lower state or federal rate. These local ordinances vary widely in their amounts, effective dates, employer size thresholds, and phase-in schedules. The variations among local jurisdictions are not reflected in statewide rate tables, so employers and workers in areas with local minimum wage laws must look beyond the state figure. An employee working in a city with a local ordinance may be entitled to a higher hourly rate than the general state minimum of $17. Employers operating in multiple localities must track and apply the correct rate for each work location.", "quote": "Some local governments set minimum wage rates higher than their respective state minimum\nwage.", "offset": 17181, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:52.547Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/new-york/2026/state.txt" } }, { "key": "overtime-premium", "heading": "Overtime is paid at one and one-half times the regular rate", "body": "When an employee works more than the designated weekly hours, the employer must pay an overtime premium. That premium is calculated as one and one-half times the employee's regular rate of pay. This means each overtime hour is compensated at a rate higher than the normal hourly earnings. The overtime requirement applies under the Fair Labor Standards Act to covered nonexempt employees. Not all workers qualify for overtime; certain executive, administrative, professional, and other categories of employees may be exempt. Employers must correctly classify workers and track hours worked to determine when the premium rate is triggered. The regular rate used for the overtime calculation includes all remuneration for employment, not just the base hourly amount. Workers earning the $17 hourly minimum wage would have their overtime calculated based on that regular rate multiplied by one and one-half for each overtime hour worked.", "quote": "The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified.", "offset": 17528, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:52.547Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/new-york/2026/state.txt" } }, { "key": "who-to-ask-about-this-rate", "heading": "Who to ask about this rate, and where to take a wage complaint", "body": "When a worker believes they have not been paid the correct minimum wage or overtime, or when an employer needs to confirm which rate applies, the appropriate step is to contact the relevant state labor office. State labor agencies maintain the official records of current minimum wage rates, overtime rules, exemptions, and any local ordinances that may apply. The Wage and Hour Division at the federal level also enforces the Fair Labor Standards Act, but state offices are the authoritative source for state-specific minimum wage amounts and any special provisions such as subminimum rates for minors or students. Workers should direct their questions and any complaints about unpaid wages to the state labor office in the state where the work is performed. Employers similarly should verify current rates and requirements with that office to ensure compliance with all applicable wage laws.", "quote": "individuals should consult the relevant state labor office for official information.", "offset": 17432, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:52.547Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/new-york/2026/state.txt" } } ], "estimate": null }, { "program": "minimum-wage", "name": "Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "north-carolina", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-29", "published_at": "2026-08-29T08:29:14.759Z", "canonical_url": "https://ratesandlimits.com/minimum-wage/north-carolina/", "figures": [ { "key": "hourly", "label": "Hourly", "value": 7.25, "format": "usd", "formatted": "$7.25", "scope": null, "derived": false, "quote": "North Carolina\nBasic Minimum Rate (per hour): $7.25", "offset": 12022, "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:54.321Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/north-carolina/2026/state.txt" } } ], "schedule": null, "explainers": [ { "key": "who-can-be-paid-less", "heading": "Minors, students and training wages: who may be paid less than the rate on this page", "body": "Although the federal minimum wage is $7.25 per hour, not every worker must be paid that amount. Some states allow employers to pay subminimum wages to certain categories of workers - for example, minors, students, or newly hired employees during a training period. A state may also completely exempt particular workers from its minimum-wage coverage. The table on this page shows only the general basic minimum rate for each state; it does not list these special lower rates or exemptions. If you are a young worker, a student, or a new hire, check your own state's labor law to find out whether a lower wage may legally apply to you. The verified federal hourly rate of $7.25 remains the floor for covered employees who do not fall into one of those special categories.", "quote": "Some states set subminimum rates for minors and/or students or exempt them from coverage or have a training wage for new hires.", "offset": 17053, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:54.321Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/north-carolina/2026/state.txt" } }, { "key": "local-rates-can-be-higher", "heading": "When a city or county sets a higher minimum wage", "body": "The federal minimum wage of $7.25 per hour serves as a baseline, but many cities and counties have enacted their own minimum wage laws that exceed both the federal and state rates. When a local government sets a higher minimum wage, employers within that jurisdiction must pay the higher local rate to their workers. These local ordinances can vary dramatically even within the same state, creating a patchwork of different minimum wage requirements across neighboring municipalities. The table on this page displays only federal and state minimum wage rates, not the various local rates that may apply in specific cities or counties. Workers and employers in areas with local minimum wage laws should research the specific rate that applies in their city or county, as it may be significantly higher than the state or federal minimum. These local provisions are not reflected in the state-by-state table displayed here.", "quote": "Some local governments set minimum wage rates higher than their respective state minimum\nwage.", "offset": 17181, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:54.321Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/north-carolina/2026/state.txt" } }, { "key": "overtime-premium", "heading": "Overtime is paid at one and one-half times the regular rate", "body": "Federal law requires employers to pay overtime at a premium rate to covered, non-exempt employees who work beyond their normal hours. Under the Fair Labor Standards Act, the overtime premium rate is one and one-half times the employee's regular rate of pay. This means that for every hour of overtime worked, the employee must receive at least one and one-half times what they normally earn per hour. The rule applies regardless of whether the employee is paid hourly or on a salary basis, as long as the employee is covered by the FLSA and is not exempt. Some states have their own overtime laws that may provide additional protections or different thresholds for when overtime must be paid, but the federal standard of one and one-half times the regular rate serves as the baseline requirement. Employers and employees should also check applicable state law, as it may differ from the federal rule.", "quote": "The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified.", "offset": 17528, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:54.321Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/north-carolina/2026/state.txt" } }, { "key": "who-to-ask-about-this-rate", "heading": "Who to ask about this rate, and where to take a wage complaint", "body": "When workers have questions about minimum wage rates that apply to their specific situation, or when they believe their employer is not paying the correct wage, they should contact the appropriate state labor office. While the Wage and Hour Division administers federal minimum wage laws and maintains information about rates, state labor offices have jurisdiction over state-specific minimum wage requirements and can provide official guidance on which rates apply in particular circumstances. State labor offices can also handle complaints about wage violations and enforce state minimum wage laws. Workers who believe they have not been paid the proper minimum wage or overtime should consult their state labor office for information about filing a wage complaint. These offices can explain whether federal or state law applies to a worker's situation and what remedies may be available for wage violations. Contact information for state labor offices is available through state government websites.", "quote": "The Wage and Hour Division tries to ensure that the information on this page is accurate, but individuals should consult the relevant state labor office for official information.", "offset": 17338, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:54.321Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/north-carolina/2026/state.txt" } } ], "estimate": null }, { "program": "minimum-wage", "name": "Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "north-dakota", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-29", "published_at": "2026-08-29T08:59:26.943Z", "canonical_url": "https://ratesandlimits.com/minimum-wage/north-dakota/", "figures": [ { "key": "hourly", "label": "Hourly", "value": 7.25, "format": "usd", "formatted": "$7.25", "scope": null, "derived": false, "quote": "North Dakota\nBasic Minimum Rate (per hour): $7.25", "offset": 12226, "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:56.020Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/north-dakota/2026/state.txt" } } ], "schedule": null, "explainers": [ { "key": "who-can-be-paid-less", "heading": "Minors, students and training wages: who may be paid less than the rate on this page", "body": "Although the federal minimum wage is $7.25 per hour, certain categories of workers may be paid less under state law. States may establish a subminimum rate for minors, often based on age or the size of the employer. Full-time students employed by certain retail or service businesses, by agriculture, or by institutions of higher education may also qualify for a lower rate. In addition, some states authorize a training wage for newly hired employees, typically limited to a set number of hours or a short introductory period before the full minimum wage must be paid. In some cases states exempt these groups from minimum-wage coverage altogether. Because these lower rates are set by individual states and are not shown in this table, employers must look to their state's own labor law to determine whether a subminimum or training wage applies to a particular worker.", "quote": "Some states set subminimum rates for minors and/or students or exempt them from coverage or have a training wage for new hires.", "offset": 17053, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:56.020Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/north-dakota/2026/state.txt" } }, { "key": "local-rates-can-be-higher", "heading": "When a city or county sets a higher minimum wage", "body": "Even when a state follows the federal floor of $7.25 per hour, a city, county, or other local jurisdiction may enact its own minimum wage that exceeds the state rate. Workers employed within that locality are entitled to the higher local rate, not the lower state or federal figure. These local ordinances vary widely in their hourly amounts, the size of employer they cover, and whether they apply to all workers or only certain industries. Because local minimum wages are set independently and can change more frequently than state rates, they are not shown in this table. Workers and employers should check the website or labor department of the city or county where the work is performed to confirm the local rate that applies.", "quote": "Some local governments set minimum wage rates higher than their respective state minimum\nwage.", "offset": 17181, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:56.020Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/north-dakota/2026/state.txt" } }, { "key": "overtime-premium", "heading": "Overtime is paid at one and one-half times the regular rate", "body": "Under the Fair Labor Standards Act, covered non-exempt employees must receive overtime pay for all hours worked beyond the standard workweek. The overtime premium rate is one and one-half times the employee's regular rate of pay. The \"regular rate\" includes all remuneration for employment - base wages, non-discretionary bonuses, commissions, and certain other payments - divided by total hours worked, so the overtime amount may be higher than the employee's stated hourly wage. The workweek is a fixed, recurring period of seven consecutive days chosen by the employer; it need not match the calendar week. Overtime is calculated on a weekly basis, not a daily one, unless a state or local law requires daily overtime. The overtime rule applies regardless of whether the employee is paid hourly, by salary, by piece rate, or by any other method.", "quote": "The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified.", "offset": 17528, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:56.020Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/north-dakota/2026/state.txt" } }, { "key": "who-to-ask-about-this-rate", "heading": "Who to ask about this rate, and where to take a wage complaint", "body": "Questions about whether a particular employer or worker is covered by the federal minimum wage, or about state-specific rates, should be directed to the relevant state labor office, which maintains the official and most current information for that jurisdiction. For complaints that an employer has failed to pay the required minimum wage or overtime, workers may contact the U.S. Department of Labor's Wage and Hour Division. The Division can be reached by phone or through its website. Complaints may also be filed in person at a local Wage and Hour Division office. Workers are protected from retaliation for filing a complaint or participating in any proceeding under the Fair Labor Standards Act.", "quote": "individuals should consult the relevant state labor office for official information.", "offset": 17432, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:56.020Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/north-dakota/2026/state.txt" } } ], "estimate": null }, { "program": "minimum-wage", "name": "Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "northern-mariana-islands", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-29", "published_at": "2026-08-29T09:00:02.208Z", "canonical_url": "https://ratesandlimits.com/minimum-wage/northern-mariana-islands/", "figures": [ { "key": "hourly", "label": "Hourly", "value": 7.25, "format": "usd", "formatted": "$7.25", "scope": null, "derived": false, "quote": "Northern Mariana Islands\nBasic Minimum Rate (per hour): $7.25", "offset": 12327, "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:58.435Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/northern-mariana-islands/2026/state.txt" } } ], "schedule": null, "explainers": [ { "key": "who-can-be-paid-less", "heading": "Minors, students and training wages: who may be paid less than the rate on this page", "body": "Under the Fair Labor Standards Act, the standard federal minimum wage is $7.25 per hour. However, certain categories of workers may be paid less than this rate. Some states authorize employers to pay minors or students a subminimum wage, while others exempt these groups entirely from minimum wage coverage. Additionally, some states allow a training wage for newly hired employees, which may also fall below the standard rate. These special provisions vary significantly by jurisdiction and are not captured in the federal minimum wage table. Employers must verify which categories of workers qualify for reduced rates under their specific state laws before applying any subminimum wage. Workers and employers seeking clarification about these exceptions should review applicable state statutes or contact the appropriate labor agency to confirm eligibility requirements and rate limitations.", "quote": "Some states set subminimum rates for minors and/or students or exempt them from coverage or have a training wage for new hires.", "offset": 17053, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:58.435Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/northern-mariana-islands/2026/state.txt" } }, { "key": "local-rates-can-be-higher", "heading": "When a city or county sets a higher minimum wage", "body": "The federal minimum wage of $7.25 per hour is the baseline, but certain cities, counties, and other local jurisdictions may enact their own minimum wage laws that exceed the state or federal rate. When a locality sets a higher minimum wage, employers in that area must generally pay the higher local rate rather than the lower state or federal rate. These local wage ordinances are not reflected in the table on this page, which focuses on state-level rates. Workers who believe their local government has established a higher minimum wage should check with their city or county government or their state labor office to confirm the rate that applies in their area and understand how local and state minimum wages interact.", "quote": "Some local governments set minimum wage rates higher than their respective state minimum\nwage.", "offset": 17181, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:58.435Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/northern-mariana-islands/2026/state.txt" } }, { "key": "overtime-premium", "heading": "Overtime is paid at one and one-half times the regular rate", "body": "The federal overtime rule under the Fair Labor Standards Act requires employers to pay non-exempt employees an overtime premium for hours worked beyond the designated weekly threshold. That premium rate is one and one-half times the employee's regular rate of pay. For an employee earning the federal minimum wage of $7.25 per hour, the overtime rate would be calculated by multiplying that hourly amount by one and one-half for each overtime hour worked. The table on this page notes the weekly overtime threshold for each state, but the specific premium calculation follows this formula unless a different rule applies. Workers who believe they have not been properly compensated for overtime hours should review the premium pay provisions listed for their state and contact the Wage and Hour Division if they have questions about their entitlements.", "quote": "The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified.", "offset": 17528, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:58.435Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/northern-mariana-islands/2026/state.txt" } }, { "key": "who-to-ask-about-this-rate", "heading": "Who to ask about this rate, and where to take a wage complaint", "body": "The Wage and Hour Division of the U.S. Department of Labor administers the federal minimum wage and attempts to keep the information on this page accurate, but it is not the final authority on state-specific wage rules. For official and current information about minimum wage rates, overtime provisions, subminimum wages, or any other state labor law, individuals should consult the relevant state labor office. State labor offices maintain the authoritative records of wage rates, exemptions, and enforcement procedures within their jurisdiction. Workers with questions about whether they are being paid correctly, or employers seeking guidance on compliance, can reach out to their state labor office directly or contact the federal Wage and Hour Division for assistance with federal minimum wage matters.", "quote": "The Wage and Hour Division tries to ensure that the information on this page is accurate, but individuals should consult the relevant state labor office for official information.", "offset": 17338, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:46:58.435Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/northern-mariana-islands/2026/state.txt" } } ], "estimate": null }, { "program": "minimum-wage", "name": "Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "ohio", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-09-01", "published_at": "2026-09-01T09:27:43.417Z", "canonical_url": "https://ratesandlimits.com/minimum-wage/ohio/", "figures": [ { "key": "hourly", "label": "Hourly", "value": 11, "format": "usd", "formatted": "$11", "scope": "Employers with annual gross receipts of $405,000 or more", "derived": false, "quote": "Ohio\nEmployers with annual gross receipts of $405,000 or more\nBasic Minimum Rate (per hour): $11.00", "offset": 12389, "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:45:48.920Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/ohio/2026/state.txt" } } ], "schedule": null, "explainers": [ { "key": "annual-inflation-adjustment", "heading": "How the rate is adjusted each year, and who announces it", "body": "Ohio's minimum wage is not fixed permanently but adjusts each year to reflect changes in the cost of living. The state uses a formula tied to inflation metrics to determine the annual increase, ensuring that the wage floor keeps pace with economic conditions. This automatic adjustment mechanism means the $11.00 rate for 2026 reflects accumulated inflation since the base period. The adjustment process operates without requiring new legislation each year, providing predictability for both workers and employers. Ohio's approach follows a pattern used by multiple states that index their minimum wages to inflation, though the specific formula and timing can vary by jurisdiction.", "quote": "Ohio\nEmployers with annual gross receipts of $405,000 or more\nBasic Minimum Rate (per hour): $11.00\nPremium Pay After Designated Hours\n1\n: Weekly - 40\nEmployers with annual gross receipts under $405,000\nBasic Minimum Rate (per hour): $7.25\nPremium Pay After Designated Hours\n1\n: Weekly - 40\nThe minimum wage is adjusted annually based on a set formula", "offset": 12389, "verified_at": "2026-09-01", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:45:48.920Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/ohio/2026/state.txt" } }, { "key": "who-can-be-paid-less", "heading": "Minors, students and training wages: who may be paid less than the rate on this page", "body": "Some states allow employers to pay certain workers less than the standard minimum wage. These special categories include minors, students, and new hires who may be paid a training wage during an initial employment period. Some states also exempt specific worker categories entirely from minimum wage coverage. The table on this page does not display these differential provisions, so employers and workers must check their state's specific rules to determine whether a subminimum rate applies. The federal hourly rate shown on this page still serves as the baseline, but state-level exceptions can reduce what certain workers actually receive. Always verify with state authorities before applying a subminimum wage to any employee.", "quote": "Some states set subminimum rates for minors and/or students or exempt them from coverage or have a training wage for new hires.", "offset": 17053, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:45:48.920Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/ohio/2026/state.txt" } }, { "key": "local-rates-can-be-higher", "heading": "When a city or county sets a higher minimum wage", "body": "The $11 hourly minimum wage shown on this page represents state-level rates, but many cities and counties have enacted their own minimum wage laws that exceed the state rate. When a local government sets a higher minimum wage, employers in that locality must pay the higher rate. These local wage floors are not displayed in the table on this page, so workers and employers need to check whether their city or county has established a separate minimum wage that applies to them. Local minimum wages can vary significantly even within the same state, and they may have different rules about which employers are covered or what size business must comply. Always verify the requirements that apply in your specific location.", "quote": "Some local governments set minimum wage rates higher than their respective state minimum\nwage. Such differential provisions are not displayed in this table.", "offset": 17181, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:45:48.920Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/ohio/2026/state.txt" } }, { "key": "overtime-premium", "heading": "Overtime is paid at one and one-half times the regular rate", "body": "Under the Fair Labor Standards Act, covered non-exempt employees must receive overtime pay for hours worked beyond the standard workweek. The overtime premium rate is one and one-half times the employee's regular rate of pay. For workers earning the $11 hourly minimum wage, this means overtime hours must be paid at a higher rate than their regular wages. Some states have their own overtime rules that may require premium pay after a certain number of hours in a single day, not just in a workweek, and those rules can be more generous than federal law. The footnote on this page clarifies that the one-and-one-half multiplier is the standard overtime premium unless a specific state law says otherwise. Employers must follow whichever standard - federal or state - provides the greater benefit to the employee. Workers who believe they have not been properly compensated for overtime should contact the Wage and Hour Division or their state labor office.", "quote": "The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified.", "offset": 17528, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:45:48.920Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/ohio/2026/state.txt" } }, { "key": "who-to-ask-about-this-rate", "heading": "Who to ask about this rate, and where to take a wage complaint", "body": "The Wage and Hour Division maintains this table of state minimum wage rates, but it is not the final authority on what you are owed. Because state laws change frequently and some states allow subminimum rates for certain workers or permit local governments to set higher minimum wages, the Division recommends that individuals consult the relevant state labor office for official, up-to-date information about the rate that applies in their jurisdiction. If you believe your employer is paying you less than the required minimum wage, you can file a complaint with your state labor office or contact the federal Wage and Hour Division. The Wage and Hour Division can be reached through their website or by telephone. State labor office contact information is available through the Department of Labor's directory of state labor offices. Keep records of your hours worked and wages paid to support any claim.", "quote": "The Wage and Hour Division tries to ensure that the information on this page is accurate, but individuals should consult the relevant state labor office for official information.", "offset": 17338, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:45:48.920Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/ohio/2026/state.txt" } } ], "estimate": null }, { "program": "minimum-wage", "name": "Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "oklahoma", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-09-01", "published_at": "2026-09-01T08:52:51.327Z", "canonical_url": "https://ratesandlimits.com/minimum-wage/oklahoma/", "figures": [ { "key": "hourly", "label": "Hourly", "value": 7.25, "format": "usd", "formatted": "$7.25", "scope": "Employers with ten or more full time employees at any one location or employers with annual gross sales over $100,000", "derived": false, "quote": "Oklahoma\nEmployers with ten or more full time employees at any one location or employers with annual gross sales over $100,000 irrespective of number of full time employees.\nBasic Minimum Rate (per hour): $7.25", "offset": 12741, "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:01.600Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/oklahoma/2026/state.txt" } } ], "schedule": null, "explainers": [ { "key": "federal-and-state-rate-together", "heading": "State minimum wage laws that give more than the federal rate", "body": "Oklahoma does not set a state minimum wage that is higher than the federal floor. The state law does not contain its own dollar minimums; instead it adopts the federal minimum wage rate by reference. For Oklahoma workers whose employment is covered by both state and federal law, the result is that they earn at least $7.25 per hour, which is the federal rate. Oklahoma's law then excludes from coverage any employment that is already subject to the federal Fair Labor Standards Act, which means most covered employees in the state are governed directly by the federal minimum wage rather than by a separate state rate that is higher. There is no Oklahoma-specific rule that pushes the wage above the federal amount, and no separate state formula that adds to it. The $7.25 figure that applies in Oklahoma therefore comes from the federal government, not from a state decision to go beyond it.", "quote": "The Oklahoma state minimum wage law does not contain current dollar minimums. Instead the state adopts the federal minimum wage rate by reference.\nThe State law excludes from coverage any employment that is subject to the federal Fair Labor Standards Act.", "offset": 13009, "verified_at": "2026-09-01", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:01.600Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/oklahoma/2026/state.txt" } }, { "key": "state-rate-below-the-federal-floor", "heading": "Why the federal rate applies when the state rate is lower", "body": "Oklahoma does not keep its minimum wage independent of the federal one: state law takes the federal figure by reference where the federal rate is the higher of the two. The rate on this page is $7.25 an hour, and it moves when the federal minimum moves rather than when Oklahoma legislates. That is worth knowing for two reasons. It means no Oklahoma bill is needed for your rate to rise - a federal increase reaches you automatically. And it means an employer cannot pay less by pointing at a lower state figure, because there is no lower state figure to point at. Where a state rate is the higher one, the state rate is what applies; that is simply not the position in Oklahoma today.", "quote": "The Oklahoma state minimum wage law does not contain current dollar minimums. Instead the state adopts the federal minimum wage rate by reference.", "offset": 13009, "verified_at": "2026-09-01", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:01.600Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/oklahoma/2026/state.txt" } }, { "key": "who-can-be-paid-less", "heading": "Minors, students and training wages: who may be paid less than the rate on this page", "body": "The federal minimum wage applies broadly, but certain categories of workers may be paid less than the standard rate. States have the authority to establish subminimum wages for specific groups, including minors and students. Additionally, some states provide exemptions from minimum wage coverage entirely or allow employers to pay a lower training wage to newly hired employees during an initial period. These special provisions vary by state and are not reflected in the federal rate shown on this page. Employers must determine whether any applicable state subminimum wage, exemption, or training wage applies to their workers. Workers who believe they may fall into one of these categories should verify the rules that apply in their state, as the conditions and rates differ. The federal floor of $7.25 per hour remains the baseline for covered, nonexempt employees unless a qualifying exception is in effect.", "quote": "Some states set subminimum rates for minors and/or students or exempt them from coverage or have a training wage for new hires.", "offset": 17053, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:01.600Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/oklahoma/2026/state.txt" } }, { "key": "local-rates-can-be-higher", "heading": "When a city or county sets a higher minimum wage", "body": "While the federal minimum wage sets a floor of $7.25 per hour, cities and counties within a state can enact their own minimum wage ordinances that exceed the state rate. When a local government does this, employers in that locality must pay the higher local rate rather than the state minimum. These local increases are not shown in the federal table, which only displays state-level rates. Workers in high-cost urban areas often find that their city or county minimum is significantly above both the state and federal figures. Employers operating in multiple jurisdictions must track which local rules apply at each worksite.", "quote": "Some local governments set minimum wage rates higher than their respective state minimum\nwage.", "offset": 17181, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:01.600Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/oklahoma/2026/state.txt" } }, { "key": "overtime-premium", "heading": "Overtime is paid at one and one-half times the regular rate", "body": "Under the Fair Labor Standards Act, covered non-exempt employees who work beyond their designated weekly hours are entitled to overtime pay. The federal overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified by a particular provision or agreement. This means that for every overtime hour worked, the employee must receive at least a multiplier above what they normally earn per hour. For a worker paid the federal minimum of $7.25 per hour, the overtime rate would be calculated from that base using the one-and-one-half multiplier. The requirement is triggered by total hours worked in a workweek rather than by daily hours. Certain exemptions exist for specific categories of workers, but the one and one-half multiplier is the standard federal rule for most hourly employees who exceed the weekly threshold.", "quote": "The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified.", "offset": 17528, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:01.600Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/oklahoma/2026/state.txt" } }, { "key": "who-to-ask-about-this-rate", "heading": "Who to ask about this rate, and where to take a wage complaint", "body": "The Wage and Hour Division of the Department of Labor maintains the federal minimum wage table, but it advises that individuals should consult the relevant state labor office for official information about the rate that applies to them. Because states may set their own minimum wages, exemptions, and overtime rules that differ from the federal figures, the state labor office is the authoritative source for workplace-specific guidance. Workers who believe they are being paid below the required rate or who have questions about coverage should contact their state agency directly. The Wage and Hour Division of the U.S. Department of Labor also provides a toll-free help line and a website for federal wage and hour inquiries, but the page itself directs readers to their state office for the information that governs their specific employment situation.", "quote": "The Wage and Hour Division tries to ensure that the information on this page is accurate, but individuals should consult the relevant state labor office for official information.", "offset": 17338, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:01.600Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/oklahoma/2026/state.txt" } } ], "estimate": null }, { "program": "minimum-wage", "name": "Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "oregon", "status": "official", "effective_date": "2026-07-01", "date_basis": "as-of", "verified_at": "2026-09-01", "published_at": "2026-09-01T07:24:10.676Z", "canonical_url": "https://ratesandlimits.com/minimum-wage/oregon/", "figures": [ { "key": "hourly", "label": "Hourly", "value": 15.55, "format": "usd", "formatted": "$15.55", "scope": "standard state rate", "derived": false, "quote": "Oregon\nBasic Minimum Rate (per hour): $15.55 (standard state rate); $16.80 (Portland Metro Area); $14.55 (Non-Urban counties)", "offset": 13265, "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:03.515Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/oregon/2026/state.txt" } } ], "schedule": null, "explainers": [ { "key": "annual-inflation-adjustment", "heading": "How the rate is adjusted each year, and who announces it", "body": "The $15.55 on this page is not a figure the Oregon legislature set and left. State law adjusts the minimum wage annually by a formula, so the rate changes on July 1 without a new bill each time, and the number you were paid last year is not evidence of what you are owed now. Two things follow for anyone checking a payslip. The rate is dated: a payslip covering the changeover carries hours at both rates, and an employer paying the old figure after the change is underpaying even though the figure was right a week earlier. And the next rate is normally announced before it takes effect, so it can be checked against the Oregon labour department rather than guessed at from inflation.", "quote": "The Oregon minimum wage is adjusted annually on July 1 based on a set formula. There is a higher minimum wage in the Portland metro area and a lower minimum wage in non-urban counties. See", "offset": 13660, "verified_at": "2026-09-01", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:03.515Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/oregon/2026/state.txt" } }, { "key": "who-can-be-paid-less", "heading": "Minors, students and training wages: who may be paid less than the rate on this page", "body": "Under the Fair Labor Standards Act, employers must pay at least the federal minimum wage. However, certain categories of workers may be paid less than the standard rate. Some states establish subminimum wage rates specifically for minors (workers below 18 years of age) and for students. States may also create a training wage for newly hired employees who are still learning the job. In some cases, these categories of workers are entirely exempt from minimum wage coverage. These lower rates vary by state and are not reflected in the standard minimum wage figures. Employers who wish to pay subminimum wages must meet specific federal and state requirements and may need to obtain authorization from the Wage and Hour Division. Workers who believe they are being unlawfully paid below the minimum wage should contact their state labor office or the U.S. Department of Labor's Wage and Hour Division.", "quote": "Some states set subminimum rates for minors and/or students or exempt them from coverage or have a training wage for new hires.", "offset": 17053, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:03.515Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/oregon/2026/state.txt" } }, { "key": "local-rates-can-be-higher", "heading": "When a city or county sets a higher minimum wage", "body": "The minimum wage rate displayed on this page represents the baseline wage for most covered workers, but it is not always the highest rate that applies. Some cities and counties have enacted their own minimum wage laws that require employers to pay more than the federal or state minimum wage. When a local minimum wage is higher than the state or federal rate, employers in that jurisdiction must pay the higher local rate. These local rates vary widely across the country and may be significantly above the standard minimum wage shown here. Workers and employers should check with their city or county government to determine if a higher local minimum wage applies in their area. The table on this page does not display these local variations.", "quote": "Some local governments set minimum wage rates higher than their respective state minimum\nwage.", "offset": 17181, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:03.515Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/oregon/2026/state.txt" } }, { "key": "overtime-premium", "heading": "Overtime is paid at one and one-half times the regular rate", "body": "Under the Fair Labor Standards Act, employees who work overtime must receive a premium wage on top of their normal hourly pay. The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified. This means that for every overtime hour worked, the employee earns one and one-half times their standard hourly wage. For an employee paid the standard minimum rate of $15.55 per hour, each overtime hour must be compensated at one and one-half times that amount. This premium applies to hours worked beyond the weekly threshold set by the FLSA, though individual states may impose different daily or weekly overtime standards. Employers are required to track hours worked and calculate the premium correctly. The rule applies to virtually all non-exempt employees covered by federal law, with limited carve-outs for certain executive, administrative, and professional workers.", "quote": "The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified.", "offset": 17528, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:03.515Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/oregon/2026/state.txt" } }, { "key": "who-to-ask-about-this-rate", "heading": "Who to ask about this rate, and where to take a wage complaint", "body": "Individuals who need official information about minimum wage rates, overtime requirements, or other wage and hour issues should consult the relevant state labor office. State labor offices can provide authoritative guidance on state-specific minimum wage laws, exemptions, and enforcement procedures. The Wage and Hour Division of the U.S. Department of Labor maintains information on this page but recommends that individuals verify rates and requirements with their state labor office. Workers who believe their employer is not paying the correct minimum wage or overtime can file a complaint with the Wage and Hour Division. The division investigates complaints and can recover back wages for workers who have been underpaid. Contact information for the Wage and Hour Division and state labor offices is available through the Department of Labor's website.", "quote": "The Wage and Hour Division tries to ensure that the information on this page is accurate, but individuals should consult the relevant state labor office for official information.", "offset": 17338, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:03.515Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/oregon/2026/state.txt" } } ], "estimate": null }, { "program": "minimum-wage", "name": "Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "pennsylvania", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-09-01", "published_at": "2026-09-01T09:20:27.969Z", "canonical_url": "https://ratesandlimits.com/minimum-wage/pennsylvania/", "figures": [ { "key": "hourly", "label": "Hourly", "value": 7.25, "format": "usd", "formatted": "$7.25", "scope": null, "derived": false, "quote": "Pennsylvania\nBasic Minimum Rate (per hour): $7.25", "offset": 13881, "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-27T15:09:14.678Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/pennsylvania/2026/state.txt" } } ], "schedule": null, "explainers": [ { "key": "overtime-premium", "heading": "Overtime is paid at one and one-half times the regular rate", "body": "The federal overtime rule under the Fair Labor Standards Act requires that covered, non-exempt employees in Pennsylvania receive extra pay for hours worked beyond the standard full-time week. The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified. For a worker earning Pennsylvania's $7.25 hourly minimum wage, this means overtime hours must be paid at a higher hourly amount. Employers in Pennsylvania that are subject to the FLSA must follow this requirement regardless of what state law says, because the federal Fair Labor Standards Act sets the overtime standard nationwide. The footnote applies across the entire state table published by the Department of Labor.", "quote": "1 The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified.", "offset": 17526, "verified_at": "2026-09-01", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-27T15:09:14.678Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/pennsylvania/2026/state.txt" } }, { "key": "who-can-be-paid-less", "heading": "Minors, students and training wages: who may be paid less than the rate on this page", "body": "The federal minimum wage of $7.25 per hour applies to covered employers nationwide. However, certain categories of workers may lawfully be paid less than that amount. States have the authority to establish subminimum wage rates specifically for minors - for example, youth under a certain age who are not yet full participants in the labor force - and for students who are enrolled in school and working part time. In addition, some states provide a training wage, sometimes called a learner's wage, that allows employers to pay a lower hourly rate to newly hired employees during an initial orientation or training period. Other states may exempt these groups entirely from their minimum wage requirements, meaning neither the federal floor nor a state floor would apply to them. The table on this page does not show these special provisions. Employers who hire young people, students, or new trainees need to check their own state's rules to determine whether a reduced rate is permitted and, if so, what conditions must be met to qualify for it.", "quote": "Some states set subminimum rates for minors and/or students or exempt them from coverage or have a training wage for new hires.", "offset": 17053, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-27T15:09:14.678Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/pennsylvania/2026/state.txt" } }, { "key": "local-rates-can-be-higher", "heading": "When a city or county sets a higher minimum wage", "body": "The $7.25 per hour federal minimum wage is only a floor. Cities, counties, and other local governments are free to enact their own minimum-wage ordinances that require employers in their jurisdiction to pay a higher hourly rate than either the federal or the state minimum wage. When a local minimum wage is higher than the state rate, the employer generally must pay the highest of the three - federal, state, and local - that applies to the worker. The table on this page shows only the state and federal rates; it does not list the higher local rates that may be in effect in particular cities or counties. An employer with workers in multiple jurisdictions must therefore check the ordinances of each city or county where work is performed. Workers who believe their employer is paying a rate below the local minimum should raise the issue with the local agency that enforces the ordinance, in addition to the state labor office and the federal Wage and Hour Division.", "quote": "Some local governments set minimum wage rates higher than their respective state minimum\nwage.", "offset": 17181, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-27T15:09:14.678Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/pennsylvania/2026/state.txt" } }, { "key": "who-to-ask-about-this-rate", "heading": "Who to ask about this rate, and where to take a wage complaint", "body": "Although the Wage and Hour Division of the U.S. Department of Labor publishes the rates shown on this page and works to keep them current, the definitive source for any particular state's minimum wage is the state labor office itself. Individuals - whether workers who believe they are being underpaid or employers who want to confirm their obligations - should consult the relevant state labor office for official information. State offices can confirm the exact rate that applies, whether any exemptions or subminimum provisions are available, and how state overtime rules interact with the federal floor. A wage complaint about unpaid or underpaid wages can also be directed to the Wage and Hour Division, which enforces the Fair Labor Standards Act, or to the appropriate state agency where the violation involves a state-level requirement.", "quote": "individuals should consult the relevant state labor office for official information.", "offset": 17432, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-27T15:09:14.678Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/pennsylvania/2026/state.txt" } } ], "estimate": null }, { "program": "minimum-wage", "name": "Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "puerto-rico", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-09-01", "published_at": "2026-09-01T09:32:32.890Z", "canonical_url": "https://ratesandlimits.com/minimum-wage/puerto-rico/", "figures": [ { "key": "hourly", "label": "Hourly", "value": 10.5, "format": "usd", "formatted": "$10.50", "scope": null, "derived": false, "quote": "Puerto Rico\nApplicable to all employees covered by the federal Fair Labor Standards Act (FLSA) except for agricultural employees and employees of municipalities and the Commonwealth of Puerto Rico.\nBasic Minimum Rate (per hour): $10.50", "offset": 13982, "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:05.717Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/puerto-rico/2026/state.txt" } } ], "schedule": null, "explainers": [ { "key": "state-rate-below-the-federal-floor", "heading": "Why the federal rate applies when the state rate is lower", "body": "When a state or territory's minimum wage is lower than the federal rate, employers subject to the Fair Labor Standards Act must generally pay the federal minimum wage instead. Puerto Rico's basic minimum rate is $10.50 per hour, which exceeds the federal floor of $7.25, so covered workers receive the higher territorial rate. However, employers in Puerto Rico who are covered by the FLSA but not subject to the Puerto Rico Minimum Wage Act must pay at least $7.25 per hour. This ensures that all workers covered by federal law receive at least the federal minimum, regardless of what their state or territory sets.", "quote": "Employers covered by the FLSA but who are not subject to the Puerto Rico Minimum Wage Act must pay at least the federal minimum wage of $7.25 per hour.", "offset": 14453, "verified_at": "2026-09-01", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:05.717Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/puerto-rico/2026/state.txt" } }, { "key": "who-can-be-paid-less", "heading": "Minors, students and training wages: who may be paid less than the rate on this page", "body": "The federal, state, and territory minimum wage rates shown on this page are the general baseline rates that apply to most covered workers. However, the law permits lower pay in limited, specific circumstances. Certain states allow employers to pay minors - workers below a defined age threshold - a subminimum hourly rate that falls below the standard minimum, including the $10.50 rate listed for 2026. Student workers, particularly those employed in school-week or summer roles, may also qualify for a reduced rate in some jurisdictions. In addition, some states operate a training wage, which allows employers to pay newly hired employees a lower hourly amount for an initial period while they learn the job. A few states exempt certain categories of workers from minimum-wage coverage altogether. Because these exceptions vary by state and by the type of worker, the table on this page does not show them; the special subminimum and training rates are governed by individual state statutes rather than by the general rate displayed here.", "quote": "Some states set subminimum rates for minors and/or students or exempt them from coverage or have a training wage for new hires.", "offset": 17053, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:05.717Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/puerto-rico/2026/state.txt" } }, { "key": "local-rates-can-be-higher", "heading": "When a city or county sets a higher minimum wage", "body": "The minimum wage rates listed on this page reflect state and federal standards, but they are not necessarily the highest rate a worker may be entitled to receive. In many areas, a city, county, or other local government has adopted its own minimum wage that is higher than the surrounding state's rate. When such a local rate applies, the employer must generally pay the highest of the three figures - the federal, state, or local minimum. Because local minimum wage ordinances change frequently and vary block by block or municipality by municipality, this page does not display those local rates. Workers in jurisdictions with a local floor above $10.50 - the 2026 rate shown here - may be owed more than the state or federal figure. The Wage and Hour Division notes that these differential local provisions are omitted from the table, so employees and employers in affected areas should check their city or county code or contact the relevant local agency to confirm the rate that actually governs their pay.", "quote": "Some local governments set minimum wage rates higher than their respective state minimum\nwage.", "offset": 17181, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:05.717Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/puerto-rico/2026/state.txt" } }, { "key": "overtime-premium", "heading": "Overtime is paid at one and one-half times the regular rate", "body": "The rates displayed on this page - including the $10.50 hourly figure for 2026 - represent the base pay for ordinary working hours. When a covered, non-exempt employee works beyond the standard weekly hours threshold, those extra hours must be paid at a premium. Under the Fair Labor Standards Act, that premium is one and one-half times the employee's regular rate of pay for every overtime hour worked. The overtime premium is calculated on the employee's actual regular rate, which can include hourly wages, piece rates, commissions, and certain non-discretionary bonuses - not simply on the published minimum wage figure. Some states impose daily overtime thresholds or stricter rules, and a few exempt certain job categories from overtime altogether. The footnote on this page confirms the one-and-one-half multiplier as the standard federal overtime formula, but workers and employers should check whether their state's law applies a different threshold or a different calculation for particular industries or roles.", "quote": "The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified.", "offset": 17528, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:05.717Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/puerto-rico/2026/state.txt" } }, { "key": "who-to-ask-about-this-rate", "heading": "Who to ask about this rate, and where to take a wage complaint", "body": "The minimum wage figures published on this page are compiled and maintained by the Wage and Hour Division of the U.S. Department of Labor. The Division makes reasonable efforts to keep the listed state, federal, and territorial rates current, but it explicitly notes that the table is not a substitute for official confirmation. Because state rates can change during a year, and because special subminimum, training, youth, and local rates are not captured in the table, workers and employers who need authoritative guidance on a particular rate should consult the relevant state labor office for official information. That office can confirm the rate in effect on a given date, explain any exemptions that apply, and advise on how to file a wage complaint if an employee believes they have been underpaid. For issues arising under the federal Fair Labor Standards Act rather than state law, the Wage and Hour Division itself handles complaints and can be reached through its national toll-free line or through its district offices located across the country.", "quote": "The Wage and Hour Division tries to ensure that the information on this page is accurate, but individuals should consult the relevant state labor office for official information.", "offset": 17338, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:05.717Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/puerto-rico/2026/state.txt" } } ], "estimate": null }, { "program": "minimum-wage", "name": "Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "rhode-island", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-09-01", "published_at": "2026-09-01T09:08:21.278Z", "canonical_url": "https://ratesandlimits.com/minimum-wage/rhode-island/", "figures": [ { "key": "hourly", "label": "Hourly", "value": 16, "format": "usd", "formatted": "$16", "scope": null, "derived": false, "quote": "Rhode Island\nBasic Minimum Rate (per hour): $16.00", "offset": 14605, "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:07.415Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/rhode-island/2026/state.txt" } } ], "schedule": null, "explainers": [ { "key": "who-can-be-paid-less", "heading": "Minors, students and training wages: who may be paid less than the rate on this page", "body": "In Rhode Island, employers may not pay minors or students a subminimum rate below the state minimum wage of $16 per hour unless a separate federal or state training provision applies. The DOL table notes that some states set subminimum rates for minors and/or students or exempt them from coverage or have a training wage for new hires, but such differential provisions are not displayed in its table. For a worker in Rhode Island, this means the $16 rate is the floor; any lower youth or student wage would have to come from a distinct rule not shown on the page, and the worker or employer should check with the Rhode Island labor office to confirm whether a specific subminimum or training rate applies to a particular situation.", "quote": "Some states set subminimum rates for minors and/or students or exempt them from coverage or have a training wage for new hires.", "offset": 17053, "verified_at": "2026-09-01", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:07.415Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/rhode-island/2026/state.txt" } }, { "key": "local-rates-can-be-higher", "heading": "When a city or county sets a higher minimum wage", "body": "Many cities and counties have enacted their own minimum wage ordinances that exceed the state minimum wage. When a local minimum wage is higher than the state rate, employers in that locality must pay the higher local rate. For example, while a state may have a minimum wage of $16 per hour, a city within that state could require employers to pay a higher amount per hour. These local variations are not displayed in the DOL table, which only shows state-level rates. Workers and employers should check with their city or county government to determine if a higher local minimum wage applies in their area. The local rate, if higher, takes precedence over the state rate.", "quote": "Some local governments set minimum wage rates higher than their respective state minimum\nwage.", "offset": 17181, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:07.415Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/rhode-island/2026/state.txt" } }, { "key": "who-to-ask-about-this-rate", "heading": "Who to ask about this rate, and where to take a wage complaint", "body": "While the U.S. Department of Labor's Wage and Hour Division maintains this table of state minimum wage rates, the information is provided for general guidance and may not reflect the most current updates or state-specific exceptions. For official, authoritative information about minimum wage rates in a particular state, individuals should contact that state's labor office directly. State labor offices can provide details about applicable rates, any subminimum wages for minors or students, local minimum wage ordinances, overtime requirements, and how to file a wage complaint if an employer is not paying the correct rate. The Wage and Hour Division enforces federal minimum wage and overtime laws, but state labor offices handle enforcement of state-specific wage and hour laws.", "quote": "The Wage and Hour Division tries to ensure that the information on this page is accurate, but individuals should consult the relevant state labor office for official information.", "offset": 17338, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:07.415Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/rhode-island/2026/state.txt" } } ], "estimate": null }, { "program": "minimum-wage", "name": "Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "south-carolina", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-09-01", "published_at": "2026-09-01T09:28:44.879Z", "canonical_url": "https://ratesandlimits.com/minimum-wage/south-carolina/", "figures": [ { "key": "hourly", "label": "Hourly", "value": 7.25, "format": "usd", "formatted": "$7.25", "scope": null, "derived": false, "quote": "South Carolina\nNo state minimum wage law.\nEmployers subject to the Fair Labor Standards Act must pay the current federal minimum wage of $7.25 per hour.", "offset": 14881, "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:09.117Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/south-carolina/2026/state.txt" } } ], "schedule": null, "explainers": [ { "key": "federal-and-state-rate-together", "heading": "State minimum wage laws that give more than the federal rate", "body": "South Carolina has no state minimum wage law. Because the state has not set its own wage floor, the only enforceable minimum hourly rate for covered workers in South Carolina is the federal minimum wage established by the Fair Labor Standards Act. Employers in South Carolina that are subject to that federal law must pay at least $7.25 per hour. No higher state-level rate applies, so the federal floor is the binding minimum for workers across the state. South Carolina is among the states that rely entirely on the federal standard rather than setting a separate or higher state rate.", "quote": "South Carolina\nNo state minimum wage law.\nEmployers subject to the Fair Labor Standards Act must pay the current federal minimum wage of $7.25 per hour.", "offset": 14881, "verified_at": "2026-09-01", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:09.117Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/south-carolina/2026/state.txt" } }, { "key": "state-rate-below-the-federal-floor", "heading": "Why the federal rate applies when the state rate is lower", "body": "South Carolina has no minimum wage law of its own, which does not mean there is no minimum wage in South Carolina. The Fair Labor Standards Act reaches most employment directly, and an employer subject to it must pay the federal minimum of $7.25 per hour whatever the state does. That is the rate on this page, and it is federal law rather than South Carolina law that puts it there. The practical difference shows up at the edges. A worker whose employer is genuinely outside the FLSA has no state floor to fall back on, where a worker in a state with its own law would. And a complaint about it is a federal complaint: the Wage and Hour Division enforces it, because there is no South Carolina statute to enforce.", "quote": "Employers subject to the Fair Labor Standards Act must pay the current federal minimum wage of $7.25 per hour.", "offset": 14923, "verified_at": "2026-09-01", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:09.117Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/south-carolina/2026/state.txt" } }, { "key": "who-can-be-paid-less", "heading": "Minors, students and training wages: who may be paid less than the rate on this page", "body": "Under the Fair Labor Standards Act, employers may pay certain categories of workers less than the standard minimum wage. This includes minors, students, and new hires who may qualify for a training wage. States can set their own subminimum rates for these groups or exempt them from coverage entirely. Because these special wage rules vary by state and are not shown on this page, workers and employers should verify whether a lower rate applies in their jurisdiction.", "quote": "Some states set subminimum rates for minors and/or students or exempt them from coverage or have a training wage for new hires.", "offset": 17053, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:09.117Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/south-carolina/2026/state.txt" } }, { "key": "local-rates-can-be-higher", "heading": "When a city or county sets a higher minimum wage", "body": "While this page shows the federal minimum wage of $7.25 per hour, cities and counties can set their own minimum wage rates that are higher than the state rate. When a local government does this, workers in that area are entitled to the higher local rate, not just the state or federal rate. These local variations are not displayed in the table on this page, so workers should check their city or county rules to see if a higher minimum wage applies where they work.", "quote": "Some local governments set minimum wage rates higher than their respective state minimum\nwage.", "offset": 17181, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:09.117Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/south-carolina/2026/state.txt" } }, { "key": "overtime-premium", "heading": "Overtime is paid at one and one-half times the regular rate", "body": "Under federal law, the overtime premium rate is one and one-half times the employee's regular rate of pay. This means that when a non-exempt worker earns overtime, each overtime hour must be paid at one and one-half times what they normally earn per hour. The footnote in the source document states this as the standard rule, unless another provision applies. The overtime calculation is based on the employee's regular rate, which can include more than just the base hourly wage. Workers earning the federal minimum wage of $7.25 per hour would see their overtime rate rise above that figure accordingly. Some states have additional overtime rules that may provide greater protection to workers.", "quote": "The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified.", "offset": 17528, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:09.117Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/south-carolina/2026/state.txt" } }, { "key": "who-to-ask-about-this-rate", "heading": "Who to ask about this rate, and where to take a wage complaint", "body": "If you need official information about minimum wage rates in your state, you should consult the relevant state labor office. The Wage and Hour Division, which is part of the U.S. Department of Labor, tries to ensure the information on this page is accurate, but state labor offices have the authoritative details on state-specific wage rules, exemptions, and local rates. Workers who believe their employer is not paying the correct wage can also take their complaint to their state labor office for guidance on filing a wage claim.", "quote": "The Wage and Hour Division tries to ensure that the information on this page is accurate, but individuals should consult the relevant state labor office for official information.", "offset": 17338, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:09.117Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/south-carolina/2026/state.txt" } } ], "estimate": null }, { "program": "minimum-wage", "name": "Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "south-dakota", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-09-01", "published_at": "2026-09-01T07:23:26.263Z", "canonical_url": "https://ratesandlimits.com/minimum-wage/south-dakota/", "figures": [ { "key": "hourly", "label": "Hourly", "value": 11.85, "format": "usd", "formatted": "$11.85", "scope": null, "derived": false, "quote": "South Dakota\nBasic Minimum Rate (per hour): $11.85", "offset": 15034, "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:10.847Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/south-dakota/2026/state.txt" } } ], "schedule": null, "explainers": [ { "key": "annual-inflation-adjustment", "heading": "How the rate is adjusted each year, and who announces it", "body": "The $11.85 on this page is not a figure the South Dakota legislature set and left. State law adjusts the minimum wage annually by a formula, so the rate changes at the start of the year without a new bill each time, and the number you were paid last year is not evidence of what you are owed now. Two things follow for anyone checking a payslip. The rate is dated: a payslip covering the changeover carries hours at both rates, and an employer paying the old figure after the change is underpaying even though the figure was right a week earlier. And the next rate is normally announced before it takes effect, so it can be checked against the South Dakota labour department rather than guessed at from inflation.", "quote": "Basic Minimum Rate (per hour): $11.85\nThe minimum wage is adjusted annually based on a set formula.", "offset": 15047, "verified_at": "2026-09-01", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:10.847Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/south-dakota/2026/state.txt" } }, { "key": "who-can-be-paid-less", "heading": "Minors, students and training wages: who may be paid less than the rate on this page", "body": "The federal minimum wage shown on this page is the baseline that applies across the United States, but individual states may set lower wages for certain categories of workers. In particular, a number of states allow employers to pay subminimum rates to minors, to students, or to newly hired employees during a training period. Other states may exempt those same groups from minimum-wage coverage altogether. Because these carve-outs vary from one state to the next, and because the table published by the Department of Labor shows only each state's basic minimum rate, a worker or employer cannot rely on this page alone to determine whether a reduced wage is lawful in a given jurisdiction. Anyone covered by one of these categories should check the specific law of their state, and may need to consult the relevant state labor office for a definitive answer before accepting or paying a rate below the standard minimum.", "quote": "Some states set subminimum rates for minors and/or students or exempt them from coverage or have a training wage for new hires.", "offset": 17053, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:10.847Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/south-dakota/2026/state.txt" } }, { "key": "local-rates-can-be-higher", "heading": "When a city or county sets a higher minimum wage", "body": "The table on this page lists each state's general minimum wage, but it does not capture every local wage floor that may exist. Some local governments set minimum wage rates higher than their respective state minimum wage. Such differential provisions are not displayed in this table. This means a city, county, or other local jurisdiction can impose its own minimum wage that exceeds the state figure shown here. For example, even in a state where the applicable rate is $11.85 per hour, a municipality within that state may require employers to pay a higher hourly amount. Workers and employers in areas with local minimum-wage ordinances must follow whichever rate is highest among the federal, state, and local levels. Because these local variations are not shown in the Department of Labor's table, anyone who needs to know the exact floor for a particular city or county should look up the local ordinance or contact the local government directly.", "quote": "Some local governments set minimum wage rates higher than their respective state minimum\nwage. Such differential provisions are not displayed in this table.", "offset": 17181, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:10.847Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/south-dakota/2026/state.txt" } }, { "key": "overtime-premium", "heading": "Overtime is paid at one and one-half times the regular rate", "body": "Many states require overtime pay on top of the regular minimum wage. A footnote to the table explains the general rule: The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified. In other words, when an employee works hours that qualify as overtime under the applicable law, each of those extra hours must be paid at a rate equal to one and one-half times what the worker normally earns per hour. Some states list specific daily or weekly hour thresholds that trigger this premium, and a few states note exceptions for certain industries or for employers with fewer than a set number of workers. The table's \"Premium Pay After Designated Hours\" column shows which states require daily or weekly overtime and after how many hours it kicks in. Where no premium-pay column entry appears, that state does not impose an overtime requirement beyond what federal law may already demand. Workers and employers should check both the state's overtime column and the underlying statute to determine the exact threshold and rate.", "quote": "The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified.", "offset": 17528, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:10.847Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/south-dakota/2026/state.txt" } }, { "key": "who-to-ask-about-this-rate", "heading": "Who to ask about this rate, and where to take a wage complaint", "body": "The Department of Labor publishes this table as a reference, but it carries a disclaimer: The Wage and Hour Division tries to ensure that the information on this page is accurate, but individuals should consult the relevant state labor office for official information. Because state minimum-wage laws change frequently through legislation and annual inflation adjustments, the figures shown here may not reflect the very latest rate in every jurisdiction. Anyone who needs to confirm the current minimum wage, learn about local ordinances, or ask whether a special subminimum rate applies should contact their state's labor office directly. For questions about the federal minimum wage or to file a wage complaint, workers can reach the Wage and Hour Division through its public hotline. State labor offices can provide authoritative guidance on which rate applies to a particular worker and help resolve disputes over unpaid wages.", "quote": "The Wage and Hour Division tries to ensure that the information on this page is accurate, but individuals should consult the relevant state labor office for official information.", "offset": 17338, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:10.847Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/south-dakota/2026/state.txt" } } ], "estimate": null }, { "program": "minimum-wage", "name": "Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "tennessee", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-09-01", "published_at": "2026-09-01T07:22:01.909Z", "canonical_url": "https://ratesandlimits.com/minimum-wage/tennessee/", "figures": [ { "key": "hourly", "label": "Hourly", "value": 7.25, "format": "usd", "formatted": "$7.25", "scope": null, "derived": false, "quote": "Tennessee\nNo state minimum wage law.\nEmployers subject to the Fair Labor Standards Act must pay the current Federal minimum wage of $7.25 per hour.", "offset": 15147, "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:12.668Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/tennessee/2026/state.txt" } } ], "schedule": null, "explainers": [ { "key": "state-rate-below-the-federal-floor", "heading": "Why the federal rate applies when the state rate is lower", "body": "Tennessee has no minimum wage law of its own, which does not mean there is no minimum wage in Tennessee. The Fair Labor Standards Act reaches most employment directly, and an employer subject to it must pay the federal minimum of $7.25 per hour whatever the state does. That is the rate on this page, and it is federal law rather than Tennessee law that puts it there. The practical difference shows up at the edges. A worker whose employer is genuinely outside the FLSA has no state floor to fall back on, where a worker in a state with its own law would. And a complaint about it is a federal complaint: the Wage and Hour Division enforces it, because there is no Tennessee statute to enforce.", "quote": "Tennessee\nNo state minimum wage law.\nEmployers subject to the Fair Labor Standards Act must pay the current Federal minimum wage of $7.25 per hour.", "offset": 15147, "verified_at": "2026-09-01", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:12.668Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/tennessee/2026/state.txt" } }, { "key": "who-can-be-paid-less", "heading": "Minors, students and training wages: who may be paid less than the rate on this page", "body": "The federal minimum wage of $7.25 per hour applies to covered employers under the Fair Labor Standards Act, but certain workers may be paid less. Some states establish subminimum wage rates for minors, such as youth workers under a specified age, and for students employed in certain roles. States may also create a training wage for newly hired employees, allowing employers to pay a lower rate during an initial training period. In some cases, minors or students are exempt entirely from minimum wage coverage. These special rates and exemptions vary by state and are not reflected in the federal rate shown on this page. Employers must follow both federal and applicable state rules, paying whichever rate provides greater protection to the worker. Workers or employers with questions about whether a subminimum rate applies should contact their state labor office for guidance specific to their situation.", "quote": "Some states set subminimum rates for minors and/or students or exempt them from coverage or have a training wage for new hires.", "offset": 17053, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:12.668Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/tennessee/2026/state.txt" } }, { "key": "local-rates-can-be-higher", "heading": "When a city or county sets a higher minimum wage", "body": "The federal minimum wage is $7.25 per hour, but that is only the floor. Some state and local governments set a higher minimum wage within their borders, and where they do, employers must pay the higher rate instead. A city or county may adopt its own minimum wage that exceeds the state or federal minimum, and in those places the local rate controls for workers covered by it. If an employer is subject to both the federal minimum wage and a higher state or local rate, the worker must be paid the higher of the three amounts. Workers in cities with a local minimum wage ordinance often receive more per hour than the federal figure. The table on this page does not list local rates that differ from the state minimum, so workers should check with their city or county government and their state labor office to determine the exact rate that applies where they work.", "quote": "Some local governments set minimum wage rates higher than their respective state minimum\nwage. Such differential provisions are not displayed in this table.", "offset": 17181, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:12.668Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/tennessee/2026/state.txt" } }, { "key": "overtime-premium", "heading": "Overtime is paid at one and one-half times the regular rate", "body": "Under the Fair Labor Standards Act, covered employers must pay overtime to non-exempt employees who work beyond the designated weekly threshold. The footnote on this page clarifies the standard used: the overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified. This means that for each overtime hour, the worker earns at least time and a half of their normal pay. Some states set a lower threshold or also require daily overtime, and those state rules are not superseded by the federal standard. Where a state provides a more generous overtime calculation, the employee is entitled to the higher benefit. The federal minimum wage is $7.25 per hour for all covered non-exempt workers, and the overtime multiplier is applied to whatever the employee's regular rate of pay is, whether that regular rate equals the minimum or exceeds it. Employers should review their state's labor agency guidance to determine the exact overtime threshold that applies in their jurisdiction.", "quote": "The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified.", "offset": 17528, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:12.668Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/tennessee/2026/state.txt" } }, { "key": "who-to-ask-about-this-rate", "heading": "Who to ask about this rate, and where to take a wage complaint", "body": "The federal minimum wage is $7.25 per hour, but the exact rate that applies to a worker depends on the state and locality where the work is performed. Some states set subminimum rates for certain workers, and some local governments set rates higher than the state minimum. Because the rules vary so widely, anyone with questions about which rate applies to them should consult the relevant state labor office for official information. The Wage and Hour Division of the Department of Labor maintains the federal table on this page, but it cannot answer questions about state or local rates. State labor offices can provide guidance on state minimum wages, subminimum wage rules for minors or students, training wages, overtime requirements that exceed the federal standard, and how to file a wage complaint if a worker believes they have been underpaid.", "quote": "The Wage and Hour Division tries to ensure that the information on this page is accurate, but individuals should consult the relevant state labor office for official information.", "offset": 17338, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:12.668Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/tennessee/2026/state.txt" } } ], "estimate": null }, { "program": "minimum-wage", "name": "Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "texas", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-09-01", "published_at": "2026-09-01T09:00:24.496Z", "canonical_url": "https://ratesandlimits.com/minimum-wage/texas/", "figures": [ { "key": "hourly", "label": "Hourly", "value": 7.25, "format": "usd", "formatted": "$7.25", "scope": null, "derived": false, "quote": "Basic Minimum Rate (per hour): $7.25\nThe State law excludes from coverage any employment that is subject to the federal Fair Labor Standards Act.\nThe Texas State minimum wage law does not contain current dollar minimums. Instead the State adopts the federal minimum wage rate by reference.", "offset": 15301, "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-27T15:05:17.028Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/texas/2026/state.txt" } } ], "schedule": null, "explainers": [ { "key": "federal-and-state-rate-together", "heading": "State minimum wage laws that give more than the federal rate", "body": "Texas sets its own basic minimum rate at $7.25 per hour, the same level as the federal floor. However, the Texas law works differently from states with their own higher rate: it excludes from coverage any employment already subject to the federal Fair Labor Standards Act. In practice, the Texas minimum wage law does not contain its own current dollar minimums; instead, the State adopts the federal minimum wage rate by reference. For covered workers in Texas, this means employers must pay at least $7.25 per hour under federal law, and the state law tracks that same amount rather than setting an independent figure above or below it. Employers in Texas who fall under the FLSA owe the federal rate; those outside the FLSA's coverage fall outside both the federal and state floors, though most Texas employers are covered. The operative minimum wage for Texas workers in 2026 is therefore $7.25 per hour, coming from the federal rate that Texas incorporates by reference.", "quote": "Texas\nBasic Minimum Rate (per hour): $7.25\nThe State law excludes from coverage any employment that is subject to the federal Fair Labor Standards Act.\nThe Texas State minimum wage law does not contain current dollar minimums. Instead the State adopts the federal minimum wage rate by reference.", "offset": 15295, "verified_at": "2026-09-01", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-27T15:05:17.028Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/texas/2026/state.txt" } }, { "key": "state-rate-below-the-federal-floor", "heading": "Why the federal rate applies when the state rate is lower", "body": "Texas does not keep its minimum wage independent of the federal one: state law takes the federal figure by reference where the federal rate is the higher of the two. The rate on this page is $7.25 an hour, and it moves when the federal minimum moves rather than when Texas legislates. That is worth knowing for two reasons. It means no Texas bill is needed for your rate to rise - a federal increase reaches you automatically. And it means an employer cannot pay less by pointing at a lower state figure, because there is no lower state figure to point at. Where a state rate is the higher one, the state rate is what applies; that is simply not the position in Texas today.", "quote": "The Texas State minimum wage law does not contain current dollar minimums. Instead the State adopts the federal minimum wage rate by reference.", "offset": 15447, "verified_at": "2026-09-01", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-27T15:05:17.028Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/texas/2026/state.txt" } }, { "key": "who-can-be-paid-less", "heading": "Minors, students and training wages: who may be paid less than the rate on this page", "body": "Although the federal minimum wage is $7.25 per hour, certain categories of workers may be paid less under specific state laws. States have the authority to establish subminimum wage rates for minors, students, or new hires during a training period. Some states also exempt these workers from minimum wage coverage entirely. These special rates and exemptions are not reflected in the federal table, which displays only the standard minimum wage rates. Employers must determine whether their state allows a subminimum wage for the specific workers they employ and ensure they comply with both federal and state requirements. The existence of these provisions means that not every worker is entitled to the full $7.25 hourly rate, depending on their age, student status, or whether they are in a designated training period.", "quote": "Some states set subminimum rates for minors and/or students or exempt them from coverage or have a training wage for new hires.", "offset": 17053, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-27T15:05:17.028Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/texas/2026/state.txt" } }, { "key": "local-rates-can-be-higher", "heading": "When a city or county sets a higher minimum wage", "body": "Cities, counties, and other local jurisdictions sometimes establish minimum wage rates that exceed both the state and federal minimums. When a local government adopts such a higher rate, employers within that locality must generally follow the local law rather than the lower state or federal figure. The table on this page shows only state-level and federal minimum wages. It does not capture the higher rates that may apply in specific cities or counties within a state. As a result, an employer located in a city with a local minimum wage that is higher than the state rate must pay the local rate to workers performing jobs within that jurisdiction. Workers who believe they are employed in an area with a higher local minimum should check the ordinances enacted by their city or county. The federal minimum wage of $7.25 per hour sets the floor, but local rates can be substantially higher, and those local provisions are not reflected in this document.", "quote": "Some local governments set minimum wage rates higher than their respective state minimum\nwage. Such differential provisions are not displayed in this table.", "offset": 17181, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-27T15:05:17.028Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/texas/2026/state.txt" } }, { "key": "overtime-premium", "heading": "Overtime is paid at one and one-half times the regular rate", "body": "Under the Fair Labor Standards Act, covered nonexempt employees are entitled to overtime pay for hours worked beyond the standard full-time weekly threshold. The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified. This means that for every hour worked past the standard weekly limit, the employee receives at least one and one-half times their normal hourly rate. For a worker earning the federal minimum wage of $7.25 per hour, the overtime rate would be proportionally higher for those extra hours. Some states or collective bargaining agreements may require overtime to be calculated differently - for example, after a certain number of hours in a single day. The footnote to the table clarifies that the one-and-one-half multiplier applies unless a different rule has been established by law or agreement. Workers and employers should verify whether any other provision modifies this standard overtime calculation for their particular situation.", "quote": "The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified.", "offset": 17528, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-27T15:05:17.028Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/texas/2026/state.txt" } }, { "key": "who-to-ask-about-this-rate", "heading": "Who to ask about this rate, and where to take a wage complaint", "body": "The table on this page is maintained by the Wage and Hour Division, an agency within the U.S. Department of Labor. While the Division attempts to keep the information accurate, it does not serve as the official source for every state's current minimum wage rules. Because state laws change frequently, the document advises that individuals should consult the relevant state labor office for official information about the rate that applies in their jurisdiction. Workers who have questions about whether their employer is paying the correct minimum wage, who wish to file a complaint about unpaid wages, or who need clarification about overtime rules should contact their state's labor office. The state labor office can provide authoritative guidance on current rates, exemptions, and enforcement procedures. The federal minimum wage of $7.25 per hour is set by statute, but the details of how state rates interact with federal requirements are best confirmed directly with the appropriate state agency.", "quote": "The Wage and Hour Division tries to ensure that the information on this page is accurate, but individuals should consult the relevant state labor office for official information.", "offset": 17338, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-27T15:05:17.028Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/texas/2026/state.txt" } } ], "estimate": null }, { "program": "minimum-wage", "name": "Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "utah", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-09-01", "published_at": "2026-09-01T07:22:06.653Z", "canonical_url": "https://ratesandlimits.com/minimum-wage/utah/", "figures": [ { "key": "hourly", "label": "Hourly", "value": 7.25, "format": "usd", "formatted": "$7.25", "scope": null, "derived": false, "quote": "Utah\nBasic Minimum Rate (per hour): $7.25", "offset": 15591, "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:14.550Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/utah/2026/state.txt" } } ], "schedule": null, "explainers": [ { "key": "state-rate-below-the-federal-floor", "heading": "Why the federal rate applies when the state rate is lower", "body": "The Utah minimum wage is $7.25 an hour, the same figure as the federal minimum, and that is not a coincidence anyone in Utah should rely on. State law excludes from its coverage any employment subject to the Fair Labor Standards Act, so for most jobs in Utah the operative rule is the federal one and the state rule never applies at all. What that means in practice: when Congress changes the federal minimum, the rate you are owed changes with it, without Utah legislating anything. And when you have a complaint, it belongs to the federal Wage and Hour Division for a covered job. The state figure matters only for work the federal act does not reach.", "quote": "Utah\nBasic Minimum Rate (per hour): $7.25\nThe State law excludes from coverage any employment that is subject to the federal Fair Labor Standards Act.", "offset": 15591, "verified_at": "2026-09-01", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:14.550Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/utah/2026/state.txt" } }, { "key": "who-can-be-paid-less", "heading": "Minors, students and training wages: who may be paid less than the rate on this page", "body": "The federal minimum wage is $7.25 per hour, but that rate does not apply to every worker in every situation. Some states have laws that allow employers to pay certain categories of employees less than the standard minimum. These include minors, students, and newly hired workers who may be paid a training wage. A state may also choose to exempt certain workers entirely from minimum wage coverage. These special subminimum rates and exemptions are set by state law, not by the federal government, so they vary from one state to another. The table on this page shows only the basic state minimum wage rates and does not list any subminimum, training, or exemption rules that a particular state may have. Employers who want to pay a subminimum wage to a minor, student, or trainee must follow the rules of the state where the work is performed. Workers or employers who need details about these exceptions should contact the state labor office directly.", "quote": "Some states set subminimum rates for minors and/or students or exempt them from coverage or have a training wage for new hires.", "offset": 17053, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:14.550Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/utah/2026/state.txt" } }, { "key": "local-rates-can-be-higher", "heading": "When a city or county sets a higher minimum wage", "body": "Cities, counties, and other local governments sometimes enact minimum wage rates that exceed the rate set by their state. When that happens, the higher local rate controls within that jurisdiction. This table only shows state-by-state minimum wages and does not reflect any local ordinances that may push the floor higher in a particular city or county. Employers operating in a locality with its own wage law must pay the highest rate that applies: the federal rate of $7.25, the state rate, or the local rate, whichever is greatest. Workers who believe their employer is not following a local minimum wage should check with their city or county government, because the differential provisions are not displayed on this page.", "quote": "Some local governments set minimum wage rates higher than their respective state minimum\nwage.", "offset": 17181, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:14.550Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/utah/2026/state.txt" } }, { "key": "overtime-premium", "heading": "Overtime is paid at one and one-half times the regular rate", "body": "Under the Fair Labor Standards Act, non-exempt employees who work beyond their standard weekly hours must receive overtime pay. The overtime premium is calculated at one and one-half times the employee's regular rate of pay for each qualifying overtime hour. This means that an employee earning the federal minimum wage of $7.25 per hour would receive at least one and one-half times that hourly amount for each overtime hour worked. The premium applies on a weekly basis and counts only hours actually worked. Certain exemptions and special rules may alter the calculation for specific occupations, so any other applicable provisions should be checked. The standard weekly overtime threshold is the trigger point in most states displayed on this page.", "quote": "The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified.", "offset": 17528, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:14.550Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/utah/2026/state.txt" } }, { "key": "who-to-ask-about-this-rate", "heading": "Who to ask about this rate, and where to take a wage complaint", "body": "The Wage and Hour Division, an agency within the U.S. Department of Labor, maintains the information on this page and strives to keep it current. However, the page itself notes that individuals should consult their state labor office for official, authoritative information on minimum wage rates and related requirements. State labor offices can confirm whether a state has set a rate different from the federal minimum of $7.25, whether subminimum or training wages apply, and whether local ordinances impose additional obligations. Workers who believe they have been paid below the applicable minimum wage may file a complaint with the Wage and Hour Division or with the relevant state agency. The Division's website provides further guidance and contact details.", "quote": "The Wage and Hour Division tries to ensure that the information on this page is accurate, but individuals should consult the relevant state labor office for official information.", "offset": 17338, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:14.550Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/utah/2026/state.txt" } } ], "estimate": null }, { "program": "minimum-wage", "name": "Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "vermont", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-09-01", "published_at": "2026-09-01T09:56:18.892Z", "canonical_url": "https://ratesandlimits.com/minimum-wage/vermont/", "figures": [ { "key": "hourly", "label": "Hourly", "value": 14.42, "format": "usd", "formatted": "$14.42", "scope": null, "derived": false, "quote": "Vermont\nApplicable to employers of two or more employees\nBasic Minimum Rate (per hour): $14.42", "offset": 15742, "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:16.258Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/vermont/2026/state.txt" } } ], "schedule": null, "explainers": [ { "key": "annual-inflation-adjustment", "heading": "How the rate is adjusted each year, and who announces it", "body": "Under Vermont law, the state minimum wage rate is adjusted annually using a fixed formula tied to inflation, so the hourly floor rises each year to reflect changes in the cost of living. The adjustment is automatic; employers in Vermont do not need to wait for new legislation. For 2026, the adjusted rate is $14.42 per hour. In addition, Vermont's minimum wage is automatically replaced by the federal minimum wage rate if the federal rate ever exceeds the state rate, ensuring that workers in the state always receive the higher of the two amounts.", "quote": "The Vermont minimum wage is adjusted annually based on a set formula.", "offset": 15888, "verified_at": "2026-09-01", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:16.258Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/vermont/2026/state.txt" } }, { "key": "federal-and-state-rate-together", "heading": "State minimum wage laws that give more than the federal rate", "body": "Vermont pays $14.42 an hour, above the federal minimum, and state law also provides that the federal figure takes over should the federal one ever be the greater. Both halves matter. Today the state figure is the higher, so $14.42 is what an employer in Vermont owes and the federal rate has no practical effect. The other clause is insurance: if Congress raised the federal minimum past $14.42, Vermont would follow it up without needing to legislate. Nothing in either rule lets an employer pay the lower of the two. Where federal and state minimum wage law both apply to a job, the employee is owed the higher rate, and that is the whole of the interaction.", "quote": "The Vermont minimum wage is adjusted annually based on a set formula. The State minimum wage is automatically replaced with the federal minimum wage rate if it is higher than the State minimum.", "offset": 15888, "verified_at": "2026-09-01", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:16.258Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/vermont/2026/state.txt" } }, { "key": "who-can-be-paid-less", "heading": "Minors, students and training wages: who may be paid less than the rate on this page", "body": "The federal minimum wage shown on this page is the general floor, but the Fair Labor Standards Act allows certain workers to be paid less. States may establish subminimum wage rates for minors and students, grant exemptions that keep some workers outside minimum wage coverage entirely, or authorize a lower training wage for newly hired employees. These special categories are not reflected in the rate displayed here. Employers who hire young workers, learners, or trainees must check whether their state permits a reduced wage for those groups and, if so, what conditions and time limits apply. The $14.42 hourly rate on this page is the baseline that applies to covered, nonexempt adult workers unless a specific statutory exception lowers the obligation for a particular class of employee.", "quote": "Some states set subminimum rates for minors and/or students or exempt them from coverage or have a training wage for new hires.", "offset": 17053, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:16.258Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/vermont/2026/state.txt" } }, { "key": "local-rates-can-be-higher", "heading": "When a city or county sets a higher minimum wage", "body": "The $14.42 hourly minimum wage on this page is the federal or statewide floor, but cities and counties are free to set a higher local minimum wage that applies within their boundaries. When a local rate exceeds the state rate shown here, employers in that jurisdiction must pay the local amount to covered workers. These local variations are not displayed in the table on this page, so the figure shown may understate what an employee is actually owed in a particular city or county. Workers and employers in areas with a local minimum wage ordinance should verify whether their municipality or county has adopted a higher rate and whether any industry-specific or small-business exemptions apply to that local floor.", "quote": "Some local governments set minimum wage rates higher than their respective state minimum\nwage. Such differential provisions are not displayed in this table.", "offset": 17181, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:16.258Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/vermont/2026/state.txt" } }, { "key": "overtime-premium", "heading": "Overtime is paid at one and one-half times the regular rate", "body": "Covered, nonexempt employees who work beyond the weekly overtime threshold are entitled to premium pay. The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified. The regular rate includes all remuneration for employment paid to the worker, not just the hourly minimum wage, so the overtime amount may exceed the minimum-wage floor multiplied by one and one-half if the employee receives commissions, bonuses, or other pay that must be factored into the regular rate calculation. Overtime is calculated on a workweek basis, based on hours actually worked. Some state laws or industry-specific rules may impose different overtime triggers, such as daily overtime after a certain number of hours in a single day.", "quote": "The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified.", "offset": 17528, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:16.258Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/vermont/2026/state.txt" } }, { "key": "who-to-ask-about-this-rate", "heading": "Who to ask about this rate, and where to take a wage complaint", "body": "The Wage and Hour Division tries to ensure that the information on this page is accurate, but individuals should consult the relevant state labor office for official information. State labor offices are the authoritative source for the minimum wage rates, exemptions, and subminimum wage provisions that apply in a particular jurisdiction. Workers who believe they have been paid below the legal minimum, or employers who need guidance on coverage and recordkeeping requirements, should contact their state labor office directly. The U.S. Department of Labor's Wage and Hour Division also maintains resources and a toll-free help line for questions about federal minimum wage, overtime, and other Fair Labor Standards Act requirements.", "quote": "The Wage and Hour Division tries to ensure that the information on this page is accurate, but individuals should consult the relevant state labor office for official information.", "offset": 17338, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:16.258Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/vermont/2026/state.txt" } } ], "estimate": null }, { "program": "minimum-wage", "name": "Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "virgin-islands", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-29", "published_at": "2026-08-29T09:09:32.190Z", "canonical_url": "https://ratesandlimits.com/minimum-wage/virgin-islands/", "figures": [ { "key": "hourly", "label": "Hourly", "value": 10.5, "format": "usd", "formatted": "$10.50", "scope": null, "derived": false, "quote": "Virgin Islands\nBasic Minimum Rate (per hour): $10.50", "offset": 16082, "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:17.988Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/virgin-islands/2026/state.txt" } } ], "schedule": null, "explainers": [ { "key": "who-can-be-paid-less", "heading": "Minors, students and training wages: who may be paid less than the rate on this page", "body": "The $10.50 per hour rate shown for 2026 does not apply to every worker in every situation. Under the Fair Labor Standards Act, some states are authorized to set subminimum wage rates for specific categories of workers, particularly minors and students. A state may also exempt certain workers from minimum wage coverage entirely or establish a separate training wage for newly hired employees who are still learning the job. These special provisions vary widely from state to state. Some states set subminimum rates for minors and/or students or exempt them from coverage or have a training wage for new hires. Employers who hire young workers, students, or trainees need to check their state's specific rules to determine whether a lower rate may be applied. Federal law may still require payment of the full minimum wage unless the state has an approved special certificate or statutory exemption. Workers who fall into one of these categories should verify their entitlement with their state labor office rather than assuming the standard rate applies.", "quote": "Some states set subminimum rates for minors and/or students or exempt them from coverage or have a training wage for new hires.", "offset": 17053, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:17.988Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/virgin-islands/2026/state.txt" } }, { "key": "local-rates-can-be-higher", "heading": "When a city or county sets a higher minimum wage", "body": "In addition to the statewide minimum wage, many cities and counties have enacted their own higher minimum wage rates. When a local rate exceeds the state rate, the higher local figure generally applies to work performed within that jurisdiction. The table on this page displays only state-level rates and does not include any city or county minimum wages. Employers with workers in multiple municipalities must research local ordinances to ensure compliance. Workers in those areas may be entitled to earn more than the state minimum shown here.", "quote": "Some local governments set minimum wage rates higher than their respective state minimum\nwage.", "offset": 17181, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:17.988Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/virgin-islands/2026/state.txt" } }, { "key": "overtime-premium", "heading": "Overtime is paid at one and one-half times the regular rate", "body": "Under the Fair Labor Standards Act, covered nonexempt employees must receive overtime pay for all hours worked beyond the standard weekly threshold in a workweek. The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified. This means that if an employee earns the $10.50 per hour rate shown on this page, overtime hours would be paid at one and one-half times that amount per hour. Employers must calculate overtime based on the employee's actual regular rate of pay, which includes all remuneration for employment, not only the base hourly wage. Some states impose additional daily overtime requirements that go beyond the federal standard, so workers and employers should review their applicable state rules as well.", "quote": "The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified.", "offset": 17528, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:17.988Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/virgin-islands/2026/state.txt" } }, { "key": "who-to-ask-about-this-rate", "heading": "Who to ask about this rate, and where to take a wage complaint", "body": "The Wage and Hour Division of the U.S. Department of Labor maintains the information on this page, but it is not a substitute for official guidance. Because state labor laws are subject to frequent changes and may include provisions not shown here - such as subminimum rates, industry-specific rules, or local wage ordinances - individuals should consult the relevant state labor office for official information. Workers who believe they are being paid below the minimum wage or who have questions about their rights can file a complaint with the Wage and Hour Division or contact their state agency directly. Employers seeking to verify their obligations should also reach out to the appropriate state authority.", "quote": "individuals should consult the relevant state labor office for official information.", "offset": 17432, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:17.988Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/virgin-islands/2026/state.txt" } } ], "estimate": null }, { "program": "minimum-wage", "name": "Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "virginia", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-09-01", "published_at": "2026-09-01T07:23:27.246Z", "canonical_url": "https://ratesandlimits.com/minimum-wage/virginia/", "figures": [ { "key": "hourly", "label": "Hourly", "value": 12.77, "format": "usd", "formatted": "$12.77", "scope": null, "derived": false, "quote": "Virginia\nBasic Minimum Rate (per hour): $12.77", "offset": 16256, "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:19.654Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/virginia/2026/state.txt" } } ], "schedule": null, "explainers": [ { "key": "annual-inflation-adjustment", "heading": "How the rate is adjusted each year, and who announces it", "body": "The $12.77 on this page is not a figure the Virginia legislature set and left. State law adjusts the minimum wage annually by a formula, so the rate changes at the start of the year without a new bill each time, and the number you were paid last year is not evidence of what you are owed now. Two things follow for anyone checking a payslip. The rate is dated: a payslip covering the changeover carries hours at both rates, and an employer paying the old figure after the change is underpaying even though the figure was right a week earlier. And the next rate is normally announced before it takes effect, so it can be checked against the Virginia labour department rather than guessed at from inflation.", "quote": "The Virginia minimum wage is adjusted annually based on a set formula.", "offset": 16303, "verified_at": "2026-09-01", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:19.654Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/virginia/2026/state.txt" } }, { "key": "who-can-be-paid-less", "heading": "Minors, students and training wages: who may be paid less than the rate on this page", "body": "This page's table does not show every special minimum-wage rule that a state may have. Some states allow employers to pay subminimum rates to minors, to students, or to newly hired workers during a training period. Other states exempt those categories entirely from their minimum-wage coverage. Because these youth and trainee rates vary widely from state to state, they are not included in the federal summary table. A worker or employer who needs to know whether a lower rate applies to a particular situation must look at the rules of the specific state where the work is performed. The verified 2026 state rate of $12.77 per hour shown on this page is the general adult minimum wage; it does not reflect any subminimum, student, or training wage that a state may separately authorize.", "quote": "Some states set subminimum rates for minors and/or students or exempt them from coverage or have a training wage for new hires.", "offset": 17053, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:19.654Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/virginia/2026/state.txt" } }, { "key": "local-rates-can-be-higher", "heading": "When a city or county sets a higher minimum wage", "body": "Some states allow employers to pay certain workers less than the standard minimum wage. These subminimum rates can apply to minors, to students, or to new hires under a training wage. A state may also exempt these workers from its minimum wage coverage entirely. The table on this page does not show those special rates or exemptions, so workers and employers need to check with the relevant state labor office for official information. The verified 2026 rate of $12.77 per hour shown on this page is the general adult minimum wage; it does not reflect any subminimum, student, or training wage that a state may separately authorize. The special provisions for youth, students, and trainees vary widely from state to state and must be verified through the appropriate state agency.", "quote": "Some local governments set minimum wage rates higher than their respective state minimum\nwage. Such differential provisions are not displayed in this table.", "offset": 17181, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:19.654Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/virginia/2026/state.txt" } }, { "key": "overtime-premium", "heading": "Overtime is paid at one and one-half times the regular rate", "body": "The federal overtime rule requires employers to pay workers at a premium rate for hours worked beyond the standard workweek. The overtime premium rate is one and one-half times the employee's regular rate of pay, unless a specific state law provides otherwise. This means that for every hour worked over the standard threshold in a workweek, the worker must receive at least one and one-half times their normal hourly wage. Some states have their own overtime rules that may require premium pay after a certain number of hours in a single day, not just in a workweek. The table on this page notes the premium pay thresholds for each state where applicable. Workers who believe they have not been paid the correct overtime rate should contact the relevant state labor office or the Wage and Hour Division for assistance. The verified state rate of $12.77 per hour is the general minimum wage; overtime hours must be calculated based on this rate or the employee's actual regular rate, whichever is higher.", "quote": "The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified.", "offset": 17528, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:19.654Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/virginia/2026/state.txt" } }, { "key": "who-to-ask-about-this-rate", "heading": "Who to ask about this rate, and where to take a wage complaint", "body": "This page is maintained by the Wage and Hour Division, which is an agency within the U.S. Department of Labor. The division tries to ensure that the information on this page is accurate, but the rules change frequently and vary by state. Individuals should consult the relevant state labor office for official information about the minimum wage rates and rules that apply in their specific situation. For questions about federal minimum wage law or to file a wage complaint, workers can contact the Wage and Hour Division or visit the department's website. State labor offices can provide information about state-specific minimum wage rates, overtime rules, and other wage and hour protections that may apply in addition to federal law. The verified rate of $12.77 per hour is shown on this page as a reference, but workers should confirm the applicable rate for their jurisdiction with the appropriate agency.", "quote": "individuals should consult the relevant state labor office for official information.", "offset": 17432, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:19.654Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/virginia/2026/state.txt" } } ], "estimate": null }, { "program": "minimum-wage", "name": "Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "washington", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-09-01", "published_at": "2026-09-01T07:23:28.193Z", "canonical_url": "https://ratesandlimits.com/minimum-wage/washington/", "figures": [ { "key": "hourly", "label": "Hourly", "value": 17.13, "format": "usd", "formatted": "$17.13", "scope": null, "derived": false, "quote": "Washington\nBasic Minimum Rate (per hour): $17.13", "offset": 16374, "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-27T15:06:38.626Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/washington/2026/state.txt" } } ], "schedule": null, "explainers": [ { "key": "annual-inflation-adjustment", "heading": "How the rate is adjusted each year, and who announces it", "body": "The $17.13 on this page is not a figure the Washington legislature set and left. State law adjusts the minimum wage annually by a formula, so the rate changes at the start of the year without a new bill each time, and the number you were paid last year is not evidence of what you are owed now. Two things follow for anyone checking a payslip. The rate is dated: a payslip covering the changeover carries hours at both rates, and an employer paying the old figure after the change is underpaying even though the figure was right a week earlier. And the next rate is normally announced before it takes effect, so it can be checked against the Washington labour department rather than guessed at from inflation.", "quote": "Premium pay not applicable to employees who request compensating time off in lieu of premium pay.\nThe minimum wage is adjusted annually based on a set formula.", "offset": 16474, "verified_at": "2026-09-01", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-27T15:06:38.626Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/washington/2026/state.txt" } }, { "key": "who-can-be-paid-less", "heading": "Minors, students and training wages: who may be paid less than the rate on this page", "body": "The table on this page shows only the general minimum wage that applies to most workers in each state. It does not capture every special category that some states allow employers to pay less. In several states, employers may pay minors, students, or newly hired employees a subminimum or training wage that falls below the standard rate shown here. Some states also exempt certain categories of workers from minimum wage coverage altogether. Because these lower or exempt rates vary by state and by the worker's age, student status, or length of employment, they are not reflected in this table. Employers operating in states with such provisions need to check whether a lower rate applies to a particular employee. The same is true for local jurisdictions that have set a wage floor above the state rate. In short, the figures on this page are the starting point, not the final answer, for any worker or employer who falls into a special category or works in a locality with its own minimum wage ordinance.", "quote": "Some states set subminimum rates for minors and/or students or exempt them from coverage or have a training wage for new hires.", "offset": 17053, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-27T15:06:38.626Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/washington/2026/state.txt" } }, { "key": "local-rates-can-be-higher", "heading": "When a city or county sets a higher minimum wage", "body": "The minimum wage figures displayed in this table are set at the state level, but they are not always the highest rate an employer must pay. Many cities and counties have adopted their own minimum wage ordinances that require employers within their borders to pay more than the state rate. When a local rate exceeds the state rate, the higher local rate controls for employees working in that jurisdiction. This table does not show those local variations, so a worker or employer in a city or county with its own wage floor cannot rely on this page alone to determine the correct rate. To find out whether a local minimum wage applies, check the ordinance of the city or county where the work is performed. Where both a state and a local minimum wage exist, the employer must pay the higher of the two. The figures on this page therefore represent only the state-level floor; local requirements may be substantially higher.", "quote": "Some local governments set minimum wage rates higher than their respective state minimum\nwage. Such differential provisions are not displayed in this table.", "offset": 17181, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-27T15:06:38.626Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/washington/2026/state.txt" } }, { "key": "overtime-premium", "heading": "Overtime is paid at one and one-half times the regular rate", "body": "When a state's premium pay footnote is shown in this table, the standard overtime premium rate is one and one-half times the employee's regular rate of pay. This is the rate most states use when an employee works more than the designated weekly or daily hours shown in the footnote. A few states, however, specify a different overtime multiplier for particular circumstances or industries, and those variations are not always captured in the footnote. The overtime premium is calculated on top of the employee's regular rate, not on top of the minimum wage, so a worker whose regular rate is already above the minimum wage still receives the overtime premium on their actual regular rate. The regular rate includes all earnings for the workweek, not just the hourly wage. When both a daily and a weekly premium pay threshold apply, the employer must pay the premium for any hours that exceed either threshold, whichever is more favorable to the employee.", "quote": "Footnote\n1 The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified.", "offset": 17517, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-27T15:06:38.626Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/washington/2026/state.txt" } }, { "key": "who-to-ask-about-this-rate", "heading": "Who to ask about this rate, and where to take a wage complaint", "body": "The Wage and Hour Division of the U.S. Department of Labor maintains this table and works to keep the information accurate, but the figures shown here are not the official word on what any particular employer owes. State minimum wage rates change on different schedules, and some states adjust their rates automatically based on inflation formulas that take effect at various points during the year. For the authoritative current rate, individuals should consult the relevant state labor office in the state where the work is performed. That office can confirm whether the rate has changed since this table was last updated, explain any special provisions such as subminimum rates for minors or students, and advise on whether a local ordinance applies. Workers who believe they have been paid below the correct rate can also file a complaint with the state labor office or with the federal Wage and Hour Division. Contact information for state labor offices is available through the Department of Labor's state labor offices directory.", "quote": "The Wage and Hour Division tries to ensure that the information on this page is accurate, but individuals should consult the relevant state labor office for official information.", "offset": 17338, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-27T15:06:38.626Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/washington/2026/state.txt" } } ], "estimate": null }, { "program": "minimum-wage", "name": "Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "west-virginia", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-29", "published_at": "2026-08-29T09:11:26.244Z", "canonical_url": "https://ratesandlimits.com/minimum-wage/west-virginia/", "figures": [ { "key": "hourly", "label": "Hourly", "value": 8.75, "format": "usd", "formatted": "$8.75", "scope": null, "derived": false, "quote": "West Virginia\nApplicable to employers of 6 or more employees at one location\nBasic Minimum Rate (per hour): $8.75", "offset": 16634, "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:21.372Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/west-virginia/2026/state.txt" } } ], "schedule": null, "explainers": [ { "key": "who-can-be-paid-less", "heading": "Minors, students and training wages: who may be paid less than the rate on this page", "body": "Employers subject to the Fair Labor Standards Act must pay the federal minimum wage, but several categories of workers may lawfully receive less than the standard hourly rate. Minors and students can be paid subminimum rates that states set below the regular minimum. Some states also exempt these workers from coverage entirely, meaning the minimum wage does not apply to them at all. In addition, states may establish a training wage for new hires that is lower than the regular rate, typically for a limited introductory period. The $8.75 rate shown on this page does not reflect these special categories. Employers who believe a worker qualifies for a subminimum rate must still comply with any conditions the state imposes, such as age limits, hour restrictions, or requirements to obtain a license or certificate before paying the reduced rate. Workers and employers should check the rules that apply to their specific situation with the relevant state labor office.", "quote": "Some states set subminimum rates for minors and/or students or exempt them from coverage or have a training wage for new hires.", "offset": 17053, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:21.372Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/west-virginia/2026/state.txt" } }, { "key": "local-rates-can-be-higher", "heading": "When a city or county sets a higher minimum wage", "body": "The minimum wage shown for a state is not always the highest rate that applies within that state. Cities, counties, and other local governments sometimes set minimum wage rates that exceed the state minimum. When a local minimum wage is higher, employers in that locality must pay the higher local rate, not the lower state rate. The table on this page does not list every local minimum wage ordinance, so workers and employers in cities or counties with their own minimum wage laws should check with the local government or the state labor office to confirm which rate applies at a specific work location. Paying the state rate in a locality with a higher local minimum wage can result in a wage violation.", "quote": "Some local governments set minimum wage rates higher than their respective state minimum\nwage.", "offset": 17181, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:21.372Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/west-virginia/2026/state.txt" } }, { "key": "overtime-premium", "heading": "Overtime is paid at one and one-half times the regular rate", "body": "Under the Fair Labor Standards Act, covered nonexempt employees must receive overtime premium pay when they work beyond their designated weekly hours. The overtime premium rate is one and one-half times the employee's regular rate of pay. For an employee earning the verified hourly rate of $8.75, overtime hours must be paid at a rate that is one and one-half times that regular rate. The regular rate includes more than just the base hourly wage; it can include nondiscretionary bonuses, commissions, and other forms of compensation, which must be factored into the overtime calculation. Employers and employees should confirm how the regular rate is computed in their particular situation. Some states set different overtime rules, such as daily overtime, and those rules are not shown on this page.", "quote": "The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified.", "offset": 17528, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:21.372Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/west-virginia/2026/state.txt" } }, { "key": "who-to-ask-about-this-rate", "heading": "Who to ask about this rate, and where to take a wage complaint", "body": "The Wage and Hour Division of the U.S. Department of Labor publishes the rates on this page, but for official and current information about the minimum wage that applies to a particular job, individuals should consult the relevant state labor office. State labor offices can confirm the current state minimum wage, any subminimum rates, local minimum wage ordinances, overtime rules, and exemption criteria. Workers who believe they have not been paid the correct minimum wage or overtime can also contact the state labor office or file a complaint with the Wage and Hour Division. Employers with questions about their obligations under state or federal wage law should likewise direct those questions to the appropriate state agency or to the Wage and Hour Division.", "quote": "The Wage and Hour Division tries to ensure that the information on this page is accurate, but individuals should consult the relevant state labor office for official information.", "offset": 17338, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:21.372Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/west-virginia/2026/state.txt" } } ], "estimate": null }, { "program": "minimum-wage", "name": "Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "wisconsin", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-29", "published_at": "2026-08-29T09:12:35.256Z", "canonical_url": "https://ratesandlimits.com/minimum-wage/wisconsin/", "figures": [ { "key": "hourly", "label": "Hourly", "value": 7.25, "format": "usd", "formatted": "$7.25", "scope": null, "derived": false, "quote": "Wisconsin\nBasic Minimum Rate (per hour): $7.25", "offset": 16799, "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:23.045Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/wisconsin/2026/state.txt" } } ], "schedule": null, "explainers": [ { "key": "who-can-be-paid-less", "heading": "Minors, students and training wages: who may be paid less than the rate on this page", "body": "Under the Fair Labor Standards Act, certain categories of workers may be paid less than the standard minimum wage. Some states allow employers to pay minors, full-time students, and newly hired employees in training programs a subminimum rate that is below the regular minimum wage. These special wage provisions vary significantly by state - some states exempt these workers from minimum wage coverage entirely, while others set specific lower rates for them. The table on this page does not display these differential state provisions because they are not uniform across jurisdictions. Workers and employers should verify their state's specific rules about youth minimum wage, student learner rates, and training wages, as these exceptions are separate from the standard rates shown here.", "quote": "Some states set subminimum rates for minors and/or students or exempt them from coverage or have a training wage for new hires.", "offset": 17053, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:23.045Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/wisconsin/2026/state.txt" } }, { "key": "local-rates-can-be-higher", "heading": "When a city or county sets a higher minimum wage", "body": "While the federal minimum wage is $7.25 per hour, local jurisdictions such as cities and counties may establish their own minimum wage rates that exceed the state or federal level. When a local government sets a higher minimum wage, employers within that jurisdiction must pay the higher local rate, not the lower state or federal rate. These local wage floors have become increasingly common in recent years, particularly in areas with higher costs of living. The table on this page does not display these differential local provisions because they vary by municipality and change frequently. Workers and employers in areas with local minimum wage ordinances should check with their city or county government to determine the applicable rate, which may be significantly higher than the rate shown on this page.", "quote": "Some local governments set minimum wage rates higher than their respective state minimum\nwage. Such differential provisions are not displayed in this table.", "offset": 17181, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:23.045Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/wisconsin/2026/state.txt" } }, { "key": "overtime-premium", "heading": "Overtime is paid at one and one-half times the regular rate", "body": "Under the Fair Labor Standards Act, covered nonexempt employees must receive overtime pay for hours worked beyond the standard workweek threshold. The overtime premium rate is one and one-half times the employee's regular rate of pay. This means that for each overtime hour worked, the employee earns at least one and one-half times their normal hourly wage. The requirement applies regardless of whether the employee is paid on an hourly or salary basis, as long as they are not exempt from overtime provisions. Some states have additional overtime rules that may require premium pay for hours worked beyond certain thresholds, but the federal standard provides this one and one-half times multiplier as the baseline overtime premium.", "quote": "The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified.", "offset": 17528, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:23.045Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/wisconsin/2026/state.txt" } }, { "key": "who-to-ask-about-this-rate", "heading": "Who to ask about this rate, and where to take a wage complaint", "body": "The Wage and Hour Division of the Department of Labor maintains the information on this page about federal and state minimum wage rates, but individuals should verify official information directly with their state labor office. State minimum wage laws and provisions can change, and state labor offices have the most current and authoritative information about applicable rates, exemptions, and special provisions. Workers who believe they are not being paid the correct minimum wage, or employers seeking clarification about their obligations, should contact the relevant state labor office for guidance. The Wage and Hour Division also provides resources and can be reached for questions about federal wage and hour requirements.", "quote": "The Wage and Hour Division tries to ensure that the information on this page is accurate, but individuals should consult the relevant state labor office for official information.", "offset": 17338, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:23.045Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/wisconsin/2026/state.txt" } } ], "estimate": null }, { "program": "minimum-wage", "name": "Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "wyoming", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-09-01", "published_at": "2026-09-01T09:47:10.769Z", "canonical_url": "https://ratesandlimits.com/minimum-wage/wyoming/", "figures": [ { "key": "hourly", "label": "Hourly", "value": 5.15, "format": "usd", "formatted": "$5.15", "scope": null, "derived": false, "quote": "Wyoming\nBasic Minimum Rate (per hour): $5.15", "offset": 16897, "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:24.645Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/wyoming/2026/state.txt" } } ], "schedule": null, "explainers": [ { "key": "federal-and-state-rate-together", "heading": "State minimum wage laws that give more than the federal rate", "body": "Wyoming's state minimum wage is $5.15 per hour. However, because this is below the federal minimum wage, the higher federal rate controls. Employers in Wyoming who are covered by the Fair Labor Standards Act must pay their workers the federal minimum wage, which is the higher of the two rates. The state rate effectively serves as a floor that is superseded by federal law for covered employers. Workers in Wyoming are entitled to be paid the federal amount, not the lower state figure, whenever the employer is subject to federal coverage. This interaction between state and federal law ensures that employees receive the greater of the two protections.", "quote": "Wyoming\nBasic Minimum Rate (per hour): $5.15\nEmployers subject to the Fair Labor Standards Act must pay the current Federal minimum wage of $7.25 per hour.", "offset": 16897, "verified_at": "2026-09-01", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:24.645Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/wyoming/2026/state.txt" } }, { "key": "state-rate-below-the-federal-floor", "heading": "Why the federal rate applies when the state rate is lower", "body": "Wyoming sets its own minimum at $5.15 an hour, and most people working in Wyoming are not paid that. The state law steps out of the way for any employment the Fair Labor Standards Act covers when the federal rate is the greater of the two, and the federal minimum of $7.25 is greater. So for an FLSA-covered job the answer is $7.25, and the $5.15 figure applies only where the federal act does not reach - a narrow set of employers, small and wholly local. Read the state number as the floor beneath the floor rather than as what your employer may pay you. If you are unsure which side of the line your job falls on, the federal test is about the business rather than about you: its annual volume, and whether it does interstate work.", "quote": "Basic Minimum Rate (per hour): $5.15\nEmployers subject to the Fair Labor Standards Act must pay the current Federal minimum wage of $7.25 per hour.", "offset": 16905, "verified_at": "2026-09-01", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:24.645Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/wyoming/2026/state.txt" } }, { "key": "who-can-be-paid-less", "heading": "Minors, students and training wages: who may be paid less than the rate on this page", "body": "Some states set subminimum rates for minors and/or students or exempt them from coverage or have a training wage for new hires.", "quote": "Some states set subminimum rates for minors and/or students or exempt them from coverage or have a training wage for new hires.", "offset": 17053, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:24.645Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/wyoming/2026/state.txt" } }, { "key": "local-rates-can-be-higher", "heading": "When a city or county sets a higher minimum wage", "body": "Some local governments set minimum wage rates higher than their respective state minimum wage.", "quote": "Some local governments set minimum wage rates higher than their respective state minimum\nwage.", "offset": 17181, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:24.645Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/wyoming/2026/state.txt" } }, { "key": "overtime-premium", "heading": "Overtime is paid at one and one-half times the regular rate", "body": "The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified.", "quote": "The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified.", "offset": 17528, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:24.645Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/wyoming/2026/state.txt" } }, { "key": "who-to-ask-about-this-rate", "heading": "Who to ask about this rate, and where to take a wage complaint", "body": "Individuals should consult the relevant state labor office for official information.", "quote": "individuals should consult the relevant state labor office for official information", "offset": 17432, "verified_at": "2026-08-29", "source": { "url": "https://www.dol.gov/agencies/whd/minimum-wage/state", "title": "State Minimum Wage Laws", "publisher": "DOL", "fetched_at": "2026-08-28T09:47:24.645Z", "sha256_text": "b6daf88a9f2035d22903ae6959752834f3048ed6b45de2fe41216229bbbb6e14", "snapshot_url": "https://ratesandlimits.com/snapshots/minimum-wage/wyoming/2026/state.txt" } } ], "estimate": null }, { "program": "net-investment-income-tax-threshold", "name": "Net Investment Income Tax Threshold", "category": "brackets-and-rates", "agency": "IRS", "year": 2026, "state": null, "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-29", "published_at": "2026-08-29T09:03:04.675Z", "canonical_url": "https://ratesandlimits.com/net-investment-income-tax-threshold/", "figures": [ { "key": "rate", "label": "Rate", "value": 3.8, "format": "percent", "formatted": "3.8%", "scope": null, "derived": false, "quote": "A 3.8 percent net investment income tax (NIIT) applies to individuals, estates, and trusts that have net investment income above applicable threshold amounts.", "offset": 4446, "source": { "url": "https://www.irs.gov/taxtopics/tc559", "title": "Topic no. 559, Net investment income tax", "publisher": "IRS", "fetched_at": "2026-08-29T02:28:22.359Z", "sha256_text": "9086cedbb4fd79cff244dd4b87b87d15454964b901c3739b056849ca6edee78b", "snapshot_url": "https://ratesandlimits.com/snapshots/net-investment-income-tax-threshold/2026/tc559.txt" } }, { "key": "joint", "label": "Married filing jointly", "value": 250000, "format": "usd", "formatted": "$250,000", "scope": null, "derived": false, "quote": "$250,000 for married filing jointly or qualifying surviving spouse", "offset": 4809, "source": { "url": "https://www.irs.gov/taxtopics/tc559", "title": "Topic no. 559, Net investment income tax", "publisher": "IRS", "fetched_at": "2026-08-29T02:28:22.359Z", "sha256_text": "9086cedbb4fd79cff244dd4b87b87d15454964b901c3739b056849ca6edee78b", "snapshot_url": "https://ratesandlimits.com/snapshots/net-investment-income-tax-threshold/2026/tc559.txt" } }, { "key": "separate", "label": "Married filing separately", "value": 125000, "format": "usd", "formatted": "$125,000", "scope": null, "derived": false, "quote": "$125,000 for married filing separately", "offset": 4876, "source": { "url": "https://www.irs.gov/taxtopics/tc559", "title": "Topic no. 559, Net investment income tax", "publisher": "IRS", "fetched_at": "2026-08-29T02:28:22.359Z", "sha256_text": "9086cedbb4fd79cff244dd4b87b87d15454964b901c3739b056849ca6edee78b", "snapshot_url": "https://ratesandlimits.com/snapshots/net-investment-income-tax-threshold/2026/tc559.txt" } }, { "key": "single", "label": "Single or head of household", "value": 200000, "format": "usd", "formatted": "$200,000", "scope": null, "derived": false, "quote": "$200,000 for single or head of household", "offset": 4915, "source": { "url": "https://www.irs.gov/taxtopics/tc559", "title": "Topic no. 559, Net investment income tax", "publisher": "IRS", "fetched_at": "2026-08-29T02:28:22.359Z", "sha256_text": "9086cedbb4fd79cff244dd4b87b87d15454964b901c3739b056849ca6edee78b", "snapshot_url": "https://ratesandlimits.com/snapshots/net-investment-income-tax-threshold/2026/tc559.txt" } } ], "schedule": null, "explainers": [ { "key": "what-counts-as-net-investment-income", "heading": "What the 3.8% is actually charged on", "body": "Net investment income (NII) is the base that the 3.8% tax is charged on. It generally includes gross income from interest, dividends, annuities, royalties, and rents - unless those items come from the ordinary course of a trade or business that is neither a passive activity nor a trading business in financial instruments or commodities. NII also captures other gross income from a passive activity or a trading business, plus net gain from the sale of property (other than property held in a non-passive, non-trading trade or business). In short, the tax reaches investment-style returns and passive business income, not the everyday earnings of an active operating business.", "quote": "Net investment income. Generally, NII includes gross\nincome from interest, dividends, annuities, royalties, and\nrents, unless they’re derived from the ordinary course of a\ntrade or business that isn’t (a) a passive activity, or (b) a\ntrade or business of trading in financial instruments or\ncommodities.", "offset": 3517, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/i8960.pdf", "title": "2025 Instructions for Form 8960, Net Investment Income Tax", "publisher": "IRS", "fetched_at": "2026-08-29T08:00:20.109Z", "sha256_text": "990a2b97d0e188d0e2e169e0c6365855303b3b4f8fb4d0d0c85c6952b05e72da", "snapshot_url": "https://ratesandlimits.com/snapshots/net-investment-income-tax-threshold/2026/i8960.txt" } }, { "key": "income-that-is-excluded", "heading": "Wages, Social Security and retirement income are outside it", "body": "Certain types of income are not subject to the 3.8% tax. Excluded income includes amounts that are excluded from gross income under chapter 1 of the Internal Revenue Code, income that is not counted as net investment income, and any gross income or net gain that section 1411 or related regulations specifically leave out. Common examples are wages, unemployment compensation, Alaska Permanent Fund Dividends, alimony, Social Security benefits, tax-exempt interest, distributions from qualified retirement plans, and income that is already subject to self-employment taxes. These items fall outside the tax entirely, even if a taxpayer's modified adjusted gross income exceeds the threshold amount. The exclusion ensures that ordinary earned income and tax-favored retirement or Social Security distributions are not swept into the investment income base.", "quote": "Excluded income. “Excluded income” means:\n• Income excluded from gross income in chapter 1 of the\nInternal Revenue Code;\n• Income not included in NII; and\n• Gross income and net gain specifically excluded by\nsection 1411, related regulations, or other guidance\npublished in the Internal Revenue Bulletin.\nExamples of excluded items are:\n• Wages,\n• Unemployment compensation,\n• Alaska Permanent Fund Dividends,\n• Alimony,\n• Social security benefits,\n• Tax-exempt interest income,\n• Income from certain qualified retirement plan\ndistributions, and\n• Income subject to self-employment taxes.", "offset": 2873, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/i8960.pdf", "title": "2025 Instructions for Form 8960, Net Investment Income Tax", "publisher": "IRS", "fetched_at": "2026-08-29T08:00:20.109Z", "sha256_text": "990a2b97d0e188d0e2e169e0c6365855303b3b4f8fb4d0d0c85c6952b05e72da", "snapshot_url": "https://ratesandlimits.com/snapshots/net-investment-income-tax-threshold/2026/i8960.txt" } }, { "key": "smaller-of-two-amounts", "heading": "You are taxed on the smaller of two amounts", "body": "The tax amount is calculated as 3.8% of the smaller of two amounts: (a) the excess of modified adjusted gross income (MAGI) over the applicable threshold amount, or (b) net investment income (NII). The applicable threshold amount depends on filing status: $250,000 for married filing jointly or qualifying surviving spouse, $125,000 for married filing separately, and $200,000 for single or head of household. This means a taxpayer with high NII but MAGI just above the threshold will pay tax on the smaller excess amount, while a taxpayer with large MAGI above the threshold but modest investment income will pay tax on the NII. The structure ensures the 3.8% rate applies only once to the overlap between excess income and investment income, preventing double taxation of the same dollars.", "quote": "U.S. citizens and residents. Individuals who have for\nthe tax year (a) MAGI that’s over an applicable threshold\namount, and (b) NII, must pay 3.8% of the smaller of (a) or\n(b) as their NIIT.", "offset": 6104, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/i8960.pdf", "title": "2025 Instructions for Form 8960, Net Investment Income Tax", "publisher": "IRS", "fetched_at": "2026-08-29T08:00:20.109Z", "sha256_text": "990a2b97d0e188d0e2e169e0c6365855303b3b4f8fb4d0d0c85c6952b05e72da", "snapshot_url": "https://ratesandlimits.com/snapshots/net-investment-income-tax-threshold/2026/i8960.txt" } }, { "key": "who-must-file", "heading": "When Form 8960 has to be attached", "body": "Form 8960 must be attached to a tax return whenever a taxpayer's modified adjusted gross income (MAGI) exceeds the applicable threshold amount. The threshold depends on filing status: $250,000 for married filing jointly or qualifying surviving spouse, $125,000 for married filing separately, and $200,000 for single or head of household. If MAGI is at or below the threshold, no filing is required even if the taxpayer has investment income. If MAGI exceeds the threshold and there is any net investment income, the form must be filed to calculate the 3.8% tax on the smaller of the excess MAGI or the NII. The filing requirement is therefore triggered by crossing the income threshold, not by the amount of tax owed.", "quote": "Who Must File\nAttach Form 8960 to your return if your modified adjusted\ngross income (MAGI) is greater than the applicable\nthreshold amount.", "offset": 1765, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/i8960.pdf", "title": "2025 Instructions for Form 8960, Net Investment Income Tax", "publisher": "IRS", "fetched_at": "2026-08-29T08:00:20.109Z", "sha256_text": "990a2b97d0e188d0e2e169e0c6365855303b3b4f8fb4d0d0c85c6952b05e72da", "snapshot_url": "https://ratesandlimits.com/snapshots/net-investment-income-tax-threshold/2026/i8960.txt" } }, { "key": "nonresident-aliens", "heading": "The tax does not reach a nonresident alien", "body": "Nonresident alien individuals are completely exempt from the net investment income tax. The NIIT doesn't apply to nonresident alien (NRA) individuals. However, special rules apply when a U.S. citizen or resident is married to an NRA. In that situation, the couple's filing status for purposes of determining MAGI, NII, and whether the NIIT applies will be married filing separately, with a threshold of $125,000. There are certain elections available to file jointly with a nonresident spouse that may change this treatment. The exemption reflects the general principle that the NIIT applies only to U.S. citizens and residents, not to foreign persons who are not treated as residents for tax purposes. Dual-resident individuals may be treated differently under specific regulatory provisions.", "quote": "Nonresidents. The NIIT doesn’t apply to nonresident\nalien (NRA) individuals. If you’re a U.S. citizen or resident\nmarried to an NRA, your filing status will be married filing\nseparately for purposes of determining your MAGI, NII,\nand whether you’re subject to the NIIT.", "offset": 6512, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/i8960.pdf", "title": "2025 Instructions for Form 8960, Net Investment Income Tax", "publisher": "IRS", "fetched_at": "2026-08-29T08:00:20.109Z", "sha256_text": "990a2b97d0e188d0e2e169e0c6365855303b3b4f8fb4d0d0c85c6952b05e72da", "snapshot_url": "https://ratesandlimits.com/snapshots/net-investment-income-tax-threshold/2026/i8960.txt" } } ], "estimate": null }, { "program": "overtime-salary-threshold", "name": "Overtime Salary Threshold", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": null, "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-09-01", "published_at": "2026-09-01T04:24:38.172Z", "canonical_url": "https://ratesandlimits.com/overtime-salary-threshold/", "figures": [ { "key": "standard-salary-level", "label": "Standard salary level per week", "value": 684, "format": "usd", "formatted": "$684", "scope": "per week", "derived": false, "quote": "Standard Salary Level $684 per week (equivalent to a $35,568 annual salary)", "offset": 2885, "source": { "url": "https://www.dol.gov/agencies/whd/overtime/salary-levels", "title": "Earnings thresholds for the Executive, Administrative, and Professional exemption from minimum wage and overtime protections under the FLSA", "publisher": "DOL", "fetched_at": "2026-08-29T02:35:55.419Z", "sha256_text": "2d54f0dd40171112a3140168a3f46d9f05e4c4fe4fe72684b211319961791967", "snapshot_url": "https://ratesandlimits.com/snapshots/overtime-salary-threshold/2026/salary-levels.txt" } }, { "key": "standard-salary-level-annual", "label": "Standard salary level, annual equivalent", "value": 35568, "format": "usd", "formatted": "$35,568", "scope": "annual salary", "derived": false, "quote": "Standard Salary Level $684 per week (equivalent to a $35,568 annual salary)", "offset": 2885, "source": { "url": "https://www.dol.gov/agencies/whd/overtime/salary-levels", "title": "Earnings thresholds for the Executive, Administrative, and Professional exemption from minimum wage and overtime protections under the FLSA", "publisher": "DOL", "fetched_at": "2026-08-29T02:35:55.419Z", "sha256_text": "2d54f0dd40171112a3140168a3f46d9f05e4c4fe4fe72684b211319961791967", "snapshot_url": "https://ratesandlimits.com/snapshots/overtime-salary-threshold/2026/salary-levels.txt" } }, { "key": "highly-compensated-employee", "label": "Highly compensated employee total annual compensation", "value": 107432, "format": "usd", "formatted": "$107,432", "scope": "Total Annual Compensation Requirement", "derived": false, "quote": "Total Annual Compensation Requirement for Highly Compensated Employees $107,432 per year, including at least $684 per week paid on a salary or fee basis", "offset": 2961, "source": { "url": "https://www.dol.gov/agencies/whd/overtime/salary-levels", "title": "Earnings thresholds for the Executive, Administrative, and Professional exemption from minimum wage and overtime protections under the FLSA", "publisher": "DOL", "fetched_at": "2026-08-29T02:35:55.419Z", "sha256_text": "2d54f0dd40171112a3140168a3f46d9f05e4c4fe4fe72684b211319961791967", "snapshot_url": "https://ratesandlimits.com/snapshots/overtime-salary-threshold/2026/salary-levels.txt" } } ], "schedule": null, "explainers": [ { "key": "salary-basis-test", "heading": "Being paid a salary means a predetermined amount that does not vary", "body": "Under federal overtime rules, being paid a salary means receiving a predetermined amount that does not vary based on the quality or quantity of work performed. To satisfy the salary basis test for the executive, administrative, or professional exemption in 2026, an employee generally must be paid on a salary basis of at least $684 per week ($35,568 on an annual basis). This test is one of three that must be met for the white-collar exemption to apply, along with the duties test and the salary level test. If an employer reduces the salary based on how much or how well the work is done, the employee may not be considered salaried for overtime purposes. The salary basis requirement does not apply to certain professional employees such as teachers, doctors, or lawyers.", "quote": "(2) the employee must be paid a predetermined and fixed salary that is\nnot subject to reduction because of variations in the quality or\nquantity of work performed (the salary basis test);", "offset": 3461, "verified_at": "2026-09-01", "source": { "url": "https://www.federalregister.gov/documents/full_text/text/2026/05/15/2026-09839.txt", "title": "Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees; Implementation of Federal Court Judgments (91 FR 27833, May 15, 2026)", "publisher": "DOL", "fetched_at": "2026-08-29T05:26:40.773Z", "sha256_text": "3d7a6523950381f053dd0dc7881996fff6e0f096a2933e12a041169d6d63e846", "snapshot_url": "https://ratesandlimits.com/snapshots/overtime-salary-threshold/2026/2026-09839.txt" } }, { "key": "duties-test", "heading": "The salary is only half of it: the duties test", "body": "The salary is only half of the test for the executive, administrative, or professional overtime exemption. The other half is the duties test, which asks what the employee's work actually involves. For an employee to be exempt, the employee's job duties must primarily involve executive, administrative, or professional duties as defined by the regulations. The word \"primarily\" means the main work the employee does - it is not just any task, but the principal, major, or most important duty the employee performs. Even if an employee is paid the required $684 per week ($35,568 annually) on a salary basis, the exemption still does not apply unless the employee's primary duty is exempt work. Employers cannot treat an employee as exempt from overtime simply by paying them a salary if their day-to-day work does not meet the duties test.", "quote": "the\nemployee's job duties must primarily involve executive, administrative,\nor professional duties as defined by the regulations (the duties test);", "offset": 3313, "verified_at": "2026-09-01", "source": { "url": "https://www.federalregister.gov/documents/full_text/text/2026/05/15/2026-09839.txt", "title": "Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees; Implementation of Federal Court Judgments (91 FR 27833, May 15, 2026)", "publisher": "DOL", "fetched_at": "2026-08-29T05:26:40.773Z", "sha256_text": "3d7a6523950381f053dd0dc7881996fff6e0f096a2933e12a041169d6d63e846", "snapshot_url": "https://ratesandlimits.com/snapshots/overtime-salary-threshold/2026/2026-09839.txt" } }, { "key": "highly-compensated-employees", "heading": "The shorter test for highly compensated employees", "body": "Highly compensated employees face a shorter path to the overtime exemption. Under federal law, an employee with total annual compensation of at least $107,432 is deemed exempt if the employee customarily and regularly performs any one or more of the exempt duties or responsibilities of an executive, administrative, or professional employee. This is easier than the standard test, which requires the employee's primary duty to be exempt work. For the highly compensated employee test, the employee need only customarily and regularly perform any one or more exempt duties. Total annual compensation must include at least $684 per week paid on a salary or fee basis, but may also include commissions, nondiscretionary bonuses, and other nondiscretionary compensation earned during a year. It does not include board, lodging, or fringe benefits.", "quote": "an employee with total annual\ncompensation of at least $107,432 is deemed exempt under section\n13(a)(1) of the Act if the employee customarily and regularly performs\nany one or more of the exempt duties or responsibilities of an\nexecutive, administrative or professional employee", "offset": 20477, "verified_at": "2026-09-01", "source": { "url": "https://www.federalregister.gov/documents/full_text/text/2026/05/15/2026-09839.txt", "title": "Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees; Implementation of Federal Court Judgments (91 FR 27833, May 15, 2026)", "publisher": "DOL", "fetched_at": "2026-08-29T05:26:40.773Z", "sha256_text": "3d7a6523950381f053dd0dc7881996fff6e0f096a2933e12a041169d6d63e846", "snapshot_url": "https://ratesandlimits.com/snapshots/overtime-salary-threshold/2026/2026-09839.txt" } }, { "key": "bonuses-toward-the-salary-level", "heading": "When a bonus can count toward the salary level", "body": "When calculating whether an employee meets the salary level for the executive, administrative, or professional exemption, an employer may count nondiscretionary bonuses and incentive payments toward the salary level, but only up to a limit. To satisfy the standard salary level test, an employee generally must be paid at least $684 per week ($35,568 annually) on a salary basis. The regulations allow employers to use nondiscretionary bonuses and incentive payments (including commissions) to satisfy up to a portion of the standard salary level. These payments must be made on an annual or more frequent basis. If the bonus or incentive payment is less than the shortfall in a 52-week period, the employer may make a catch-up payment within one month after the end of the 52-week period to bring the employee up to the required level.", "quote": "Total annual compensation may also include\ncommissions, nondiscretionary bonuses and other nondiscretionary\ncompensation earned during a 52-week period.", "offset": 21209, "verified_at": "2026-09-01", "source": { "url": "https://www.federalregister.gov/documents/full_text/text/2026/05/15/2026-09839.txt", "title": "Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees; Implementation of Federal Court Judgments (91 FR 27833, May 15, 2026)", "publisher": "DOL", "fetched_at": "2026-08-29T05:26:40.773Z", "sha256_text": "3d7a6523950381f053dd0dc7881996fff6e0f096a2933e12a041169d6d63e846", "snapshot_url": "https://ratesandlimits.com/snapshots/overtime-salary-threshold/2026/2026-09839.txt" } }, { "key": "vacated-2024-rule", "heading": "The 2024 rule, and the level the Department applies", "body": "The higher salary levels the Department set in a final rule published in April 2024 were struck down before either of them took hold. Two federal district courts vacated that rule, the appeals from both judgments were dismissed, and on May 15, 2026 the Department published a technical amendment that removed the vacated language from the Code of Federal Regulations and put back the text as it read before the rule took effect. So the part 541 regulations a reader consults today are the ones that were in place beforehand: a standard salary level of $684 per week, or $35,568 a year, and a total annual compensation requirement of $107,432 for a highly compensated employee, of which at least $684 per week must be paid on a salary or fee basis. Nothing in the amendment changes an amount; it only makes the published regulations match what the courts ordered.", "quote": "Through this technical amendment, the\nDepartment is removing from the Code of Federal Regulations (CFR) the\nregulatory text from the now-vacated 2024 rule and republishing in its\nplace the regulatory text as it existed prior to the effective date of\nthat rule.\nDATES: This rule is effective May 15, 2026.", "offset": 1217, "verified_at": "2026-08-29", "source": { "url": "https://www.federalregister.gov/documents/full_text/text/2026/05/15/2026-09839.txt", "title": "Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees; Implementation of Federal Court Judgments (91 FR 27833, May 15, 2026)", "publisher": "DOL", "fetched_at": "2026-08-29T05:26:40.773Z", "sha256_text": "3d7a6523950381f053dd0dc7881996fff6e0f096a2933e12a041169d6d63e846", "snapshot_url": "https://ratesandlimits.com/snapshots/overtime-salary-threshold/2026/2026-09839.txt" } } ], "estimate": null }, { "program": "per-diem-rate", "name": "Per Diem Rate", "category": "mileage-and-misc", "agency": "IRS", "year": 2026, "state": null, "status": "official", "effective_date": "2025-10-01", "date_basis": "effective", "verified_at": "2026-08-31", "published_at": "2026-08-31T10:42:15.540Z", "canonical_url": "https://ratesandlimits.com/per-diem-rate/", "figures": [ { "key": "high-cost-locality", "label": "High-cost locality", "value": 319, "format": "usd", "formatted": "$319", "scope": "any high-cost locality", "derived": false, "quote": "are $319 for travel to any high-cost locality and $225 for travel to\nany other locality within CONUS.", "offset": 1915, "source": { "url": "https://www.irs.gov/pub/irs-drop/n-25-54.pdf", "title": "Notice 2025-54", "publisher": "IRS", "fetched_at": "2026-08-29T02:34:41.802Z", "sha256_text": "cade010f94088d642d48758c40bc9859769c7047c4f52ac186d43ea1a16f9541", "snapshot_url": "https://ratesandlimits.com/snapshots/per-diem-rate/2026/n-25-54.txt" } }, { "key": "other-locality-conus", "label": "Other locality within CONUS", "value": 225, "format": "usd", "formatted": "$225", "scope": "any other locality within CONUS", "derived": false, "quote": "are $319 for travel to any high-cost locality and $225 for travel to\nany other locality within CONUS.", "offset": 1915, "source": { "url": "https://www.irs.gov/pub/irs-drop/n-25-54.pdf", "title": "Notice 2025-54", "publisher": "IRS", "fetched_at": "2026-08-29T02:34:41.802Z", "sha256_text": "cade010f94088d642d48758c40bc9859769c7047c4f52ac186d43ea1a16f9541", "snapshot_url": "https://ratesandlimits.com/snapshots/per-diem-rate/2026/n-25-54.txt" } }, { "key": "incidental-expenses-only", "label": "Incidental expenses only", "value": 5, "format": "usd", "formatted": "$5", "scope": null, "derived": false, "quote": "The rate for any CONUS or OCONUS locality of travel for the incidental expenses\nonly deduction is $5 per day.", "offset": 1525, "source": { "url": "https://www.irs.gov/pub/irs-drop/n-25-54.pdf", "title": "Notice 2025-54", "publisher": "IRS", "fetched_at": "2026-08-29T02:34:41.802Z", "sha256_text": "cade010f94088d642d48758c40bc9859769c7047c4f52ac186d43ea1a16f9541", "snapshot_url": "https://ratesandlimits.com/snapshots/per-diem-rate/2026/n-25-54.txt" } }, { "key": "high-cost-threshold", "label": "High-cost threshold", "value": 272, "format": "usd", "formatted": "$272", "scope": null, "derived": false, "quote": "The following localities have a federal per diem rate of $272\nor more, and are high-cost localities for the specified portion of the calendar year:", "offset": 2537, "source": { "url": "https://www.irs.gov/pub/irs-drop/n-25-54.pdf", "title": "Notice 2025-54", "publisher": "IRS", "fetched_at": "2026-08-29T02:34:41.802Z", "sha256_text": "cade010f94088d642d48758c40bc9859769c7047c4f52ac186d43ea1a16f9541", "snapshot_url": "https://ratesandlimits.com/snapshots/per-diem-rate/2026/n-25-54.txt" } }, { "key": "meals-portion-high-cost", "label": "Meals portion, high-cost locality", "value": 86, "format": "usd", "formatted": "$86", "scope": "for travel to any high-\ncost locality", "derived": false, "quote": "The amount of the $319 high rate and $225 low rate\nthat is treated as paid for meals for purposes of § 274(n) is $86 for travel to any high-\ncost locality and $74 for travel to any other locality within CONUS.", "offset": 2017, "source": { "url": "https://www.irs.gov/pub/irs-drop/n-25-54.pdf", "title": "Notice 2025-54", "publisher": "IRS", "fetched_at": "2026-08-29T02:34:41.802Z", "sha256_text": "cade010f94088d642d48758c40bc9859769c7047c4f52ac186d43ea1a16f9541", "snapshot_url": "https://ratesandlimits.com/snapshots/per-diem-rate/2026/n-25-54.txt" } }, { "key": "meals-portion-other-locality", "label": "Meals portion, other locality", "value": 74, "format": "usd", "formatted": "$74", "scope": "for travel to any other locality within CONUS", "derived": false, "quote": "The amount of the $319 high rate and $225 low rate\nthat is treated as paid for meals for purposes of § 274(n) is $86 for travel to any high-\ncost locality and $74 for travel to any other locality within CONUS.", "offset": 2017, "source": { "url": "https://www.irs.gov/pub/irs-drop/n-25-54.pdf", "title": "Notice 2025-54", "publisher": "IRS", "fetched_at": "2026-08-29T02:34:41.802Z", "sha256_text": "cade010f94088d642d48758c40bc9859769c7047c4f52ac186d43ea1a16f9541", "snapshot_url": "https://ratesandlimits.com/snapshots/per-diem-rate/2026/n-25-54.txt" } }, { "key": "transportation-industry-conus", "label": "Transportation industry M&IE, CONUS", "value": 80, "format": "usd", "formatted": "$80", "scope": "for any\nlocality of travel in the continental United States (CONUS)", "derived": false, "quote": "The special M&IE rates for taxpayers in the transportation industry are $80 for any\nlocality of travel in the continental United States (CONUS) and $86 for any locality of\ntravel outside the continental United States (OCONUS).", "offset": 1188, "source": { "url": "https://www.irs.gov/pub/irs-drop/n-25-54.pdf", "title": "Notice 2025-54", "publisher": "IRS", "fetched_at": "2026-08-29T02:34:41.802Z", "sha256_text": "cade010f94088d642d48758c40bc9859769c7047c4f52ac186d43ea1a16f9541", "snapshot_url": "https://ratesandlimits.com/snapshots/per-diem-rate/2026/n-25-54.txt" } }, { "key": "transportation-industry-oconus", "label": "Transportation industry M&IE, OCONUS", "value": 86, "format": "usd", "formatted": "$86", "scope": "for any locality of\ntravel outside the continental United States (OCONUS)", "derived": false, "quote": "The special M&IE rates for taxpayers in the transportation industry are $80 for any\nlocality of travel in the continental United States (CONUS) and $86 for any locality of\ntravel outside the continental United States (OCONUS).", "offset": 1188, "source": { "url": "https://www.irs.gov/pub/irs-drop/n-25-54.pdf", "title": "Notice 2025-54", "publisher": "IRS", "fetched_at": "2026-08-29T02:34:41.802Z", "sha256_text": "cade010f94088d642d48758c40bc9859769c7047c4f52ac186d43ea1a16f9541", "snapshot_url": "https://ratesandlimits.com/snapshots/per-diem-rate/2026/n-25-54.txt" } } ], "schedule": null, "explainers": [ { "key": "what-the-rates-substantiate", "heading": "What a per diem rate actually proves", "body": "The IRS publishes these special per diem rates so taxpayers have a documented way to prove how much they spent on ordinary and necessary business travel while away from home. Instead of keeping receipts for every hotel night and restaurant meal, a taxpayer can rely on the rates in this notice to substantiate their deduction. The rates cover three specific situations: the special meal and incidental expenses rates that apply to workers in the transportation industry, the flat daily rate for taxpayers who claim only incidental expenses, and the high-cost-locality and other-locality rates used under the high-low substantiation method. By using these IRS-approved figures, a traveler meets the substantiation requirements of the Internal Revenue Code without having to account for the exact amount of every individual expense.", "quote": "This annual notice provides the 2025-2026 special per diem rates for taxpayers to\nuse in substantiating the amount of ordinary and necessary business expenses incurred\nwhile traveling away from home, specifically (1) the special transportation industry meal\nand incidental expenses (M&IE) rates, (2) the rate for the incidental expenses only\ndeduction, and (3) the rates and list of high-cost localities for purposes of the high-low\nsubstantiation method.", "offset": 67, "verified_at": "2026-08-31", "source": { "url": "https://www.irs.gov/pub/irs-drop/n-25-54.pdf", "title": "Notice 2025-54", "publisher": "IRS", "fetched_at": "2026-08-29T02:34:41.802Z", "sha256_text": "cade010f94088d642d48758c40bc9859769c7047c4f52ac186d43ea1a16f9541", "snapshot_url": "https://ratesandlimits.com/snapshots/per-diem-rate/2026/n-25-54.txt" } }, { "key": "high-cost-locality-threshold", "heading": "What makes a city a high-cost locality", "body": "A locality qualifies as high-cost if its federal per diem rate reaches $272 or more. The IRS reviews rates across the continental United States and identifies those locations that meet this threshold. Each qualifying locality is then listed with the specific months of the year when it is considered high-cost, because travel demand and lodging prices fluctuate seasonally. For example, a beach destination may be high-cost only during summer months, while a city may be high-cost year-round. The list is important for the high-low substantiation method, which allows taxpayers to use a simplified approach: they apply one rate when traveling to any listed high-cost locality during its designated period and a lower rate for all other areas.", "quote": "2. High-cost localities. The following localities have a federal per diem rate of $272\nor more, and are high-cost localities for the specified portion of the calendar year:", "offset": 2512, "verified_at": "2026-08-31", "source": { "url": "https://www.irs.gov/pub/irs-drop/n-25-54.pdf", "title": "Notice 2025-54", "publisher": "IRS", "fetched_at": "2026-08-29T02:34:41.802Z", "sha256_text": "cade010f94088d642d48758c40bc9859769c7047c4f52ac186d43ea1a16f9541", "snapshot_url": "https://ratesandlimits.com/snapshots/per-diem-rate/2026/n-25-54.txt" } }, { "key": "locality-changes-this-year", "heading": "What changed in the high-cost list since last year", "body": "Nothing changed. The list of high-cost localities in this notice is identical to the one in the previous notice, which is unusual: every other notice in this series names places that joined, places that changed the months they count for, and places that came off. The rates did not move either, which is why the comparison with last year on this page shows no change at all. A reader checking whether a city is still high-cost, and for which months, can rely on the answer they got last year.", "quote": "3. Changes in high-cost localities. There are no changes in the list of high-cost\nlocalities in this notice", "offset": 8424, "verified_at": "2026-08-31", "source": { "url": "https://www.irs.gov/pub/irs-drop/n-25-54.pdf", "title": "Notice 2025-54", "publisher": "IRS", "fetched_at": "2026-08-29T02:34:41.802Z", "sha256_text": "cade010f94088d642d48758c40bc9859769c7047c4f52ac186d43ea1a16f9541", "snapshot_url": "https://ratesandlimits.com/snapshots/per-diem-rate/2026/n-25-54.txt" } }, { "key": "meals-portion-of-the-rate", "heading": "How much of the rate counts as meals", "body": "When a taxpayer uses the high-low method, the per diem rate covers both lodging and meals, but the IRS needs to know how much of that rate counts as meals because only the meals portion is subject to the deduction limitation. For the high-cost locality rate of $319, the amount treated as paid for meals is $86. For the other-locality rate of $225, the meals portion is $74. The remainder of each rate represents lodging. Taxpayers and employers must separate these amounts when computing the deductible portion of the per diem, because the meals and incidental expenses are subject to a percentage limitation under the tax code, while the lodging portion is not.", "quote": "The amount of the $319 high rate and $225 low rate\nthat is treated as paid for meals for purposes of § 274(n) is $86 for travel to any high-\ncost locality and $74 for travel to any other locality within CONUS.", "offset": 2017, "verified_at": "2026-08-31", "source": { "url": "https://www.irs.gov/pub/irs-drop/n-25-54.pdf", "title": "Notice 2025-54", "publisher": "IRS", "fetched_at": "2026-08-29T02:34:41.802Z", "sha256_text": "cade010f94088d642d48758c40bc9859769c7047c4f52ac186d43ea1a16f9541", "snapshot_url": "https://ratesandlimits.com/snapshots/per-diem-rate/2026/n-25-54.txt" } }, { "key": "transportation-industry-rates", "heading": "Drivers and crews get their own M&IE rate", "body": "Taxpayers who work in the transportation industry do not use the regular high-low rates for their meals and incidental expenses. Instead, they have their own flat daily rates that apply regardless of which city they are in. Within the continental United States, the rate is $80 per day. Outside the continental United States, the rate is $86 per day. This simplification recognizes that transportation workers, such as truck drivers and flight crews, move through many locations and would face a disproportionate burden if they had to track which high-cost or other locality applied each day.", "quote": "The special M&IE rates for taxpayers in the transportation industry are $80 for any\nlocality of travel in the continental United States (CONUS) and $86 for any locality of\ntravel outside the continental United States (OCONUS).", "offset": 1188, "verified_at": "2026-08-31", "source": { "url": "https://www.irs.gov/pub/irs-drop/n-25-54.pdf", "title": "Notice 2025-54", "publisher": "IRS", "fetched_at": "2026-08-29T02:34:41.802Z", "sha256_text": "cade010f94088d642d48758c40bc9859769c7047c4f52ac186d43ea1a16f9541", "snapshot_url": "https://ratesandlimits.com/snapshots/per-diem-rate/2026/n-25-54.txt" } }, { "key": "when-the-rates-take-effect", "heading": "The rates change on October 1, not January 1", "body": "The new per diem rates do not begin on January 1. They take effect on October 1 and remain in force through the following September 30. This October-to-September cycle matches the federal government's fiscal year, which is the same period used to set the underlying federal travel rates that the IRS relies on. For the 2025-2026 notice, the rates apply to allowances paid to employees on or after October 1, 2025, for travel away from home on or after that same date. Taxpayers need to be aware that mid-year travel may fall under different rates if it occurs before or after the October changeover.", "quote": "This notice is effective for per diem allowances for lodging, meal and incidental\nexpenses, or for meal and incidental expenses only, that are paid to any employee on\nor after October 1, 2025, for travel away from home on or after October 1, 2025.", "offset": 8628, "verified_at": "2026-08-31", "source": { "url": "https://www.irs.gov/pub/irs-drop/n-25-54.pdf", "title": "Notice 2025-54", "publisher": "IRS", "fetched_at": "2026-08-29T02:34:41.802Z", "sha256_text": "cade010f94088d642d48758c40bc9859769c7047c4f52ac186d43ea1a16f9541", "snapshot_url": "https://ratesandlimits.com/snapshots/per-diem-rate/2026/n-25-54.txt" } }, { "key": "how-much-of-the-meals-portion-is-deductible", "heading": "How much of the meals portion you can actually deduct", "body": "A per diem rate is not a deduction. It is the ceiling on what can be treated as substantiated, and the meals part of it is then cut again before it reaches a tax return: whichever method you use, you can generally deduct only 50% of the unreimbursed cost of your meals. On the high-low method the meals part is the figure this page publishes above, $86 a day in a high-cost locality and $74 a day anywhere else in CONUS, so it is half of that amount, not the whole rate, that survives the limit. The lodging part of the rate is not touched by it, and neither is the incidental-expenses-only amount.", "quote": "Both of these methods are explained below. But, regard-\nless of the method you use, you can generally deduct only\n50% of the unreimbursed cost of your meals.", "offset": 30081, "verified_at": "2026-08-31", "source": { "url": "https://www.irs.gov/pub/irs-prior/p463--2025.pdf", "title": "Publication 463 (2025), Travel, Gift, and Car Expenses", "publisher": "IRS", "fetched_at": "2026-08-31T10:39:26.985Z", "sha256_text": "0a5429073865a7862157d21a9835d60d29a10145a5b15ee55b29d15cee020183", "snapshot_url": "https://ratesandlimits.com/snapshots/per-diem-rate/2026/p463--2025.txt" } }, { "key": "partial-days-of-travel", "heading": "The first and last day of a trip are not full days", "body": "A trip that starts at lunchtime and ends at breakfast does not buy two full days of meals. For the day you leave and the day you come back, the M&IE rate has to be prorated, and Publication 463 gives two ways to do it: claim 3/4 of the standard meal allowance for each of those days, or prorate by any method you apply consistently and that is in accordance with reasonable business practice. Only the meals and incidental side is prorated. Lodging is not, because a night away from home is either bought or it is not. An employer reimbursing under the high-low method prorates the meals part the same way, which is why the per diem paid for a departure day is smaller than the daily rate printed above.", "quote": "Travel for days you depart and return. For both the\nday you depart for and the day you return from a business\ntrip, you must prorate the standard meal allowance (figure\na reduced amount for each day). You can do so by one of\ntwo methods.\n• Method 1: You can claim 3/4 of the standard meal al-\nlowance.", "offset": 36836, "verified_at": "2026-08-31", "source": { "url": "https://www.irs.gov/pub/irs-prior/p463--2025.pdf", "title": "Publication 463 (2025), Travel, Gift, and Car Expenses", "publisher": "IRS", "fetched_at": "2026-08-31T10:39:26.985Z", "sha256_text": "0a5429073865a7862157d21a9835d60d29a10145a5b15ee55b29d15cee020183", "snapshot_url": "https://ratesandlimits.com/snapshots/per-diem-rate/2026/p463--2025.txt" } }, { "key": "allowance-above-the-federal-rate", "heading": "An allowance paid above the federal rate is wages", "body": "Nothing stops an employer paying more than the federal rate. What it cannot do is call the extra a reimbursement. Where an accountable plan pays an allowance higher than the federal rate, the traveller does not have to return the difference, but the difference is reported as wages on the Form W-2 and is taxed and withheld on like any other pay. Only the part up to the federal rate stays out of income. That is what the rates on this page are for a reader who deducts nothing at all: the line above which an allowance stops being an expense reimbursement and becomes salary.", "quote": "Per diem allowance more than federal rate. If your\nemployer’s accountable plan pays you an allowance that\nis higher than the federal rate, you don’t have to return the\ndifference between the two rates for the period you can\nprove business-related travel expenses. However, the dif-\nference will be reported as wages on your Form W-2. This\nexcess amount is considered paid under a nonaccounta-\nble plan (discussed later).", "offset": 218453, "verified_at": "2026-08-31", "source": { "url": "https://www.irs.gov/pub/irs-prior/p463--2025.pdf", "title": "Publication 463 (2025), Travel, Gift, and Car Expenses", "publisher": "IRS", "fetched_at": "2026-08-31T10:39:26.985Z", "sha256_text": "0a5429073865a7862157d21a9835d60d29a10145a5b15ee55b29d15cee020183", "snapshot_url": "https://ratesandlimits.com/snapshots/per-diem-rate/2026/p463--2025.txt" } }, { "key": "no-per-diem-for-lodging", "heading": "There is no per diem for lodging, only for meals", "body": "The standard meal allowance is open to anyone travelling on business, employee or self-employed, reimbursed or not. Lodging is not. There is no optional standard lodging amount, so the lodging deduction is the actual cost and nothing else, proved by the actual bill. That is the practical split for a self-employed traveller reading this page: the M&IE side of the notice can be used instead of meal receipts, and the full lodging-plus-meals rates above cannot, because they are written for a payor reimbursing an employee rather than for someone deducting their own hotel.", "quote": "There is no optional standard lodging\namount similar to the standard meal allowance. Your al-\nlowable lodging expense deduction is your actual cost.\nWho can use the standard meal allowance. You can\nuse the standard meal allowance whether you are an em-\nployee or self-employed, and whether or not you are reim-\nbursed for your traveling expenses.", "offset": 33246, "verified_at": "2026-08-31", "source": { "url": "https://www.irs.gov/pub/irs-prior/p463--2025.pdf", "title": "Publication 463 (2025), Travel, Gift, and Car Expenses", "publisher": "IRS", "fetched_at": "2026-08-31T10:39:26.985Z", "sha256_text": "0a5429073865a7862157d21a9835d60d29a10145a5b15ee55b29d15cee020183", "snapshot_url": "https://ratesandlimits.com/snapshots/per-diem-rate/2026/p463--2025.txt" } }, { "key": "who-can-deduct-unreimbursed-travel", "heading": "Who can deduct travel an employer did not reimburse", "body": "For most employees the honest answer is that they cannot. Unreimbursed employee travel is claimed on Form 2106, and Form 2106 is only used by Armed Forces reservists, qualified performing artists, fee-basis state or local government officials, and employees with impairment-related work expenses. An employee outside those categories who is paid nothing, or paid less than the federal rate, deducts nothing for the shortfall. The rates on this page still matter to that employee, but as the measure of what an employer can reimburse tax free rather than as a deduction. A self-employed traveller is unaffected by any of this and deducts on a business schedule.", "quote": "You must complete Form 2106 and itemize your deduc-\ntions to deduct your expenses for travel, transportation, or\nnon-entertainment-related meals. Your meal and enter-\ntainment expenses will be subject to the 50% Limit dis-\ncussed in chapter 2.\nCaution: Form 2106 is only used by Armed Forces re-\nservists, qualified performing artists, fee-basis state or lo-\ncal government officials, and employees with impair-\nment-related work expenses.", "offset": 220756, "verified_at": "2026-08-31", "source": { "url": "https://www.irs.gov/pub/irs-prior/p463--2025.pdf", "title": "Publication 463 (2025), Travel, Gift, and Car Expenses", "publisher": "IRS", "fetched_at": "2026-08-31T10:39:26.985Z", "sha256_text": "0a5429073865a7862157d21a9835d60d29a10145a5b15ee55b29d15cee020183", "snapshot_url": "https://ratesandlimits.com/snapshots/per-diem-rate/2026/p463--2025.txt" } } ], "estimate": null }, { "program": "premium-tax-credit", "name": "Premium Tax Credit", "category": "health-accounts", "agency": "IRS", "year": 2026, "state": null, "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-29", "published_at": "2026-08-29T15:09:23.742Z", "canonical_url": "https://ratesandlimits.com/premium-tax-credit/", "figures": [ { "key": "lowest-applicable-percentage", "label": "Lowest applicable percentage", "value": 2.1, "format": "percent", "formatted": "2.1%", "scope": "Less than 133%", "derived": false, "quote": "Initial percentage Final percentage\nLess than 133% 2.10% 2.10%", "offset": 3433, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-25.pdf", "title": "Rev. Proc. 2025-25", "publisher": "IRS", "fetched_at": "2026-08-29T02:42:33.370Z", "sha256_text": "beac6167aaf748ab10dad047139082b4912c34d6ac910c1023ff029440be65bd", "snapshot_url": "https://ratesandlimits.com/snapshots/premium-tax-credit/2026/rp-25-25.txt" } }, { "key": "highest-applicable-percentage", "label": "Highest applicable percentage", "value": 9.96, "format": "percent", "formatted": "9.96%", "scope": "At least 300% but not more than 400%", "derived": false, "quote": "At least 300% but not more than 400% 9.96% 9.96%", "offset": 3676, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-25.pdf", "title": "Rev. Proc. 2025-25", "publisher": "IRS", "fetched_at": "2026-08-29T02:42:33.370Z", "sha256_text": "beac6167aaf748ab10dad047139082b4912c34d6ac910c1023ff029440be65bd", "snapshot_url": "https://ratesandlimits.com/snapshots/premium-tax-credit/2026/rp-25-25.txt" } } ], "schedule": null, "explainers": [ { "key": "who-can-claim-it", "heading": "Who counts as an applicable taxpayer", "body": "You must file Form 8962 with your income tax return if you are taking the premium tax credit, if advance payments of the credit were made for anyone in your tax family, or if advance payments were made for someone you told the Marketplace would be in your tax family and no one included that person in a tax family. Filing the form reconciles the advance amounts the government sent to your insurer with the credit you actually qualify for based on your final household income and family size for the year. Even if you think you were not eligible for the credit, the return is required whenever advance payments were made so the excess can be repaid. The form attaches to Form 1040, 1040-SR, or 1040-NR.", "quote": "You must file Form 8962 with your income tax return (Form\n1040, 1040-SR, or 1040-NR) if any of the following apply\nto you.\n• You are taking the PTC.\n• APTC was paid for you or another individual in your tax\nfamily.\n• APTC was paid for an individual you told the\nMarketplace would be in your tax family and neither you\nnor anyone else included that individual in a tax family.", "offset": 10583, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/i8962.pdf", "title": "2025 Instructions for Form 8962, Premium Tax Credit", "publisher": "IRS", "fetched_at": "2026-08-29T08:00:46.177Z", "sha256_text": "587130410c7cb320c53fd43f41e0371c4660f462aa1bcdf6a50cd713f44f97e8", "snapshot_url": "https://ratesandlimits.com/snapshots/premium-tax-credit/2026/i8962.txt" } }, { "key": "household-income", "heading": "Household income is not the same as your AGI", "body": "For the premium tax credit, household income is the modified adjusted gross income of you and your spouse (if filing jointly) plus the modified AGI of each dependent who must file a return because their income meets the filing threshold. It does not include the modified AGI of dependents who file only to claim a refund of withheld tax. Modified AGI is the AGI on your return plus certain untaxed amounts: foreign earned income, tax-exempt interest, and the non-taxable portion of social security benefits. This definition is broader than the adjusted gross income shown on your tax return, so two taxpayers with the same AGI can have different household income figures if one has tax-exempt interest or non-taxable social security. The percentage of the benchmark plan premium you are expected to pay, called the applicable percentage, ranges from 2.1% to 9.96% of household income for 2026. Credit eligibility and amount depend on this household income number, not the AGI alone.", "quote": "Household income. For purposes of the PTC,\nhousehold income is the modified adjusted gross income\n(modified AGI) of you and your spouse (if filing a joint\nreturn) (see Line 2a, later) plus the modified AGI of each\nindividual whom you claim as a dependent and who is\nrequired to file an income tax return because their income\nmeets the income tax return filing threshold (see Line 2b,\nlater). Household income does not include the modified\nAGI of those individuals whom you claim as dependents\nand who are filing a 2025 return only to claim a refund of\nwithheld income tax or estimated tax.", "offset": 16523, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/i8962.pdf", "title": "2025 Instructions for Form 8962, Premium Tax Credit", "publisher": "IRS", "fetched_at": "2026-08-29T08:00:46.177Z", "sha256_text": "587130410c7cb320c53fd43f41e0371c4660f462aa1bcdf6a50cd713f44f97e8", "snapshot_url": "https://ratesandlimits.com/snapshots/premium-tax-credit/2026/i8962.txt" } }, { "key": "benchmark-plan", "heading": "The second lowest cost silver plan sets the credit", "body": "The applicable SLCSP premium is the premium for the second lowest cost silver plan offered through the Marketplace where you live that applies to your coverage family. This amount, not your actual enrollment premium, is the benchmark used to calculate the premium tax credit. The credit is designed to cover the difference between what you are expected to contribute toward premiums, based on your household income and the applicable percentage, and the cost of this benchmark plan. If you enrolled in a plan that costs more than the SLCSP, you pay the extra amount out of pocket. If you enrolled in a cheaper plan, your credit is limited to the benchmark cost minus your required contribution. Form 1095-A, Part III, column B, generally reports this amount, though it may be incorrect if your circumstances changed during the year or if no advance payments were made. The applicable percentage used in the calculation ranges from 2.1% to 9.96% of household income for 2026.", "quote": "Applicable SLCSP premium. The applicable SLCSP\npremium is the second lowest cost silver plan premium\noffered through the Marketplace where you reside that\napplies to your coverage family (described earlier).", "offset": 22271, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/i8962.pdf", "title": "2025 Instructions for Form 8962, Premium Tax Credit", "publisher": "IRS", "fetched_at": "2026-08-29T08:00:46.177Z", "sha256_text": "587130410c7cb320c53fd43f41e0371c4660f462aa1bcdf6a50cd713f44f97e8", "snapshot_url": "https://ratesandlimits.com/snapshots/premium-tax-credit/2026/i8962.txt" } }, { "key": "repayment-cap", "heading": "Paying back advance credit, and the cap on it", "body": "The excess advance payments of the premium tax credit you must repay may be limited based on your household income as a percentage of the federal poverty line. The repayment caps are set out in Table 5 of the instructions. For taxpayers with household income below 200% of the poverty line, the maximum repayment is $375 for single filers or $750 for other filing statuses. For incomes at least 200% but less than 300% of the poverty line, the cap is $975 or $1,950 respectively. For incomes at least 300% but less than 400% of the poverty line, the cap is $1,625 or $3,250. If your household income is 400% or more of the federal poverty line, there is no repayment limitation and you must repay the full excess amount shown on line 27. For married taxpayers filing separately who qualify for an exception to the joint return requirement, the repayment caps apply to each spouse separately based on the household income reported on each return. The applicable percentage used to determine your expected premium contribution, which affects whether excess advance payments occurred, ranges from 2.1% to 9.96% of household income for 2026.", "quote": "Less than 200 . . . . . . . . . . . $375 $750\nAt least 200 but less than\n300 . . . . . . . . . . . . . . . . . $975 $1,950\nAt least 300 but less than\n400 . . . . . . . . . . . . . . . . . $1,625 $3,250\n400 or more . . . . . . . . . . . . leave line 28 blank", "offset": 90926, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/i8962.pdf", "title": "2025 Instructions for Form 8962, Premium Tax Credit", "publisher": "IRS", "fetched_at": "2026-08-29T08:00:46.177Z", "sha256_text": "587130410c7cb320c53fd43f41e0371c4660f462aa1bcdf6a50cd713f44f97e8", "snapshot_url": "https://ratesandlimits.com/snapshots/premium-tax-credit/2026/i8962.txt" } }, { "key": "married-filing-separately", "heading": "Filing separately usually disqualifies you", "body": "If you are considered married for federal income tax purposes, you must file a joint return with your spouse to take the premium tax credit unless you qualify for an exception. The general rule disqualifies married taxpayers who file separate returns from claiming the credit. An exception exists for certain married persons living apart who meet the requirements to file as head of household. Another exception covers victims of domestic abuse or spousal abandonment who are living apart from their spouse and cannot file jointly; these taxpayers may file as married filing separately and still claim the credit if they certify their status on Form 8962. Without meeting an exception, married taxpayers who file separate returns are not applicable taxpayers and cannot take the credit; any advance payments made on their behalf must be repaid, subject to the repayment limitation. The applicable percentage used to figure the credit, which ranges from 2.1% to 9.96% of household income for 2026, is computed on a joint-return basis for married couples who file together.", "quote": "Married taxpayers. If you are considered married for\nfederal income tax purposes, you must file a joint return\nwith your spouse to take the PTC unless one of the two\nexceptions below applies to you.", "offset": 35214, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/i8962.pdf", "title": "2025 Instructions for Form 8962, Premium Tax Credit", "publisher": "IRS", "fetched_at": "2026-08-29T08:00:46.177Z", "sha256_text": "587130410c7cb320c53fd43f41e0371c4660f462aa1bcdf6a50cd713f44f97e8", "snapshot_url": "https://ratesandlimits.com/snapshots/premium-tax-credit/2026/i8962.txt" } } ], "estimate": null }, { "program": "qbi-deduction-threshold", "name": "QBI Deduction Threshold", "category": "deductions-and-credits", "agency": "IRS", "year": 2026, "state": null, "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-29", "published_at": "2026-08-29T05:00:17.368Z", "canonical_url": "https://ratesandlimits.com/qbi-deduction-threshold/", "figures": [ { "key": "threshold-married", "label": "Threshold, joint filers", "value": 403500, "format": "usd", "formatted": "$403,500", "scope": "Threshold", "derived": false, "quote": "Filing Status Threshold\namount\nPhase-in range\namount\nMarried Individuals Filing Joint Returns $403,500 $553,500", "offset": 35026, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32", "publisher": "IRS", "fetched_at": "2026-08-27T13:23:33.495Z", "sha256_text": "208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66", "snapshot_url": "https://ratesandlimits.com/snapshots/qbi-deduction-threshold/2026/rp-25-32.txt" } }, { "key": "threshold-other", "label": "Threshold, single filers", "value": 201750, "format": "usd", "formatted": "$201,750", "scope": "Threshold", "derived": false, "quote": "Filing Status Threshold\namount\nPhase-in range\namount\nMarried Individuals Filing Joint Returns $403,500 $553,500\nMarried Individuals Filing Separate\nReturns\n$201,775 $276,775\nAll Other Returns $201,750 $276,750", "offset": 35026, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32", "publisher": "IRS", "fetched_at": "2026-08-27T13:23:33.495Z", "sha256_text": "208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66", "snapshot_url": "https://ratesandlimits.com/snapshots/qbi-deduction-threshold/2026/rp-25-32.txt" } }, { "key": "phase-in-range-married", "label": "Phase-in range top, joint filers", "value": 553500, "format": "usd", "formatted": "$553,500", "scope": "Phase-in range", "derived": false, "quote": "Filing Status Threshold\namount\nPhase-in range\namount\nMarried Individuals Filing Joint Returns $403,500 $553,500", "offset": 35026, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32", "publisher": "IRS", "fetched_at": "2026-08-27T13:23:33.495Z", "sha256_text": "208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66", "snapshot_url": "https://ratesandlimits.com/snapshots/qbi-deduction-threshold/2026/rp-25-32.txt" } }, { "key": "phase-in-range-other", "label": "Phase-in range top, single filers", "value": 276750, "format": "usd", "formatted": "$276,750", "scope": "Phase-in range", "derived": false, "quote": "Filing Status Threshold\namount\nPhase-in range\namount\nMarried Individuals Filing Joint Returns $403,500 $553,500\nMarried Individuals Filing Separate\nReturns\n$201,775 $276,775\nAll Other Returns $201,750 $276,750", "offset": 35026, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32", "publisher": "IRS", "fetched_at": "2026-08-27T13:23:33.495Z", "sha256_text": "208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66", "snapshot_url": "https://ratesandlimits.com/snapshots/qbi-deduction-threshold/2026/rp-25-32.txt" } } ], "schedule": null, "explainers": [ { "key": "phase-in-range", "heading": "Above the threshold, the wage and property limits phase in", "body": "Whether the wage and property limits touch your deduction at all is decided by taxable income figured before the deduction itself. At or below the threshold - $403,500 on a joint return and $201,750 on any other return for 2026 - no reduction applies, and the deduction is simply a share of qualified business income. Above the threshold the limits do not arrive all at once: they are phased in across a band of income, so a business just over the line keeps most of what the limits would otherwise take away. The band runs to $553,500 on a joint return and to $276,750 on any other return, and once taxable income passes the top of it the full reduction applies. This is why two businesses with identical income and wages can end with different deductions: what separates them is where the owner’s taxable income sits in that band.", "quote": "The partial or full reduction to QBI is determined\nby your taxable income. If your taxable income (before the QBI\ndeduction) is:\n• At or below the threshold, you don’t need to reduce your QBI;", "offset": 5375, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/i8995a--2025.pdf", "title": "2025 Instructions for Form 8995-A, Deduction for Qualified Business Income", "publisher": "IRS", "fetched_at": "2026-08-29T04:22:52.395Z", "sha256_text": "fb4be40c476acf2ee921dbe48376348b0842c9151f0202e30066b99ec0540ddf", "snapshot_url": "https://ratesandlimits.com/snapshots/qbi-deduction-threshold/2026/i8995a--2025.txt" } }, { "key": "wage-and-property-limit", "heading": "What the reduction is measured against", "body": "Above the threshold the deduction stops being a plain share of profit and becomes a test of payroll and capital. For each trade or business the qualified business income taken into account is capped at the greater of two amounts: 50% of the W-2 wages the business paid, or 25% of those wages plus 2.5% of the unadjusted basis immediately after acquisition of its qualified property. A business with employees is measured on the first of these; one that owns substantial depreciable property but pays little in wages is usually better served by the second. A business with neither wages nor qualified property has nothing to measure and can lose the deduction entirely once income is above the phase-in band. Below the threshold none of this applies, which is why the wage and property figures matter only to owners whose taxable income has passed $201,750, or $403,500 on a joint return.", "quote": "your QBI for each of your trades\nor businesses may be partially or fully reduced to the greater of 50%\nof W-2 wages paid by the qualified trade or business, or 25% of W-2\nwages plus 2.5% of the UBIA of qualified property from the qualified\ntrade or business.", "offset": 5116, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/i8995a--2025.pdf", "title": "2025 Instructions for Form 8995-A, Deduction for Qualified Business Income", "publisher": "IRS", "fetched_at": "2026-08-29T04:22:52.395Z", "sha256_text": "fb4be40c476acf2ee921dbe48376348b0842c9151f0202e30066b99ec0540ddf", "snapshot_url": "https://ratesandlimits.com/snapshots/qbi-deduction-threshold/2026/i8995a--2025.txt" } }, { "key": "service-businesses-above-the-range", "heading": "Specified service businesses above the range", "body": "A specified service trade or business - health, law, accounting, consulting, athletics, financial services, and any trade or business whose principal asset is the reputation or skill of its owners or employees - is treated differently at the top of the income scale. Below the threshold it is a qualified trade or business like any other. Inside the phase-in band only part of its income, wages and property count, in the same proportion the band has been crossed. Above the top of the band it is not a qualified trade or business at all, so none of its income supports a deduction, however much it pays in wages. For 2026 that cut-off is $276,750 of taxable income before the deduction, or $553,500 on a joint return.", "quote": "Specified service trades or businesses (SSTBs) aren’t qualified\ntrades or businesses for taxpayers with taxable income, before the\nQBI deduction, above the threshold and phased-in range.", "offset": 6690, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/i8995a--2025.pdf", "title": "2025 Instructions for Form 8995-A, Deduction for Qualified Business Income", "publisher": "IRS", "fetched_at": "2026-08-29T04:22:52.395Z", "sha256_text": "fb4be40c476acf2ee921dbe48376348b0842c9151f0202e30066b99ec0540ddf", "snapshot_url": "https://ratesandlimits.com/snapshots/qbi-deduction-threshold/2026/i8995a--2025.txt" } }, { "key": "overall-taxable-income-limit", "heading": "The deduction is also capped by taxable income", "body": "There is a second ceiling that applies to everyone, whatever their income. After the qualified business income component and the REIT and publicly traded partnership component are added together, the deduction cannot be more than 20% of taxable income figured before the deduction and reduced by net capital gain, increased by any qualified dividends. For a taxpayer whose income is mostly business profit this rarely binds. It bites where taxable income is small relative to business income - a large itemized or standard deduction, or a loss elsewhere on the return - and where a large part of income is long-term capital gain or qualified dividends, because that part is removed before the ceiling is worked out. The result is that the deduction can be smaller than the size of the business alone would suggest.", "quote": "However, the deduction is limited to the\nlesser of this amount or 20% of your taxable income, calculated\nbefore the QBI deduction, minus your net capital gain (increased by\nany qualified dividends).", "offset": 1190, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/i8995a--2025.pdf", "title": "2025 Instructions for Form 8995-A, Deduction for Qualified Business Income", "publisher": "IRS", "fetched_at": "2026-08-29T04:22:52.395Z", "sha256_text": "fb4be40c476acf2ee921dbe48376348b0842c9151f0202e30066b99ec0540ddf", "snapshot_url": "https://ratesandlimits.com/snapshots/qbi-deduction-threshold/2026/i8995a--2025.txt" } } ], "estimate": null }, { "program": "qsehra-limit", "name": "QSEHRA Limit", "category": "health-accounts", "agency": "IRS", "year": 2026, "state": null, "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-29", "published_at": "2026-08-29T20:28:44.488Z", "canonical_url": "https://ratesandlimits.com/qsehra-limit/", "figures": [ { "key": "payments-self-only", "label": "Maximum payments and reimbursements", "value": 6450, "format": "usd", "formatted": "$6,450", "scope": null, "derived": false, "quote": "Qualified Small Employer Health Reimbursement Arrangement. For taxable\nyears beginning in 2026, to qualify as a qualified small employer health reimbursement\narrangement under § 9831(d), the arrangement must provide that the total amount of\npayments and reimbursements for any year cannot exceed $6,450", "offset": 53380, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32", "publisher": "IRS", "fetched_at": "2026-08-29T03:26:08.283Z", "sha256_text": "208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66", "snapshot_url": "https://ratesandlimits.com/snapshots/qsehra-limit/2026/rp-25-32.txt" } }, { "key": "payments-family", "label": "Maximum payments and reimbursements, family coverage", "value": 13100, "format": "usd", "formatted": "$13,100", "scope": null, "derived": false, "quote": "the arrangement must provide that the total amount of\npayments and reimbursements for any year cannot exceed $6,450 ($13,100 for family\ncoverage).", "offset": 53567, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32", "publisher": "IRS", "fetched_at": "2026-08-29T03:26:08.283Z", "sha256_text": "208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66", "snapshot_url": "https://ratesandlimits.com/snapshots/qsehra-limit/2026/rp-25-32.txt" } } ], "schedule": null, "explainers": [ { "key": "what-a-qsehra-must-provide", "heading": "The four things an arrangement must do to be a QSEHRA", "body": "A Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) must satisfy four specific requirements to be valid. First, the arrangement must be funded solely by the employer - employees cannot make salary reduction contributions. Second, it must provide for payment or reimbursement of medical expenses incurred by the employee or their family members, but only after the employee provides proof of minimum essential coverage. Third, the total payments and reimbursements cannot exceed the annual limit, which is $6,450 for individual coverage and $13,100 for family coverage in 2026. Fourth, the arrangement must generally be offered on the same terms to all eligible employees, though certain categories of employees may be excluded from participation. These exclusions are limited and specific, and the employer must ensure they meet the criteria before excluding any worker.", "quote": "A QSEHRA is an arrangement that meets all the follow-\ning requirements.\n1. The arrangement is funded solely by you, and no sal-\nary reduction contributions may be made under the\narrangement.\n2. The arrangement provides, after the eligible employee\nprovides proof of coverage, for the payment or reim-\nbursement of the medical expenses incurred by the\nemployee or the employee’s family members.", "offset": 30014, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/p15b--2025.pdf", "title": "Publication 15-B (2025), Employer's Tax Guide to Fringe Benefits", "publisher": "IRS", "fetched_at": "2026-08-29T08:17:45.233Z", "sha256_text": "86ada5e740851b0014f7aed3f6e1af402ebba4c9af177d11afccc662960f349b", "snapshot_url": "https://ratesandlimits.com/snapshots/qsehra-limit/2026/p15b--2025.txt" } }, { "key": "eligible-employer", "heading": "Which employers may offer one", "body": "Only certain small employers may establish a QSEHRA. To be an eligible employer, you must not be an applicable large employer, which is defined as an employer that generally employed at least 50 full-time employees, including full-time equivalent employees, in the prior calendar year. You must also not offer a group health plan (including a health reimbursement arrangement (HRA) or a health FSA) to any of your employees. If the employer had 50 or more full-time employees (including full-time equivalents) in the previous year, it is too large to offer a QSEHRA. Additionally, the employer must not maintain any other group health plan for any employee - even offering a health FSA or a traditional HRA to any employee disqualifies the employer from using a QSEHRA. Both conditions must be met simultaneously: the employer must be small enough and must not offer any competing group health arrangement.", "quote": "Eligible employer. To be an eligible employer, you\nmust not be an applicable large employer, which is de-\nfined as an employer that generally employed at least 50\nfull-time employees, including full-time equivalent employ-\nees, in the prior calendar year. You must also not offer a\ngroup health plan (including a health reimbursement ar-\nrangement (HRA) or a health FSA) to any of your employ-\nees.", "offset": 31029, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/p15b--2025.pdf", "title": "Publication 15-B (2025), Employer's Tax Guide to Fringe Benefits", "publisher": "IRS", "fetched_at": "2026-08-29T08:17:45.233Z", "sha256_text": "86ada5e740851b0014f7aed3f6e1af402ebba4c9af177d11afccc662960f349b", "snapshot_url": "https://ratesandlimits.com/snapshots/qsehra-limit/2026/p15b--2025.txt" } }, { "key": "same-terms-and-excludable-employees", "heading": "The same-terms rule, and who may be left out", "body": "A QSEHRA must generally be offered on the same terms to all eligible employees of the employer. This means the employer cannot favor highly compensated employees or managers with richer benefits. However, the arrangement may exclude five specific categories of employees without violating the same-terms requirement: employees who have not completed 90 days of service, employees who have not reached age 25 before the start of the plan year, part-time or seasonal employees, employees covered by a collective bargaining agreement if health benefits were the subject of good-faith bargaining, and nonresident aliens who have no earned income from U.S. sources. If an employee does not fall into one of these five excluded categories, the employer must offer that person the same QSEHRA benefits on the same terms as every other eligible employee.", "quote": "The arrangement is generally provided on the same\nterms to all your eligible employees. However, your\nQSEHRA may exclude employees who haven’t com-\npleted 90 days of service, employees who haven’t at-\ntained age 25 before the beginning of the plan year,\npart-time or seasonal employees, employees covered\nby a collective bargaining agreement if health benefits\nwere the subject of good-faith bargaining, and em-\nployees who are nonresident aliens with no earned in-\ncome from sources within the United States.", "offset": 30519, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/p15b--2025.pdf", "title": "Publication 15-B (2025), Employer's Tax Guide to Fringe Benefits", "publisher": "IRS", "fetched_at": "2026-08-29T08:17:45.233Z", "sha256_text": "86ada5e740851b0014f7aed3f6e1af402ebba4c9af177d11afccc662960f349b", "snapshot_url": "https://ratesandlimits.com/snapshots/qsehra-limit/2026/p15b--2025.txt" } }, { "key": "w2-reporting", "heading": "What the employer reports on Form W-2", "body": "Employers offering a QSEHRA have a specific W-2 reporting obligation. You must report in box 12 of Form W-2 using code FF the amount of payments and reimbursements that your employee is entitled to receive from the QSEHRA for the calendar year, without regard to the amount actually received. This means the employer reports the full permitted benefit amount the employee could receive, not just what they actually spent or claimed. For example, if the QSEHRA provides a permitted benefit of $3,000 but the employee only receives reimbursements of $2,000, the employer still reports $3,000 in box 12 using code FF. The purpose is to disclose the total available benefit so that the IRS and the employee can determine whether the employee's premium tax credit is properly reduced. The reporting is done annually, and the amount reported reflects the full permitted benefit for the calendar year, regardless of when or how much the employee actually submitted for reimbursement.", "quote": "Reporting requirements. You must report in box 12\nof Form W-2 using code FF the amount of payments and\nreimbursements that your employee is entitled to receive\nfrom the QSEHRA for the calendar year without regard to\nthe amount of payments or reimbursements actually re-\nceived. For example, if your QSEHRA provides a permit-\nted benefit of $3,000 and your employee receives reim-\nbursements of $2,000, on Form W-2, you would report a\npermitted benefit of $3,000 in box 12 using code FF.", "offset": 31758, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/p15b--2025.pdf", "title": "Publication 15-B (2025), Employer's Tax Guide to Fringe Benefits", "publisher": "IRS", "fetched_at": "2026-08-29T08:17:45.233Z", "sha256_text": "86ada5e740851b0014f7aed3f6e1af402ebba4c9af177d11afccc662960f349b", "snapshot_url": "https://ratesandlimits.com/snapshots/qsehra-limit/2026/p15b--2025.txt" } } ], "estimate": null }, { "program": "residential-clean-energy-credit", "name": "Residential Clean Energy Credit", "category": "deductions-and-credits", "agency": "IRS", "year": 2026, "state": null, "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-29", "published_at": "2026-08-29T10:04:11.854Z", "canonical_url": "https://ratesandlimits.com/residential-clean-energy-credit/", "figures": [], "schedule": null, "explainers": [ { "key": "carryforward-of-unused-credit", "heading": "What happens when the credit is bigger than your tax", "body": "If the residential clean energy credit you calculate is larger than your tax liability for the year, you do not lose the excess. The credit is nonrefundable, meaning it cannot reduce your tax below zero, but any portion you cannot use because of that tax liability limit may be carried forward to the next tax year. For a credit claimed on your 2025 return, the unused amount is carried to 2026. You must still file Form 5695 for 2025 even if you cannot use any of the credit at all in that year. The carryforward lets you apply the leftover credit against your 2026 tax liability, subject again to that year's tax liability limit. If there is still unused credit after 2026, note that the residential clean energy credit terminates for expenditures made after December 31, 2025, so no new credit can arise for later years, but a proper carryforward from 2025 may still be available to use in 2026.", "quote": "If you can't use all of the credit because of the tax liability limit (that\nis, line 14 is less than line 13), you can carry the unused portion of\nthe credit to 2026.", "offset": 26657, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/i5695.pdf", "title": "2025 Instructions for Form 5695", "publisher": "IRS", "fetched_at": "2026-08-29T02:50:58.867Z", "sha256_text": "028f32075ab23df51b88bf9ac8d2ccc2f47bfb6200988e5eb82f33dfa01e05a6", "snapshot_url": "https://ratesandlimits.com/snapshots/residential-clean-energy-credit/2026/i5695.txt" } }, { "key": "business-use-80-percent-test", "heading": "Business use of the property can cut the credit", "body": "When qualifying property is used partly for business, the IRS applies an 80% test to determine how much of the cost counts toward the residential energy credits. Only the share of costs allocable to nonbusiness use may be included. Put another way, if 80% or more of the item's use is for business, no part of the cost qualifies for these residential credits at all. If nonbusiness use is less than 80%, you prorate: only the nonbusiness percentage of the costs feeds into the credit calculation. This rule applies to both credits reported on Form 5695. The same 80% threshold also governs the separate timing rule that determines when costs are treated as paid in the context of home construction or reconstruction.", "quote": "If less than 80% of the use of\nan item is for nonbusiness purposes, only that portion of the costs\nthat is allocable to the nonbusiness use can be used to determine\neither credit.", "offset": 5392, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/i5695.pdf", "title": "2025 Instructions for Form 5695", "publisher": "IRS", "fetched_at": "2026-08-29T02:50:58.867Z", "sha256_text": "028f32075ab23df51b88bf9ac8d2ccc2f47bfb6200988e5eb82f33dfa01e05a6", "snapshot_url": "https://ratesandlimits.com/snapshots/residential-clean-energy-credit/2026/i5695.txt" } }, { "key": "when-a-cost-counts-as-paid", "heading": "A cost counts when installation is finished, not when you paid", "body": "The credits follow a specific timing rule: costs are treated as paid not when you write the check or make a payment, but when the installation work is finished. For ordinary installations, that is the date the original installation is completed. For costs tied to the reconstruction of a home, the cost counts when your original use of the reconstructed home begins. The same \"original use\" rule applies for purposes of the residential clean energy credit to costs connected with the construction of an entirely new home. The practical effect is that a homeowner who paid a contractor in 2025 for equipment that is not installed until 2026 will see the cost counted in 2026, not 2025. This timing rule matters because the residential clean energy credit expired for expenditures made after a specific date.", "quote": "For purposes of both credits, costs are treated as being paid\nwhen the original installation of the item is completed, or, in the case\nof costs connected with the reconstruction of your home, when your\noriginal use of the reconstructed home begins.", "offset": 4956, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/i5695.pdf", "title": "2025 Instructions for Form 5695", "publisher": "IRS", "fetched_at": "2026-08-29T02:50:58.867Z", "sha256_text": "028f32075ab23df51b88bf9ac8d2ccc2f47bfb6200988e5eb82f33dfa01e05a6", "snapshot_url": "https://ratesandlimits.com/snapshots/residential-clean-energy-credit/2026/i5695.txt" } }, { "key": "subsidies-reduce-your-cost", "heading": "Utility rebates come off the cost first", "body": "If you received a subsidy from a public utility for the purchase or installation of an energy conservation product and that subsidy was not included in your gross income, you must reduce your cost for the product by the amount of that subsidy before you figure your credit. In other words, the tax-free rebate comes off the eligible cost first, and the credit is calculated on what you actually bore economically. The same reduction rule applies when a third party, such as your contractor, receives the subsidy on your behalf rather than you receiving it directly. The intent is to prevent a double benefit: you cannot claim a credit on the full invoice price while also excluding a tax-free utility payment that covered part of that price. The reduced cost, not the gross cost, is what feeds into the credit calculation.", "quote": "If you received a subsidy from a public utility for the\npurchase or installation of an energy conservation product and that\nsubsidy wasn't included in your gross income, you must reduce your\ncost for the product by the amount of that subsidy before you figure\nyour credit.", "offset": 6388, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/i5695.pdf", "title": "2025 Instructions for Form 5695", "publisher": "IRS", "fetched_at": "2026-08-29T02:50:58.867Z", "sha256_text": "028f32075ab23df51b88bf9ac8d2ccc2f47bfb6200988e5eb82f33dfa01e05a6", "snapshot_url": "https://ratesandlimits.com/snapshots/residential-clean-energy-credit/2026/i5695.txt" } }, { "key": "fuel-cell-main-home-only", "heading": "Fuel cells must be at your main home; solar need not be", "body": "Qualified fuel cell property costs are defined as costs for qualified fuel cell property installed on or in connection with your main home located in the United States. This is a stricter requirement than what applies to solar panels and most other qualifying clean energy property, which need only be installed in connection with your home located in the United States. The key distinction is the word \"main\": for fuel cells, the property must be placed at your primary residence, not a vacation home or a second property you also use as a residence. A fuel cell system installed only at a second home you do not treat as your main home does not qualify. Solar electric panels, solar water heaters, qualified battery storage, geothermal heat pumps, and small wind turbines may be installed at any home you use as a residence, so they have more flexibility.", "quote": "Qualified fuel cell property\ncosts are costs for qualified fuel cell property installed on or in\nconnection with your main home located in the United States.", "offset": 11072, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/i5695.pdf", "title": "2025 Instructions for Form 5695", "publisher": "IRS", "fetched_at": "2026-08-29T02:50:58.867Z", "sha256_text": "028f32075ab23df51b88bf9ac8d2ccc2f47bfb6200988e5eb82f33dfa01e05a6", "snapshot_url": "https://ratesandlimits.com/snapshots/residential-clean-energy-credit/2026/i5695.txt" } }, { "key": "credit-ends-after-2025", "heading": "The last expenditures that can qualify", "body": "The residential clean energy credit has a fixed sunset: no credit can be claimed for expenditures made after December 31, 2025. That means costs must be treated as paid on or before that date under the rules that determine when a cost counts. Because costs for construction or reconstruction are treated as paid when original use begins, a homeowner must ensure that the original use of a newly built or reconstructed home begins by that cutoff. The energy efficient home improvement credit carries the same end date, for expenditures or property placed in service after December 31, 2025. After that date, neither credit is available, and any qualifying property installed later receives no federal residential energy credit.", "quote": "You can’t claim residential clean energy\ncredits for expenditures made after December 31, 2025.", "offset": 379, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/i5695.pdf", "title": "2025 Instructions for Form 5695", "publisher": "IRS", "fetched_at": "2026-08-29T02:50:58.867Z", "sha256_text": "028f32075ab23df51b88bf9ac8d2ccc2f47bfb6200988e5eb82f33dfa01e05a6", "snapshot_url": "https://ratesandlimits.com/snapshots/residential-clean-energy-credit/2026/i5695.txt" } } ], "estimate": null }, { "program": "roth-ira-income-limit", "name": "Roth IRA Income Limit", "category": "retirement-limits", "agency": "IRS", "year": 2026, "state": null, "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-29", "published_at": "2026-08-29T04:20:38.149Z", "canonical_url": "https://ratesandlimits.com/roth-ira-income-limit/", "figures": [ { "key": "phaseout-start-single", "label": "Phase-out start, single filers", "value": 153000, "format": "usd", "formatted": "$153,000", "scope": null, "derived": false, "quote": "For singles and heads of household, the income phase-out range is\nbetween $153,000 and $168,000", "offset": 11827, "source": { "url": "https://www.irs.gov/pub/irs-drop/n-25-67.pdf", "title": "Notice 2025-67", "publisher": "IRS", "fetched_at": "2026-08-27T13:23:33.261Z", "sha256_text": "dee57a39e72fc363102f1c9fa373d5c5a969a62bc5422076830034732e2f131d", "snapshot_url": "https://ratesandlimits.com/snapshots/roth-ira-income-limit/2026/n-25-67.txt" } }, { "key": "phaseout-end-single", "label": "Phase-out end, single filers", "value": 168000, "format": "usd", "formatted": "$168,000", "scope": null, "derived": false, "quote": "For singles and heads of household, the income phase-out range is\nbetween $153,000 and $168,000", "offset": 11827, "source": { "url": "https://www.irs.gov/pub/irs-drop/n-25-67.pdf", "title": "Notice 2025-67", "publisher": "IRS", "fetched_at": "2026-08-27T13:23:33.261Z", "sha256_text": "dee57a39e72fc363102f1c9fa373d5c5a969a62bc5422076830034732e2f131d", "snapshot_url": "https://ratesandlimits.com/snapshots/roth-ira-income-limit/2026/n-25-67.txt" } }, { "key": "phaseout-start-married", "label": "Phase-out start, joint filers", "value": 242000, "format": "usd", "formatted": "$242,000", "scope": null, "derived": false, "quote": "the adjusted gross income phase-out range for taxpayers\nmaking contributions to a Roth IRA is between $242,000 and $252,000 for\nmarried couples filing jointly", "offset": 11621, "source": { "url": "https://www.irs.gov/pub/irs-drop/n-25-67.pdf", "title": "Notice 2025-67", "publisher": "IRS", "fetched_at": "2026-08-27T13:23:33.261Z", "sha256_text": "dee57a39e72fc363102f1c9fa373d5c5a969a62bc5422076830034732e2f131d", "snapshot_url": "https://ratesandlimits.com/snapshots/roth-ira-income-limit/2026/n-25-67.txt" } }, { "key": "phaseout-end-married", "label": "Phase-out end, joint filers", "value": 252000, "format": "usd", "formatted": "$252,000", "scope": null, "derived": false, "quote": "the adjusted gross income phase-out range for taxpayers\nmaking contributions to a Roth IRA is between $242,000 and $252,000 for\nmarried couples filing jointly", "offset": 11621, "source": { "url": "https://www.irs.gov/pub/irs-drop/n-25-67.pdf", "title": "Notice 2025-67", "publisher": "IRS", "fetched_at": "2026-08-27T13:23:33.261Z", "sha256_text": "dee57a39e72fc363102f1c9fa373d5c5a969a62bc5422076830034732e2f131d", "snapshot_url": "https://ratesandlimits.com/snapshots/roth-ira-income-limit/2026/n-25-67.txt" } } ], "schedule": null, "explainers": [ { "key": "contribution-limit-reduced", "heading": "How a high modified AGI reduces the limit", "body": "This sentence introduces the income-based phaseout that applies to Roth IRA contributions. When a taxpayer's modified AGI rises above the phaseout threshold for their filing status, the maximum amount they may contribute to a Roth IRA is gradually reduced rather than eliminated all at once. For 2026, the phaseout begins at $153,000 of modified AGI for single filers and at $242,000 for married couples filing jointly. The reduction continues across a range of income and ends completely once modified AGI reaches $168,000 for single filers or $252,000 for joint filers. Taxpayers whose modified AGI falls below the phaseout start may contribute up to the full annual limit. The IRS publishes a table (Table 2-1 in Publication 590-A) that lets contributors look up whether the reduction applies to them based on their filing status and income level.", "quote": "Contribution limit reduced. If your modified AGI is\nabove a certain amount, your contribution limit is gradually\nreduced.", "offset": 181265, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/p590a--2025.pdf", "title": "Publication 590-A (2025), Contributions to Individual Retirement Arrangements (IRAs)", "publisher": "IRS", "fetched_at": "2026-08-29T04:19:26.866Z", "sha256_text": "6144301edc878bb89ea80a916fe064d561457c6e4483931950296ab5ed5e37bb", "snapshot_url": "https://ratesandlimits.com/snapshots/roth-ira-income-limit/2026/p590a--2025.txt" } }, { "key": "figuring-the-reduction", "heading": "Figuring the reduced limit, and how it is rounded", "body": "Once the IRS formula produces a reduced contribution limit, the result is not left as a fractional dollar amount. You must round it up to the next whole multiple of $10. There is also a special floor: if the rounded figure is greater than $0 but falls below $200, the limit is raised to $200 so that a small residual entitlement is not lost entirely. This floor prevents taxpayers with only a tiny remaining contribution room from being left with effectively nothing. If the calculation produces $0, the floor does not apply and no Roth IRA contribution is permitted for the year.", "quote": "Round your reduced contribution limit up to the\nnearest $10. If your reduced contribution limit is\nmore than $0, but less than $200, increase the\nlimit to $200.", "offset": 181587, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/p590a--2025.pdf", "title": "Publication 590-A (2025), Contributions to Individual Retirement Arrangements (IRAs)", "publisher": "IRS", "fetched_at": "2026-08-29T04:19:26.866Z", "sha256_text": "6144301edc878bb89ea80a916fe064d561457c6e4483931950296ab5ed5e37bb", "snapshot_url": "https://ratesandlimits.com/snapshots/roth-ira-income-limit/2026/p590a--2025.txt" } }, { "key": "modified-agi-for-roth", "heading": "The income the test uses is modified AGI", "body": "The income test that determines whether your Roth IRA contribution limit is reduced is based on modified AGI, not the regular adjusted gross income shown on page 1 of your tax return. Modified AGI starts with your AGI and then adds back certain items the IRS specifies for this purpose, the most common being income from a Roth conversion. Because conversions can substantially increase the number used for the phase-out, taxpayers who are converting a traditional IRA to a Roth in the same year may find that the conversion itself pushes their modified AGI higher and reduces or eliminates the very contribution room they were trying to use. The IRS provides Worksheet 2-1 to compute the correct modified AGI figure to use in the phase-out calculation.", "quote": "Modified AGI. Your modified AGI for Roth IRA purposes\nis your AGI as shown on your return with some adjust-\nments. Use Worksheet 2-1 to determine your modified\nAGI.", "offset": 178625, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/p590a--2025.pdf", "title": "Publication 590-A (2025), Contributions to Individual Retirement Arrangements (IRAs)", "publisher": "IRS", "fetched_at": "2026-08-29T04:19:26.866Z", "sha256_text": "6144301edc878bb89ea80a916fe064d561457c6e4483931950296ab5ed5e37bb", "snapshot_url": "https://ratesandlimits.com/snapshots/roth-ira-income-limit/2026/p590a--2025.txt" } }, { "key": "one-limit-across-both-iras", "heading": "Traditional and Roth contributions share one annual limit", "body": "A taxpayer's annual contribution limit is not calculated separately for traditional and Roth IRAs. Instead, there is a single overall limit, and Roth IRA room is what remains after any contributions to traditional IRAs are taken into account. In practice, you first determine what your limit would be if you contributed only to Roth IRAs, and then you subtract from that figure every contribution made for the year to traditional IRAs (other than employer contributions to a SEP or SIMPLE plan). The result is the most you may put into Roth IRAs for the year. This rule means that contributing to a traditional IRA directly reduces the room available for Roth contributions dollar for dollar, up to the overall annual limit.", "quote": "Roth IRAs and traditional IRAs. If contributions are\nmade to both Roth IRAs and traditional IRAs established\nfor your benefit, your contribution limit for Roth IRAs is\ngenerally the same as your limit would be if contributions\nwere made only to Roth IRAs, but then reduced by all con-\ntributions for the year to all IRAs other than Roth IRAs.", "offset": 179627, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/p590a--2025.pdf", "title": "Publication 590-A (2025), Contributions to Individual Retirement Arrangements (IRAs)", "publisher": "IRS", "fetched_at": "2026-08-29T04:19:26.866Z", "sha256_text": "6144301edc878bb89ea80a916fe064d561457c6e4483931950296ab5ed5e37bb", "snapshot_url": "https://ratesandlimits.com/snapshots/roth-ira-income-limit/2026/p590a--2025.txt" } } ], "estimate": null }, { "program": "salt-deduction", "name": "SALT Deduction Limit", "category": "deductions-and-credits", "agency": "IRS", "year": 2026, "state": null, "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-09-01", "published_at": "2026-09-01T04:31:58.523Z", "canonical_url": "https://ratesandlimits.com/salt-deduction/", "figures": [ { "key": "limit", "label": "Deduction limit", "value": 40400, "format": "usd", "formatted": "$40,400", "scope": null, "derived": false, "quote": "The overall limit on the deduction for state and\nlocal income, sales, and property taxes has in-\ncreased. For 2026, the limit is $40,400 ($20,200\nif married filing separately)", "offset": 15128, "source": { "url": "https://www.irs.gov/pub/irs-pdf/p505.pdf", "title": "Publication 505 (2026), Tax Withholding and Estimated Tax", "publisher": "IRS", "fetched_at": "2026-08-29T02:18:49.710Z", "sha256_text": "019a9f19d12eceae00ac3244b69ef2cb9e62aa11cabc1aa148b1f84916c63883", "snapshot_url": "https://ratesandlimits.com/snapshots/salt-deduction/2026/p505.txt" } } ], "schedule": null, "explainers": [ { "key": "magi-phasedown", "heading": "The limit shrinks above a stated income", "body": "For 2026, the overall SALT deduction limit is $40,400. Taxpayers whose modified adjusted gross income (MAGI) exceeds $500,000 ($250,000 if married filing separately) see that limit gradually phased down. The phase-down, however, has a floor: the IRS states the limit will not be reduced below $10,000 ($5,000 if married filing separately). That means no matter how far above the MAGI threshold a taxpayer's income rises, the deduction for state and local income, sales, and property taxes can never fall beneath that minimum. Taxpayers with MAGI at or below the threshold can claim up to the full $40,400 limit with no reduction.", "quote": "The overall limit is reduced if your modified\nadjusted gross income is more than $500,000 ($250,000 if\nmarried filing separately) but will not be reduced below $10,000\n($5,000 if married filing separately).", "offset": 562, "verified_at": "2026-09-01", "source": { "url": "https://www.irs.gov/pub/irs-pdf/i1040sca.pdf", "title": "2025 Instructions for Schedule A (Form 1040)", "publisher": "IRS", "fetched_at": "2026-08-29T02:21:29.449Z", "sha256_text": "372bc8905f8c352a41a5136c1f72fa1c08dbbec26759536a93fc11ca9c5a9f60", "snapshot_url": "https://ratesandlimits.com/snapshots/salt-deduction/2026/i1040sca.txt" } }, { "key": "taxes-that-do-not-count", "heading": "What is not a deductible tax", "body": "The IRS identifies several classes of taxes that are never deductible as itemized deductions on Schedule A. Federal income tax and most federal excise taxes are excluded. Payroll-type taxes — Social Security, Medicare, federal unemployment (FUTA), and railroad retirement (RRTA) taxes — cannot be deducted. Customs duties and federal estate and gift taxes are likewise non-deductible (though a separate credit may apply for estate tax paid on income in respect of a decedent). At the state and local level, taxes on gasoline, car inspection fees, assessments for sidewalks or other property improvements, tax paid on behalf of someone else, and license fees such as marriage, driver's, or pet licenses are excluded. Foreign personal or real property taxes also do not count toward the SALT deduction.", "quote": "Taxes You Paid\nTaxes You Can't Deduct\n• Federal income and most excise taxes.\n• Social security, Medicare, federal unemployment (FUTA), and\nrailroad retirement (RRTA) taxes.\n• Customs duties.\n• Federal estate and gift taxes. However, see Line 16, later, if\nyou had income in respect of a decedent.TIP\n• Certain state and local taxes, including tax on gasoline, car\ninspection fees, assessments for sidewalks or other\nimprovements to your property, tax you paid for someone else,\nand license fees (for example, marriage, driver's, and pet).\n• Foreign personal or real property taxes.", "offset": 11057, "verified_at": "2026-09-01", "source": { "url": "https://www.irs.gov/pub/irs-pdf/i1040sca.pdf", "title": "2025 Instructions for Schedule A (Form 1040)", "publisher": "IRS", "fetched_at": "2026-08-29T02:21:29.449Z", "sha256_text": "372bc8905f8c352a41a5136c1f72fa1c08dbbec26759536a93fc11ca9c5a9f60", "snapshot_url": "https://ratesandlimits.com/snapshots/salt-deduction/2026/i1040sca.txt" } }, { "key": "income-or-sales-not-both", "heading": "Income taxes or sales taxes, one or the other", "body": "Taxpayers have the option to deduct either state and local income taxes or state and local general sales taxes on their federal return, but cannot claim both categories in the same tax year. This election applies to the total amount of state and local taxes subject to the overall SALT cap. Most taxpayers choose to deduct income taxes because the amount withheld from wages typically exceeds their sales tax burden. However, residents of states with no income tax may benefit from electing the sales tax deduction instead. The choice is made on Line 5a of Schedule A, and once you elect one category, you forgo any deduction for the other. Both options count toward the same overall limitation on state and local tax deductions, so the election affects which taxes qualify but does not increase the total amount you can deduct beyond the statutory cap.", "quote": "Line 5a\nYou can elect to deduct state and local general sales\ntaxes instead of state and local income taxes. You can't\ndeduct both.", "offset": 13553, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/i1040sca.pdf", "title": "2025 Instructions for Schedule A (Form 1040)", "publisher": "IRS", "fetched_at": "2026-08-29T02:21:29.449Z", "sha256_text": "372bc8905f8c352a41a5136c1f72fa1c08dbbec26759536a93fc11ca9c5a9f60", "snapshot_url": "https://ratesandlimits.com/snapshots/salt-deduction/2026/i1040sca.txt" } }, { "key": "mandatory-state-fund-contributions", "heading": "Payroll contributions that do count", "body": "Mandatory employee contributions to certain state disability and unemployment insurance programs qualify as deductible state and local taxes. These include required payroll deductions for state disability benefit funds in California, New Jersey, and New York, as well as the Rhode Island Temporary Disability Benefit Fund and Washington State Supplemental Workmen's Compensation Fund. Mandatory contributions to state unemployment funds in Alaska, California, New Jersey, and Pennsylvania also count. Additionally, required payments to state family leave programs, such as New Jersey Family Leave Insurance and California Paid Family Leave, are deductible. These contributions differ from voluntary insurance premiums because they are compulsory payroll withholdings mandated by state law. They appear on your wage statements and represent actual tax payments to state governments, which is why they qualify for inclusion in the SALT deduction calculation alongside other state and local income taxes.", "quote": "Mandatory contributions you made to the California, New\nJersey, or New York Nonoccupational Disability Benefit Fund;\nRhode Island Temporary Disability Benefit Fund; or Washington\nState Supplemental Workmen's Compensation Fund.\n• Mandatory contributions to the Alaska, California, New Jersey,\nor Pennsylvania state unemployment fund.\n• Mandatory contributions to state family leave programs, such\nas the New Jersey Family Leave Insurance (FLI) program and\nthe California Paid Family Leave program.", "offset": 14513, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/i1040sca.pdf", "title": "2025 Instructions for Schedule A (Form 1040)", "publisher": "IRS", "fetched_at": "2026-08-29T02:21:29.449Z", "sha256_text": "372bc8905f8c352a41a5136c1f72fa1c08dbbec26759536a93fc11ca9c5a9f60", "snapshot_url": "https://ratesandlimits.com/snapshots/salt-deduction/2026/i1040sca.txt" } }, { "key": "itemizing-is-the-precondition", "heading": "You only get this if you itemize", "body": "The SALT deduction is only available to taxpayers who itemize their deductions on Schedule A rather than claiming the standard deduction. When you file your federal return, you compare your total itemized deductions to your standard deduction and choose the larger amount. If your itemized deductions exceed the standard deduction, you benefit from itemizing and can claim the SALT deduction along with other qualifying expenses like mortgage interest and charitable contributions. However, if your standard deduction is larger, you take that amount instead and receive no separate benefit from state and local taxes paid. This choice is particularly relevant for taxpayers whose total itemizable expenses fall below the standard deduction threshold, as they cannot claim any portion of the SALT deduction regardless of how much they paid in state and local taxes during the year.", "quote": "In most cases, your federal income tax will be less if you take the\nlarger of your itemized deductions or your standard deduction.", "offset": 1368, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/i1040sca.pdf", "title": "2025 Instructions for Schedule A (Form 1040)", "publisher": "IRS", "fetched_at": "2026-08-29T02:21:29.449Z", "sha256_text": "372bc8905f8c352a41a5136c1f72fa1c08dbbec26759536a93fc11ca9c5a9f60", "snapshot_url": "https://ratesandlimits.com/snapshots/salt-deduction/2026/i1040sca.txt" } } ], "estimate": null }, { "program": "savers-credit-income-limit", "name": "Saver's Credit Income Limit", "category": "deductions-and-credits", "agency": "IRS", "year": 2026, "state": null, "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-29", "published_at": "2026-08-29T19:32:09.088Z", "canonical_url": "https://ratesandlimits.com/savers-credit-income-limit/", "figures": [ { "key": "max-agi-joint", "label": "Maximum adjusted gross income, married taxpayers filing a joint return", "value": 80500, "format": "usd", "formatted": "$80,500", "scope": null, "derived": false, "quote": "The adjusted gross income limitation under section 25B(b)(1)(A) for determining\nthe retirement savings contributions credit for married taxpayers filing a joint\nreturn is increased from $47,500 to $48,500; the limitation under\nsection 25B(b)(1)(B) is increased from $51,000 to $52,500; and the limitation\nunder sections 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $79,000\nto $80,500.", "offset": 7426, "source": { "url": "https://www.irs.gov/pub/irs-drop/n-25-67.pdf", "title": "Notice 2025-67", "publisher": "IRS", "fetched_at": "2026-08-29T03:12:59.330Z", "sha256_text": "dee57a39e72fc363102f1c9fa373d5c5a969a62bc5422076830034732e2f131d", "snapshot_url": "https://ratesandlimits.com/snapshots/savers-credit-income-limit/2026/n-25-67.txt" } }, { "key": "max-agi-head-of-household", "label": "Maximum adjusted gross income, taxpayers filing as head of household", "value": 60375, "format": "usd", "formatted": "$60,375", "scope": null, "derived": false, "quote": "The adjusted gross income limitation under section 25B(b)(1)(A) for determining\nthe retirement savings contributions credit for taxpayers filing as head of\nhousehold is increased from $35,625 to $36,375; the limitation under\nsection 25B(b)(1)(B) is increased from $38,250 to $39,375; and the limitation\nunder sections 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $59,250\nto $60,375.", "offset": 7814, "source": { "url": "https://www.irs.gov/pub/irs-drop/n-25-67.pdf", "title": "Notice 2025-67", "publisher": "IRS", "fetched_at": "2026-08-29T03:12:59.330Z", "sha256_text": "dee57a39e72fc363102f1c9fa373d5c5a969a62bc5422076830034732e2f131d", "snapshot_url": "https://ratesandlimits.com/snapshots/savers-credit-income-limit/2026/n-25-67.txt" } }, { "key": "max-agi-other", "label": "Maximum adjusted gross income, all other taxpayers", "value": 40250, "format": "usd", "formatted": "$40,250", "scope": null, "derived": false, "quote": "The adjusted gross income limitation under section 25B(b)(1)(A) for determining\nthe retirement savings contributions credit for all other taxpayers is increased\nfrom $23,750 to $24,250; the limitation under section 25B(b)(1)(B) is increased\nfrom $25,500 to $26,250; and the limitation under sections 25B(b)(1)(C)\nand 25B(b)(1)(D) is increased from $39,500 to $40,250.", "offset": 8200, "source": { "url": "https://www.irs.gov/pub/irs-drop/n-25-67.pdf", "title": "Notice 2025-67", "publisher": "IRS", "fetched_at": "2026-08-29T03:12:59.330Z", "sha256_text": "dee57a39e72fc363102f1c9fa373d5c5a969a62bc5422076830034732e2f131d", "snapshot_url": "https://ratesandlimits.com/snapshots/savers-credit-income-limit/2026/n-25-67.txt" } } ], "schedule": null, "explainers": [ { "key": "who-cannot-take-it", "heading": "Three things that disqualify you even under the income limit", "body": "Even if your income falls below the maximum adjusted gross income limit, you cannot take the saver's credit if any of three conditions applies to the person who made the qualified contribution. First, that person was born after January 1, 2008. Second, that person is claimed as a dependent on someone else's 2025 tax return. Third, that person was a student during the tax year. The student rule applies if you were enrolled full-time at a school or took a full-time on-farm training course during any part of several calendar months of 2025. Schools include technical, trade, and mechanical schools but exclude correspondence schools, on-the-job training, and internet-only schools. If any one of these disqualifying conditions applies, you are ineligible for the credit regardless of how much you contributed to a retirement account.", "quote": "The person(s) who made the qualified contribution or elective deferral (a) was born after January 1, 2008; (b) is claimed as a\ndependent on someone else’s 2025 tax return; or (c) was a student (see instructions).", "offset": 535, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/f8880--2025.pdf", "title": "Form 8880 (2025), Credit for Qualified Retirement Savings Contributions", "publisher": "IRS", "fetched_at": "2026-08-29T08:17:02.214Z", "sha256_text": "ffb67ed2b2f0e5cccdf8d33fb78c4e9a0f3d367751c052794c160d57d02794b3", "snapshot_url": "https://ratesandlimits.com/snapshots/savers-credit-income-limit/2026/f8880--2025.txt" } }, { "key": "credit-rate-tiers", "heading": "The credit rate falls in steps as income rises", "body": "The saver's credit rate is not a fixed percentage. Instead, Form 8880 uses a table to determine an applicable decimal amount based on your adjusted gross income and filing status. The maximum adjusted gross income is $80,500 for married taxpayers filing a joint return, $60,375 for taxpayers filing as head of household, and $40,250 for all other taxpayers. As your income rises toward the limit for your filing status, the applicable decimal amount falls in steps, meaning the percentage of your contributions that counts as a credit decreases. Once your income exceeds the maximum for your filing status, the decimal amount drops to nothing and you cannot take the credit. The applicable decimal amount is then multiplied by your eligible contributions to produce the tentative credit before the tax-liability limitation.", "quote": "9 Enter the applicable decimal amount from the table below.", "offset": 1757, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/f8880--2025.pdf", "title": "Form 8880 (2025), Credit for Qualified Retirement Savings Contributions", "publisher": "IRS", "fetched_at": "2026-08-29T08:17:02.214Z", "sha256_text": "ffb67ed2b2f0e5cccdf8d33fb78c4e9a0f3d367751c052794c160d57d02794b3", "snapshot_url": "https://ratesandlimits.com/snapshots/savers-credit-income-limit/2026/f8880--2025.txt" } }, { "key": "contributions-that-count", "heading": "Only the first $2,000 of contributions counts", "body": "The saver's credit is based on your qualified retirement savings contributions, but only up to a cap. On Form 8880, you first total your IRA, ABLE, employer plan, and other qualifying contributions, then subtract any recent distributions to arrive at a net contribution amount. The form then instructs you to enter the smaller of that net amount or $2,000 in each column, one for you and one for your spouse if filing jointly. This means that even if you contributed much more than $2,000 to retirement accounts, only $2,000 per person counts toward the credit. The capped amounts from both columns are added together and then multiplied by the applicable decimal amount from the income table to determine your credit. This $2,000 per-person cap ensures that the credit is based on a limited amount of contributions regardless of how much you actually saved.", "quote": "6 In each column, enter the smaller of line 5 or $2,000 . . . . . . . . . . 6", "offset": 1506, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/f8880--2025.pdf", "title": "Form 8880 (2025), Credit for Qualified Retirement Savings Contributions", "publisher": "IRS", "fetched_at": "2026-08-29T08:17:02.214Z", "sha256_text": "ffb67ed2b2f0e5cccdf8d33fb78c4e9a0f3d367751c052794c160d57d02794b3", "snapshot_url": "https://ratesandlimits.com/snapshots/savers-credit-income-limit/2026/f8880--2025.txt" } }, { "key": "recent-distributions-reduce-contributions", "heading": "Recent withdrawals cut the contributions you can count", "body": "Recent withdrawals from retirement accounts can reduce the contributions that count toward the saver's credit. Form 8880 requires you to report certain distributions received after 2022 and before the due date, including extensions, of your 2025 tax return. These distributions are subtracted from your total contributions to arrive at a net amount that feeds into the credit calculation. If married filing jointly, you must include both spouses' distribution amounts. This means that if you took money out of your retirement accounts in the recent past, those withdrawals reduce the contribution base used to figure your credit. In some cases, the distributions could reduce your net contributions to nothing, which would eliminate the credit entirely. The purpose of this rule is to prevent taxpayers from making contributions just to claim the credit while simultaneously withdrawing funds. Certain exceptions apply, such as rollovers and returned contributions.", "quote": "4 Certain distributions received after 2022 and before the due date (including\nextensions) of your 2025 tax return (see instructions). If married filing jointly, include\nboth spouses’ amounts in both columns. See instructions for an exception . . . 4", "offset": 1173, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/f8880--2025.pdf", "title": "Form 8880 (2025), Credit for Qualified Retirement Savings Contributions", "publisher": "IRS", "fetched_at": "2026-08-29T08:17:02.214Z", "sha256_text": "ffb67ed2b2f0e5cccdf8d33fb78c4e9a0f3d367751c052794c160d57d02794b3", "snapshot_url": "https://ratesandlimits.com/snapshots/savers-credit-income-limit/2026/f8880--2025.txt" } }, { "key": "limited-by-your-tax", "heading": "The credit cannot exceed the tax you owe", "body": "The saver's credit is limited by your tax liability. After calculating the tentative credit amount on Form 8880, you must complete the Credit Limit Worksheet found in the instructions. The worksheet determines how much tax you owe after accounting for other credits. The final credit you can claim is the smaller of the tentative credit or the amount from this worksheet. This means the credit cannot reduce your tax below nothing. If your tax liability is low relative to the tentative credit, your actual credit will be reduced accordingly. The income limits for the credit are $80,500 for married taxpayers filing jointly, $60,375 for head of household, and $40,250 for all other taxpayers, but even if your income is well below these amounts, the credit you receive is still constrained by what you owe in tax.", "quote": "11 Limitation based on tax liability. Enter the amount from the Credit Limit Worksheet in the instructions 11", "offset": 2440, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/f8880--2025.pdf", "title": "Form 8880 (2025), Credit for Qualified Retirement Savings Contributions", "publisher": "IRS", "fetched_at": "2026-08-29T08:17:02.214Z", "sha256_text": "ffb67ed2b2f0e5cccdf8d33fb78c4e9a0f3d367751c052794c160d57d02794b3", "snapshot_url": "https://ratesandlimits.com/snapshots/savers-credit-income-limit/2026/f8880--2025.txt" } } ], "estimate": null }, { "program": "section-179-deduction-limit", "name": "Section 179 Deduction Limit", "category": "deductions-and-credits", "agency": "IRS", "year": 2026, "state": null, "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-29", "published_at": "2026-08-29T20:58:10.197Z", "canonical_url": "https://ratesandlimits.com/section-179-deduction-limit/", "figures": [ { "key": "expensing-limit", "label": "Maximum section 179 expensing deduction", "value": 2560000, "format": "usd", "formatted": "$2,560,000", "scope": null, "derived": false, "quote": "Election to Expense Certain Depreciable Assets. For taxable years beginning in\n2026, under § 179(b)(1), the aggregate cost of any § 179 property that a taxpayer elects\nto treat as an expense cannot exceed $2,560,000", "offset": 33513, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32", "publisher": "IRS", "fetched_at": "2026-08-29T03:13:43.506Z", "sha256_text": "208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66", "snapshot_url": "https://ratesandlimits.com/snapshots/section-179-deduction-limit/2026/rp-25-32.txt" } }, { "key": "phase-out-threshold", "label": "Phase-out threshold: cost of section 179 property placed in service", "value": 4090000, "format": "usd", "formatted": "$4,090,000", "scope": null, "derived": false, "quote": "Under § 179(b)(2), the $2,560,000 limitation under § 179(b)(1) is reduced (but\nnot below zero) by the amount by which the cost of § 179 property placed in service\nduring the 2026 taxable year exceeds $4,090,000.", "offset": 33860, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32", "publisher": "IRS", "fetched_at": "2026-08-29T03:13:43.506Z", "sha256_text": "208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66", "snapshot_url": "https://ratesandlimits.com/snapshots/section-179-deduction-limit/2026/rp-25-32.txt" } } ], "schedule": null, "explainers": [ { "key": "what-property-qualifies", "heading": "What counts as section 179 property", "body": "To be expensed immediately under section 179, property must satisfy every one of four conditions. First, it must be eligible property, which generally means depreciable tangible personal property, certain other tangible property used in manufacturing or utility services, single-purpose agricultural or horticultural structures, petroleum storage facilities, off-the-shelf computer software, or qualified section 179 real property. Second, it must be acquired for use in an active trade or business; property held for investment or personal use does not qualify. Third, it must be acquired by purchase, so property received as a gift, through inheritance, or in a tax-free exchange is excluded. Fourth, it must not fall within the categories the statute specifically disqualifies, such as property used to furnish lodging or property owned by a person who is not engaged in a trade or business. A taxpayer who places qualifying property in service during the year may elect to expense its cost up to the annual maximum, which for 2026 is $2,560,000, subject to reduction once total qualifying purchases exceed $4,090,000.", "quote": "To qualify for the section 179 deduction, your property\nmust meet all the following requirements.\n• It must be eligible property.\n• It must be acquired for business use.\n• It must have been acquired by purchase.\n4562\n4797\n• It must not be property described later under What\nProperty Does Not Qualify.", "offset": 64055, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/p946--2025.pdf", "title": "Publication 946 (2025), How To Depreciate Property", "publisher": "IRS", "fetched_at": "2026-08-29T08:17:22.777Z", "sha256_text": "3f08bab5aaae6e3e4a4a36926a22b941a3e9c37c66226ef42c2d030119eaf7eb", "snapshot_url": "https://ratesandlimits.com/snapshots/section-179-deduction-limit/2026/p946--2025.txt" } }, { "key": "business-income-limit", "heading": "The deduction cannot exceed your business income", "body": "Even after calculating the maximum section 179 deduction and reducing it for any investment over the phase-out threshold, the amount actually deductible in a given year cannot exceed the taxpayer's taxable income from actively conducting a trade or business. Taxable income for this purpose includes net income or loss from all trades or businesses the taxpayer meaningfully manages, section 1231 gains or losses, interest from working capital, and wages or salary earned as an employee. However, taxable income must be calculated without subtracting the section 179 deduction itself, without any self-employment tax deduction, without any net operating loss carryback or carryforward, and without unreimbursed employee expenses. If business income falls short of the computed deduction limit, the shortfall cannot be carried back to prior years but instead carries forward indefinitely to future years until it can be used, subject to the same business income test in each succeeding year.", "quote": "The total cost you can deduct each year after you apply\nthe dollar limit is limited to the taxable income from the ac-\ntive conduct of any trade or business during the year.", "offset": 82179, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/p946--2025.pdf", "title": "Publication 946 (2025), How To Depreciate Property", "publisher": "IRS", "fetched_at": "2026-08-29T08:17:22.777Z", "sha256_text": "3f08bab5aaae6e3e4a4a36926a22b941a3e9c37c66226ef42c2d030119eaf7eb", "snapshot_url": "https://ratesandlimits.com/snapshots/section-179-deduction-limit/2026/p946--2025.txt" } }, { "key": "carryover-of-disallowed-deduction", "heading": "Carrying the disallowed part forward, and which property it comes from", "body": "When section 179 costs cannot be deducted in the current year because they exceed the business income limitation, those disallowed amounts carry forward to the next tax year. If a taxpayer places multiple items of qualifying property in service during a single year, the taxpayer has the option to choose which specific properties will have their costs carried forward. This selection must be documented in the taxpayer's books and records to support the treatment on the tax return. Costs allocated from a partnership or S corporation are treated as a single item of section 179 property for purposes of making this election. If the taxpayer fails to make a specific selection, the disallowed costs are allocated equally among all the properties that were elected for section 179 expensing that year. When carryovers from multiple years exist and only part can be deducted in a subsequent year, the oldest disallowed costs must be used first before any newer amounts.", "quote": "If you place more than one property in service in a year,\nyou can select the properties for which all or a part of the\ncosts will be carried forward.", "offset": 86875, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/p946--2025.pdf", "title": "Publication 946 (2025), How To Depreciate Property", "publisher": "IRS", "fetched_at": "2026-08-29T08:17:22.777Z", "sha256_text": "3f08bab5aaae6e3e4a4a36926a22b941a3e9c37c66226ef42c2d030119eaf7eb", "snapshot_url": "https://ratesandlimits.com/snapshots/section-179-deduction-limit/2026/p946--2025.txt" } }, { "key": "sport-utility-vehicle-cap", "heading": "The separate cap on heavy SUVs", "body": "Heavy sport utility vehicles and certain other passenger vehicles face a separate dollar cap on section 179 expensing that is lower than the general maximum deduction. For vehicles placed in service during tax years beginning in 2025, the amount a taxpayer can elect to expense under section 179 is limited to $31,300. This rule applies to any four-wheeled vehicle primarily designed or used to carry passengers over public streets, roads, or highways that has a gross vehicle weight rating of more than 6,000 pounds but not more than 14,000 pounds. However, the $31,300 limit does not apply to vehicles designed to seat more than nine passengers behind the driver's seat, vehicles equipped with a cargo area of at least six feet in interior length that is not readily accessible from the passenger compartment, or vehicles with an integral enclosure fully enclosing the driver compartment and load carrying device that lack seating rearward of the driver's seat and have no body section protruding more than 30 inches ahead of the windshield.", "quote": "You cannot elect to expense more than $31,300 of the\ncost of any heavy sport utility vehicle (SUV) and certain\nother vehicles placed in service in tax years beginning in\n2025. This rule applies to any 4-wheeled vehicle primarily\ndesigned or used to carry passengers over public streets,\nroads, or highways that is rated at more than 6,000\npounds gross vehicle weight and not more than 14,000\npounds gross vehicle weight. However, the $31,300 limit\ndoes not apply to any vehicle:\n• Designed to seat more than nine passengers behind\nthe driver’s seat;\n• Equipped with a cargo area (either open or enclosed\nby a cap) of at least 6 feet in interior length that is not\nreadily accessible from the passenger compartment;\nor\n• That has an integral enclosure fully enclosing the\ndriver compartment and load carrying device, does\nnot have seating rearward of the driver’s seat, and has\nno body section protruding more than 30 inches\nahead of the leading edge of the windshield.", "offset": 78561, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/p946--2025.pdf", "title": "Publication 946 (2025), How To Depreciate Property", "publisher": "IRS", "fetched_at": "2026-08-29T08:17:22.777Z", "sha256_text": "3f08bab5aaae6e3e4a4a36926a22b941a3e9c37c66226ef42c2d030119eaf7eb", "snapshot_url": "https://ratesandlimits.com/snapshots/section-179-deduction-limit/2026/p946--2025.txt" } } ], "estimate": null }, { "program": "self-employment-tax", "name": "Self-Employment Tax", "category": "payroll-and-wages", "agency": "IRS", "year": 2026, "state": null, "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-29", "published_at": "2026-08-29T09:18:45.341Z", "canonical_url": "https://ratesandlimits.com/self-employment-tax/", "figures": [ { "key": "rate", "label": "Rate", "value": 15.3, "format": "percent", "formatted": "15.3%", "scope": null, "derived": false, "quote": "The self-employment tax rate is 15.3%.", "offset": 5785, "source": { "url": "https://www.irs.gov/businesses/small-businesses-self-employed/self-employment-tax-social-security-and-medicare-taxes", "title": "Self-employment tax (social security and Medicare taxes)", "publisher": "IRS", "fetched_at": "2026-08-29T02:13:08.854Z", "sha256_text": "862f8f3827043d3f248b91bdde9484059a06a7f55c78a3e02cdd394fd5953d51", "snapshot_url": "https://ratesandlimits.com/snapshots/self-employment-tax/2026/self-employment-tax-social-security-and-medicare-taxes.txt" } }, { "key": "social-security-rate", "label": "Social security rate", "value": 12.4, "format": "percent", "formatted": "12.4%", "scope": "for social security (old-age, survivors, and disability insurance)", "derived": false, "quote": "The rate consists of two parts: 12.4% for social security (old-age, survivors, and disability insurance) and 2.9% for Medicare (hospital insurance).", "offset": 5824, "source": { "url": "https://www.irs.gov/businesses/small-businesses-self-employed/self-employment-tax-social-security-and-medicare-taxes", "title": "Self-employment tax (social security and Medicare taxes)", "publisher": "IRS", "fetched_at": "2026-08-29T02:13:08.854Z", "sha256_text": "862f8f3827043d3f248b91bdde9484059a06a7f55c78a3e02cdd394fd5953d51", "snapshot_url": "https://ratesandlimits.com/snapshots/self-employment-tax/2026/self-employment-tax-social-security-and-medicare-taxes.txt" } }, { "key": "medicare-rate", "label": "Medicare rate", "value": 2.9, "format": "percent", "formatted": "2.9%", "scope": "for Medicare (hospital insurance)", "derived": false, "quote": "The rate consists of two parts: 12.4% for social security (old-age, survivors, and disability insurance) and 2.9% for Medicare (hospital insurance).", "offset": 5824, "source": { "url": "https://www.irs.gov/businesses/small-businesses-self-employed/self-employment-tax-social-security-and-medicare-taxes", "title": "Self-employment tax (social security and Medicare taxes)", "publisher": "IRS", "fetched_at": "2026-08-29T02:13:08.854Z", "sha256_text": "862f8f3827043d3f248b91bdde9484059a06a7f55c78a3e02cdd394fd5953d51", "snapshot_url": "https://ratesandlimits.com/snapshots/self-employment-tax/2026/self-employment-tax-social-security-and-medicare-taxes.txt" } }, { "key": "net-earnings-share", "label": "Share of net earnings taxed", "value": 92.35, "format": "percent", "formatted": "92.35%", "scope": null, "derived": false, "quote": "Generally, the amount subject to self-employment tax is 92.35% of your net earnings from self-employment.", "offset": 5002, "source": { "url": "https://www.irs.gov/businesses/small-businesses-self-employed/self-employment-tax-social-security-and-medicare-taxes", "title": "Self-employment tax (social security and Medicare taxes)", "publisher": "IRS", "fetched_at": "2026-08-29T02:13:08.854Z", "sha256_text": "862f8f3827043d3f248b91bdde9484059a06a7f55c78a3e02cdd394fd5953d51", "snapshot_url": "https://ratesandlimits.com/snapshots/self-employment-tax/2026/self-employment-tax-social-security-and-medicare-taxes.txt" } } ], "schedule": null, "explainers": [ { "key": "who-must-pay-it", "heading": "The $400 threshold that makes Schedule SE mandatory", "body": "If you work for yourself and your net earnings from self-employment are $400 or more in a year, you are required to pay self-employment tax and file Schedule SE (Form 1040). This threshold applies to the total of your net earnings from all self-employment activities combined, not to each business separately. The $400 figure is the trigger for the filing requirement; if your net earnings fall below this amount, you do not owe self-employment tax on that income. Net earnings from self-employment are generally calculated using Schedule C if you are a sole proprietor or independent contractor. The rule applies to the net profit from your business, not your gross receipts, so allowable business expenses reduce the amount subject to the threshold test. Meeting this $400 threshold means you must file Schedule SE even if you would not otherwise be required to file a federal income tax return. Note that church employee income is handled under a separate rule and is excluded from this $400 calculation.", "quote": "Your net earnings from self-employment (excluding church employee income) were $400 or more.", "offset": 8475, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/businesses/small-businesses-self-employed/self-employment-tax-social-security-and-medicare-taxes", "title": "Self-employment tax (social security and Medicare taxes)", "publisher": "IRS", "fetched_at": "2026-08-29T02:13:08.854Z", "sha256_text": "862f8f3827043d3f248b91bdde9484059a06a7f55c78a3e02cdd394fd5953d51", "snapshot_url": "https://ratesandlimits.com/snapshots/self-employment-tax/2026/self-employment-tax-social-security-and-medicare-taxes.txt" } }, { "key": "church-employee-income", "heading": "Church employee income is taxed from $108.28", "body": "If you work as a church employee rather than as a self-employed person, the filing threshold is different. The IRS sets a separate dollar amount: if you had church employee income of $108.28 or more during the year, you must file Schedule SE and pay self-employment tax. This rule exists because a church that has not elected to pay the employer share of Social Security and Medicare taxes effectively leaves its employees treated, for SECA purposes, as self-employed, so the employee must cover both the employer and employee halves through Schedule SE. The $108.28 figure is much lower than the general self-employment threshold, so church employees reach the filing requirement on far less earnings. Once the threshold is met, the same 15.3% rate applies - 12.4% for Social Security and 2.9% for Medicare - computed on 92.35% of those church employee earnings. If your church employee income falls below $108.28, you do not owe self-employment tax on those wages.", "quote": "You had church employee income of $108.28 or more.", "offset": 8568, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/businesses/small-businesses-self-employed/self-employment-tax-social-security-and-medicare-taxes", "title": "Self-employment tax (social security and Medicare taxes)", "publisher": "IRS", "fetched_at": "2026-08-29T02:13:08.854Z", "sha256_text": "862f8f3827043d3f248b91bdde9484059a06a7f55c78a3e02cdd394fd5953d51", "snapshot_url": "https://ratesandlimits.com/snapshots/self-employment-tax/2026/self-employment-tax-social-security-and-medicare-taxes.txt" } }, { "key": "age-and-benefits-do-not-exempt-you", "heading": "Age and drawing benefits do not exempt you", "body": "A common misunderstanding is that reaching retirement age, or already receiving Social Security or Medicare benefits, excuses a self-employed person from paying the tax. The IRS is explicit: the self-employment tax rules apply no matter how old you are and even if you are already receiving Social Security or Medicare. There is no age cutoff and no exemption for benefit recipients. If your net earnings from self-employment reach the filing threshold, you owe the tax regardless. Retirees who take on consulting work, gig jobs, freelance assignments, or any other self-employment activity cannot use their age or benefit status to avoid the 15.3% tax. The same 92.35% of net earnings is used to compute the liability, the same Schedule SE is filed, and the same rules for quarterly estimated payments apply. The only way the tax stops applying is if net earnings fall below the filing threshold - not because of the taxpayer's age or benefit status. This applies equally to the 12.4% Social Security portion and the 2.9% Medicare portion.", "quote": "Note: The self-employment tax rules apply no matter how old you are and even if you are already receiving Social Security or Medicare.", "offset": 9089, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/businesses/small-businesses-self-employed/self-employment-tax-social-security-and-medicare-taxes", "title": "Self-employment tax (social security and Medicare taxes)", "publisher": "IRS", "fetched_at": "2026-08-29T02:13:08.854Z", "sha256_text": "862f8f3827043d3f248b91bdde9484059a06a7f55c78a3e02cdd394fd5953d51", "snapshot_url": "https://ratesandlimits.com/snapshots/self-employment-tax/2026/self-employment-tax-social-security-and-medicare-taxes.txt" } }, { "key": "deduct-half-of-the-tax", "heading": "Half the tax comes back as an adjustment to income", "body": "Self-employment tax has two halves: the \"employee\" share and the \"employer\" share, and you pay both as a self-employed person. To soften the burden, the IRS allows you to deduct one-half of your SE tax as an adjustment to income when figuring your adjusted gross income. This deduction appears on Form 1040 and reduces the income on which your regular income tax is calculated. It does not reduce your net earnings from self-employment, and it does not reduce the self-employment tax itself - only your income tax. So if your SE tax for the year is a given dollar amount, half of that amount flows through as an above-the-line deduction. The deduction is available regardless of whether you itemize, making it a useful reduction for self-employed taxpayers. Note that the deduction is taken on the income-tax side only; your SE tax liability stays the full amount, including both the 12.4% Social Security and 2.9% Medicare portions, computed on 92.35% of net earnings.", "quote": "Also, you can deduct the employer-equivalent portion of your SE tax when calculating your adjusted gross income.", "offset": 5584, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/businesses/small-businesses-self-employed/self-employment-tax-social-security-and-medicare-taxes", "title": "Self-employment tax (social security and Medicare taxes)", "publisher": "IRS", "fetched_at": "2026-08-29T02:13:08.854Z", "sha256_text": "862f8f3827043d3f248b91bdde9484059a06a7f55c78a3e02cdd394fd5953d51", "snapshot_url": "https://ratesandlimits.com/snapshots/self-employment-tax/2026/self-employment-tax-social-security-and-medicare-taxes.txt" } }, { "key": "only-92-35-percent-is-taxed", "heading": "Only 92.35% of net earnings is actually taxed", "body": "Even though the self-employment tax rate is 15.3%, that rate is not applied to every dollar of net earnings. Only 92.35% of net earnings from self-employment is subject to the tax. The remaining share is treated as the employer's portion and is excluded before the tax is computed. Before you figure your net earnings, you generally need to figure your total earnings subject to self-employment tax. The 92.35% multiplier is applied first; then the 15.3% rate - split into 12.4% for Social Security and 2.9% for Medicare - is applied to that reduced base. This adjustment roughly mirrors the way wage earners pay FICA only on their salary, with the employer portion not counted as taxable wages for the employee's share. The effect is meaningful: it lowers the base on which both the Social Security and Medicare portions are computed. The 92.35% figure applies regardless of the taxpayer's age, filing status, or whether they already receive Social Security or Medicare benefits. It is the same multiplier used on Schedule SE to arrive at the amount subject to tax.", "quote": "Before you figure your net earnings, you generally need to figure your total earnings subject to self-employment tax.", "offset": 8971, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/businesses/small-businesses-self-employed/self-employment-tax-social-security-and-medicare-taxes", "title": "Self-employment tax (social security and Medicare taxes)", "publisher": "IRS", "fetched_at": "2026-08-29T02:13:08.854Z", "sha256_text": "862f8f3827043d3f248b91bdde9484059a06a7f55c78a3e02cdd394fd5953d51", "snapshot_url": "https://ratesandlimits.com/snapshots/self-employment-tax/2026/self-employment-tax-social-security-and-medicare-taxes.txt" } }, { "key": "paying-by-estimated-tax", "heading": "Nobody withholds it, so you pay it quarterly", "body": "Unlike wages from an employer, nobody withholds self-employment tax from the payments you receive as a self-employed individual. There is no paycheck deduction for the 15.3% tax. Instead, you are responsible for paying it yourself, typically through estimated tax payments made quarterly throughout the year. As a self-employed individual, you may have to file Estimated Taxes quarterly and can use these estimated tax payments to pay your self-employment tax. This means you must set aside money during the year to cover both the 12.4% Social Security portion and the 2.9% Medicare portion, calculated on 92.35% of your net earnings from self-employment. Failing to make these quarterly payments can result in penalties and interest when you file your return. The IRS provides guidance on the Estimated taxes page and in Publication 505, Tax Withholding and Estimated Tax, for details on computing and remitting these payments on time.", "quote": "You can use these estimated tax payments to pay your self-employment tax.", "offset": 10598, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/businesses/small-businesses-self-employed/self-employment-tax-social-security-and-medicare-taxes", "title": "Self-employment tax (social security and Medicare taxes)", "publisher": "IRS", "fetched_at": "2026-08-29T02:13:08.854Z", "sha256_text": "862f8f3827043d3f248b91bdde9484059a06a7f55c78a3e02cdd394fd5953d51", "snapshot_url": "https://ratesandlimits.com/snapshots/self-employment-tax/2026/self-employment-tax-social-security-and-medicare-taxes.txt" } } ], "estimate": null }, { "program": "sep-ira-contribution-limit", "name": "SEP IRA Contribution Limit", "category": "retirement-limits", "agency": "IRS", "year": 2026, "state": null, "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-29", "published_at": "2026-08-29T05:09:26.870Z", "canonical_url": "https://ratesandlimits.com/sep-ira-contribution-limit/", "figures": [ { "key": "defined-contribution-limit", "label": "Defined contribution limit", "value": 72000, "format": "usd", "formatted": "$72,000", "scope": null, "derived": false, "quote": "The limitation for defined contribution plans under section 415(c)(1)(A) is\nincreased in 2026 from $70,000 to $72,000.", "offset": 1220, "source": { "url": "https://www.irs.gov/pub/irs-drop/n-25-67.pdf", "title": "Notice 2025-67", "publisher": "IRS", "fetched_at": "2026-08-27T13:23:33.307Z", "sha256_text": "dee57a39e72fc363102f1c9fa373d5c5a969a62bc5422076830034732e2f131d", "snapshot_url": "https://ratesandlimits.com/snapshots/sep-ira-contribution-limit/2026/n-25-67.txt" } }, { "key": "compensation-threshold", "label": "Compensation threshold", "value": 800, "format": "usd", "formatted": "$800", "scope": null, "derived": false, "quote": "The compensation threshold under section 408(k)(2)(C) regarding simplified\nemployee pensions is increased from $750 to $800.", "offset": 5281, "source": { "url": "https://www.irs.gov/pub/irs-drop/n-25-67.pdf", "title": "Notice 2025-67", "publisher": "IRS", "fetched_at": "2026-08-27T13:23:33.307Z", "sha256_text": "dee57a39e72fc363102f1c9fa373d5c5a969a62bc5422076830034732e2f131d", "snapshot_url": "https://ratesandlimits.com/snapshots/sep-ira-contribution-limit/2026/n-25-67.txt" } }, { "key": "compensation-share", "label": "Share of employee compensation", "value": 25, "format": "percent", "formatted": "25%", "scope": null, "derived": false, "quote": "Contributions an employer can make to an employee's SEP-IRA cannot exceed the lesser of:\n25% of the employee's compensation, or\n$72,000 for 2026, subject to cost-of-living adjustments", "offset": 4378, "source": { "url": "https://www.irs.gov/pub/irs-drop/n-25-67.pdf", "title": "Notice 2025-67", "publisher": "IRS", "fetched_at": "2026-08-27T13:23:33.307Z", "sha256_text": "dee57a39e72fc363102f1c9fa373d5c5a969a62bc5422076830034732e2f131d", "snapshot_url": "https://ratesandlimits.com/snapshots/sep-ira-contribution-limit/2026/n-25-67.txt" } } ], "schedule": null, "explainers": [ { "key": "twenty-five-percent-of-compensation", "heading": "The 25% of compensation ceiling", "body": "The dollar limit this page publishes is only one of the two ceilings on a SEP contribution, and for most people it is not the one that binds. A contribution made for a common-law employee cannot exceed 25% of that employee’s compensation, and anything above the lesser of the two ceilings is an excess contribution. Publication 560 states the test from that direction: a contribution is excessive once it passes 25% of compensation or, for the owner contributing for themselves, 20% of net earnings from self-employment. The two percentages are one rule seen from two sides, because a self-employed person’s own contribution reduces the net earnings the percentage is applied to. A sole proprietor therefore reaches the dollar limit for the year, $72,000, only on a very large profit; below that the percentage decides the number, and the dollar limit never comes into it.", "quote": "Excess contri-\nbutions are your contributions to an employee's SEP IRA\n(or to your own SEP IRA) for 2025 that exceed the lesser\nof the following amounts.\n• 25% of the employee's compensation (or, for you,\n20% of your net earnings from self-employment).", "offset": 44762, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/p560--2025.pdf", "title": "Publication 560 (2025), Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans)", "publisher": "IRS", "fetched_at": "2026-08-29T04:23:10.758Z", "sha256_text": "a0f10ca7567acf2e701566b47e359f5c62733e6bd179d2f270639ecce5adebff", "snapshot_url": "https://ratesandlimits.com/snapshots/sep-ira-contribution-limit/2026/p560--2025.txt" } }, { "key": "deduction-limit-for-participants", "heading": "How much of the contribution you can deduct", "body": "Making a contribution and deducting it are two separate tests, and the deduction has a ceiling of its own. An employer may deduct the lesser of what it actually contributed and 25% of the compensation paid to the participants by the business that maintains the plan. The compensation counted for each participant is itself capped, at $350,000 in the edition quoted here, and no participant's deduction may exceed the annual dollar limit of $72,000. A contribution above the deduction limit is not lost: the excess can be carried over and deducted in a later year, subject to that year’s own limit. This is why the amount contributed and the amount deducted for the same plan year can differ on a return.", "quote": "The most you can deduct for your contributions to your or\nyour employee's SEP IRA is the lesser of the following\namounts.\n1. Your contributions (including any excess contributions\ncarryover).\n2. 25% of the compensation (limited to $350,000 per\nparticipant) paid to the participants during 2025, from\nthe business that has the plan", "offset": 46117, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/p560--2025.pdf", "title": "Publication 560 (2025), Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans)", "publisher": "IRS", "fetched_at": "2026-08-29T04:23:10.758Z", "sha256_text": "a0f10ca7567acf2e701566b47e359f5c62733e6bd179d2f270639ecce5adebff", "snapshot_url": "https://ratesandlimits.com/snapshots/sep-ira-contribution-limit/2026/p560--2025.txt" } }, { "key": "self-employed-net-earnings", "heading": "For a self-employed person, compensation is net earnings", "body": "When a self-employed person contributes to their own SEP IRA, calculating the deduction requires a special computation because compensation is defined as net earnings from self-employment, which already takes into account two key deductions: the deductible portion of self-employment tax, and the deduction for the SEP contributions themselves. These two deductions are interdependent because the amount of the SEP contribution deduction affects net earnings, which in turn affects the compensation figure used to calculate the contribution limit. To resolve this circular calculation, the deduction is determined indirectly by reducing the contribution rate specified in the plan document. The self-employed person uses either the Rate Table for Self-Employed or the Rate Worksheet for Self-Employed, depending on the plan's contribution rate, to calculate the adjusted rate. Then the Deduction Worksheet for Self-Employed is used to figure the maximum deduction amount. This special computation ensures that the contribution and deduction are calculated correctly when compensation includes the contribution itself.", "quote": "Deduction Limit for Self-Employed\nIndividuals\nIf you contribute to your own SEP IRA, you must make a\nspecial computation to figure your maximum deduction for\nthese contributions. When figuring the deduction for con-\ntributions made to your own SEP IRA, compensation is\nyour net earnings from self-employment (defined in chap-\nter 1), which takes into account both the following deduc-\ntions.\n• The deduction for the deductible part of your self-em-\nployment tax.\n• The deduction for contributions to your own SEP IRA.", "offset": 46570, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/p560--2025.pdf", "title": "Publication 560 (2025), Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans)", "publisher": "IRS", "fetched_at": "2026-08-29T04:23:10.758Z", "sha256_text": "a0f10ca7567acf2e701566b47e359f5c62733e6bd179d2f270639ecce5adebff", "snapshot_url": "https://ratesandlimits.com/snapshots/sep-ira-contribution-limit/2026/p560--2025.txt" } }, { "key": "self-employed-reduced-rate", "heading": "A self-employed person uses a reduced contribution rate", "body": "Because the deduction for SEP contributions to a self-employed person's own account and their net earnings from self-employment are interdependent, the deduction cannot be calculated directly using the plan's stated contribution rate. Instead, the self-employed individual must determine the deduction indirectly by reducing the contribution rate called for in the plan. This adjusted rate accounts for the fact that the contribution itself reduces net earnings, which is the compensation base used to figure the contribution limit. To apply the reduced rate, the self-employed person uses either the Rate Table for Self-Employed or the Rate Worksheet for Self-Employed, whichever matches their plan's contribution rate. These tables and worksheets are provided in chapter 5 of the publication. After calculating the adjusted contribution using the reduced rate, the self-employed person then uses the Deduction Worksheet for Self-Employed to figure their maximum deduction. This indirect method ensures that both the contribution amount and the corresponding deduction are calculated correctly given the circular relationship between contributions and net earnings.", "quote": "The deduction for contributions to your own SEP IRA\nand your net earnings depend on each other. For this rea-\nson, you determine the deduction for contributions to your\nown SEP IRA indirectly by reducing the contribution rate\ncalled for in your plan.", "offset": 47088, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/p560--2025.pdf", "title": "Publication 560 (2025), Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans)", "publisher": "IRS", "fetched_at": "2026-08-29T04:23:10.758Z", "sha256_text": "a0f10ca7567acf2e701566b47e359f5c62733e6bd179d2f270639ecce5adebff", "snapshot_url": "https://ratesandlimits.com/snapshots/sep-ira-contribution-limit/2026/p560--2025.txt" } } ], "estimate": null }, { "program": "simple-ira-contribution-limit", "name": "SIMPLE IRA Contribution Limit", "category": "retirement-limits", "agency": "IRS", "year": 2026, "state": null, "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-09-01", "published_at": "2026-09-01T04:33:32.430Z", "canonical_url": "https://ratesandlimits.com/simple-ira-contribution-limit/", "figures": [ { "key": "salary-reduction", "label": "Salary reduction limit", "value": 17000, "format": "usd", "formatted": "$17,000", "scope": null, "derived": false, "quote": "The limitation under section 408(p)(2)(E)(i)(III) that generally applies to salary\nreduction contributions under a SIMPLE retirement account or elective\ncontributions under a SIMPLE 401(k) plan is increased from $16,500 to $17,000.", "offset": 2827, "source": { "url": "https://www.irs.gov/pub/irs-drop/n-25-67.pdf", "title": "Notice 2025-67", "publisher": "IRS", "fetched_at": "2026-08-27T13:24:25.511Z", "sha256_text": "dee57a39e72fc363102f1c9fa373d5c5a969a62bc5422076830034732e2f131d", "snapshot_url": "https://ratesandlimits.com/snapshots/simple-ira-contribution-limit/2026/n-25-67.txt" } }, { "key": "catch-up-50", "label": "Catch-up limit, age 50 and over", "value": 4000, "format": "usd-delta", "formatted": "+$4,000", "scope": null, "derived": false, "quote": "The limitation under section 414(v)(2)(B)(ii) for catch-up contributions to an\napplicable employer plan described in section 401(k)(11) or section 408(p) that\ngenerally applies for individuals aged 50 or over is increased from $3,500 to\n$4,000.", "offset": 3192, "source": { "url": "https://www.irs.gov/pub/irs-drop/n-25-67.pdf", "title": "Notice 2025-67", "publisher": "IRS", "fetched_at": "2026-08-27T13:24:25.511Z", "sha256_text": "dee57a39e72fc363102f1c9fa373d5c5a969a62bc5422076830034732e2f131d", "snapshot_url": "https://ratesandlimits.com/snapshots/simple-ira-contribution-limit/2026/n-25-67.txt" } } ], "schedule": null, "explainers": [ { "key": "employer-match-3-percent", "heading": "What your employer has to put in", "body": "For a SIMPLE IRA in 2026, an employer that chooses the matching option must match each employee's salary reduction contributions dollar for dollar, up to 3% of that employee's compensation for the year. If an employee elects to defer part of their salary but the deferral is less than 3% of their pay, the employer matches only the smaller amount the employee actually deferred. If the employee defers more than 3%, the employer's match is capped at 3% of compensation. Only employees who actually elect to make salary reduction contributions receive the employer match; those who do not contribute receive nothing under this formula. The employer may avoid this matching obligation entirely by choosing instead to make nonelective contributions for all eligible employees, whether or not they defer, but the matching alternative described here is the standard requirement for SIMPLE IRA plans.", "quote": "Employer matching contributions. You are generally\nrequired to match each employee's salary reduction con-\ntribution(s) on a dollar-for-dollar basis up to 3% of the em-\nployee's compensation, where only employees who have\nelected to make contributions will receive an employer\nmatching contribution.", "offset": 74182, "verified_at": "2026-09-01", "source": { "url": "https://www.irs.gov/pub/irs-prior/p560--2025.pdf", "title": "Publication 560 (2025), Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans)", "publisher": "IRS", "fetched_at": "2026-08-29T09:09:23.789Z", "sha256_text": "a0f10ca7567acf2e701566b47e359f5c62733e6bd179d2f270639ecce5adebff", "snapshot_url": "https://ratesandlimits.com/snapshots/simple-ira-contribution-limit/2026/p560--2025.txt" } }, { "key": "which-employers-can-offer-one", "heading": "Only employers with 100 or fewer employees", "body": "An employer can establish a SIMPLE IRA plan only if it had 100 or fewer employees who received $5,000 or more in compensation during the preceding calendar year. Every worker who was employed at any point during that year must be counted toward this headcount, even if they did not earn enough to become eligible for the plan themselves. Self-employed individuals who received earned income and leased employees are included in the count. An employer that grows beyond 100 eligible employees after adopting the plan may continue to maintain it for a grace period, but a business that starts above the threshold cannot use this vehicle in the first place. In addition, an employer that already sponsors another qualified retirement plan generally cannot set up a SIMPLE IRA plan, unless the other plan covers only collective bargaining employees. These two gatekeeping rules, the headcount ceiling and the ban on a second qualified plan, are the basic eligibility conditions that determine whether SIMPLE IRA is on the table at all.", "quote": "Employee limit. You can set up a SIMPLE IRA plan only\nif you had 100 or fewer employees who received $5,000 or\nmore in compensation from you for the preceding year.", "offset": 62875, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/p560--2025.pdf", "title": "Publication 560 (2025), Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans)", "publisher": "IRS", "fetched_at": "2026-08-29T09:09:23.789Z", "sha256_text": "a0f10ca7567acf2e701566b47e359f5c62733e6bd179d2f270639ecce5adebff", "snapshot_url": "https://ratesandlimits.com/snapshots/simple-ira-contribution-limit/2026/p560--2025.txt" } }, { "key": "which-employees-must-be-included", "heading": "The $5,000 test that decides who must be let in", "body": "An employee is eligible to participate in a SIMPLE IRA plan if they received at least $5,000 in compensation during any 2 years preceding the current calendar year and are reasonably expected to receive at least $5,000 during the current year. This means the employer looks back at the 2 calendar years before the plan year starts. If the employee met the $5,000 threshold in either of those 2 prior years and is expected to reach it again in the current year, they must be allowed to join. The definition of employee includes self-employed individuals who received earned income. Employers may adopt less restrictive eligibility rules, such as eliminating the prior-year requirement entirely or lowering the dollar threshold, but they cannot impose stricter requirements. The $5,000 figure is the maximum the plan is allowed to demand, so it functions as the bright line that determines who must be included.", "quote": "Any employee who received at least\n$5,000 in compensation during any 2 years preceding the\ncurrent calendar year and is reasonably expected to re-\nceive at least $5,000 during the current calendar year is\neligible to participate.", "offset": 65040, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/p560--2025.pdf", "title": "Publication 560 (2025), Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans)", "publisher": "IRS", "fetched_at": "2026-08-29T09:09:23.789Z", "sha256_text": "a0f10ca7567acf2e701566b47e359f5c62733e6bd179d2f270639ecce5adebff", "snapshot_url": "https://ratesandlimits.com/snapshots/simple-ira-contribution-limit/2026/p560--2025.txt" } }, { "key": "october-1-setup-deadline", "heading": "A new plan has to be in place by October 1", "body": "A new SIMPLE IRA plan can be made effective on any date from January 1 through October 1 of a year, provided the employer did not previously maintain a SIMPLE IRA plan. This gives a business with existing payroll almost nine months into the calendar year to adopt the plan. If the employer already had a SIMPLE IRA plan in a prior year and is setting up a new one, the effective date is restricted to January 1 of the current year. A new employer that comes into existence after October 1 gets a special exception and may establish the plan as soon as administratively feasible. The plan cannot have an effective date before the date it is actually adopted. For existing businesses that are adopting a SIMPLE IRA plan for the first time, the October 1 deadline is the hard outer boundary. Once that date passes, an employer that missed the window must wait until the next January 1 to bring the plan into effect.", "quote": "You can\nset up a SIMPLE IRA plan effective on any date from Jan-\nuary 1 through October 1 of a year, provided you didn't\npreviously maintain a SIMPLE IRA plan.", "offset": 68322, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/p560--2025.pdf", "title": "Publication 560 (2025), Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans)", "publisher": "IRS", "fetched_at": "2026-08-29T09:09:23.789Z", "sha256_text": "a0f10ca7567acf2e701566b47e359f5c62733e6bd179d2f270639ecce5adebff", "snapshot_url": "https://ratesandlimits.com/snapshots/simple-ira-contribution-limit/2026/p560--2025.txt" } }, { "key": "catch-up-needs-age-50-and-a-willing-plan", "heading": "The catch-up is not automatic: age 50 by year end, and the plan must allow it", "body": "A plan can permit participants who are age 50 or over at the end of the calendar year to make catch-up contributions in addition to elective deferrals and SIMPLE plan salary reduction contributions. Two conditions must be met: the participant must be age 50 or over by December 31 of the year of the contribution, and the plan itself must allow catch-up contributions. The catch-up is not automatic; the plan document must expressly permit these additional contributions. For 2026, the SIMPLE IRA catch-up limit is $4,000, which is separate from and in addition to the regular salary reduction limit of $17,000. A participant who is age 50 or over may therefore defer the full salary reduction limit plus the additional catch-up amount if the plan allows catch-ups. The age test looks to the end of the calendar year, so a participant who turns 50 on December 31 still qualifies for the full catch-up amount for that year. Employers administering SIMPLE IRA plans should confirm that their plan document includes the catch-up provision and that payroll systems are set up to track each participant's age by year end.", "quote": "A\nplan can permit participants who are age 50 or over at the\nend of the calendar year to make catch-up contributions in\naddition to elective deferrals and SIMPLE plan salary re-\nduction contributions.", "offset": 4305, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/p560--2025.pdf", "title": "Publication 560 (2025), Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans)", "publisher": "IRS", "fetched_at": "2026-08-29T09:09:23.789Z", "sha256_text": "a0f10ca7567acf2e701566b47e359f5c62733e6bd179d2f270639ecce5adebff", "snapshot_url": "https://ratesandlimits.com/snapshots/simple-ira-contribution-limit/2026/p560--2025.txt" } }, { "key": "two-year-25-percent-penalty", "heading": "Withdrawing in the first two years costs 25%", "body": "Early withdrawals from a SIMPLE IRA carry a special penalty during the participant's first years in the plan. However, the additional tax is increased to 25% if funds are withdrawn within 2 years of beginning participation in the SIMPLE IRA plan. This heightened penalty applies only during the 2-year period that begins when the participant first joins the plan, not when the employer first establishes the plan. After the 2-year period has passed, the early withdrawal penalty drops back to the standard rate that applies to traditional IRA distributions. The 25% rate is imposed on top of ordinary income tax owed on the distribution, making early withdrawal during this window substantially more costly than in later years. The rule is designed to discourage participants from using the SIMPLE IRA as a short-term savings vehicle and then cashing out immediately. Participants should be aware that any distribution taken before the 2-year anniversary of their plan participation will face this elevated penalty, and payroll and plan administrators should clearly communicate this timing rule to newly eligible employees.", "quote": "However, the additional tax is increased to 25%\nif funds are withdrawn within 2 years of beginning partici-\npation.", "offset": 82880, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/p560--2025.pdf", "title": "Publication 560 (2025), Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans)", "publisher": "IRS", "fetched_at": "2026-08-29T09:09:23.789Z", "sha256_text": "a0f10ca7567acf2e701566b47e359f5c62733e6bd179d2f270639ecce5adebff", "snapshot_url": "https://ratesandlimits.com/snapshots/simple-ira-contribution-limit/2026/p560--2025.txt" } } ], "estimate": null }, { "program": "social-security-cola", "name": "Social Security COLA", "category": "mileage-and-misc", "agency": "SSA", "year": 2026, "state": null, "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-09-01", "published_at": "2026-09-01T06:31:27.178Z", "canonical_url": "https://ratesandlimits.com/social-security-cola/", "figures": [ { "key": "cola", "label": "Cost-of-living increase", "value": 2.8, "format": "percent", "formatted": "2.8%", "scope": null, "derived": false, "quote": "The cost-of-living increase is 2.8 percent for monthly benefits\nunder title II and for monthly payments under title XVI of the Act.", "offset": 5357, "source": { "url": "https://www.federalregister.gov/documents/full_text/text/2025/11/03/2025-19763.txt", "title": "Cost-of-Living Increase and Other Determinations for 2026", "publisher": "SSA", "fetched_at": "2026-08-29T02:41:07.261Z", "sha256_text": "c4ad2975b5f856e8c45807ebc056d9e37ccb6b02f521671001af04e98ee49b5f", "snapshot_url": "https://ratesandlimits.com/snapshots/social-security-cola/2026/2025-19763.txt" } } ], "schedule": null, "explainers": [ { "key": "the-third-quarter-average", "heading": "Only three months of the CPI decide it", "body": "The increase is not measured over a year of prices. The Act defines a cost-of-living computation quarter as three months, and the index for that quarter is one number: the arithmetic mean of the index for the 3 months in it. That mean is rounded to the nearest 0.001 before any comparison is made, and the comparison is then between two such means a year apart. Two things follow for anyone reading the 2.8% on this page against inflation reported elsewhere. Prices in the other nine months of the year never enter the calculation directly; they matter only insofar as they are still showing in the third quarter when it comes round. And a sharp move late in the year does not raise the increase announced for 2026. It falls inside the following year's quarter, so it is carried into the next announcement instead.", "quote": "Section 215(i)(1) of the Act states that the CPI for a cost-of-\nliving computation quarter is the arithmetic mean of this index for the\n3 months in that quarter. In accordance with 20 CFR 404.275, we round\nthe arithmetic mean, if necessary, to the nearest 0.001.", "offset": 7223, "verified_at": "2026-09-01", "source": { "url": "https://www.federalregister.gov/documents/full_text/text/2025/11/03/2025-19763.txt", "title": "Cost-of-Living Increase and Other Determinations for 2026", "publisher": "SSA", "fetched_at": "2026-08-29T02:41:07.261Z", "sha256_text": "c4ad2975b5f856e8c45807ebc056d9e37ccb6b02f521671001af04e98ee49b5f", "snapshot_url": "https://ratesandlimits.com/snapshots/social-security-cola/2026/2025-19763.txt" } }, { "key": "how-the-increase-is-computed", "heading": "How the increase is computed, and when there is none", "body": "Social Security's annual cost-of-living adjustment compares the Consumer Price Index for the third quarter of the current year (July, August, September) against the third quarter of the previous year. If the CPI has risen, benefits go up by that percentage. If the CPI is flat or lower, there is no increase at all - the law does not allow a reduction. The \"last computation quarter\" is simply the most recent third quarter for which data existed when the prior year's COLA was set. The COLA then applies to anyone who was already eligible for title II benefits before the year the increase takes effect; people who first become eligible in that year do not receive it.", "quote": "The law states that a\ncost-of-living increase for benefits is determined based on the\npercentage increase, if any, in the CPI from the last computation\nquarter to the third quarter of the current year.", "offset": 6914, "verified_at": "2026-08-29", "source": { "url": "https://www.federalregister.gov/documents/full_text/text/2025/11/03/2025-19763.txt", "title": "Cost-of-Living Increase and Other Determinations for 2026", "publisher": "SSA", "fetched_at": "2026-08-29T02:41:07.261Z", "sha256_text": "c4ad2975b5f856e8c45807ebc056d9e37ccb6b02f521671001af04e98ee49b5f", "snapshot_url": "https://ratesandlimits.com/snapshots/social-security-cola/2026/2025-19763.txt" } }, { "key": "when-you-actually-see-it", "heading": "It starts with December benefits, paid in January", "body": "Even though the COLA is called a 2026 adjustment, the first monthly payment that reflects it does not arrive until January 2026. Social Security benefits are always paid one month in arrears: the benefit \"for December\" is the check sent out the following month. The increase therefore attaches to the December 2025 benefit, which SSA issues in January 2026. Beneficiaries who were already receiving payments before 2026 see the 2.8% boost on that January check. People who first become eligible after 2025 do not receive the increase; it applies only to workers and family members whose eligibility began before 2026.", "quote": "benefits will increase by 2.8 percent beginning with\nbenefits for December 2025, which are payable in January 2026.", "offset": 9651, "verified_at": "2026-08-29", "source": { "url": "https://www.federalregister.gov/documents/full_text/text/2025/11/03/2025-19763.txt", "title": "Cost-of-Living Increase and Other Determinations for 2026", "publisher": "SSA", "fetched_at": "2026-08-29T02:41:07.261Z", "sha256_text": "c4ad2975b5f856e8c45807ebc056d9e37ccb6b02f521671001af04e98ee49b5f", "snapshot_url": "https://ratesandlimits.com/snapshots/social-security-cola/2026/2025-19763.txt" } }, { "key": "earnings-test-withholding", "heading": "Working before full retirement age withholds part of the benefit", "body": "If you claim Social Security retirement benefits before reaching full retirement age and continue to work, SSA may withhold some of your monthly benefit under the retirement earnings test. The withholding rate depends on whether you will reach full retirement age during the year. Beneficiaries who attain full retirement age in the year have $1 withheld for every $3 of earnings above the higher annual exempt amount, but only for earnings in the months before they reach that age. Everyone else below full retirement age faces a stricter withholding ratio on earnings above the lower exempt amount. Once you reach full retirement age, there is no earnings test at all; you may earn any amount without a reduction in benefits.", "quote": "For beneficiaries who attain NRA in the year, we withhold $1 in\nbenefits for every $3 of earnings over the annual exempt amount for\nmonths before NRA.", "offset": 21777, "verified_at": "2026-08-29", "source": { "url": "https://www.federalregister.gov/documents/full_text/text/2025/11/03/2025-19763.txt", "title": "Cost-of-Living Increase and Other Determinations for 2026", "publisher": "SSA", "fetched_at": "2026-08-29T02:41:07.261Z", "sha256_text": "c4ad2975b5f856e8c45807ebc056d9e37ccb6b02f521671001af04e98ee49b5f", "snapshot_url": "https://ratesandlimits.com/snapshots/social-security-cola/2026/2025-19763.txt" } }, { "key": "higher-exempt-amount-at-nra", "heading": "The year you reach full retirement age has its own limit", "body": "The year you reach full retirement age is treated differently from other years under the earnings test. During that calendar year, a higher exempt amount applies, but only to earnings in the months before you actually attain full retirement age. Earnings in the months from the birthday onward are not counted at all. For the rest of the years before full retirement age, the lower exempt amount is used instead. The higher annual figure effectively gives you more room to earn in the months leading up to the birthday month without losing benefits. Once you reach full retirement age, the earnings test no longer applies.", "quote": "A higher exempt amount applies in the year in which a person\nattains NRA, but only for earnings in months before such attainment.", "offset": 21426, "verified_at": "2026-08-29", "source": { "url": "https://www.federalregister.gov/documents/full_text/text/2025/11/03/2025-19763.txt", "title": "Cost-of-Living Increase and Other Determinations for 2026", "publisher": "SSA", "fetched_at": "2026-08-29T02:41:07.261Z", "sha256_text": "c4ad2975b5f856e8c45807ebc056d9e37ccb6b02f521671001af04e98ee49b5f", "snapshot_url": "https://ratesandlimits.com/snapshots/social-security-cola/2026/2025-19763.txt" } }, { "key": "substantial-gainful-activity", "heading": "What earnings count as substantial gainful activity", "body": "To qualify for Social Security disability benefits, a person must be unable to engage in substantial gainful activity. The program uses a monthly earnings threshold as a practical benchmark: a person earning more than that amount is ordinarily considered to be engaging in SGA and therefore is not eligible for disability benefits. The dollar figure is not the same for everyone; it depends on the nature of the person's disability. Statutorily blind individuals under title II have their own, higher SGA threshold, while non-blind individuals with a determined disability are held to a lower one. Both amounts are updated each year using a formula tied to changes in the national average wage index.", "quote": "A person\nwho is earning more than a certain monthly amount is ordinarily\nconsidered to be engaging in SGA.", "offset": 32872, "verified_at": "2026-08-29", "source": { "url": "https://www.federalregister.gov/documents/full_text/text/2025/11/03/2025-19763.txt", "title": "Cost-of-Living Increase and Other Determinations for 2026", "publisher": "SSA", "fetched_at": "2026-08-29T02:41:07.261Z", "sha256_text": "c4ad2975b5f856e8c45807ebc056d9e37ccb6b02f521671001af04e98ee49b5f", "snapshot_url": "https://ratesandlimits.com/snapshots/social-security-cola/2026/2025-19763.txt" } } ], "estimate": null }, { "program": "social-security-wage-base", "name": "Social Security Wage Base", "category": "payroll-and-wages", "agency": "IRS", "year": 2026, "state": null, "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-09-01", "published_at": "2026-09-01T04:41:06.190Z", "canonical_url": "https://ratesandlimits.com/social-security-wage-base/", "figures": [ { "key": "wage-base", "label": "Wage base limit", "value": 184500, "format": "usd", "formatted": "$184,500", "scope": null, "derived": false, "quote": "For earnings in 2026, this base limit is $184,500.", "offset": 6021, "source": { "url": "https://www.irs.gov/taxtopics/tc751", "title": "Topic no. 751, Social Security and Medicare withholding rates", "publisher": "IRS", "fetched_at": "2026-08-28T02:33:44.337Z", "sha256_text": "af3b45a700ddff0a3b5508d8fae9596bb1b828bc1bc9e09009eb25b06df54e83", "snapshot_url": "https://ratesandlimits.com/snapshots/social-security-wage-base/2026/tc751.txt" } }, { "key": "employee-rate", "label": "Employee social security tax rate", "value": 6.2, "format": "percent", "formatted": "6.2%", "scope": null, "derived": false, "quote": "The current tax rate for Social Security is 6.2% for the employer and 6.2% for the employee, or 12.4% total.", "offset": 4827, "source": { "url": "https://www.irs.gov/taxtopics/tc751", "title": "Topic no. 751, Social Security and Medicare withholding rates", "publisher": "IRS", "fetched_at": "2026-08-28T02:33:44.337Z", "sha256_text": "af3b45a700ddff0a3b5508d8fae9596bb1b828bc1bc9e09009eb25b06df54e83", "snapshot_url": "https://ratesandlimits.com/snapshots/social-security-wage-base/2026/tc751.txt" } } ], "schedule": null, "explainers": [ { "key": "employer-paying-the-employee-share", "heading": "When the employer pays the employee's share", "body": "When an employer covers the employee's share of social security and Medicare taxes instead of withholding those amounts from wages, the IRS treats the tax payments as additional wages to the employee. That means the grossed-up amount — the tax payment itself — is subject to social security and Medicare taxes on top of the regular cash wages. In practice, each additional payment triggers more tax, which again increases wages and tax in a cascading effect, until the employee's total wages reach the annual wage base limit. For 2026, the social security wage base is $184,500, and the employee social security tax rate is 6.2%. The employer must account for this gross-up when computing withholding and payroll tax liability. Further guidance is available in Revenue Ruling 86-14 and IRS Publication 15-A.", "quote": "Employee’s portion of taxes paid by employer. If you\npay your employee’s social security and Medicare taxes\nwithout deducting them from the employee’s pay, you\nmust include the amount of the payments in the employ-\nee’s wages for social security and Medicare taxes. This in-\ncrease in the employee’s wage payment for your payment\nof the employee’s social security and Medicare taxes is\nalso subject to employee social security and Medicare\ntaxes. This again increases the amount of the additional\ntaxes that you must pay.", "offset": 162401, "verified_at": "2026-09-01", "source": { "url": "https://www.irs.gov/pub/irs-pdf/p15.pdf", "title": "Publication 15 (2026), (Circular E), Employer's Tax Guide", "publisher": "IRS", "fetched_at": "2026-08-28T02:31:39.779Z", "sha256_text": "f5278a5bdef33e03637feafc3f56ee6c119cc47307d6405f5dc4802b6d91b2af", "snapshot_url": "https://ratesandlimits.com/snapshots/social-security-wage-base/2026/p15.txt" } }, { "key": "only-social-security-has-a-limit", "heading": "Only social security has a wage base", "body": "While both social security and Medicare taxes are payroll taxes, only social security has a cap on the wages subject to the tax. This cap is called the wage base limit, and it represents the maximum amount of an employee's wages that can be taxed for social security in a given year. Once an employee's cumulative wages for the year exceed this threshold, no further social security tax is owed on additional earnings. In contrast, Medicare tax applies to all covered wages without any upper limit, meaning every dollar of covered wages is subject to Medicare tax regardless of how much the employee earns. For 2026, the social security wage base limit is $184,500. Employers must determine the correct withholding amounts by multiplying each wage payment by the applicable employee tax rate until the limit is reached.", "quote": "So-\ncial security and Medicare taxes have different rates and\nonly the social security tax has a wage base limit. The\nwage base limit is the maximum wage subject to the tax\nfor the year.", "offset": 159540, "verified_at": "2026-08-28", "source": { "url": "https://www.irs.gov/pub/irs-pdf/p15.pdf", "title": "Publication 15 (2026), (Circular E), Employer's Tax Guide", "publisher": "IRS", "fetched_at": "2026-08-28T02:31:39.779Z", "sha256_text": "f5278a5bdef33e03637feafc3f56ee6c119cc47307d6405f5dc4802b6d91b2af", "snapshot_url": "https://ratesandlimits.com/snapshots/social-security-wage-base/2026/p15.txt" } }, { "key": "successor-employer", "heading": "An acquisition does not restart the limit", "body": "When one business acquires another, the employees who came from the old employer may have already earned wages earlier in the same calendar year. Without a special rule, the new employer would start the social security wage base over at zero, causing the employee to pay social security tax on the first $184,500 of wages all over again. The successor employer rule prevents this double taxation by treating wages the predecessor paid as if the successor had paid them for the purpose of applying the annual wage base limit. In practice, the new employer only owes social security tax on the remaining balance up to $184,500 after subtracting what the employee already earned under the prior employer. The rule also applies to the $200,000 threshold for Additional Medicare Tax withholding. Employers in an acquisition should check whether they need to file Schedule D (Form 941) and should review Revenue Procedure 2004-53 for the specific conditions that must be met.", "quote": "Successor employer. When corporate acquisitions\nmeet certain requirements, wages paid by the predeces-\nsor are treated as if paid by the successor for purposes of\napplying the social security wage base limit and for apply-\ning the Additional Medicare Tax withholding threshold\n(that is, $200,000 in a calendar year).", "offset": 161095, "verified_at": "2026-08-28", "source": { "url": "https://www.irs.gov/pub/irs-pdf/p15.pdf", "title": "Publication 15 (2026), (Circular E), Employer's Tax Guide", "publisher": "IRS", "fetched_at": "2026-08-28T02:31:39.779Z", "sha256_text": "f5278a5bdef33e03637feafc3f56ee6c119cc47307d6405f5dc4802b6d91b2af", "snapshot_url": "https://ratesandlimits.com/snapshots/social-security-wage-base/2026/p15.txt" } }, { "key": "household-employees", "heading": "Household employers", "body": "An individual who performs household work in a private home, local college club, or local fraternity or sorority chapter is classified as a household employee. For social security and Medicare tax purposes, wages paid to household employees are subject to these taxes when the employer pays total cash wages of $3,000 or more during 2026. The household employee's wages are subject to the same annual wage base limit as other workers - $184,500 for 2026. This means social security tax applies only up to that limit during the calendar year, while Medicare tax continues to apply to all wages regardless of total amount. Income tax withholding for household employees is generally exempt unless both the employer and employee voluntarily agree to it. The household employer is responsible for withholding the employee's share and paying the employer's share of social security and Medicare taxes once the cash wage threshold is met.", "quote": "Taxable if paid $3,000 or\nmore in cash in 2026.", "offset": 259673, "verified_at": "2026-08-28", "source": { "url": "https://www.irs.gov/pub/irs-pdf/p15.pdf", "title": "Publication 15 (2026), (Circular E), Employer's Tax Guide", "publisher": "IRS", "fetched_at": "2026-08-28T02:31:39.779Z", "sha256_text": "f5278a5bdef33e03637feafc3f56ee6c119cc47307d6405f5dc4802b6d91b2af", "snapshot_url": "https://ratesandlimits.com/snapshots/social-security-wage-base/2026/p15.txt" } }, { "key": "who-is-an-employee", "heading": "Who counts as an employee", "body": "The IRS determines whether someone who works for you is an employee based on common-law rules that focus on the degree of control and independence in the working relationship. Under these rules, anyone who meets the definition of a common-law employee is subject to social security and Medicare taxes, and their wages count toward the annual wage base limit of $184,500 for 2026. The classification depends on facts and circumstances rather than formal labels - even if a worker is called an independent contractor or agent, they may still be considered a common-law employee if the employer has the right to control what work is done and how it is done. Once the worker meets the common-law employee test, their wages are subject to social security tax up to the wage base limit and Medicare tax on all amounts. Employers must withhold the employee's share of these taxes and pay the employer's share on all wages paid to common-law employees.", "quote": "If an employer-employee relationship exists, it doesn’t\nmatter what it is called. The employee may be called an\nagent or independent contractor. It also doesn’t matter\nhow payments are measured or paid, what they’re called,\nor if the employee works full or part time.", "offset": 70945, "verified_at": "2026-08-28", "source": { "url": "https://www.irs.gov/pub/irs-pdf/p15.pdf", "title": "Publication 15 (2026), (Circular E), Employer's Tax Guide", "publisher": "IRS", "fetched_at": "2026-08-28T02:31:39.779Z", "sha256_text": "f5278a5bdef33e03637feafc3f56ee6c119cc47307d6405f5dc4802b6d91b2af", "snapshot_url": "https://ratesandlimits.com/snapshots/social-security-wage-base/2026/p15.txt" } } ], "estimate": null }, { "program": "standard-deduction", "name": "Standard Deduction", "category": "deductions-and-credits", "agency": "IRS", "year": 2026, "state": null, "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-09-01", "published_at": "2026-09-01T02:43:41.913Z", "canonical_url": "https://ratesandlimits.com/standard-deduction/", "figures": [ { "key": "single", "label": "Single unmarried", "value": 16100, "format": "usd", "formatted": "$16,100", "scope": null, "derived": false, "quote": "Unmarried Individuals (other than Surviving Spouses and Heads of\nHouseholds) (§ 1(j)(2)(C))\n$16,100", "offset": 28979, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32", "publisher": "IRS", "fetched_at": "2026-08-27T11:16:52.657Z", "sha256_text": "208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66", "snapshot_url": "https://ratesandlimits.com/snapshots/standard-deduction/2026/rp-25-32.txt" } }, { "key": "married-jointly", "label": "Married jointly", "value": 32200, "format": "usd", "formatted": "$32,200", "scope": null, "derived": false, "quote": "Married Individuals Filing Joint Returns and Surviving Spouses\n(§ 1(j)(2)(A))\n$32,200", "offset": 28850, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32", "publisher": "IRS", "fetched_at": "2026-08-27T11:16:52.657Z", "sha256_text": "208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66", "snapshot_url": "https://ratesandlimits.com/snapshots/standard-deduction/2026/rp-25-32.txt" } }, { "key": "head-of-household", "label": "Head of household", "value": 24150, "format": "usd", "formatted": "$24,150", "scope": null, "derived": false, "quote": "Heads of Households (§ 1(j)(2)(B)) $24,150", "offset": 28936, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32", "publisher": "IRS", "fetched_at": "2026-08-27T11:16:52.657Z", "sha256_text": "208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66", "snapshot_url": "https://ratesandlimits.com/snapshots/standard-deduction/2026/rp-25-32.txt" } }, { "key": "aged-blind-addition", "label": "Aged blind addition", "value": 1650, "format": "usd-delta", "formatted": "+$1,650", "scope": null, "derived": false, "quote": "the additional standard\ndeduction amount under § 63(f) for the aged or the blind is $1,650", "offset": 29473, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32", "publisher": "IRS", "fetched_at": "2026-08-27T11:16:52.657Z", "sha256_text": "208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66", "snapshot_url": "https://ratesandlimits.com/snapshots/standard-deduction/2026/rp-25-32.txt" } }, { "key": "aged-blind-addition-unmarried", "label": "Aged blind addition unmarried", "value": 2050, "format": "usd-delta", "formatted": "+$2,050", "scope": null, "derived": false, "quote": "The additional\nstandard deduction amount is increased to $2,050 if the individual is also unmarried and\nnot a surviving spouse.", "offset": 29565, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32", "publisher": "IRS", "fetched_at": "2026-08-27T11:16:52.657Z", "sha256_text": "208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66", "snapshot_url": "https://ratesandlimits.com/snapshots/standard-deduction/2026/rp-25-32.txt" } } ], "schedule": null, "explainers": [ { "key": "age-65-day-before-birthday", "heading": "You are 65 the day before your birthday", "body": "Age 65 arrives, for this deduction, one day early. Someone whose 65th birthday falls on New Year's Day is treated as 65 on the last day of the year before, and so takes the higher standard deduction a full filing year sooner than the birthday alone would suggest. The rule bites at exactly one boundary and for exactly one group - people born on the first day of a year - but for them it decides which return the larger amount belongs to. What the test reads is the age reached by the last day of the tax year, not an age held throughout it. The same reading is why a return prepared for someone who died during the year asks whether they had reached 65 at the time of death, rather than how much of the year they were 65 for.", "quote": "considered 65 on the day before your 65th birth-\nday.", "offset": 158785, "verified_at": "2026-09-01", "source": { "url": "https://www.irs.gov/pub/irs-pdf/p501.pdf", "title": "Publication 501 (2025), Dependents, Standard Deduction, and Filing Information", "publisher": "IRS", "fetched_at": "2026-08-29T07:09:30.880Z", "sha256_text": "450d21e24bf2f06646746092289cb45175e352827861c375a03be13a940b3524", "snapshot_url": "https://ratesandlimits.com/snapshots/standard-deduction/2026/p501.txt" } }, { "key": "who-cannot-take-it", "heading": "Three ways your standard deduction becomes zero", "body": "Most taxpayers can claim the standard deduction, but three situations make your standard deduction zero. First, if you are married filing separately and your spouse chooses to itemize their deductions instead, you cannot take the standard deduction and must itemize as well. Second, if you are filing a tax return for a short tax year because you changed your annual accounting period, your standard deduction is zero. Third, if you are a nonresident or dual-status alien during the year, you generally cannot take the standard deduction. A dual-status alien is someone who was both a nonresident and resident alien during the same year. There is an exception for nonresident aliens married to U.S. citizens or resident aliens at year-end who can choose to be treated as U.S. residents. If you fall into any of these three categories, you should itemize whatever deductions you are eligible for instead of claiming the standard deduction.", "quote": "Persons not eligible for the standard de-\nduction. Your standard deduction is zero and\nyou should itemize any deductions you have if:\n1. Your filing status is married filing sepa-\nrately, and your spouse itemizes deduc-\ntions on their return;\n2. You are filing a tax return for a short tax\nyear because of a change in your annual\naccounting period; or\n3. You are a nonresident or dual-status alien\nduring the year.", "offset": 157027, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/p501.pdf", "title": "Publication 501 (2025), Dependents, Standard Deduction, and Filing Information", "publisher": "IRS", "fetched_at": "2026-08-29T07:09:30.880Z", "sha256_text": "450d21e24bf2f06646746092289cb45175e352827861c375a03be13a940b3524", "snapshot_url": "https://ratesandlimits.com/snapshots/standard-deduction/2026/p501.txt" } }, { "key": "blindness-certification", "heading": "What \"blind\" means, and the letter you need", "body": "To claim the higher standard deduction for blindness, you must meet specific medical criteria and obtain proper documentation. If you are not totally blind, you must get a certified statement from an eye doctor - either an ophthalmologist or optometrist - that confirms one of two conditions: either you cannot see better than 20/200 in your better eye even with glasses or contact lenses, or your field of vision is 20 degrees or less. The statement should also note whether your eye condition is likely to improve beyond these limits. You must keep this statement in your records. Even if your vision can only be corrected beyond these limits by contact lenses that you can wear only briefly due to pain, infection, or ulcers, you can still take the higher standard deduction for blindness if you otherwise qualify. The additional amount for blindness in 2026 is $2,050 for unmarried taxpayers and $1,650 for married taxpayers, added to the base standard deduction of $16,100 for single filers, $32,200 for married filing jointly, or $24,150 for head of household.", "quote": "If you aren’t totally blind, you\nmust get a certified statement from an eye doc-\ntor (ophthalmologist or optometrist) stating that:\n1. You can’t see better than 20/200 in the\nbetter eye with glasses or contact lenses,\nor\n2. Your field of vision is 20 degrees or less.", "offset": 159642, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/p501.pdf", "title": "Publication 501 (2025), Dependents, Standard Deduction, and Filing Information", "publisher": "IRS", "fetched_at": "2026-08-29T07:09:30.880Z", "sha256_text": "450d21e24bf2f06646746092289cb45175e352827861c375a03be13a940b3524", "snapshot_url": "https://ratesandlimits.com/snapshots/standard-deduction/2026/p501.txt" } }, { "key": "spouse-65-or-blind", "heading": "Claiming your spouse's extra amount", "body": "You can claim the higher standard deduction if your spouse is age 65 or older or blind, provided you meet one of two conditions. First, you can claim it if you file a joint return together. Second, you can claim it if you file a separate return and your spouse had no gross income for the year and cannot be claimed as a dependent by another taxpayer. If your spouse died before reaching age 65, you cannot take the higher standard deduction because of your spouse. Even if your spouse would have turned 65 before the end of the year, your spouse is not considered 65 or older unless your spouse was actually 65 or older at the time of death. The additional amounts for 2026 are $1,650 for married taxpayers and $2,050 for unmarried taxpayers, which can be added to the base amounts of $32,200 for married filing jointly, $16,100 for single, or $24,150 for head of household. On a joint return, each spouse who is 65 or older or blind can qualify for their own additional amount.", "quote": "You can take the higher standard deduction if\nyour spouse is age 65 or older or blind and:\n1. You file a joint return, or\n2. You file a separate return and your spouse\nhad no gross income and can’t be claimed\nas a dependent by another taxpayer.\nDeath of spouse. If your spouse died in 2025\nbefore reaching age 65, you can’t take a higher\nstandard deduction because of your spouse.", "offset": 160313, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/p501.pdf", "title": "Publication 501 (2025), Dependents, Standard Deduction, and Filing Information", "publisher": "IRS", "fetched_at": "2026-08-29T07:09:30.880Z", "sha256_text": "450d21e24bf2f06646746092289cb45175e352827861c375a03be13a940b3524", "snapshot_url": "https://ratesandlimits.com/snapshots/standard-deduction/2026/p501.txt" } }, { "key": "decedents-final-return", "heading": "The deduction on a final return", "body": "The standard deduction for a decedent's final tax return is the same as it would have been had the decedent continued to live. This means the deceased person's estate can claim the same standard deduction amount based on their filing status, age, and blindness as if they were still alive. However, there is an important limitation: if the decedent was not 65 or older at the time of death, the higher standard deduction for age cannot be claimed on the final return, even if the decedent would have turned 65 before the end of the year. This rule applies specifically to the age-related increase. The base standard deduction amounts for 2026 are $16,100 for single filers, $32,200 for married filing jointly, and $24,150 for head of household. The additional amounts for those 65 or older are $2,050 for unmarried taxpayers and $1,650 for married taxpayers. If the decedent was 65 or older at death, these additional amounts can be included on the final return.", "quote": "The standard deduc-\ntion for a decedent’s final tax return is the same\nas it would have been had the decedent contin-\nued to live. However, if the decedent wasn’t 65\nor older at the time of death, the higher stand-\nard deduction for age can’t be claimed.", "offset": 158326, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-pdf/p501.pdf", "title": "Publication 501 (2025), Dependents, Standard Deduction, and Filing Information", "publisher": "IRS", "fetched_at": "2026-08-29T07:09:30.880Z", "sha256_text": "450d21e24bf2f06646746092289cb45175e352827861c375a03be13a940b3524", "snapshot_url": "https://ratesandlimits.com/snapshots/standard-deduction/2026/p501.txt" } } ], "estimate": null }, { "program": "student-loan-interest-deduction", "name": "Student Loan Interest Deduction", "category": "deductions-and-credits", "agency": "IRS", "year": 2026, "state": null, "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-29", "published_at": "2026-08-29T04:37:40.435Z", "canonical_url": "https://ratesandlimits.com/student-loan-interest-deduction/", "figures": [ { "key": "maximum-deduction", "label": "Maximum deduction", "value": 2500, "format": "usd", "formatted": "$2,500", "scope": null, "derived": false, "quote": "For taxable years beginning in 2026, the $2,500\nmaximum deduction for interest paid on qualified education loans under § 221 begins to\nphase out", "offset": 36499, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32", "publisher": "IRS", "fetched_at": "2026-08-27T13:24:25.735Z", "sha256_text": "208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66", "snapshot_url": "https://ratesandlimits.com/snapshots/student-loan-interest-deduction/2026/rp-25-32.txt" } }, { "key": "phaseout-threshold-single", "label": "Phase-out threshold, single filers", "value": 85000, "format": "usd", "formatted": "$85,000", "scope": null, "derived": false, "quote": "begins to\nphase out under § 221(b)(2)(B), as adjusted for inflation, for taxpayers with modified\nadjusted gross income in excess of $85,000", "offset": 36624, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32", "publisher": "IRS", "fetched_at": "2026-08-27T13:24:25.735Z", "sha256_text": "208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66", "snapshot_url": "https://ratesandlimits.com/snapshots/student-loan-interest-deduction/2026/rp-25-32.txt" } }, { "key": "phaseout-threshold-joint", "label": "Phase-out threshold, joint filers", "value": 175000, "format": "usd", "formatted": "$175,000", "scope": null, "derived": false, "quote": "for taxpayers with modified\nadjusted gross income in excess of $85,000 ($175,000 for joint returns)", "offset": 36693, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32", "publisher": "IRS", "fetched_at": "2026-08-27T13:24:25.735Z", "sha256_text": "208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66", "snapshot_url": "https://ratesandlimits.com/snapshots/student-loan-interest-deduction/2026/rp-25-32.txt" } }, { "key": "phaseout-complete-single", "label": "Fully phased out, single filers", "value": 100000, "format": "usd", "formatted": "$100,000", "scope": null, "derived": false, "quote": "is\ncompletely phased out for taxpayers with modified adjusted gross income of $100,000\nor more", "offset": 36798, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32", "publisher": "IRS", "fetched_at": "2026-08-27T13:24:25.735Z", "sha256_text": "208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66", "snapshot_url": "https://ratesandlimits.com/snapshots/student-loan-interest-deduction/2026/rp-25-32.txt" } }, { "key": "phaseout-complete-joint", "label": "Fully phased out, joint filers", "value": 205000, "format": "usd", "formatted": "$205,000", "scope": null, "derived": false, "quote": "phased out for taxpayers with modified adjusted gross income of $100,000\nor more ($205,000 or more for joint returns)", "offset": 36812, "source": { "url": "https://www.irs.gov/pub/irs-drop/rp-25-32.pdf", "title": "Rev. Proc. 2025-32", "publisher": "IRS", "fetched_at": "2026-08-27T13:24:25.735Z", "sha256_text": "208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66", "snapshot_url": "https://ratesandlimits.com/snapshots/student-loan-interest-deduction/2026/rp-25-32.txt" } } ], "schedule": null, "explainers": [ { "key": "phaseout-arithmetic", "heading": "How the deduction is reduced inside the phase-out range", "body": "Inside the phase-out range the deduction is cut by a fraction rather than lost all at once. You begin with the interest you actually paid, capped at $2,500, and multiply it by a fraction. The numerator is the amount by which your modified adjusted gross income rises above the threshold for your filing status, which for 2026 is $85,000 for single filers and $175,000 on a joint return. The denominator is the width of the range between that threshold and the income at which the deduction disappears, which is $100,000 for single filers and $205,000 on a joint return. The product of that multiplication is the reduction, and you subtract it from the deduction you would otherwise have claimed. A taxpayer just above the threshold therefore keeps most of the deduction, while one near the top of the range keeps almost none of it. Publication 970 states the arithmetic in these words; the two ends of the range are the amounts this page publishes for 2026.", "quote": "Phaseout. If your MAGI is within the range of incomes\nwhere the credit must be reduced, you must figure your re-\nduced deduction. To figure the phaseout, multiply your in-\nterest deduction (before the phaseout but not more than\n$2,500) by a fraction.", "offset": 159524, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/p970--2025.pdf", "title": "Publication 970 (2025), Tax Benefits for Education", "publisher": "IRS", "fetched_at": "2026-08-29T04:23:02.351Z", "sha256_text": "733b7898c753bcfb0d017ca0fb37dff7864b6d0dafc575571b82cc564c1902e3", "snapshot_url": "https://ratesandlimits.com/snapshots/student-loan-interest-deduction/2026/p970--2025.txt" } }, { "key": "modified-agi-for-this-deduction", "heading": "The income the phase-out is measured on", "body": "The income used to decide whether the student loan interest deduction is reduced is modified adjusted gross income (MAGI). For most taxpayers MAGI is simply the adjusted gross income shown on the federal income tax return, figured before subtracting any deduction for student loan interest, so the deduction itself is added back for this test. Other modifications can apply in particular situations, such as a return filed on Form 1040-NR or income excluded by a bona fide resident of Puerto Rico or American Samoa. The number that matters is therefore not the AGI on the face of the return in every case, and it is worth figuring before assuming the deduction is safe. For 2026 the reduction begins once MAGI passes $85,000 for single filers or $175,000 on a joint return, and the deduction is gone entirely at $100,000 and $205,000 respectively.", "quote": "MAGI is AGI as figured on their federal income\ntax return before subtracting any deduction for student\nloan interest.", "offset": 157952, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/p970--2025.pdf", "title": "Publication 970 (2025), Tax Benefits for Education", "publisher": "IRS", "fetched_at": "2026-08-29T04:23:02.351Z", "sha256_text": "733b7898c753bcfb0d017ca0fb37dff7864b6d0dafc575571b82cc564c1902e3", "snapshot_url": "https://ratesandlimits.com/snapshots/student-loan-interest-deduction/2026/p970--2025.txt" } }, { "key": "who-can-claim-it", "heading": "Who can claim the deduction", "body": "A taxpayer may claim the student loan interest deduction only if four conditions are all satisfied. First, the taxpayer's filing status must be any status except married filing separately. This means single filers, heads of household, qualifying surviving spouses, and married couples filing jointly are eligible, but married individuals filing separately are not. Second, no other taxpayer may claim the taxpayer as a dependent on their return. If another person lists the taxpayer as a dependent, neither the taxpayer nor that other person may deduct the student loan interest. Third, the taxpayer must be legally obligated to pay interest on a qualified student loan. Fourth, the taxpayer must have actually paid interest on that qualified student loan during the tax year. All four requirements must be met; failing any one of them disqualifies the deduction entirely. The maximum deduction is $2,500, subject to phase-out based on modified adjusted gross income.", "quote": "Can You Claim the Deduction?\nGenerally, you can claim the deduction if all of the follow-\ning requirements are met.\n• Your filing status is any filing status except married fil-\ning separately.\n• No one else is claiming you as a dependent on their\ntax return.\n• You are legally obligated to pay interest on a qualified\nstudent loan.\n• You paid interest on a qualified student loan.", "offset": 153032, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/p970--2025.pdf", "title": "Publication 970 (2025), Tax Benefits for Education", "publisher": "IRS", "fetched_at": "2026-08-29T04:23:02.351Z", "sha256_text": "733b7898c753bcfb0d017ca0fb37dff7864b6d0dafc575571b82cc564c1902e3", "snapshot_url": "https://ratesandlimits.com/snapshots/student-loan-interest-deduction/2026/p970--2025.txt" } }, { "key": "payments-that-are-not-interest", "heading": "Payments that do not count as student loan interest", "body": "Not every payment made toward a student loan counts as deductible interest. Three categories of payments are specifically excluded. First, interest paid on a loan does not qualify if the borrower is not legally obligated under the loan terms to make interest payments. Second, loan origination fees that are charges for property or services provided by the lender, such as commitment fees or processing costs, do not count as interest. Only origination fees that are charged for the use of money can be treated as deductible interest. Third, interest paid on a loan to the extent payments were made through participation in the National Health Service Corps Loan Repayment Program or certain other loan repayment assistance programs described in chapter 5 is excluded. A taxpayer who benefits from one of these programs cannot also claim a deduction for the same interest. These exclusions apply regardless of filing status or income level.", "quote": "Don’t Include as Interest\nYou can’t claim a student loan interest deduction for any of\nthe following items.\n• Interest you paid on a loan if, under the terms of the\nloan, you aren’t legally obligated to make interest pay-\nments.\n• Loan origination fees that are payments for property or\nservices provided by the lender, such as commitment\nfees or processing costs.\n• Interest you paid on a loan to the extent payments\nwere made through your participation in the National\nHealth Service Corps Loan Repayment Program (the\nNHSC Loan Repayment Program) or certain other\nloan repayment assistance programs.", "offset": 152193, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/p970--2025.pdf", "title": "Publication 970 (2025), Tax Benefits for Education", "publisher": "IRS", "fetched_at": "2026-08-29T04:23:02.351Z", "sha256_text": "733b7898c753bcfb0d017ca0fb37dff7864b6d0dafc575571b82cc564c1902e3", "snapshot_url": "https://ratesandlimits.com/snapshots/student-loan-interest-deduction/2026/p970--2025.txt" } } ], "estimate": null }, { "program": "tax-brackets", "name": "Tax Brackets", "category": "brackets-and-rates", "agency": "IRS", "year": 2026, "state": null, "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-09-01", "published_at": "2026-09-01T04:44:57.450Z", "canonical_url": "https://ratesandlimits.com/tax-brackets/", "figures": [ { "key": "top-rate", "label": "Top rate", "value": 37, "format": "percent", "formatted": "37%", "scope": null, "derived": false, "quote": "For tax year 2026, the top tax rate remains 37%", "offset": 6031, "source": { "url": "https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill", "title": "IR-2025-103", "publisher": "IRS", "fetched_at": "2026-08-27T23:29:41.959Z", "sha256_text": "e1d5ec71a51bd53e0c86c2ed2c8f44572513bb840b2274e091d4762d9a63de76", "snapshot_url": "https://ratesandlimits.com/snapshots/tax-brackets/2026/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill.txt" } }, { "key": "top-rate-single", "label": "37% rate, single taxpayers", "value": 640600, "format": "usd", "formatted": "$640,600", "scope": null, "derived": false, "quote": "for individual single taxpayers with incomes greater than $640,600", "offset": 6079, "source": { "url": "https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill", "title": "IR-2025-103", "publisher": "IRS", "fetched_at": "2026-08-27T23:29:41.959Z", "sha256_text": "e1d5ec71a51bd53e0c86c2ed2c8f44572513bb840b2274e091d4762d9a63de76", "snapshot_url": "https://ratesandlimits.com/snapshots/tax-brackets/2026/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill.txt" } }, { "key": "top-rate-joint", "label": "37% rate, married couples", "value": 768700, "format": "usd", "formatted": "$768,700", "scope": null, "derived": false, "quote": "($768,700 for married couples filing jointly)", "offset": 6146, "source": { "url": "https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill", "title": "IR-2025-103", "publisher": "IRS", "fetched_at": "2026-08-27T23:29:41.959Z", "sha256_text": "e1d5ec71a51bd53e0c86c2ed2c8f44572513bb840b2274e091d4762d9a63de76", "snapshot_url": "https://ratesandlimits.com/snapshots/tax-brackets/2026/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill.txt" } }, { "key": "rate-35", "label": "35% rate", "value": 35, "format": "percent", "formatted": "35%", "scope": null, "derived": false, "quote": "35% for incomes over $256,225", "offset": 6214, "source": { "url": "https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill", "title": "IR-2025-103", "publisher": "IRS", "fetched_at": "2026-08-27T23:29:41.959Z", "sha256_text": "e1d5ec71a51bd53e0c86c2ed2c8f44572513bb840b2274e091d4762d9a63de76", "snapshot_url": "https://ratesandlimits.com/snapshots/tax-brackets/2026/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill.txt" } }, { "key": "rate-35-single", "label": "35% rate, single taxpayers", "value": 256225, "format": "usd", "formatted": "$256,225", "scope": null, "derived": false, "quote": "35% for incomes over $256,225", "offset": 6214, "source": { "url": "https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill", "title": "IR-2025-103", "publisher": "IRS", "fetched_at": "2026-08-27T23:29:41.959Z", "sha256_text": "e1d5ec71a51bd53e0c86c2ed2c8f44572513bb840b2274e091d4762d9a63de76", "snapshot_url": "https://ratesandlimits.com/snapshots/tax-brackets/2026/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill.txt" } }, { "key": "rate-35-joint", "label": "35% rate, married couples", "value": 512450, "format": "usd", "formatted": "$512,450", "scope": null, "derived": false, "quote": "35% for incomes over $256,225 ($512,450 for married couples filing jointly)", "offset": 6214, "source": { "url": "https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill", "title": "IR-2025-103", "publisher": "IRS", "fetched_at": "2026-08-27T23:29:41.959Z", "sha256_text": "e1d5ec71a51bd53e0c86c2ed2c8f44572513bb840b2274e091d4762d9a63de76", "snapshot_url": "https://ratesandlimits.com/snapshots/tax-brackets/2026/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill.txt" } }, { "key": "rate-32", "label": "32% rate", "value": 32, "format": "percent", "formatted": "32%", "scope": null, "derived": false, "quote": "32% for incomes over $201,775", "offset": 6291, "source": { "url": "https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill", "title": "IR-2025-103", "publisher": "IRS", "fetched_at": "2026-08-27T23:29:41.959Z", "sha256_text": "e1d5ec71a51bd53e0c86c2ed2c8f44572513bb840b2274e091d4762d9a63de76", "snapshot_url": "https://ratesandlimits.com/snapshots/tax-brackets/2026/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill.txt" } }, { "key": "rate-32-single", "label": "32% rate, single taxpayers", "value": 201775, "format": "usd", "formatted": "$201,775", "scope": null, "derived": false, "quote": "32% for incomes over $201,775", "offset": 6291, "source": { "url": "https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill", "title": "IR-2025-103", "publisher": "IRS", "fetched_at": "2026-08-27T23:29:41.959Z", "sha256_text": "e1d5ec71a51bd53e0c86c2ed2c8f44572513bb840b2274e091d4762d9a63de76", "snapshot_url": "https://ratesandlimits.com/snapshots/tax-brackets/2026/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill.txt" } }, { "key": "rate-32-joint", "label": "32% rate, married couples", "value": 403550, "format": "usd", "formatted": "$403,550", "scope": null, "derived": false, "quote": "32% for incomes over $201,775 ($403,550 for married couples filing jointly)", "offset": 6291, "source": { "url": "https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill", "title": "IR-2025-103", "publisher": "IRS", "fetched_at": "2026-08-27T23:29:41.959Z", "sha256_text": "e1d5ec71a51bd53e0c86c2ed2c8f44572513bb840b2274e091d4762d9a63de76", "snapshot_url": "https://ratesandlimits.com/snapshots/tax-brackets/2026/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill.txt" } }, { "key": "rate-24", "label": "24% rate", "value": 24, "format": "percent", "formatted": "24%", "scope": null, "derived": false, "quote": "24% for incomes over $105,700", "offset": 6368, "source": { "url": "https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill", "title": "IR-2025-103", "publisher": "IRS", "fetched_at": "2026-08-27T23:29:41.959Z", "sha256_text": "e1d5ec71a51bd53e0c86c2ed2c8f44572513bb840b2274e091d4762d9a63de76", "snapshot_url": "https://ratesandlimits.com/snapshots/tax-brackets/2026/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill.txt" } }, { "key": "rate-24-single", "label": "24% rate, single taxpayers", "value": 105700, "format": "usd", "formatted": "$105,700", "scope": null, "derived": false, "quote": "24% for incomes over $105,700", "offset": 6368, "source": { "url": "https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill", "title": "IR-2025-103", "publisher": "IRS", "fetched_at": "2026-08-27T23:29:41.959Z", "sha256_text": "e1d5ec71a51bd53e0c86c2ed2c8f44572513bb840b2274e091d4762d9a63de76", "snapshot_url": "https://ratesandlimits.com/snapshots/tax-brackets/2026/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill.txt" } }, { "key": "rate-24-joint", "label": "24% rate, married couples", "value": 211400, "format": "usd", "formatted": "$211,400", "scope": null, "derived": false, "quote": "24% for incomes over $105,700 ($211,400 for married couples filing jointly)", "offset": 6368, "source": { "url": "https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill", "title": "IR-2025-103", "publisher": "IRS", "fetched_at": "2026-08-27T23:29:41.959Z", "sha256_text": "e1d5ec71a51bd53e0c86c2ed2c8f44572513bb840b2274e091d4762d9a63de76", "snapshot_url": "https://ratesandlimits.com/snapshots/tax-brackets/2026/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill.txt" } }, { "key": "rate-22", "label": "22% rate", "value": 22, "format": "percent", "formatted": "22%", "scope": null, "derived": false, "quote": "22% for incomes over $50,400", "offset": 6445, "source": { "url": "https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill", "title": "IR-2025-103", "publisher": "IRS", "fetched_at": "2026-08-27T23:29:41.959Z", "sha256_text": "e1d5ec71a51bd53e0c86c2ed2c8f44572513bb840b2274e091d4762d9a63de76", "snapshot_url": "https://ratesandlimits.com/snapshots/tax-brackets/2026/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill.txt" } }, { "key": "rate-22-single", "label": "22% rate, single taxpayers", "value": 50400, "format": "usd", "formatted": "$50,400", "scope": null, "derived": false, "quote": "22% for incomes over $50,400", "offset": 6445, "source": { "url": "https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill", "title": "IR-2025-103", "publisher": "IRS", "fetched_at": "2026-08-27T23:29:41.959Z", "sha256_text": "e1d5ec71a51bd53e0c86c2ed2c8f44572513bb840b2274e091d4762d9a63de76", "snapshot_url": "https://ratesandlimits.com/snapshots/tax-brackets/2026/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill.txt" } }, { "key": "rate-22-joint", "label": "22% rate, married couples", "value": 100800, "format": "usd", "formatted": "$100,800", "scope": null, "derived": false, "quote": "22% for incomes over $50,400 ($100,800 for married couples filing jointly)", "offset": 6445, "source": { "url": "https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill", "title": "IR-2025-103", "publisher": "IRS", "fetched_at": "2026-08-27T23:29:41.959Z", "sha256_text": "e1d5ec71a51bd53e0c86c2ed2c8f44572513bb840b2274e091d4762d9a63de76", "snapshot_url": "https://ratesandlimits.com/snapshots/tax-brackets/2026/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill.txt" } }, { "key": "rate-12", "label": "12% rate", "value": 12, "format": "percent", "formatted": "12%", "scope": null, "derived": false, "quote": "12% for incomes over $12,400", "offset": 6521, "source": { "url": "https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill", "title": "IR-2025-103", "publisher": "IRS", "fetched_at": "2026-08-27T23:29:41.959Z", "sha256_text": "e1d5ec71a51bd53e0c86c2ed2c8f44572513bb840b2274e091d4762d9a63de76", "snapshot_url": "https://ratesandlimits.com/snapshots/tax-brackets/2026/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill.txt" } }, { "key": "rate-12-single", "label": "12% rate, single taxpayers", "value": 12400, "format": "usd", "formatted": "$12,400", "scope": null, "derived": false, "quote": "12% for incomes over $12,400", "offset": 6521, "source": { "url": "https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill", "title": "IR-2025-103", "publisher": "IRS", "fetched_at": "2026-08-27T23:29:41.959Z", "sha256_text": "e1d5ec71a51bd53e0c86c2ed2c8f44572513bb840b2274e091d4762d9a63de76", "snapshot_url": "https://ratesandlimits.com/snapshots/tax-brackets/2026/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill.txt" } }, { "key": "rate-12-joint", "label": "12% rate, married couples", "value": 24800, "format": "usd", "formatted": "$24,800", "scope": null, "derived": false, "quote": "12% for incomes over $12,400 ($24,800 for married couples filing jointly)", "offset": 6521, "source": { "url": "https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill", "title": "IR-2025-103", "publisher": "IRS", "fetched_at": "2026-08-27T23:29:41.959Z", "sha256_text": "e1d5ec71a51bd53e0c86c2ed2c8f44572513bb840b2274e091d4762d9a63de76", "snapshot_url": "https://ratesandlimits.com/snapshots/tax-brackets/2026/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill.txt" } }, { "key": "rate-10", "label": "10% rate", "value": 10, "format": "percent", "formatted": "10%", "scope": null, "derived": false, "quote": "The lowest rate is 10% for incomes of single individuals with incomes of $12,400 or less", "offset": 6596, "source": { "url": "https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill", "title": "IR-2025-103", "publisher": "IRS", "fetched_at": "2026-08-27T23:29:41.959Z", "sha256_text": "e1d5ec71a51bd53e0c86c2ed2c8f44572513bb840b2274e091d4762d9a63de76", "snapshot_url": "https://ratesandlimits.com/snapshots/tax-brackets/2026/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill.txt" } } ], "schedule": null, "explainers": [ { "key": "tax-table-or-computation-worksheet", "heading": "Below $100,000 you look the tax up, above it you compute it", "body": "Most individual taxpayers figure their federal income tax using one of two published methods. If your taxable income is less than $100,000, you find the tax in the Tax Table, which lists a specific dollar amount for each income range and filing status. If your taxable income is $100,000 or more, the Tax Table no longer applies; you must instead use the Tax Computation Worksheet, which gives you a percentage to apply to income over a threshold plus a base figure from the rate schedules. The $100,000 line is therefore the switch point: below it you look the tax up, at or above it you compute it from the bracket rates. Taxpayers whose income crosses that level still fall within the same seven federal rate brackets (10%, 12%, 22%, 24%, 32%, 35%, and 37%), but the worksheet, rather than the table, is what translates their income into a final tax figure. The choice between the two methods is determined entirely by whether taxable income reaches the $100,000 threshold.", "quote": "Your taxable income is $100,000 or more.", "offset": 754695, "verified_at": "2026-09-01", "source": { "url": "https://www.irs.gov/pub/irs-prior/p17--2025.pdf", "title": "Publication 17 (2025), Your Federal Income Tax", "publisher": "IRS", "fetched_at": "2026-08-29T07:59:09.518Z", "sha256_text": "1f0d03340c14ede127f8eee04d694c0262ee6b8d9517106b7dfb46595aae70aa", "snapshot_url": "https://ratesandlimits.com/snapshots/tax-brackets/2026/p17--2025.txt" } }, { "key": "head-of-household-while-married", "heading": "Filing as head of household while still married", "body": "A married person may still qualify to file as head of household if they are considered unmarried on the last day of the tax year. To be considered unmarried, all of the following tests must be met: you file a separate return (which includes claiming married filing separately, single, or head of household filing status); you paid more than half the cost of keeping up your home for the tax year; your spouse did not live in your home during the last half of the tax year; your home was the main home of your child, stepchild, or foster child for more than half the year; and you must be able to claim the child as a dependent. These tests allow a married person to use head of household filing status even though they are still legally married at year end, provided they meet all five conditions. If any one of the tests is not met, the taxpayer cannot claim head of household status and must use either married filing separately or married filing jointly instead.", "quote": "Considered Unmarried\nTo qualify for head of household status, you\nmust be either unmarried or considered\nunmarried on the last day of the year.", "offset": 169342, "verified_at": "2026-09-01", "source": { "url": "https://www.irs.gov/pub/irs-prior/p17--2025.pdf", "title": "Publication 17 (2025), Your Federal Income Tax", "publisher": "IRS", "fetched_at": "2026-08-29T07:59:09.518Z", "sha256_text": "1f0d03340c14ede127f8eee04d694c0262ee6b8d9517106b7dfb46595aae70aa", "snapshot_url": "https://ratesandlimits.com/snapshots/tax-brackets/2026/p17--2025.txt" } }, { "key": "marginal-rate-is-not-your-whole-rate", "heading": "The bracket rate is not the rate on all your income", "body": "The IRS warns that the Tax Rate Schedules exist only to show the rate that applies at each income level. You are not supposed to use them to compute your actual tax, because the bracket rate applies only to income within that bracket, not to all your taxable income. For 2026 the brackets for single filers run from 10% up to 37%, with the 37% rate applying only to income over $640,600. For married couples filing jointly the same 37% rate begins at $768,700. A single taxpayer in the 37% bracket still pays 10% on the first dollars, 12% on the next slice, 22%, 24%, and 32% on the slices in between, and 35% on the slice just below the top. So being pushed into a higher bracket raises the rate on the additional income only; it does not retroactively raise the rate on income that fell in lower brackets. When you actually figure your tax, you use either the Tax Table, the Tax Computation Worksheet, or one of the special worksheets rather than applying the top rate to your whole income.", "quote": "The Tax Rate Schedules are shown so you can see the tax rate that applies to all levels of taxable income. Don’t use them to figure your tax. Instead,\nsee chapter 13.", "offset": 864115, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/p17--2025.pdf", "title": "Publication 17 (2025), Your Federal Income Tax", "publisher": "IRS", "fetched_at": "2026-08-29T07:59:09.518Z", "sha256_text": "1f0d03340c14ede127f8eee04d694c0262ee6b8d9517106b7dfb46595aae70aa", "snapshot_url": "https://ratesandlimits.com/snapshots/tax-brackets/2026/p17--2025.txt" } }, { "key": "joint-return-joint-liability", "heading": "What a joint return makes each spouse liable for", "body": "When a married couple files a joint return, both spouses must include all of their income and all of their deductions on that one return, and they also share responsibility for what the return produces. The IRS describes this as joint responsibility: both spouses may be held responsible, jointly and individually, for the tax and for any interest or penalty due on the joint return. In plain terms, if one spouse does not pay the tax that is due, the other spouse may have to. If one spouse did not report the correct tax, both spouses may be responsible for any additional taxes the IRS later assesses. One spouse can be held responsible for the full amount of tax due even if all of the income on the return was earned by the other spouse. A taxpayer who is concerned that a spouse is not reporting all of their income, or who does not want to be responsible for taxes due because the spouse has not had enough withheld, may want to consider filing separately. The same joint responsibility also applies to a joint return filed before a divorce, even if the divorce decree says otherwise.", "quote": "Joint responsibility. Both of you may be held\nresponsible, jointly and individually, for the tax\nand any interest or penalty due on your joint re-\nturn. This means that if one spouse doesn't pay\nthe tax due, the other may have to. Or, if one\nspouse doesn't report the correct tax, both\nspouses may be responsible for any additional\ntaxes assessed by the IRS. One spouse may be\nheld responsible for all the tax due even if all the\nincome was earned by the other spouse.", "offset": 156159, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/p17--2025.pdf", "title": "Publication 17 (2025), Your Federal Income Tax", "publisher": "IRS", "fetched_at": "2026-08-29T07:59:09.518Z", "sha256_text": "1f0d03340c14ede127f8eee04d694c0262ee6b8d9517106b7dfb46595aae70aa", "snapshot_url": "https://ratesandlimits.com/snapshots/tax-brackets/2026/p17--2025.txt" } }, { "key": "gains-and-dividends-taxed-elsewhere", "heading": "The income these brackets do not tax", "body": "The ordinary income tax brackets described in this publication do not apply to all types of investment income. Long-term capital gains and qualified dividends are generally taxed at separate, lower rates under their own set of rules, and taxpayers who have this kind of income figure that part of their tax on a different worksheet instead of the regular Tax Table or Tax Computation Worksheet. The IRS worksheet used for this is the Qualified Dividends and Capital Gain Tax Worksheet; when you have net capital gains or qualified dividends, you compute the preferential-rate tax on that worksheet and then carry the result into the Tax Computation Worksheet in column (a) of the row that applies to your total taxable income. The Schedule D Tax Worksheet is used in other capital-gain situations, such as when you must use Schedule D itself. So the 10%, 12%, 22%, 24%, 32%, 35%, and 37% brackets you see for ordinary income do not directly set the rate on your long-term capital gains or qualified dividends.", "quote": "Note: If you’re required to use this worksheet to figure the tax on an amount from another form or worksheet, such as the Qualified\nDividends and Capital Gain Tax Worksheet, the Schedule D Tax Worksheet, Schedule J, Form 8615, or the Foreign Earned Income Tax\nWorksheet, enter the amount from that form or worksheet in column (a) of the row that applies to the amount you’re looking up.", "offset": 860963, "verified_at": "2026-08-29", "source": { "url": "https://www.irs.gov/pub/irs-prior/p17--2025.pdf", "title": "Publication 17 (2025), Your Federal Income Tax", "publisher": "IRS", "fetched_at": "2026-08-29T07:59:09.518Z", "sha256_text": "1f0d03340c14ede127f8eee04d694c0262ee6b8d9517106b7dfb46595aae70aa", "snapshot_url": "https://ratesandlimits.com/snapshots/tax-brackets/2026/p17--2025.txt" } } ], "estimate": null }, { "program": "tipped-minimum-wage", "name": "Tipped Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "alabama", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-30", "published_at": "2026-08-30T05:46:38.060Z", "canonical_url": "https://ratesandlimits.com/tipped-minimum-wage/alabama/", "figures": [ { "key": "cash-wage", "label": "Minimum cash wage", "value": 2.13, "format": "usd", "formatted": "$2.13", "scope": null, "derived": false, "quote": "Alabama 11 $7.25 $5.12 $2.13 More than $30", "offset": 5271, "source": { "url": "https://www.dol.gov/agencies/whd/state/minimum-wage/tipped", "title": "Minimum Wages for Tipped Employees", "publisher": "DOL", "fetched_at": "2026-08-29T02:59:31.216Z", "sha256_text": "d9cd16d4bdbf481040de3edf63de4fc5fbcddec3e63b4b8ed3992622607bd43d", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/alabama/2026/tipped.txt" } } ], "schedule": null, "explainers": [ { "key": "who-is-a-tipped-employee", "heading": "Who counts as a tipped employee", "body": "In Alabama, you count as a tipped employee under federal law if you work in an occupation where you customarily and regularly receive more than $30 a month in tips. It does not matter whether your employer pays you the full minimum wage or takes a tip credit; the definition is the same. Only tips you actually receive from customers count toward this threshold. If your tips in some months fall below $30, you are not a tipped employee for those weeks, and your employer cannot use the tip credit rules for you during that time. Once you meet the $30-a-month standard, your employer may apply the special tipped-employee wage rules described elsewhere on this page, including the lower cash wage and the tip credit.", "quote": "Under the FLSA, a tipped employee is an employee engaged in an occupation in which they customarily and regularly receive more than $30 a month in tips.", "offset": 2188, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:44:17.847Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/alabama/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-credit-and-cash-wage", "heading": "What a tip credit is, and the cash wage underneath it", "body": "In Alabama, the federal tip credit lets an employer pay you a cash wage of $2.13 per hour and count a portion of your tips toward its minimum wage obligation. The credit equals the gap between that cash wage and the full minimum wage. Your employer must be able to show, each workweek, that your cash wages plus your tips together reach at least the full minimum wage. Only tips you actually receive count; projected or shared tips do not. If your cash wages and your tips fall short of the full minimum wage in any workweek, your employer must pay the shortfall out of its own funds. The tip credit cannot be larger than the tips you actually took in during that period.", "quote": "An employer can take an FLSA tip credit equal to the difference between the direct wage, or the cash wage it pays directly to the tipped employee, and the federal minimum wage, which is currently $7.25 per hour.", "offset": 3054, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:44:17.847Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/alabama/2026/15-tipped-employees-flsa.txt" } }, { "key": "tips-that-fall-short", "heading": "When the tips do not get you to the minimum wage", "body": "In Alabama, if your tips combined with your employer's cash wages don't reach the federal minimum wage of $7.25 per hour in any workweek, your employer must make up the difference. This is a weekly calculation, not an average over time. Your employer cannot rely on busy weeks to cover slow weeks where your tips fell short. The employer must ensure you receive at least the minimum wage every single workweek. This protection applies whether your employer takes a tip credit or pays you the full minimum wage directly. If your employer fails to make up the shortfall, they've violated federal wage law.", "quote": "If an employee’s tips combined with the employer’s direct (or cash) wages do not equal the minimum hourly wage of $7.25 per hour in each workweek, the employer must make up the difference.", "offset": 3740, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:44:17.847Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/alabama/2026/15-tipped-employees-flsa.txt" } }, { "key": "notice-before-the-tip-credit", "heading": "The notice an employer owes you before it takes the credit", "body": "In Alabama, before your employer can take a tip credit, they must give you specific information about your wages. The notice must include the cash wage they're paying you, the tip credit amount they're claiming, a statement that the credit cannot exceed your actual tips, confirmation that you keep all your tips except for valid tip pooling, and notice that the credit won't apply unless you've been properly informed. Your employer can give this notice orally or in writing. If they fail to provide all this information before taking the tip credit, they lose the right to claim it entirely and must pay you the full minimum wage.", "quote": "Employers must provide the following information to tipped employees before taking a tip credit under the FLSA:", "offset": 3957, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:44:17.847Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/alabama/2026/15-tipped-employees-flsa.txt" } }, { "key": "state-law-most-protective", "heading": "When state law gives more than the federal rule", "body": "In Alabama, when state law and federal law differ, your employer must follow whichever rule gives you greater protection. For example, if Alabama law requires a higher cash wage than the federal minimum of $2.13 per hour, or if it prohibits tip credits altogether, your employer must comply with the Alabama standard. This means you're entitled to the better benefit, whether it comes from state or federal law. The federal rules set minimum standards, but states can provide stronger protections. Your employer cannot pick and choose between state and federal rules to minimize your wages.", "quote": "When state law differs from the federal FLSA, an employer must comply with the standard most protective to employees.", "offset": 5070, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:44:17.847Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/alabama/2026/15-tipped-employees-flsa.txt" } }, { "key": "employers-may-not-keep-tips", "heading": "Your employer, your manager and your supervisor may not keep your tips", "body": "In Alabama, your employer, your manager, and your supervisor cannot keep any of your tips, regardless of whether they take a tip credit. This prohibition applies whether the tips come directly to you or flow through a tip pool. Your employer cannot require you to hand over your tips to them, to a supervisor, or to a manager. This rule applies even if your employer pays you the full minimum wage directly and does not claim a tip credit at all. Your tips belong to you, and the law strictly prevents employers and supervisors from taking any portion of them for any purpose.", "quote": "Regardless of whether an employer takes a tip credit, the FLSA prohibits employers from keeping any portion of employees’ tips for any purpose, whether directly or through a tip pool.", "offset": 5521, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:44:17.847Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/alabama/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-pooling", "heading": "Which tip pools you can be made to join", "body": "In Alabama, if your employer takes a tip credit and requires you to participate in a tip pool, that pool can only include employees who work in occupations where they customarily and regularly receive tips. This means servers, bussers, bartenders, and bellhops can share tips with each other, but non-tipped workers like cooks and dishwashers cannot participate in the pool. The federal law does not limit how much each person must contribute to the pool, but it restricts who can receive from it when a tip credit is taken. Your employer and managers also cannot take any portion of the pooled tips.", "quote": "Traditional Tip Pooling: An employer that takes a tip credit can require tipped employees to contribute tips only\nto a tip pool which is limited to employees in occupations in which they customarily and regularly receive tips, such as waiters, bellhops, counter personnel (who serve customers), bussers, and service bartenders.", "offset": 7419, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:44:17.847Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/alabama/2026/15-tipped-employees-flsa.txt" } }, { "key": "dual-jobs", "heading": "Doing two jobs for one employer", "body": "In Alabama, if you work two different jobs for the same employer, you're only considered a tipped employee for the job where you customarily and regularly receive tips. For example, if you work as both a maintenance worker and a server, you're a tipped employee only for your server hours, not your maintenance hours. Your employer cannot take a tip credit for the hours you spend doing non-tipped work. They must pay you the full minimum wage for those non-tipped hours, even if you earned enough tips during your server hours to cover it. Each occupation is evaluated separately for tip credit purposes.", "quote": "In such a situation the employee, if they customarily and regularly receive at least $30 a month in tips for their work as a server, is a tipped employee only with respect to their employment as a server.", "offset": 9667, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:44:17.847Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/alabama/2026/15-tipped-employees-flsa.txt" } } ], "estimate": null }, { "program": "tipped-minimum-wage", "name": "Tipped Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "arizona", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-30", "published_at": "2026-08-30T05:45:19.061Z", "canonical_url": "https://ratesandlimits.com/tipped-minimum-wage/arizona/", "figures": [ { "key": "cash-wage", "label": "Minimum cash wage", "value": 12.15, "format": "usd", "formatted": "$12.15", "scope": null, "derived": false, "quote": "Arizona $15.15 $3.00 $12.15 Not specified", "offset": 3044, "source": { "url": "https://www.dol.gov/agencies/whd/state/minimum-wage/tipped", "title": "Minimum Wages for Tipped Employees", "publisher": "DOL", "fetched_at": "2026-08-29T02:58:50.333Z", "sha256_text": "d9cd16d4bdbf481040de3edf63de4fc5fbcddec3e63b4b8ed3992622607bd43d", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/arizona/2026/tipped.txt" } } ], "schedule": null, "explainers": [ { "key": "who-is-a-tipped-employee", "heading": "Who counts as a tipped employee", "body": "In Arizona, you count as a tipped employee under federal law if the job you hold is one where you customarily and regularly pull in more than $30 a month in tips. That threshold is the gate: if you clear it, your employer is allowed to treat you as tipped for purposes of the tip credit and tip-pooling rules that follow. If your tips fall below that amount in a typical month, or your occupation is not one where tips are customary and regular, you are not a tipped employee and your employer must pay you the full minimum wage without relying on any tip credit. The rule looks at the occupation, not at any single slow week, so an occasional big tip does not by itself make you tipped, and a steady stream of small tips can still qualify you if it crosses the line.", "quote": "Under the FLSA, a tipped employee is an employee engaged in an occupation in which they customarily and regularly receive more than $30 a month in tips.", "offset": 2188, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:44:17.852Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/arizona/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-credit-and-cash-wage", "heading": "What a tip credit is, and the cash wage underneath it", "body": "Arizona employers who use the federal tip credit must pay you at least $12.15 per hour in cash, which is the state's required minimum cash wage for 2026. The tip credit itself is the gap between that cash wage and the full minimum wage your employer owes you: it is equal to the difference between the direct wage the employer pays you in cash and the minimum wage that applies. If your cash wage plus your tips do not add up to at least the full minimum wage in any workweek, your employer has to make up the shortfall. Only tips you actually receive count toward this calculation, so the credit cannot be based on tips you never saw. The rule is meant to ensure that the tip credit reduces what your employer pays, but never reduces what you take home below the minimum wage floor.", "quote": "An employer can take an FLSA tip credit equal to the difference between the direct wage, or the cash wage it pays directly to the tipped employee, and the federal minimum wage, which is currently $7.25 per hour.", "offset": 3054, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:44:17.852Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/arizona/2026/15-tipped-employees-flsa.txt" } }, { "key": "tips-that-fall-short", "heading": "When the tips do not get you to the minimum wage", "body": "In Arizona, if your cash wage plus your tips do not reach the full minimum wage in any workweek, the employer must make up the difference. This is a week-by-week guarantee: your employer cannot average a slow week against a busy one, and cannot wait until the end of the month to balance things out. The rule exists to close the gap that the tip credit creates, because the tip credit lets your employer count your tips toward its minimum wage obligation only on the assumption that you will actually receive them. When that assumption fails in a particular week, the employer's obligation shifts back to paying you the full minimum wage out of its own pocket, no matter how small your tips were that week.", "quote": "If an employee’s tips combined with the employer’s direct (or cash) wages do not equal the minimum hourly wage of $7.25 per hour in each workweek, the employer must make up the difference.", "offset": 3740, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:44:17.852Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/arizona/2026/15-tipped-employees-flsa.txt" } }, { "key": "notice-before-the-tip-credit", "heading": "The notice an employer owes you before it takes the credit", "body": "Before an Arizona employer can take a tip credit against your wages, it must first give you notice of specific information, including the cash wage it is paying you, the amount it is claiming as a tip credit, and the fact that the credit cannot exceed the tips you actually receive. Employers must provide the following information to tipped employees before taking a tip credit under the FLSA, and the notice can be oral or written, but it has to come before the credit is applied. If the employer skips this step, it loses the right to take the tip credit at all for that period, which means it owes you the full minimum wage in cash regardless of how much you received in tips. The rule is designed to make sure you know, in advance, exactly how your pay is being calculated.", "quote": "Employers must provide the following information to tipped employees before taking a tip credit under the FLSA:", "offset": 3957, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:44:17.852Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/arizona/2026/15-tipped-employees-flsa.txt" } }, { "key": "state-law-most-protective", "heading": "When state law gives more than the federal rule", "body": "When Arizona law and federal law both apply and they disagree, an employer must comply with the standard most protective to employees. That means you get the better of the two rules, not the worse. For tipped workers in Arizona, this matters because the state sets a higher minimum cash wage than the federal floor, and the state's minimum wage itself is higher than the federal minimum wage. Your employer cannot point to the lower federal numbers to justify paying you less than Arizona requires; it has to follow whichever rule puts more money in your pocket on each payday. The principle applies across the board, not just to wages, so if one law gives you stronger notice protections or tighter tip-pooling rules, that is the one your employer must follow.", "quote": "When state law differs from the federal FLSA, an employer must comply with the standard most protective to employees.", "offset": 5070, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:44:17.852Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/arizona/2026/15-tipped-employees-flsa.txt" } }, { "key": "employers-may-not-keep-tips", "heading": "Your employer, your manager and your supervisor may not keep your tips", "body": "In Arizona, regardless of whether your employer takes a tip credit, the FLSA prohibits employers from keeping any portion of employees' tips for any purpose, whether directly or through a tip pool. Your tips belong to you, not to the restaurant, the hotel, or the business that pays you. This rule extends beyond the owner: your manager and your supervisor are also barred from taking any share of your tips, even if the employer pays you the full minimum wage in cash and does not use a tip credit at all. An employer cannot require you to hand over your tips, and it cannot use a tip pool as a back door to funnel money to management. The prohibition is absolute, and it covers any arrangement, direct or indirect, that would let the employer or its supervisors benefit from the tips you receive from customers.", "quote": "Regardless of whether an employer takes a tip credit, the FLSA prohibits employers from keeping any portion of employees’ tips for any purpose, whether directly or through a tip pool.", "offset": 5521, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:44:17.852Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/arizona/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-pooling", "heading": "Which tip pools you can be made to join", "body": "In Arizona, when your employer takes a tip credit, any mandatory tip pool it requires you to join is limited to employees in occupations in which they customarily and regularly receive tips. That means your tips can only be shared with other front-of-house workers like servers, bussers, bartenders, and bellhops, not with cooks, dishwashers, or back-of-house staff who do not traditionally receive tips from customers. The employer must also notify you of the required contribution amount, and it can only take a tip credit for the tips you actually keep after the pool is distributed, not for tips that go to other people. If the pool includes anyone who does not customarily and regularly receive tips, the arrangement violates the rule and the employer may lose the right to take the tip credit altogether.", "quote": "An employer that takes a tip credit can require tipped employees to contribute tips only\nto a tip pool which is limited to employees in occupations in which they customarily and regularly receive tips, such as waiters, bellhops, counter personnel (who serve customers), bussers, and service bartenders.", "offset": 7444, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:44:17.852Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/arizona/2026/15-tipped-employees-flsa.txt" } }, { "key": "dual-jobs", "heading": "Doing two jobs for one employer", "body": "In Arizona, when you work two separate jobs for the same employer, you are a tipped employee only with respect to the job where you customarily and regularly receive tips. For example, if you work as a maintenance worker at a hotel and also serve as a server, and you receive at least the required monthly amount in tips from your server work, the employer can take a tip credit only for the hours you spend serving, not for the hours you spend doing maintenance. For your non-tipped job, the employer must pay you the full minimum wage without relying on any tip credit. The rule prevents employers from blending two distinct occupations and using your tips from one to reduce your pay in the other. It applies only when the jobs are genuinely separate; it does not apply to related duties like a server who also cleans tables or makes coffee as part of the same serving occupation.", "quote": "In such a situation the employee, if they customarily and regularly receive at least $30 a month in tips for their work as a server, is a tipped employee only with respect to their employment as a server.", "offset": 9667, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:44:17.852Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/arizona/2026/15-tipped-employees-flsa.txt" } } ], "estimate": null }, { "program": "tipped-minimum-wage", "name": "Tipped Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "arkansas", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-30", "published_at": "2026-08-30T05:45:32.754Z", "canonical_url": "https://ratesandlimits.com/tipped-minimum-wage/arkansas/", "figures": [ { "key": "cash-wage", "label": "Minimum cash wage", "value": 2.63, "format": "usd", "formatted": "$2.63", "scope": null, "derived": false, "quote": "Arkansas $11.00 $8.37 $2.63 Not specified", "offset": 3086, "source": { "url": "https://www.dol.gov/agencies/whd/state/minimum-wage/tipped", "title": "Minimum Wages for Tipped Employees", "publisher": "DOL", "fetched_at": "2026-08-29T02:58:51.930Z", "sha256_text": "d9cd16d4bdbf481040de3edf63de4fc5fbcddec3e63b4b8ed3992622607bd43d", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/arkansas/2026/tipped.txt" } } ], "schedule": null, "explainers": [ { "key": "who-is-a-tipped-employee", "heading": "Who counts as a tipped employee", "body": "In Arkansas, you are a tipped employee under federal law if you work in an occupation where you customarily and regularly receive more than $30 a month in tips. This definition applies to workers such as servers, bartenders, bellhops, and bussers whose job duties regularly generate customer gratuities. Only the tips you actually receive count toward this threshold. If your tips fall below this amount, or if your occupation is not one where tips are customarily received, your employer must pay you the full minimum wage and cannot use the tip credit rules described below. Meeting this definition is the gateway to the tipped-employee wage structure, where your employer may pay a lower direct cash wage and count a portion of your tips toward its minimum-wage obligation.", "quote": "Under the FLSA, a tipped employee is an employee engaged in an occupation in which they customarily and regularly receive more than $30 a month in tips.", "offset": 2188, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:44:17.847Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/arkansas/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-credit-and-cash-wage", "heading": "What a tip credit is, and the cash wage underneath it", "body": "In Arkansas, the tip credit is the amount your employer counts from your tips toward its minimum wage obligation. Under the FLSA, an employer can take a tip credit equal to the difference between the direct wage—or cash wage—it pays you directly and the federal minimum wage. Arkansas employers must pay you at least the minimum cash wage of $2.63 per hour in cash. The tip credit fills the gap between that cash wage and the federal minimum wage, but the employer cannot claim a credit larger than the tips you actually bring in. Every workweek, your employer must be able to show that your cash wage plus the tips you kept add up to at least the full minimum wage. If the combination falls short in any workweek, the employer must top off your pay.", "quote": "An employer can take an FLSA tip credit equal to the difference between the direct wage, or the cash wage it pays directly to the tipped employee, and the federal minimum wage, which is currently $7.25 per hour.", "offset": 3054, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:44:17.847Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/arkansas/2026/15-tipped-employees-flsa.txt" } }, { "key": "tips-that-fall-short", "heading": "When the tips do not get you to the minimum wage", "body": "In Arkansas, if your tips combined with the cash wage your employer pays you do not add up to the full minimum wage in any workweek, the employer must make up the difference out of its own pocket. This rule applies every single workweek; an employer cannot average your earnings across weeks or months. The employer cannot shift this shortfall to you. At your regular payday for the period in which the workweek ends, the employer must pay enough to bring your total hourly earnings up to the minimum wage. This protection ensures that no matter how slow business is or how few tips you receive in a given week, you will never take home less than the minimum wage for the hours you worked.", "quote": "If an employee’s tips combined with the employer’s direct (or cash) wages do not equal the minimum hourly wage of $7.25 per hour in each workweek, the employer must make up the difference.", "offset": 3740, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:44:17.847Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/arkansas/2026/15-tipped-employees-flsa.txt" } }, { "key": "notice-before-the-tip-credit", "heading": "The notice an employer owes you before it takes the credit", "body": "In Arkansas, before an employer can take a tip credit against your wages, it must first give you specific written or oral notice of the provisions that apply to you. The notice must include the amount of the direct cash wage the employer is paying you, the additional amount the employer is claiming as a tip credit, and the fact that the credit cannot exceed the tips you actually received. It must also tell you that all your tips belong to you except for any valid tip pool, and that the tip credit will not apply unless you have been informed of all these provisions. If the employer fails to give you this notice before processing your pay, it cannot use the tip credit at all and must pay you the full minimum wage directly.", "quote": "Employers must provide the following information to tipped employees before taking a tip credit under the FLSA:\nthe amount of the direct (or cash) wage the employer is paying a tipped employee, which must be at least $2.13 per hour;\nthe additional amount claimed by the employer as a tip credit, which cannot exceed $5.12 (the difference between the minimum required direct (or cash) wage of $2.13 and the current minimum wage of $7.25);\nthat the tip credit claimed by the employer cannot exceed the amount of tips actually received by the tipped employee;\nthat all tips received by the tipped employee are to be retained by the employee except for a valid tip pooling arrangement limited to employees who customarily and regularly receive tips; and\nthat the tip credit will not apply to any tipped employee unless the employee has been informed of these tip credit provisions.", "offset": 3957, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:44:17.847Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/arkansas/2026/15-tipped-employees-flsa.txt" } }, { "key": "state-law-most-protective", "heading": "When state law gives more than the federal rule", "body": "In Arkansas, when state law and the federal FLSA set different rules for tipped employees, the employer must follow whichever standard gives you more protection. For example, if Arkansas requires a higher cash wage than the federal floor or limits the tip credit more strictly, the employer must comply with Arkansas's rule. This principle means that the $2.63 minimum cash wage in Arkansas applies instead of any lower federal cash wage if the Arkansas amount is higher. Similarly, if Arkansas outright prohibits the tip credit in certain situations, the employer cannot use the federal provision to pay you less. Workers in Arkansas should always look to whichever rule, state or federal, puts more money in their pocket, because that is the one the employer is legally required to follow.", "quote": "When state law differs from the federal FLSA, an employer must comply with the standard most protective to employees.", "offset": 5070, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:44:17.847Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/arkansas/2026/15-tipped-employees-flsa.txt" } }, { "key": "employers-may-not-keep-tips", "heading": "Your employer, your manager and your supervisor may not keep your tips", "body": "In Arkansas, the FLSA prohibits employers from keeping any portion of your tips for any purpose, whether directly or through a tip pool. This rule applies regardless of whether the employer takes a tip credit. Your employer, your manager, and your supervisor may not require you to hand over your tips to them, even if the employer pays you the full minimum wage directly and takes no tip credit at all. A manager or supervisor is defined as someone whose primary duty is managing the enterprise or a department, who regularly directs the work of at least two full-time employees, and who has authority over hiring and firing. A manager may keep only those tips a customer gives directly for service the manager personally and solely provided. Any other taking of your tips is a violation of federal law.", "quote": "Regardless of whether an employer takes a tip credit, the FLSA prohibits employers from keeping any portion of employees’ tips for any purpose, whether directly or through a tip pool.", "offset": 5521, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:44:17.847Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/arkansas/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-pooling", "heading": "Which tip pools you can be made to join", "body": "In Arkansas, if your employer takes a tip credit and requires you to participate in a tip pool, that pool is limited to employees in occupations in which they customarily and regularly receive tips. Examples of eligible occupations include waiters, bellhops, counter personnel who serve customers, bussers, and service bartenders. The employer may not put your contributed tips into a pool that includes back-of-house workers such as cooks or dishwashers when it is using the tip credit. The employer must also notify you of the required contribution amount and may only take a tip credit for the tips you ultimately receive after the pool is distributed. Managers and supervisors are never allowed to receive any share from such a pool, and the employer itself may not retain any of the tips for any other purpose.", "quote": "An employer that takes a tip credit can require tipped employees to contribute tips only\nto a tip pool which is limited to employees in occupations in which they customarily and regularly receive tips, such as waiters, bellhops, counter personnel (who serve customers), bussers, and service bartenders.", "offset": 7444, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:44:17.847Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/arkansas/2026/15-tipped-employees-flsa.txt" } }, { "key": "dual-jobs", "heading": "Doing two jobs for one employer", "body": "In Arkansas, if you hold two distinct jobs with the same employer, you are a tipped employee only with respect to the job in which you customarily and regularly receive tips. For example, if you work as a hotel maintenance person and also work as a server, and you receive at least $30 a month in tips from your server work, the employer may take the tip credit for your hours as a server. However, no tip credit may be taken for the hours you spend working as a maintenance person; for those hours, the employer must pay you the full minimum wage directly. This is different from a server who occasionally does related duties like cleaning tables or making coffee; those incidental tasks remain part of the tipped occupation. The key question is whether you are truly employed in two separate occupations or simply performing duties that are related to your one tipped job.", "quote": "In such a situation the employee, if they customarily and regularly receive at least $30 a month in tips for their work as a server, is a tipped employee only with respect to their employment as a server.", "offset": 9667, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:44:17.847Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/arkansas/2026/15-tipped-employees-flsa.txt" } } ], "estimate": null }, { "program": "tipped-minimum-wage", "name": "Tipped Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "colorado", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-30", "published_at": "2026-08-30T05:46:42.810Z", "canonical_url": "https://ratesandlimits.com/tipped-minimum-wage/colorado/", "figures": [ { "key": "cash-wage", "label": "Minimum cash wage", "value": 12.14, "format": "usd", "formatted": "$12.14", "scope": null, "derived": false, "quote": "Colorado $15.16 $3.02 $12.14 More than $30", "offset": 3128, "source": { "url": "https://www.dol.gov/agencies/whd/state/minimum-wage/tipped", "title": "Minimum Wages for Tipped Employees", "publisher": "DOL", "fetched_at": "2026-08-29T02:58:53.553Z", "sha256_text": "d9cd16d4bdbf481040de3edf63de4fc5fbcddec3e63b4b8ed3992622607bd43d", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/colorado/2026/tipped.txt" } } ], "schedule": null, "explainers": [ { "key": "who-is-a-tipped-employee", "heading": "Who counts as a tipped employee", "body": "In Colorado, you are considered a tipped employee under federal law if you work in an occupation where you customarily and regularly receive more than $30 per month in tips. This definition determines whether your employer can pay you the tipped minimum cash wage of $12.14 per hour and take a tip credit against the tips you receive from customers. Only the tips you actually receive count toward determining your status as a tipped employee and toward satisfying the tip credit requirement. If you work in an occupation where tips are not customary or regular, or if you receive $30 or less per month in tips, you are not a tipped employee and your employer must pay you the full minimum wage without taking a tip credit. This threshold matters because it establishes which workers fall under the special rules that allow employers to pay a lower direct cash wage while counting tips toward minimum wage obligations.", "quote": "Under the FLSA, a tipped employee is an employee engaged in an occupation in which they customarily and regularly receive more than $30 a month in tips.", "offset": 2188, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:44:18.018Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/colorado/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-credit-and-cash-wage", "heading": "What a tip credit is, and the cash wage underneath it", "body": "In Colorado, a tip credit is the amount an employer counts from a worker's tips toward meeting the minimum wage obligation. The employer must pay the tipped worker a direct cash wage of at least $12.14 per hour. The tip credit equals the difference between that direct cash wage and the full minimum wage. For example, if the full minimum wage is higher than $12.14, the employer may count the gap against the tips the employee receives. The employer must verify each workweek that the cash wage it pays plus the tips actually received by the employee together equal at least the full minimum wage. Only tips the employee actually receives count toward this calculation. This structure means the worker always receives a guaranteed cash wage of $12.14 from the employer, with the employer allowed to take credit for a portion of the tips earned on top of that cash wage toward its overall minimum wage obligation.", "quote": "An employer can take an FLSA tip credit equal to the difference between the direct wage, or the cash wage it pays directly to the tipped employee, and the federal minimum wage, which is currently $7.25 per hour.", "offset": 3054, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:44:18.018Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/colorado/2026/15-tipped-employees-flsa.txt" } }, { "key": "tips-that-fall-short", "heading": "When the tips do not get you to the minimum wage", "body": "In Colorado, if a tipped employee's tips combined with the employer's direct cash wages do not equal the full minimum wage in a given workweek, the employer must make up the difference. This rule protects workers during slow periods when tips are low. The employer's obligation is calculated on a workweek-by-workweek basis, not averaged over a longer period. Even though the employer may pay a cash wage of $12.14 per hour and take a tip credit against the tips earned, the total compensation in every workweek must reach at least the full minimum wage. If the tips fall short of closing the gap between $12.14 and the full minimum wage, the employer bears the cost of the shortfall. This ensures that Colorado tipped workers are never paid less than the minimum wage regardless of customer generosity or business conditions.", "quote": "If an employee’s tips combined with the employer’s direct (or cash) wages do not equal the minimum hourly wage of $7.25 per hour in each workweek, the employer must make up the difference.", "offset": 3740, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:44:18.018Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/colorado/2026/15-tipped-employees-flsa.txt" } }, { "key": "notice-before-the-tip-credit", "heading": "The notice an employer owes you before it takes the credit", "body": "In Colorado, before an employer can claim a tip credit against a tipped employee's wages, it must first give the employee specific information about how the credit works. The notice must state the amount of the direct cash wage being paid, the amount claimed as a tip credit, a statement that the tip credit cannot exceed the tips actually received, confirmation that all tips belong to the employee except for valid tip pooling, and notice that the tip credit will not apply unless the employee has been informed of these provisions. The employer may deliver this notice orally or in writing. If the employer fails to provide all of this information before taking the credit, it loses the right to claim the tip credit entirely and must pay the full minimum wage. This upfront disclosure requirement ensures that Colorado tipped workers understand how their pay is calculated before the employer counts their tips toward the minimum wage.", "quote": "Employers must provide the following information to tipped employees before taking a tip credit under the FLSA:", "offset": 3957, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:44:18.018Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/colorado/2026/15-tipped-employees-flsa.txt" } }, { "key": "state-law-most-protective", "heading": "When state law gives more than the federal rule", "body": "In Colorado, when state law and federal law set different standards for tipped employees, the employer must follow whichever rule is more protective of the worker. Colorado's minimum cash wage for tipped employees in 2026 is $12.14 per hour, which is substantially higher than the federal cash wage. Under this principle, Colorado employers must use the state's more favorable standard rather than the weaker federal baseline. If Colorado law requires a higher cash wage, greater tip protections, or other stronger requirements, those state rules control. This means that tipped workers in Colorado always receive the benefit of whichever level of government provides the strongest wage and tip protections on any given issue. The rule prevents employers from cherry-picking the most favorable provision from federal law when state law offers workers a better deal.", "quote": "When state law differs from the federal FLSA, an employer must comply with the standard most protective to employees.", "offset": 5070, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:44:18.018Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/colorado/2026/15-tipped-employees-flsa.txt" } }, { "key": "employers-may-not-keep-tips", "heading": "Your employer, your manager and your supervisor may not keep your tips", "body": "In Colorado, the law prohibits employers from keeping any portion of a tipped employee's tips for any purpose, whether directly or through a tip pool. This rule applies regardless of whether the employer takes a tip credit. The employer may not require the employee to hand over tips to the employer, a supervisor, or a manager. This protection holds even if the employer pays the full minimum wage in direct wages and takes no tip credit at all. In Colorado, this means your tips belong to you. A manager or supervisor is defined as any employee whose primary duty is managing the enterprise or a department, who regularly directs the work of at least two full-time employees, and who has hiring or firing authority. A manager may keep only tips they personally receive from customers they directly served.", "quote": "Regardless of whether an employer takes a tip credit, the FLSA prohibits employers from keeping any portion of employees’ tips for any purpose, whether directly or through a tip pool.", "offset": 5521, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:44:18.018Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/colorado/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-pooling", "heading": "Which tip pools you can be made to join", "body": "In Colorado, when an employer takes a tip credit, the tip pool must be limited to employees in occupations where they customarily and regularly receive tips. This is known as a traditional tip pool. Eligible workers include waiters, bellhops, counter personnel who serve customers, bussers, and service bartenders. The employer cannot force tipped workers to share tips with non-tipped employees such as cooks or dishwashers when the tip credit is in effect. The employer must notify tipped employees of any required tip pool contribution amount, may only take a tip credit for tips each employee ultimately receives after the pool distribution, and may not retain any of the tips for itself. Managers and supervisors are barred from receiving tips from a traditional tip pool. Colorado tipped workers in these occupations can be required to participate, but the pool must stay within the group of workers who earn tips as a regular part of their jobs.", "quote": "An employer that takes a tip credit can require tipped employees to contribute tips only\nto a tip pool which is limited to employees in occupations in which they customarily and regularly receive tips, such as waiters, bellhops, counter personnel (who serve customers), bussers, and service bartenders.", "offset": 7444, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:44:18.018Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/colorado/2026/15-tipped-employees-flsa.txt" } }, { "key": "dual-jobs", "heading": "Doing two jobs for one employer", "body": "In Colorado, when an employee holds two separate jobs for the same employer, one of which is tipped and one is not, the worker is a tipped employee only with respect to their employment in the tipped occupation. For example, a hotel maintenance worker who also works as a server must receive at least $30 a month in tips from the server job to qualify as a tipped employee. The employer may take a tip credit only for the hours the worker spends as a server. For all hours spent in the non-tipped occupation, the employer must pay the full minimum wage without any tip credit. The employer must track the time spent in each occupation separately. Colorado's minimum cash wage for tipped employees is $12.14 per hour for 2026, which applies to the tipped occupation hours. This rule prevents employers from paying a lower cash wage for work that does not generate tips.", "quote": "In such a situation the employee, if they customarily and regularly receive at least $30 a month in tips for their work as a server, is a tipped employee only with respect to their employment as a server.", "offset": 9667, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:44:18.018Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/colorado/2026/15-tipped-employees-flsa.txt" } } ], "estimate": null }, { "program": "tipped-minimum-wage", "name": "Tipped Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "delaware", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-30", "published_at": "2026-08-30T05:48:24.771Z", "canonical_url": "https://ratesandlimits.com/tipped-minimum-wage/delaware/", "figures": [ { "key": "cash-wage", "label": "Minimum cash wage", "value": 2.23, "format": "usd", "formatted": "$2.23", "scope": null, "derived": false, "quote": "Delaware $15.00 $12.77 $2.23 More than $30", "offset": 3289, "source": { "url": "https://www.dol.gov/agencies/whd/state/minimum-wage/tipped", "title": "Minimum Wages for Tipped Employees", "publisher": "DOL", "fetched_at": "2026-08-29T02:58:55.202Z", "sha256_text": "d9cd16d4bdbf481040de3edf63de4fc5fbcddec3e63b4b8ed3992622607bd43d", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/delaware/2026/tipped.txt" } } ], "schedule": null, "explainers": [ { "key": "who-is-a-tipped-employee", "heading": "Who counts as a tipped employee", "body": "In Delaware, you are considered a tipped employee under federal law if you work in an occupation where you customarily and regularly receive more than $30 a month in tips. This definition determines whether your employer can apply special wage rules, including paying you a lower cash wage and taking a tip credit toward its minimum wage obligations. Only the tips you actually receive count toward this threshold—projected or estimated tips do not qualify. If you meet this definition, your employer may be subject to different requirements regarding how much they must pay you directly and how they handle your tips. Understanding whether you qualify as a tipped employee is the first step in knowing what wage protections apply to you in your specific occupation.", "quote": "Under the FLSA, a tipped employee is an employee engaged in an occupation in which they customarily and regularly receive more than $30 a month in tips.", "offset": 2188, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:46:45.117Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/delaware/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-credit-and-cash-wage", "heading": "What a tip credit is, and the cash wage underneath it", "body": "In Delaware, the tip credit is the amount an employer can subtract from the federal minimum wage it owes a tipped worker, based on tips the employee actually receives. The employer must pay a cash wage directly to the tipped employee, and the tip credit equals the difference between that cash wage and the full federal minimum wage. For 2026 in Delaware, the minimum cash wage for tipped employees is $2.23 per hour. The employer must be able to demonstrate, each workweek, that the employee's cash wages plus tips together equal at least the full minimum wage. Only tips the employee actually received can be counted in this calculation. This means Delaware employers taking the tip credit cannot rely on projected or estimated tips—they must show the employee actually received enough to cover the gap between the cash wage paid and the full minimum wage for every single workweek.", "quote": "An employer can take an FLSA tip credit equal to the difference between the direct wage, or the cash wage it pays directly to the tipped employee, and the federal minimum wage, which is currently $7.25 per hour.", "offset": 3054, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:46:45.117Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/delaware/2026/15-tipped-employees-flsa.txt" } }, { "key": "tips-that-fall-short", "heading": "When the tips do not get you to the minimum wage", "body": "In Delaware, even when an employer pays the tipped minimum cash wage and claims a tip credit, the employer must guarantee that the employee receives at least the full federal minimum wage in every workweek. This is calculated by combining the direct cash wages paid by the employer with the tips actually received by the employee during that workweek. If the combined total falls short of the full minimum wage for any workweek, the employer must make up the difference out of its own funds. This protection applies each and every workweek, so a slow week with few tips still requires the employer to bring the employee's earnings up to the required minimum. Delaware workers in tipped occupations can therefore rely on a floor: no matter how many or how few tips they receive in a given week, their total compensation from their employer and their customers together must reach at least the full minimum hourly wage.", "quote": "If an employee’s tips combined with the employer’s direct (or cash) wages do not equal the minimum hourly wage of $7.25 per hour in each workweek, the employer must make up the difference.", "offset": 3740, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:46:45.117Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/delaware/2026/15-tipped-employees-flsa.txt" } }, { "key": "notice-before-the-tip-credit", "heading": "The notice an employer owes you before it takes the credit", "body": "In Delaware, before an employer can take a tip credit against a tipped employee's wages, it must first provide that employee with specific information about how the tip credit works. The notice must include: the amount of direct cash wage the employer is paying, the additional amount the employer is claiming as a tip credit, confirmation that the tip credit cannot exceed the tips actually received, assurance that all tips belong to the employee except for valid tip pooling arrangements, and a clear statement that the tip credit will not apply unless the employee receives this notice. This information can be provided orally or in writing. If a Delaware employer fails to give this required notice before taking the tip credit, the employer cannot claim the tip credit at all for that employee and must pay the full minimum wage from its own funds. This means Delaware workers who were never properly notified about the tip credit may be entitled to the full minimum wage, not just the reduced tipped minimum wage.", "quote": "Employers must provide the following information to tipped employees before taking a tip credit under the FLSA:\nthe amount of the direct (or cash) wage the employer is paying a tipped employee, which must be at least $2.13 per hour;\nthe additional amount claimed by the employer as a tip credit, which cannot exceed $5.12 (the difference between the minimum required direct (or cash) wage of $2.13 and the current minimum wage of $7.25);\nthat the tip credit claimed by the employer cannot exceed the amount of tips actually received by the tipped employee;\nthat all tips received by the tipped employee are to be retained by the employee except for a valid tip pooling arrangement limited to employees who customarily and regularly receive tips; and\nthat the tip credit will not apply to any tipped employee unless the employee has been informed of these tip credit provisions.", "offset": 3957, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:46:45.117Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/delaware/2026/15-tipped-employees-flsa.txt" } }, { "key": "state-law-most-protective", "heading": "When state law gives more than the federal rule", "body": "In Delaware, when state law and the federal Fair Labor Standards Act set different rules for tipped employees, the employer must follow whichever standard is more protective of the worker. For example, if Delaware requires a higher cash wage than federal law does, or if Delaware prohibits the use of a tip credit altogether while federal law permits it, the employer in Delaware must comply with the more employee-friendly rule. This means Delaware employers cannot simply default to the federal floor if state law provides stronger protections. Delaware tipped workers benefit from this rule because it ensures they receive the better of the two standards—whether that is a higher minimum cash wage, restrictions on tip pooling, or other wage protections that Delaware law may impose beyond what the federal FLSA requires.", "quote": "When state law differs from the federal FLSA, an employer must comply with the standard most protective to employees.", "offset": 5070, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:46:45.117Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/delaware/2026/15-tipped-employees-flsa.txt" } }, { "key": "employers-may-not-keep-tips", "heading": "Your employer, your manager and your supervisor may not keep your tips", "body": "In Delaware, the FLSA strictly prohibits employers from keeping any portion of employees' tips for any purpose, whether directly or through a tip pool. This rule applies regardless of whether the employer takes a tip credit or pays the full minimum wage. An employer in Delaware cannot require a tipped employee to hand over their tips to the business, to a supervisor, or to a manager. Even if the employer pays the employee at least the full federal minimum wage from its own funds and takes no tip credit at all, the employer still may not touch the employee's tips. This protection ensures that Delaware tipped workers retain ownership of the tips they receive from customers, and that managers, supervisors, and business owners cannot divert those tips into their own pockets or into the business's general revenue.", "quote": "Regardless of whether an employer takes a tip credit, the FLSA prohibits employers from keeping any portion of employees’ tips for any purpose, whether directly or through a tip pool.", "offset": 5521, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:46:45.117Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/delaware/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-pooling", "heading": "Which tip pools you can be made to join", "body": "In Delaware, when an employer takes a tip credit and pays the tipped minimum cash wage, any mandatory tip pool the employer requires must be limited to employees in occupations in which they customarily and regularly receive tips. This is sometimes called a \"traditional\" tip pool. Eligible participants might include waiters, bellhops, counter personnel who serve customers, bussers, and service bartenders. A Delaware employer using this kind of tip pool cannot include back-of-house workers like dishwashers or cooks who do not customarily receive tips. The employer also must notify tipped employees of any required tip pool contribution, may only take a tip credit for tips each employee ultimately receives after the pool is distributed, and may not allow managers or supervisors to participate in the pool or retain any tips from it.", "quote": "An employer that takes a tip credit can require tipped employees to contribute tips only\nto a tip pool which is limited to employees in occupations in which they customarily and regularly receive tips, such as waiters, bellhops, counter personnel (who serve customers), bussers, and service bartenders.", "offset": 7444, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:46:45.117Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/delaware/2026/15-tipped-employees-flsa.txt" } }, { "key": "dual-jobs", "heading": "Doing two jobs for one employer", "body": "In Delaware, when an employee works in two distinct occupations for the same employer—such as a hotel maintenance person who also works as a server—they are considered a tipped employee only with respect to the occupation where they customarily and regularly receive tips. The employer cannot take a tip credit for hours worked in the non-tipped occupation. For example, if a Delaware worker spends some of their week maintaining hotel property and other shifts serving customers, the employer can apply the tip credit only to the hours spent serving. For the maintenance hours, the employer must pay the full minimum wage with no tip credit offset. This rule prevents employers in Delaware from using a worker's tips in one role to subsidize sub-minimum wages in a completely different role. The two occupations must be genuinely distinct; incidental duties like a server cleaning tables or making coffee do not create a separate non-tipped occupation.", "quote": "In such a situation the employee, if they customarily and regularly receive at least $30 a month in tips for their work as a server, is a tipped employee only with respect to their employment as a server.", "offset": 9667, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:46:45.117Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/delaware/2026/15-tipped-employees-flsa.txt" } } ], "estimate": null }, { "program": "tipped-minimum-wage", "name": "Tipped Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "district-of-columbia", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-30", "published_at": "2026-08-30T06:16:29.717Z", "canonical_url": "https://ratesandlimits.com/tipped-minimum-wage/district-of-columbia/", "figures": [ { "key": "cash-wage", "label": "Minimum cash wage", "value": 10.3, "format": "usd", "formatted": "$10.30", "scope": null, "derived": false, "quote": "District of Columbia 3 $18.40 $8.10 $10.30 Not specified", "offset": 3332, "source": { "url": "https://www.dol.gov/agencies/whd/state/minimum-wage/tipped", "title": "Minimum Wages for Tipped Employees", "publisher": "DOL", "fetched_at": "2026-08-29T02:58:56.824Z", "sha256_text": "d9cd16d4bdbf481040de3edf63de4fc5fbcddec3e63b4b8ed3992622607bd43d", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/district-of-columbia/2026/tipped.txt" } } ], "schedule": null, "explainers": [ { "key": "who-is-a-tipped-employee", "heading": "Who counts as a tipped employee", "body": "In the District of Columbia, a tipped employee is anyone who works in an occupation where they customarily and regularly receive more than $30 a month in tips. This definition comes from federal law, but it applies in D.C. alongside the District's own minimum wage rules. If you work in a job where tips are a regular part of your compensation and they exceed that $30 monthly threshold, you fall into this category. Being classified as a tipped employee means your employer may be allowed to pay you a lower direct cash wage—in D.C., that cash wage is $10.30 per hour in 2026—and count your tips toward meeting the full minimum wage obligation. However, this classification also triggers specific protections and requirements designed to ensure you actually receive at least the full minimum wage when your tips and cash wage are combined. Only the tips you actually receive count toward this calculation, not estimated or projected tips.", "quote": "Under the FLSA, a tipped employee is an employee engaged in an occupation in which they customarily and regularly receive more than $30 a month in tips.", "offset": 2188, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:14:06.020Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/district-of-columbia/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-credit-and-cash-wage", "heading": "What a tip credit is, and the cash wage underneath it", "body": "In District of Columbia, the tip credit is the gap between the cash wage your employer pays you directly and the full minimum wage the employer owes. Under federal law, an employer can take a tip credit equal to the difference between the cash wage and the federal minimum wage of $7.25 per hour, counting your tips toward filling that gap. While federal law sets a much lower minimum cash wage, District of Columbia establishes its own higher standard: the minimum cash wage for tipped employees in the District is $10.30 per hour in 2026. This means your employer must pay you at least $10.30 per hour in direct wages before any tip credit applies. The employer still must ensure that your cash wages plus your tips together reach at least the full applicable minimum wage for every workweek. Only tips you actually receive count toward this calculation. If your employer takes a tip credit, it must be able to demonstrate each workweek that your combined earnings meet the minimum wage floor.", "quote": "An employer can take an FLSA tip credit equal to the difference between the direct wage, or the cash wage it pays directly to the tipped employee, and the federal minimum wage, which is currently $7.25 per hour.", "offset": 3054, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:14:06.020Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/district-of-columbia/2026/15-tipped-employees-flsa.txt" } }, { "key": "tips-that-fall-short", "heading": "When the tips do not get you to the minimum wage", "body": "In District of Columbia, if your tips combined with the cash wage your employer pays you do not add up to at least the full minimum wage in any workweek, the employer must make up the difference out of its own pocket. This protection applies every single workweek, not just on average over a pay period. The employer cannot skip this obligation during slow weeks or busy seasons—your total earnings from wages and tips together must always reach the required minimum. This means that as a tipped worker in the District, where the minimum cash wage is $10.30 per hour in 2026, you have a floor of protection: even on your worst week for tips, your employer is legally responsible for ensuring your combined compensation meets the minimum wage. If the employer fails to do so, it has violated wage law and owes you back pay for the shortfall.", "quote": "If an employee’s tips combined with the employer’s direct (or cash) wages do not equal the minimum hourly wage of $7.25 per hour in each workweek, the employer must make up the difference.", "offset": 3740, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:14:06.020Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/district-of-columbia/2026/15-tipped-employees-flsa.txt" } }, { "key": "notice-before-the-tip-credit", "heading": "The notice an employer owes you before it takes the credit", "body": "In District of Columbia, before your employer can take a tip credit against your wages, it must give you specific notice. Employers must provide the following information to tipped employees before taking a tip credit under the FLSA: the cash wage it is paying you, the amount it claims as a tip credit, confirmation that the tip credit cannot exceed the tips you actually receive, notice that you keep all your tips except for valid tip pooling, and confirmation that the credit will not apply unless you have been informed of these rules. This notice requirement ensures you understand how your pay is structured before any tip credit takes effect. If your employer fails to give you this information upfront, it cannot legally claim a tip credit and may owe you the full minimum wage for every hour worked. In the District, where the minimum cash wage for tipped employees is $10.30 per hour in 2026, this notice is especially important because it tells you exactly how your employer is calculating your pay.", "quote": "Employers must provide the following information to tipped employees before taking a tip credit under the FLSA:", "offset": 3957, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:14:06.020Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/district-of-columbia/2026/15-tipped-employees-flsa.txt" } }, { "key": "state-law-most-protective", "heading": "When state law gives more than the federal rule", "body": "In District of Columbia, when local law differs from the federal rule, an employer must comply with the standard most protective to employees. When state law differs from the federal FLSA, an employer must comply with the standard most protective to employees. This means that if the District's tipped wage rules give you stronger protections than the federal baseline—whether through a higher cash wage, a larger minimum wage floor, or stricter limits on tip credits—your employer must follow the District's rules, not the more lenient federal ones. For example, the District of Columbia requires a minimum cash wage of $10.30 per hour for tipped employees in 2026, which is significantly higher than the federal cash wage. Employers in the District cannot fall back on the weaker federal standard; they must apply whichever law puts more money in your pocket or gives you greater protections. This principle ensures that local wage standards designed to benefit workers actually take effect.", "quote": "When state law differs from the federal FLSA, an employer must comply with the standard most protective to employees.", "offset": 5070, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:14:06.020Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/district-of-columbia/2026/15-tipped-employees-flsa.txt" } }, { "key": "employers-may-not-keep-tips", "heading": "Your employer, your manager and your supervisor may not keep your tips", "body": "In District of Columbia, regardless of whether an employer takes a tip credit, the FLSA prohibits employers from keeping any portion of employees' tips for any purpose, whether directly or through a tip pool. This rule means your employer, your managers, and your supervisors cannot take any share of the tips you earn from customers. The tips belong to you, not to the business. Even if the employer pays you the full minimum wage and does not take a tip credit at all, it still may not skim, retain, or redirect your tips to itself or to management. This protection applies to all tipped workers in the District, where the minimum cash wage is $10.30 per hour in 2026. The only exceptions involve valid tip pools that distribute tips among eligible non-supervisory, non-managerial co-workers who customarily receive tips. If your employer or a supervisor takes any portion of your tips, that is a violation of federal wage law, and you may be owed those tips back.", "quote": "Regardless of whether an employer takes a tip credit, the FLSA prohibits employers from keeping any portion of employees’ tips for any purpose, whether directly or through a tip pool.", "offset": 5521, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:14:06.020Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/district-of-columbia/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-pooling", "heading": "Which tip pools you can be made to join", "body": "In District of Columbia, when your employer takes a tip credit, it can require you to contribute your tips only to a pool that is limited to employees in occupations where they customarily and regularly receive tips. This is known as a traditional tip pool. Eligible participants include workers such as waiters, bellhops, counter personnel who serve customers, bussers, and service bartenders. The pool cannot include back-of-house staff like cooks or dishwashers when the employer is using a tip credit. The employer must notify you of the required contribution amount and may only claim a tip credit on the tips you actually end up keeping after the pool distributes its share. The employer itself may not take any portion of the pooled tips, and managers or supervisors cannot participate. In the District, where the minimum cash wage for tipped employees is $10.30 per hour in 2026, these restrictions on tip pooling ensure that the tips you share stay among workers who rely on gratuities as part of their regular earnings.", "quote": "An employer that takes a tip credit can require tipped employees to contribute tips only\nto a tip pool which is limited to employees in occupations in which they customarily and regularly receive tips, such as waiters, bellhops, counter personnel (who serve customers), bussers, and service bartenders.", "offset": 7444, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:14:06.020Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/district-of-columbia/2026/15-tipped-employees-flsa.txt" } }, { "key": "dual-jobs", "heading": "Doing two jobs for one employer", "body": "In District of Columbia, if you work two distinct jobs for the same employer—such as a hotel maintenance worker who also works as a server—you are a tipped employee only with respect to the job where you customarily and regularly receive tips. This means your employer can take a tip credit only for the hours you spend in the tipped occupation. For the hours you work in the non-tipped occupation, the employer must pay you the full minimum wage with no tip credit applied. In the example from the law, a maintenance person who also serves is a tipped employee only with respect to their employment as a server, and no tip credit can be taken for their hours of employment as a maintenance person. This rule prevents employers from using your tip earnings to subsidize wages in unrelated jobs. In the District, where the minimum cash wage for tipped employees is $10.30 per hour in 2026, this means every hour you spend on non-tipped work must be compensated at the full minimum wage without relying on your tips.", "quote": "In such a situation the employee, if they customarily and regularly receive at least $30 a month in tips for their work as a server, is a tipped employee only with respect to their employment as a server.", "offset": 9667, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:14:06.020Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/district-of-columbia/2026/15-tipped-employees-flsa.txt" } } ], "estimate": null }, { "program": "tipped-minimum-wage", "name": "Tipped Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "federal", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-30", "published_at": "2026-08-30T05:53:16.614Z", "canonical_url": "https://ratesandlimits.com/tipped-minimum-wage/federal/", "figures": [ { "key": "cash-wage", "label": "Minimum cash wage", "value": 2.13, "format": "usd", "formatted": "$2.13", "scope": null, "derived": false, "quote": "FEDERAL: Fair Labor Standards Act (FLSA) $7.25 $5.12 $2.13 More than $30", "offset": 2336, "source": { "url": "https://www.dol.gov/agencies/whd/state/minimum-wage/tipped", "title": "Minimum Wages for Tipped Employees", "publisher": "DOL", "fetched_at": "2026-08-29T02:56:41.896Z", "sha256_text": "d9cd16d4bdbf481040de3edf63de4fc5fbcddec3e63b4b8ed3992622607bd43d", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/federal/2026/tipped.txt" } } ], "schedule": null, "explainers": [ { "key": "who-is-a-tipped-employee", "heading": "Who counts as a tipped employee", "body": "Under federal law, a tipped employee is someone who works in an occupation where they customarily and regularly receive more than $30 a month in tips. This definition matters because it determines whether an employer in the United States can pay the lower cash wage of $2.13 per hour and claim a tip credit. If your job does not meet this threshold, your employer must pay you the full federal minimum wage and cannot use the tip credit. The $30-a-month figure is measured across your entire occupation, not job-by-job, and only tips you actually receive count toward it. Occupations like servers, bartenders, bellhops, and bussers typically qualify because tips are a regular and expected part of the compensation in those roles. If you are unsure whether your occupation qualifies, the key question is whether receiving tips is customary and regular for that line of work, not whether you personally happen to receive tips in any given month.", "quote": "Under the FLSA, a tipped employee is an employee engaged in an occupation in which they customarily and regularly receive more than $30 a month in tips.", "offset": 2188, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:51:40.112Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/federal/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-credit-and-cash-wage", "heading": "What a tip credit is, and the cash wage underneath it", "body": "The federal tip credit system allows employers in the United States to pay tipped workers a lower direct cash wage while counting their tips toward meeting the full minimum wage. Under the FLSA, an employer must pay at least $2.13 per hour in cash wages to a tipped employee. The tip credit equals the difference between that cash wage and the federal minimum wage, currently $7.25 per hour. This means the maximum tip credit an employer can claim is $5.12 per hour. However, the employer can only use this system if your tips plus the direct cash wages add up to at least the full minimum wage for every hour you work in a given workweek. Only tips you actually receive count toward this calculation. If your employer fails to meet these conditions, they must pay you the full minimum wage directly. The tip credit is not automatic - it depends on the employer meeting notice requirements and ensuring adequate total compensation each week.", "quote": "An employer can take an FLSA tip credit equal to the difference between the direct wage, or the cash wage it pays directly to the tipped employee, and the federal minimum wage, which is currently $7.25 per hour. The maximum tip credit that an employer can currently claim is $5.12 per hour: ($7.25 - $2.13 direct (or cash) wage = $5.12).", "offset": 3054, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:51:40.112Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/federal/2026/15-tipped-employees-flsa.txt" } }, { "key": "tips-that-fall-short", "heading": "When the tips do not get you to the minimum wage", "body": "When a tipped employee's tips combined with the employer's direct cash wages do not add up to the federal minimum wage of $7.25 per hour in a given workweek, the employer has a legal obligation to pay the shortfall. This means that if you work a slow week where your tips are low, your employer cannot simply pay you the reduced cash wage of $2.13 per hour and leave you short of minimum wage. The employer must calculate your total compensation for that workweek - your direct wages plus your tips - and if it falls below $7.25 per hour for all hours worked, the employer must increase your pay to make up the difference. This protection ensures that tipped workers always receive at least the federal minimum wage, regardless of how much they earn in tips during any particular week. The employer bears the risk of low tip weeks, not the employee.", "quote": "If an employee’s tips combined with the employer’s direct (or cash) wages do not equal the minimum hourly wage of $7.25 per hour in each workweek, the employer must make up the difference.", "offset": 3740, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:51:40.112Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/federal/2026/15-tipped-employees-flsa.txt" } }, { "key": "notice-before-the-tip-credit", "heading": "The notice an employer owes you before it takes the credit", "body": "Before an employer can take advantage of the tip credit and pay the reduced cash wage, federal law requires them to inform tipped employees about the tip credit system. Employers must provide specific information including the amount of the direct cash wage they are paying (which must be at least $2.13 per hour), the additional amount they are claiming as a tip credit (which cannot exceed $5.12), and that the tip credit cannot exceed the actual tips received. This notice requirement protects workers by ensuring they understand how their pay is being calculated and what their rights are under the FLSA. Employers can provide this notice orally or in writing, but they must give it before taking the tip credit. If an employer fails to provide this required information, they lose the right to use the tip credit for that employee and must pay the full minimum wage without counting tips toward that obligation.", "quote": "Employers must provide the following information to tipped employees before taking a tip credit under the FLSA:\nthe amount of the direct (or cash) wage the employer is paying a tipped employee, which must be at least $2.13 per hour;\nthe additional amount claimed by the employer as a tip credit, which cannot exceed $5.12 (the difference between the minimum required direct (or cash) wage of $2.13 and the current minimum wage of $7.25)", "offset": 3957, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:51:40.112Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/federal/2026/15-tipped-employees-flsa.txt" } }, { "key": "state-law-most-protective", "heading": "When state law gives more than the federal rule", "body": "When state law and federal law both apply but provide different levels of protection for tipped employees, employers must follow whichever rule gives workers the most benefits. For example, while federal law allows employers to pay tipped workers as little as $2.13 per hour in direct wages, some states require a higher cash wage or prohibit employers from taking a tip credit altogether. In those situations, the more protective state law controls. This means that even though the federal minimum cash wage is $2.13, you may be entitled to a higher direct wage if your state law provides one. Similarly, if your state law prohibits tip credits entirely, your employer must pay you the full state minimum wage regardless of your tips. The federal rule sets a floor, not a ceiling - workers receive the benefit of whichever standard, federal or state, provides greater compensation or stronger protections for tipped employees.", "quote": "When state law differs from the federal FLSA, an employer must comply with the standard most protective to employees.", "offset": 5070, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:51:40.112Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/federal/2026/15-tipped-employees-flsa.txt" } }, { "key": "employers-may-not-keep-tips", "heading": "Your employer, your manager and your supervisor may not keep your tips", "body": "Federal law strictly prohibits employers, including managers and supervisors, from keeping any portion of employees' tips for any reason. This rule applies whether or not the employer takes a tip credit. Your tips belong to you, not to your employer, and cannot be used for any business purpose, to subsidize other employees, or for any other reason. An employer cannot require you to hand over your tips, even if they pay you the full minimum wage in cash and do not use the tip credit system. This protection ensures that tips remain the property of the workers who earn them from customers. The prohibition covers both direct retention of tips and indirect methods such as requiring employees to contribute tips to a pool that benefits managers or the business. Any tip arrangement that results in employers, managers, or supervisors receiving any share of tips violates federal law.", "quote": "Regardless of whether an employer takes a tip credit, the FLSA prohibits employers from keeping any portion of employees’ tips for any purpose, whether directly or through a tip pool.", "offset": 5521, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:51:40.112Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/federal/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-pooling", "heading": "Which tip pools you can be made to join", "body": "When an employer takes a tip credit, they can only require tipped employees to contribute to traditional tip pools that are limited to workers in occupations where employees customarily and regularly receive tips. This means your tips can only be shared with other tipped workers such as waiters, bellhops, bussers, and service bartenders - people whose jobs typically involve receiving tips from customers. The tip pool cannot include non-tipped employees like cooks, dishwashers, or janitors who do not customarily receive tips. This restriction protects tipped workers by ensuring their tips are only shared with others who also depend on tips as part of their compensation. Employers who implement such tip pools must notify employees of the required contribution amounts and can only take a tip credit based on the tips each employee actually keeps after the pool distribution. Any tip pool that includes non-tipped workers violates the federal rules for employers using the tip credit system.", "quote": "An employer that takes a tip credit can require tipped employees to contribute tips only\nto a tip pool which is limited to employees in occupations in which they customarily and regularly receive tips, such as waiters, bellhops, counter personnel (who serve customers), bussers, and service bartenders.", "offset": 7444, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:51:40.112Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/federal/2026/15-tipped-employees-flsa.txt" } }, { "key": "dual-jobs", "heading": "Doing two jobs for one employer", "body": "When you work two different jobs for the same employer - one tipped and one non-tipped - federal law treats each occupation separately. For example, if you work as both a maintenance person and a server at a hotel, you are considered a tipped employee only for the hours you spend serving, not for your maintenance work. You must customarily and regularly receive at least $30 per month in tips for the server position to qualify as a tipped employee for that role. Your employer cannot take a tip credit for your maintenance hours or apply the lower cash wage rate to that work. For the non-tipped occupation, your employer must pay you the full minimum wage for every hour worked. This dual job rule prevents employers from inappropriately applying tip credit rules to work that does not involve tipping. The key distinction is whether you are performing duties in two separate occupations versus performing related tasks within a single tipped occupation.", "quote": "In such a situation the employee, if they customarily and regularly receive at least $30 a month in tips for their work as a server, is a tipped employee only with respect to their employment as a server.", "offset": 9667, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:51:40.112Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/federal/2026/15-tipped-employees-flsa.txt" } } ], "estimate": null }, { "program": "tipped-minimum-wage", "name": "Tipped Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "georgia", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-30", "published_at": "2026-08-30T05:53:53.482Z", "canonical_url": "https://ratesandlimits.com/tipped-minimum-wage/georgia/", "figures": [ { "key": "cash-wage", "label": "Minimum cash wage", "value": 2.13, "format": "usd", "formatted": "$2.13", "scope": null, "derived": false, "quote": "Georgia 11 $7.25 $5.12 $2.13 More than $30", "offset": 5376, "source": { "url": "https://www.dol.gov/agencies/whd/state/minimum-wage/tipped", "title": "Minimum Wages for Tipped Employees", "publisher": "DOL", "fetched_at": "2026-08-29T02:59:32.877Z", "sha256_text": "d9cd16d4bdbf481040de3edf63de4fc5fbcddec3e63b4b8ed3992622607bd43d", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/georgia/2026/tipped.txt" } } ], "schedule": null, "explainers": [ { "key": "who-is-a-tipped-employee", "heading": "Who counts as a tipped employee", "body": "In Georgia, you count as a tipped employee under federal law if you work in an occupation where you customarily and regularly receive more than $30 a month in tips. That $30 threshold is the line the Fair Labor Standards Act draws: if your tips in a typical month stay at or below that amount, your employer cannot treat you as tipped and cannot use the tip credit rules described elsewhere on this page. If your tips regularly exceed $30 a month, your employer may pay you the lower cash wage and apply a tip credit, provided it meets all the other requirements. The rule looks at the occupation you are in, not just individual pay periods, so seasonal workers who earn most of their tips in a few busy months can still qualify as tipped employees for the weeks they work in that role. Only tips you actually receive count toward the $30 figure; tips that go into a pool and are later distributed to you still count, but service charges the employer adds to a bill and keeps do not.", "quote": "Under the FLSA, a tipped employee is an employee engaged in an occupation in which they customarily and regularly receive more than $30 a month in tips.", "offset": 2188, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:51:42.240Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/georgia/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-credit-and-cash-wage", "heading": "What a tip credit is, and the cash wage underneath it", "body": "In Georgia, the tip credit is the amount your employer subtracts from the regular minimum wage when figuring what it owes you, on the theory that your tips make up the gap. The FLSA lets an employer pay a tipped worker a direct cash wage of $2.13 per hour and then claim a tip credit equal to the difference between that cash wage and the minimum wage. The employer must still be able to show that your cash wage plus the tips you actually keep add up to at least the minimum wage for every workweek. If your tips in a slow week leave you short, the employer has to cover the gap, which is explained in the next section. The tip credit is not automatic: your employer can only use it after giving you the notice described below, and it can never exceed the tips you actually received. For Georgia workers covered by the federal rule, the minimum cash wage you must see on your paycheck is $2.13 per hour.", "quote": "An employer can take an FLSA tip credit equal to the difference between the direct wage, or the cash wage it pays directly to the tipped employee, and the federal minimum wage, which is currently $7.25 per hour.", "offset": 3054, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:51:42.240Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/georgia/2026/15-tipped-employees-flsa.txt" } }, { "key": "tips-that-fall-short", "heading": "When the tips do not get you to the minimum wage", "body": "In Georgia, your employer cannot use a slow week in tips as an excuse to pay you less than the minimum wage. The FLSA requires employers claiming a tip credit to show, for each workweek, that your cash wages plus the tips you actually retained equal at least the full minimum hourly wage. If your tips combined with the employer's direct (or cash) wages fall short of that minimum hourly wage in any workweek, the employer must make up the difference out of its own funds. The test is applied workweek by workweek, so a great week cannot be averaged against a bad one to hide a shortfall. This rule exists precisely because the cash wage underneath the tip credit is set at $2.13 per hour, well below the regular minimum wage, and the law puts the risk of a bad tip week on the employer rather than on you.", "quote": "If an employee’s tips combined with the employer’s direct (or cash) wages do not equal the minimum hourly wage of $7.25 per hour in each workweek, the employer must make up the difference.", "offset": 3740, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:51:42.240Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/georgia/2026/15-tipped-employees-flsa.txt" } }, { "key": "notice-before-the-tip-credit", "heading": "The notice an employer owes you before it takes the credit", "body": "In Georgia, before your employer can pay you the lower cash wage and claim a tip credit, it must give you specific notice. The FLSA requires employers to provide the following information to tipped employees before taking a tip credit: the amount of the direct (or cash) wage the employer is paying, which must be at least $2.13 per hour; the additional amount claimed as a tip credit; that the tip credit cannot exceed the tips you actually received; that you keep all your tips except for contributions to a valid tip pool; and that the tip credit will not apply unless you have been informed of these provisions. The notice can be given orally or in writing, but it must be given before the employer starts using the credit. If the employer fails to give this information, it loses the right to take the tip credit for that employee and owes the full minimum wage from its own funds, regardless of how much you earned in tips.", "quote": "Employers must provide the following information to tipped employees before taking a tip credit under the FLSA:\nthe amount of the direct (or cash) wage the employer is paying a tipped employee, which must be at least $2.13 per hour;\nthe additional amount claimed by the employer as a tip credit, which cannot exceed $5.12 (the difference between the minimum required direct (or cash) wage of $2.13 and the current minimum wage of $7.25);\nthat the tip credit claimed by the employer cannot exceed the amount of tips actually received by the tipped employee;\nthat all tips received by the tipped employee are to be retained by the employee except for a valid tip pooling arrangement limited to employees who customarily and regularly receive tips; and\nthat the tip credit will not apply to any tipped employee unless the employee has been informed of these tip credit provisions.", "offset": 3957, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:51:42.240Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/georgia/2026/15-tipped-employees-flsa.txt" } }, { "key": "state-law-most-protective", "heading": "When state law gives more than the federal rule", "body": "In Georgia, when a state labor law and the federal FLSA both apply but give different answers, your employer must comply with the standard most protective to employees. That means whichever rule pays you more or gives you stronger protections is the one that governs your work in the state. For tipped workers, this matters because some states set a cash wage higher than the federal $2.13 per hour, and some states prohibit the tip credit entirely, requiring the employer to pay the full minimum wage with no credit against tips. Georgia workers look to whichever of the two laws - state or federal - delivers the higher cash wage or the tighter restriction on the employer's ability to count tips toward its minimum wage obligation. The rule is applied provision by provision, so an employer cannot mix and match: for each requirement, the version that is more protective to you is the one that controls.", "quote": "When state law differs from the federal FLSA, an employer must comply with the standard most protective to employees.", "offset": 5070, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:51:42.240Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/georgia/2026/15-tipped-employees-flsa.txt" } }, { "key": "employers-may-not-keep-tips", "heading": "Your employer, your manager and your supervisor may not keep your tips", "body": "In Georgia, the tips customers leave you belong to you, not to the restaurant, the manager, or the supervisor. The FLSA prohibits employers from keeping any portion of employees' tips for any purpose, whether directly or through a tip pool. This rule applies regardless of whether the employer takes a tip credit. Even in a case where an employer pays you the full minimum wage from its own funds and claims no tip credit at all, it still may not require you to hand your tips over to the employer, a supervisor, or a manager. The prohibition covers both direct retention - where the business simply pockets the tips - and indirect retention through a tip pool that funnels money to people who are not eligible to receive it. For Georgia tipped workers, this means the cash tips left on your table and the tips added to a credit card charge are yours to keep, subject only to a valid tip pool among eligible tipped employees.", "quote": "Regardless of whether an employer takes a tip credit, the FLSA prohibits employers from keeping any portion of employees’ tips for any purpose, whether directly or through a tip pool.", "offset": 5521, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:51:42.240Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/georgia/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-pooling", "heading": "Which tip pools you can be made to join", "body": "In Georgia, whether you can be forced into a tip pool depends on which wage your employer pays you. An employer that takes a tip credit can require tipped employees to contribute tips only to a tip pool which is limited to employees in occupations in which they customarily and regularly receive tips, such as waiters, bellhops, counter personnel (who serve customers), bussers, and service bartenders. This is called a \"traditional\" tip pool. Because Georgia follows the federal cash wage of $2.13 per hour and uses the tip credit, employers here who claim that credit can only include workers who themselves are in traditionally tipped occupations. Back-of-house staff such as cooks and dishwashers generally cannot be included in that kind of pool. The employer must also notify you of the required contribution amount, may only take a tip credit for tips you ultimately keep after the pool, and may not retain any of the pooled tips for itself.", "quote": "An employer that takes a tip credit can require tipped employees to contribute tips only\nto a tip pool which is limited to employees in occupations in which they customarily and regularly receive tips, such as waiters, bellhops, counter personnel (who serve customers), bussers, and service bartenders.", "offset": 7444, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:51:42.240Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/georgia/2026/15-tipped-employees-flsa.txt" } }, { "key": "dual-jobs", "heading": "Doing two jobs for one employer", "body": "In Georgia, some workers hold two different jobs for the same employer - for example, a hotel maintenance person who also works shifts as a server. In that situation, the FLSA treats the employee as tipped only for the job in which they customarily and regularly receive at least $30 a month in tips. So the worker in the example is a tipped employee only with respect to their employment as a server, and no tip credit can be taken for their hours worked as a maintenance person. For those non-tipped hours, the employer must pay the full minimum wage from its own funds. The rule prevents an employer from using a tip credit to discount wages for work that is not traditionally tipped, even when both jobs are performed for the same business. Georgia workers in dual-job situations should see the lower cash wage only on their timesheet for the tipped occupation; the rest of their hours must be paid at the full minimum wage.", "quote": "In such a situation the employee, if they customarily and regularly receive at least $30 a month in tips for their work as a server, is a tipped employee only with respect to their employment as a server.", "offset": 9667, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:51:42.240Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/georgia/2026/15-tipped-employees-flsa.txt" } } ], "estimate": null }, { "program": "tipped-minimum-wage", "name": "Tipped Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "hawaii", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-30", "published_at": "2026-08-30T05:53:54.529Z", "canonical_url": "https://ratesandlimits.com/tipped-minimum-wage/hawaii/", "figures": [ { "key": "cash-wage", "label": "Minimum cash wage", "value": 14.75, "format": "usd", "formatted": "$14.75", "scope": null, "derived": false, "quote": "Hawaii* $16.00 $1.25 $14.75 *Hawaii: Tip Credit in Hawaii is permissible if the combined amount the employee receives from the employer and in tips is at least $7.00 more than the applicable minimum wage.", "offset": 3433, "source": { "url": "https://www.dol.gov/agencies/whd/state/minimum-wage/tipped", "title": "Minimum Wages for Tipped Employees", "publisher": "DOL", "fetched_at": "2026-08-29T03:00:05.273Z", "sha256_text": "d9cd16d4bdbf481040de3edf63de4fc5fbcddec3e63b4b8ed3992622607bd43d", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/hawaii/2026/tipped.txt" } } ], "schedule": null, "explainers": [ { "key": "who-is-a-tipped-employee", "heading": "Who counts as a tipped employee", "body": "In Hawaii, a tipped employee is anyone who works in an occupation where they customarily and regularly receive more than $30 a month in tips from customers. This means that occasional tips do not qualify you—your tips must be a regular and expected part of your job. If you meet this threshold, your employer is subject to special rules about how they pay you, including whether they can take a tip credit against the minimum wage. The $30-a-month figure is the federal threshold under the Fair Labor Standards Act, and it determines whether the tip-credit and tip-pooling rules apply to your position. For Hawaii workers in 2026, the minimum cash wage is $14.75 per hour, but the definition of who counts as tipped depends on your actual tip receipts, not on what your employer expects you to earn.", "quote": "Under the FLSA, a tipped employee is an employee engaged in an occupation in which they customarily and regularly receive more than $30 a month in tips.", "offset": 2188, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:51:43.582Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/hawaii/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-credit-and-cash-wage", "heading": "What a tip credit is, and the cash wage underneath it", "body": "The tip credit is the difference between the cash wage your employer pays you directly and the full minimum wage. In Hawaii, your employer must pay you at least $14.75 per hour in cash wages. The tip credit system allows employers to count your tips toward meeting their minimum wage obligation, but the credit can only equal the gap between your cash wage and the minimum wage. Your employer must ensure that your cash wage plus your tips together reach at least the full minimum wage for every hour you work. This means that while your employer can pay you less in direct wages than other employees, your total compensation—wages plus tips—must still meet the minimum wage floor. If your tips fall short in any workweek, your employer must cover the gap to bring you up to the minimum wage.", "quote": "An employer can take an FLSA tip credit equal to the difference between the direct wage, or the cash wage it pays directly to the tipped employee, and the federal minimum wage, which is currently $7.25 per hour.", "offset": 3054, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:51:43.582Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/hawaii/2026/15-tipped-employees-flsa.txt" } }, { "key": "tips-that-fall-short", "heading": "When the tips do not get you to the minimum wage", "body": "If your tips plus your cash wage do not add up to the minimum wage in any workweek, your employer must pay you the difference. In Hawaii, this means your employer must ensure you receive at least $14.75 per hour for every hour you work. This protection applies regardless of how many tips you actually receive from customers. Even during slow periods or in seasons when tips are low, your employer cannot let your total compensation fall below the minimum wage. The employer bears the responsibility to track your earnings each workweek and make up any shortfall. This rule prevents employers from shifting the full risk of low tip income onto workers and ensures that tipped employees in Hawaii receive at least the minimum wage for their labor.", "quote": "If an employee’s tips combined with the employer’s direct (or cash) wages do not equal the minimum hourly wage of $7.25 per hour in each workweek, the employer must make up the difference.", "offset": 3740, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:51:43.582Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/hawaii/2026/15-tipped-employees-flsa.txt" } }, { "key": "notice-before-the-tip-credit", "heading": "The notice an employer owes you before it takes the credit", "body": "Before your employer can use a tip credit, they must give you specific information about how the tip credit works. In Hawaii, this notice must include the cash wage your employer is paying you, which must be at least $14.75 per hour; the amount your employer is claiming as a tip credit; that the tip credit cannot exceed the cash wage actually received; that all tips you receive are yours to keep, except for valid tip pool contributions; and that the tip credit will not apply unless you have been informed of these provisions. Your employer can give this notice orally or in writing. If your employer fails to provide this information before taking a tip credit, they lose the right to use the tip credit system and must pay you the full minimum wage without counting your tips toward their obligation.", "quote": "Employers must provide the following information to tipped employees before taking a tip credit under the FLSA:", "offset": 3957, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:51:43.582Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/hawaii/2026/15-tipped-employees-flsa.txt" } }, { "key": "state-law-most-protective", "heading": "When state law gives more than the federal rule", "body": "When Hawaii law provides better protections than federal law, your employer must follow whichever rule is more favorable to you. For example, if Hawaii requires a higher cash wage than federal law, your employer must pay you the higher amount. If Hawaii prohibits tip credits entirely, your employer cannot use the tip credit system and must pay you the full minimum wage in cash. This principle ensures that workers in Hawaii receive the strongest protections available under either federal or state law. You are entitled to the benefit of whichever standard gives you higher wages, better tip protections, or stronger requirements for employer notice. Employers cannot choose to follow only the federal rules if Hawaii's rules are more protective of tipped employees.", "quote": "When state law differs from the federal FLSA, an employer must comply with the standard most protective to employees.", "offset": 5070, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:51:43.582Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/hawaii/2026/15-tipped-employees-flsa.txt" } }, { "key": "employers-may-not-keep-tips", "heading": "Your employer, your manager and your supervisor may not keep your tips", "body": "Your employer, including managers and supervisors, cannot keep any of your tips for any reason. This rule applies whether or not your employer uses a tip credit. In Hawaii, all tips you receive belong to you, and your employer cannot require you to hand over your tips to them, to a manager, or to a supervisor. This protection also applies through tip pools—your employer cannot use a tip pool as a way to take a share of your tips for themselves or their management staff. The rule ensures that tips remain the property of the employees who earn them from customers, not the business owners or managers who oversee the workplace. Even if your employer pays you the full minimum wage without taking a tip credit, they still cannot keep any portion of your tip income.", "quote": "Regardless of whether an employer takes a tip credit, the FLSA prohibits employers from keeping any portion of employees’ tips for any purpose, whether directly or through a tip pool.", "offset": 5521, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:51:43.582Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/hawaii/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-pooling", "heading": "Which tip pools you can be made to join", "body": "If your employer uses a tip credit, they can only require you to contribute to a tip pool that includes employees in occupations where they customarily and regularly receive tips. In Hawaii, this means a traditional tip pool can include workers like waiters, bussers, service bartenders, bellhops, and counter personnel who serve customers, but cannot include back-of-house workers like cooks or dishwashers who do not typically receive tips from patrons. Your employer must notify you of any required tip pool contribution amount before taking a tip credit, and can only take a tip credit for the tips you actually keep after your contribution. The tip pool must be limited to traditionally tipped positions when your employer is using the tip credit system to meet minimum wage obligations.", "quote": "Traditional Tip Pooling: An employer that takes a tip credit can require tipped employees to contribute tips only\nto a tip pool which is limited to employees in occupations in which they customarily and regularly receive tips, such as waiters, bellhops, counter personnel (who serve customers), bussers, and service bartenders.", "offset": 7419, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:51:43.582Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/hawaii/2026/15-tipped-employees-flsa.txt" } }, { "key": "dual-jobs", "heading": "Doing two jobs for one employer", "body": "When you work two different jobs for the same employer—one tipped and one not—you are only considered a tipped employee for the hours you work in the tipped occupation. In Hawaii, this means if you work as a server part of the time and as a maintenance worker part of the time, your employer can only use the tip credit system for your server hours. For your maintenance hours, your employer must pay you the full minimum wage of $14.75 per hour without taking a tip credit. You must customarily and regularly receive at least $30 a month in tips for your server work to be considered a tipped employee in that role. This dual jobs rule prevents employers from applying the tip credit to non-tipped work and ensures you receive proper compensation for all the different types of work you perform.", "quote": "In such a situation the employee, if they customarily and regularly receive at least $30 a month in tips for their work as a server, is a tipped employee only with respect to their employment as a server.", "offset": 9667, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:51:43.582Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/hawaii/2026/15-tipped-employees-flsa.txt" } } ], "estimate": null }, { "program": "tipped-minimum-wage", "name": "Tipped Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "idaho", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-30", "published_at": "2026-08-30T05:53:47.065Z", "canonical_url": "https://ratesandlimits.com/tipped-minimum-wage/idaho/", "figures": [ { "key": "cash-wage", "label": "Minimum cash wage", "value": 3.35, "format": "usd", "formatted": "$3.35", "scope": null, "derived": false, "quote": "Idaho $7.25 $3.90 $3.35 More than $30", "offset": 3638, "source": { "url": "https://www.dol.gov/agencies/whd/state/minimum-wage/tipped", "title": "Minimum Wages for Tipped Employees", "publisher": "DOL", "fetched_at": "2026-08-29T02:59:00.173Z", "sha256_text": "d9cd16d4bdbf481040de3edf63de4fc5fbcddec3e63b4b8ed3992622607bd43d", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/idaho/2026/tipped.txt" } } ], "schedule": null, "explainers": [ { "key": "who-is-a-tipped-employee", "heading": "Who counts as a tipped employee", "body": "Under federal law as explained by the Department of Labor, a tipped employee in Idaho is someone who works in an occupation where they customarily and regularly receive more than $30 a month in tips. If you work as a server, bartender, bellhop, or in a similar role in Idaho and your tips regularly exceed that $30 monthly threshold, you are classified as a tipped employee. This classification matters because it determines whether your employer can pay you a lower cash wage and claim a tip credit toward its minimum wage obligations. In Idaho, the minimum cash wage for 2026 is $3.35 per hour. Only the tips you actually receive count when determining whether you meet this definition and when your employer applies the tip credit. If your tips fall below $30 in a given month, you may not be considered a tipped employee for that period, and different wage rules would apply to your work.", "quote": "Under the FLSA, a tipped employee is an employee engaged in an occupation in which they customarily and regularly receive more than $30 a month in tips.", "offset": 2188, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:51:41.059Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/idaho/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-credit-and-cash-wage", "heading": "What a tip credit is, and the cash wage underneath it", "body": "The tip credit is the amount your Idaho employer can count from your tips toward meeting its minimum wage obligation. Under federal law, an employer can take a tip credit equal to the difference between the direct wage (the cash wage paid directly to you) and the federal minimum wage of $7.25 per hour. The federal minimum cash wage is $2.13 per hour, and the maximum federal tip credit is $5.12 per hour. However, Idaho law sets its own minimum cash wage at $3.35 for 2026, which is higher than the federal floor. This means your Idaho employer must pay you at least $3.35 per hour in direct cash wages before claiming any tip credit. The tip credit your employer can claim is the difference between what you earn in cash wages and the minimum wage you are owed. Only tips you actually receive count toward this calculation, and your employer must ensure you receive enough tips plus cash wages to equal at least the full minimum wage in each workweek.", "quote": "An employer can take an FLSA tip credit equal to the difference between the direct wage, or the cash wage it pays directly to the tipped employee, and the federal minimum wage, which is currently $7.25 per hour. The maximum tip credit that an employer can currently claim is $5.12 per hour: ($7.25 - $2.13 direct (or cash) wage = $5.12).", "offset": 3054, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:51:41.059Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/idaho/2026/15-tipped-employees-flsa.txt" } }, { "key": "tips-that-fall-short", "heading": "When the tips do not get you to the minimum wage", "body": "If your tips plus the cash wage your Idaho employer pays you do not add up to at least $7.25 per hour in any workweek, the employer must make up the difference. This is a weekly guarantee: your employer cannot average your earnings across multiple weeks or rely on busy weeks to cover slow ones. Each workweek must independently show that you received at least the full minimum wage when your direct cash wages and your tips are combined. In Idaho, the minimum cash wage is $3.35 per hour for 2026. If in a particular week your tips are low and your total earnings fall below the minimum wage you are owed, your employer is legally required to pay you additional cash wages to reach that threshold. This protection ensures that tipped employees in Idaho never earn less than the minimum wage, even during slow periods when customer tips are insufficient to bridge the gap between the cash wage and the minimum wage.", "quote": "If an employee’s tips combined with the employer’s direct (or cash) wages do not equal the minimum hourly wage of $7.25 per hour in each workweek, the employer must make up the difference.", "offset": 3740, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:51:41.059Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/idaho/2026/15-tipped-employees-flsa.txt" } }, { "key": "notice-before-the-tip-credit", "heading": "The notice an employer owes you before it takes the credit", "body": "Before your Idaho employer can claim a tip credit and pay you a reduced cash wage, it must give you specific notice about the tip credit provisions. The employer must inform you of the cash wage it will pay you, the tip credit amount it will claim, that the credit cannot exceed your actual tips, that you keep all your tips except for valid tip pooling, and that the credit does not apply unless you receive this notice. Your employer can provide this information orally or in writing. However, if your employer fails to give you the required notice, it cannot take the tip credit at all and must pay you the full minimum wage in cash. Idaho's minimum cash wage for 2026 is $3.35 per hour. This notice requirement ensures that tipped workers in Idaho understand their wage rights and how their compensation will be calculated before any tip credit is applied to their pay.", "quote": "An employer that fails to provide the required information cannot take the section 3(m)(2)(A) tip credit.", "offset": 4935, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:51:41.059Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/idaho/2026/15-tipped-employees-flsa.txt" } }, { "key": "state-law-most-protective", "heading": "When state law gives more than the federal rule", "body": "When Idaho state law differs from the federal FLSA, employers must comply with the standard most protective to employees. This means that if Idaho law provides better wage protections for tipped workers than federal law does, your employer must follow Idaho's rules. Idaho sets its own minimum cash wage at $3.35 for 2026, which is higher than the federal floor. This means your employer in Idaho must pay you at least $3.35 per hour in direct cash wages. Some states go further and prohibit tip credits entirely, but Idaho allows them subject to its own cash wage requirements. The principle is straightforward: you are entitled to whichever rule gives you higher pay or stronger protections. If federal law sets one standard and Idaho sets a different one, your employer must follow whichever results in better wages for you. This ensures that state-level wage protections are not undercut by less generous federal standards.", "quote": "When state law differs from the federal FLSA, an employer must comply with the standard most protective to employees.", "offset": 5070, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:51:41.059Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/idaho/2026/15-tipped-employees-flsa.txt" } }, { "key": "employers-may-not-keep-tips", "heading": "Your employer, your manager and your supervisor may not keep your tips", "body": "Under federal law, employers in Idaho are prohibited from keeping any portion of employees' tips for any purpose, whether directly or through a tip pool. This rule applies regardless of whether the employer takes a tip credit or pays you the full minimum wage in cash. Your employer cannot require you to hand over your tips to the business, to a supervisor, or to a manager. Even if you receive at least $7.25 per hour in wages directly from your employer and the employer takes no tip credit, your tips still belong to you. This protection prevents employers, managers, and supervisors from appropriating the gratuities that customers intend for the workers who serve them. If your employer in Idaho attempts to keep any part of your tips, it violates federal law and you are entitled to recover those wages. This rule ensures that tips remain the property of the employees who earn them through their service to customers.", "quote": "Regardless of whether an employer takes a tip credit, the FLSA prohibits employers from keeping any portion of employees’ tips for any purpose, whether directly or through a tip pool. An employer may not require an employee to give their tips to the employer, a supervisor, or a manager, even where a tipped employee receives at least the federal minimum wage (currently $7.25) per hour in wages directly from the employer and the employer takes no tip credit.", "offset": 5521, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:51:41.059Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/idaho/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-pooling", "heading": "Which tip pools you can be made to join", "body": "When your Idaho employer takes a tip credit, any mandatory tip pool you are required to join must be limited to employees in occupations in which they customarily and regularly receive tips. This means the tip pool can only include workers like waiters, waitresses, bussers, bartenders, bellhops, and counter personnel who serve customers. The employer cannot require you to share your tips with cooks, dishwashers, janitors, or other back-of-house workers who do not customarily receive tips from customers. Your employer must notify you of any required tip pool contribution amount, can only take a tip credit for the tips you ultimately receive after the pool distribution, and cannot retain any portion of the tips for itself. If you work in Idaho and your employer operates a traditional tip pool while taking a tip credit, the pool must remain restricted to front-of-house staff who regularly interact with customers and receive gratuities. This rule ensures that tip pools serve their intended purpose of sharing customer gratuities among workers who depend on them.", "quote": "An employer that takes a tip credit can require tipped employees to contribute tips only\nto a tip pool which is limited to employees in occupations in which they customarily and regularly receive tips, such as waiters, bellhops, counter personnel (who serve customers), bussers, and service bartenders.", "offset": 7444, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:51:41.059Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/idaho/2026/15-tipped-employees-flsa.txt" } }, { "key": "dual-jobs", "heading": "Doing two jobs for one employer", "body": "In Idaho, when you work two different jobs for the same employer, you are considered a tipped employee only with respect to the job where you customarily and regularly receive at least $30 a month in tips. For example, if you work as a maintenance person at a hotel and also work as a server, you are a tipped employee only for your server job. Your employer cannot take a tip credit for the hours you work as a maintenance person, even if you earn tips during your server shifts. You must be paid the full minimum wage for all hours worked in the non-tipped occupation. This rule prevents employers from applying tip credit provisions to work that does not involve receiving customer gratuities. If you hold dual jobs in Idaho, track your hours carefully to ensure you receive proper wages for each role. The tip credit applies only to the specific occupation where you regularly receive tips, not to all the work you perform for your employer.", "quote": "In such a situation the employee, if they customarily and regularly receive at least $30 a month in tips for their work as a server, is a tipped employee only with respect to their employment as a server. The worker is employed in two occupations, and no tip credit can be taken for their hours of employment in their occupation as a maintenance person.", "offset": 9667, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:51:41.059Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/idaho/2026/15-tipped-employees-flsa.txt" } } ], "estimate": null }, { "program": "tipped-minimum-wage", "name": "Tipped Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "illinois", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-30", "published_at": "2026-08-30T05:55:38.758Z", "canonical_url": "https://ratesandlimits.com/tipped-minimum-wage/illinois/", "figures": [ { "key": "cash-wage", "label": "Minimum cash wage", "value": 9, "format": "usd", "formatted": "$9", "scope": null, "derived": false, "quote": "Illinois $15.00 40% of the applicable minimum wage ($6.00) $9.00 Not specified", "offset": 3676, "source": { "url": "https://www.dol.gov/agencies/whd/state/minimum-wage/tipped", "title": "Minimum Wages for Tipped Employees", "publisher": "DOL", "fetched_at": "2026-08-29T02:59:01.822Z", "sha256_text": "d9cd16d4bdbf481040de3edf63de4fc5fbcddec3e63b4b8ed3992622607bd43d", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/illinois/2026/tipped.txt" } } ], "schedule": null, "explainers": [ { "key": "who-is-a-tipped-employee", "heading": "Who counts as a tipped employee", "body": "In Illinois, a person counts as a tipped employee if they work in an occupation where they customarily and regularly receive more than $30 a month in tips. The $30 threshold is measured in tips actually received by the worker, not tips the employer estimates or attributes to them. If the tips fall below that amount, the worker is not a tipped employee for purposes of the FLSA and the employer must pay the full minimum wage, with no tip credit allowed. The occupation itself must be one in which tipping is the custom—receiving tips only occasionally or in a role that is not traditionally tipped does not qualify someone under this rule. Because Illinois requires employers to pay a minimum cash wage of $9 to tipped employees, most tipped workers in the state already receive wages above the federal cash wage floor, but the $30-a-month tip test still determines whether the worker is classified as a tipped employee in the first place.", "quote": "Under the FLSA, a tipped employee is an employee engaged in an occupation in which they customarily and regularly receive more than $30 a month in tips.", "offset": 2188, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:53:57.740Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/illinois/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-credit-and-cash-wage", "heading": "What a tip credit is, and the cash wage underneath it", "body": "In Illinois, the tip credit is the amount your employer can count from your tips toward its minimum wage obligation. The credit equals the difference between the direct cash wage your employer pays you and the full minimum wage that would otherwise apply. For 2026, Illinois requires a minimum cash wage of $9, so employers paying tipped employees at that rate take a smaller credit than they would under the lower federal cash wage. Regardless of the credit size, your employer must still ensure that your cash wages plus your tips bring you up to at least the full minimum wage for every workweek. If they do not, the employer cannot rely on the tip credit for that period.", "quote": "An employer can take an FLSA tip credit equal to the difference between the direct wage, or the cash wage it pays directly to the tipped employee, and the federal minimum wage, which is currently $7.25 per hour.", "offset": 3054, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:53:57.740Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/illinois/2026/15-tipped-employees-flsa.txt" } }, { "key": "tips-that-fall-short", "heading": "When the tips do not get you to the minimum wage", "body": "In Illinois, if your tips combined with your employer's direct cash wage do not bring you up to the full minimum wage in a given workweek, your employer must pay the shortfall out of its own pocket. This is called the \"make-up\" obligation. It applies on a workweek-by-workweek basis, so a slow week where tips are low does not carry over to offset a busier week. The employer cannot shift the risk of a bad week onto you. Illinois sets its minimum cash wage for tipped employees at $9, which already exceeds the federal floor, so the gap that tips must fill is narrower than in states that use the lower federal cash wage. But if your cash wage plus your tips still falls short of Illinois's full minimum wage, the employer is required to make up the difference before issuing your paycheck. You do not have to request this; it is the employer's responsibility to track it each pay period.", "quote": "If an employee’s tips combined with the employer’s direct (or cash) wages do not equal the minimum hourly wage of $7.25 per hour in each workweek, the employer must make up the difference.", "offset": 3740, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:53:57.740Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/illinois/2026/15-tipped-employees-flsa.txt" } }, { "key": "notice-before-the-tip-credit", "heading": "The notice an employer owes you before it takes the credit", "body": "In Illinois, before your employer can take a tip credit against your wages, it must give you notice of certain facts about how the credit works. This notice must be provided before the credit is applied, not after the fact. Your employer must tell you the cash wage it is paying you, the amount of the tip credit it is claiming, that the credit cannot exceed the tips you actually received, that you keep all of your tips except for a valid tip pool, and that the credit will not apply unless you have been informed of these provisions. Notice can be given orally or in writing, but if the employer fails to provide all five items, it loses the right to take the tip credit altogether and must pay you the full minimum wage. Illinois requires employers to pay tipped workers a minimum cash wage of $9, so the notice must reflect that state-level cash wage rather than the lower federal amount.", "quote": "Employers must provide the following information to tipped employees before taking a tip credit under the FLSA:", "offset": 3957, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:53:57.740Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/illinois/2026/15-tipped-employees-flsa.txt" } }, { "key": "state-law-most-protective", "heading": "When state law gives more than the federal rule", "body": "In Illinois, when the state's own labor law provides stronger protections for tipped workers than the federal FLSA, the employer must follow whichever rule is more favorable to the employee. Illinois has its own minimum cash wage for tipped employees of $9, which is higher than the federal direct wage floor. Because the state law sets a higher cash wage, an employer in Illinois must comply with the Illinois standard. In practice this means that the tip credit available to Illinois employers is smaller than the credit available in states that follow only the federal rule, since the employer must pay more in direct wages before the credit can apply. If the federal rule ever changed to be more protective on some point, the employer would have to follow that more protective rule instead. The principle is simple: the worker always gets the benefit of whichever law, state or federal, gives them the higher wage or the stronger protection.", "quote": "When state law differs from the federal FLSA, an employer must comply with the standard most protective to employees.", "offset": 5070, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:53:57.740Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/illinois/2026/15-tipped-employees-flsa.txt" } }, { "key": "employers-may-not-keep-tips", "heading": "Your employer, your manager and your supervisor may not keep your tips", "body": "In Illinois, your employer, your manager, and your supervisor may not keep any of your tips, no matter what. This rule applies whether the employer takes a tip credit or pays you the full minimum wage directly. The employer cannot divert your tips to cover operating costs, to share with back-of-house staff who do not customarily receive tips, or for any other purpose. Managers and supervisors are broadly defined to include anyone whose primary duty is managing a department, who regularly directs the work of two or more employees, or who has hiring or firing authority. A manager who personally serves customers may keep tips from those customers for that direct service, but may not receive tips from a tip pool or take tips earned by other workers. Illinois's minimum cash wage of $9 applies regardless of this rule, so tipped employees are already guaranteed a baseline wage before tips are even considered. The prohibition on keeping tips is an additional protection layered on top of the wage floor.", "quote": "Regardless of whether an employer takes a tip credit, the FLSA prohibits employers from keeping any portion of employees’ tips for any purpose, whether directly or through a tip pool.", "offset": 5521, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:53:57.740Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/illinois/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-pooling", "heading": "Which tip pools you can be made to join", "body": "In Illinois, if your employer takes a tip credit, it can only require you to contribute tips to a pool that is limited to employees in occupations where people customarily and regularly receive tips. These are roles like waiters, bellhops, counter personnel who serve customers, bussers, and service bartenders. The employer cannot put your tips into a pool that includes dishwashers, cooks, or other staff who do not typically earn tips, as long as the employer is using a tip credit. The employer itself may not take any portion of the pooled tips, and managers and supervisors are barred from participating in the pool. Illinois requires employers to pay tipped employees a minimum cash wage of $9, so any tip pool arrangement must still operate within that state wage floor. If an employer pays the full minimum wage in cash instead of taking a tip credit, different pooling rules apply that may allow non-tipped staff to participate.", "quote": "An employer that takes a tip credit can require tipped employees to contribute tips only\nto a tip pool which is limited to employees in occupations in which they customarily and regularly receive tips, such as waiters, bellhops, counter personnel (who serve customers), bussers, and service bartenders.", "offset": 7444, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:53:57.740Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/illinois/2026/15-tipped-employees-flsa.txt" } }, { "key": "dual-jobs", "heading": "Doing two jobs for one employer", "body": "In Illinois, if you work two different jobs for the same employer, you are a tipped employee only for the job in which you customarily and regularly receive at least $30 a month in tips. For example, a hotel maintenance worker who also works as a server is a tipped employee only for the server role. The employer cannot take a tip credit for hours you spend working as a maintenance person or in any other non-tipped occupation. For those hours, you must receive the full minimum wage. Illinois requires a minimum cash wage of $9 for tipped employees, and that rate or higher applies to your tipped occupation. For your non-tipped occupation, the full Illinois minimum wage applies. The dual-job rule prevents employers from blending your tipped and non-tipped hours into a single calculation that would let them pay you less than you are owed for the non-tipped work.", "quote": "In such a situation the employee, if they customarily and regularly receive at least $30 a month in tips for their work as a server, is a tipped employee only with respect to their employment as a server.", "offset": 9667, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:53:57.740Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/illinois/2026/15-tipped-employees-flsa.txt" } } ], "estimate": null }, { "program": "tipped-minimum-wage", "name": "Tipped Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "indiana", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-30", "published_at": "2026-08-30T05:55:08.514Z", "canonical_url": "https://ratesandlimits.com/tipped-minimum-wage/indiana/", "figures": [ { "key": "cash-wage", "label": "Minimum cash wage", "value": 2.13, "format": "usd", "formatted": "$2.13", "scope": null, "derived": false, "quote": "Indiana $7.25 $5.12 $2.13 More than $30", "offset": 5419, "source": { "url": "https://www.dol.gov/agencies/whd/state/minimum-wage/tipped", "title": "Minimum Wages for Tipped Employees", "publisher": "DOL", "fetched_at": "2026-08-29T02:59:34.624Z", "sha256_text": "d9cd16d4bdbf481040de3edf63de4fc5fbcddec3e63b4b8ed3992622607bd43d", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/indiana/2026/tipped.txt" } } ], "schedule": null, "explainers": [ { "key": "who-is-a-tipped-employee", "heading": "Who counts as a tipped employee", "body": "In Indiana, you count as a tipped employee under federal law if you work in an occupation where you customarily and regularly receive more than $30 a month in tips. This definition determines whether your employer is allowed to pay you the lower cash wage and claim a tip credit toward its minimum wage obligation. Only tips you actually receive are counted when deciding if you meet this threshold. If your tips regularly fall below $30 in a month, your employer must pay you the full minimum wage directly and cannot take advantage of the tip credit provisions that apply to tipped workers.", "quote": "Under the FLSA, a tipped employee is an employee engaged in an occupation in which they customarily and regularly receive more than $30 a month in tips.", "offset": 2188, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:53:58.081Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/indiana/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-credit-and-cash-wage", "heading": "What a tip credit is, and the cash wage underneath it", "body": "In Indiana, your employer must pay you at least $2.13 per hour in cash wages and can take a tip credit for the difference between that amount and the federal minimum wage. This means the employer is using your tips to help cover what they owe you - they don't have to pay the full minimum wage directly if your tips make up the gap. The tip credit equals the difference between what the employer pays you directly and what the full minimum wage is. Your employer has to verify each workweek that your cash wages plus your tips together reach at least the minimum wage. If they don't, the employer must pay you the difference. Only tips you actually receive count toward this calculation - expected or anticipated tips don't matter.", "quote": "An employer can take an FLSA tip credit equal to the difference between the direct wage, or the cash wage it pays directly to the tipped employee, and the federal minimum wage, which is currently $7.25 per hour.", "offset": 3054, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:53:58.081Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/indiana/2026/15-tipped-employees-flsa.txt" } }, { "key": "tips-that-fall-short", "heading": "When the tips do not get you to the minimum wage", "body": "In Indiana, if your cash wages plus your tips don't add up to at least the federal minimum wage in any workweek, your employer has to pay you the shortfall. The employer must calculate this every single week - not monthly, not annually. So if you work a slow week where tips are low and your $2.13 per hour cash wage doesn't get you to the minimum wage, your employer must make up that gap before the next payday. This protects you from weeks when business is slow or customers are less generous. You're still guaranteed the full minimum wage for every hour you work, regardless of how much you actually earned in tips.", "quote": "If an employee’s tips combined with the employer’s direct (or cash) wages do not equal the minimum hourly wage of $7.25 per hour in each workweek, the employer must make up the difference.", "offset": 3740, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:53:58.081Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/indiana/2026/15-tipped-employees-flsa.txt" } }, { "key": "notice-before-the-tip-credit", "heading": "The notice an employer owes you before it takes the credit", "body": "In Indiana, before your employer can pay you less than the full minimum wage and claim a tip credit, they must give you notice of specific information. This includes telling you how much they're paying you in cash wages (at least $2.13 per hour), how much tip credit they're claiming, that the tip credit can't exceed what your tips actually cover, and that all tips you receive belong to you unless you're participating in a valid tip pool. The employer must give you this information before they start taking the tip credit - it can't come after the fact. If your employer fails to provide this notice, they lose the right to use the tip credit at all and must pay you the full minimum wage directly. This protects you from surprise wage reductions.", "quote": "Employers must provide the following information to tipped employees before taking a tip credit under the FLSA:\nthe amount of the direct (or cash) wage the employer is paying a tipped employee, which must be at least $2.13 per hour;\nthe additional amount claimed by the employer as a tip credit, which cannot exceed $5.12 (the difference between the minimum required direct (or cash) wage of $2.13 and the current minimum wage of $7.25)", "offset": 3957, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:53:58.081Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/indiana/2026/15-tipped-employees-flsa.txt" } }, { "key": "state-law-most-protective", "heading": "When state law gives more than the federal rule", "body": "In Indiana, when state law and federal law both apply but give different protections, your employer must follow whichever rule gives you the better deal. This means if Indiana law requires a higher minimum cash wage than the federal $2.13, or if state law prohibits tip credits altogether, your employer must comply with the standard most protective to employees. You get the benefit of whichever rule pays you more or protects you better. For example, if federal law allows a certain practice but Indiana law bans it, your employer has to follow Indiana's stricter rule. This ensures you're not left worse off just because there are multiple laws that could apply to your situation.", "quote": "When state law differs from the federal FLSA, an employer must comply with the standard most protective to employees.", "offset": 5070, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:53:58.081Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/indiana/2026/15-tipped-employees-flsa.txt" } }, { "key": "employers-may-not-keep-tips", "heading": "Your employer, your manager and your supervisor may not keep your tips", "body": "In Indiana, your employer, your manager, and your supervisor cannot keep any portion of your tips, no matter what. This rule applies whether or not the employer takes a tip credit. They can't require you to hand over your tips to them, even if they're paying you the full minimum wage and not using the tip credit at all. This means your tips belong to you - the people who work for tips get to keep what customers give them. The rule applies to managers and supervisors too, so your boss can't skim off the top or demand a cut of what you earn in tips. Your tips are your compensation for the service you provide to customers.", "quote": "Regardless of whether an employer takes a tip credit, the FLSA prohibits employers from keeping any portion of employees’ tips for any purpose, whether directly or through a tip pool.", "offset": 5521, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:53:58.081Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/indiana/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-pooling", "heading": "Which tip pools you can be made to join", "body": "In Indiana, if your employer takes a tip credit and pays you the lower cash wage, they can only require you to participate in a tip pool with other employees who also customarily and regularly receive tips. This means the pool is limited to employees in occupations in which they customarily and regularly receive tips - people like waiters, bussers, bartenders, and bellhops who regularly get tipped by customers. Your employer can't force you to share your tips with cooks, dishwashers, or other back-of-house staff who don't normally receive tips, unless they're paying everyone the full minimum wage. This protects tipped workers from having to subsidize employees who aren't in tip-receiving positions. If you're in a traditional tip pool, you're only sharing with others who do similar work.", "quote": "An employer that takes a tip credit can require tipped employees to contribute tips only\nto a tip pool which is limited to employees in occupations in which they customarily and regularly receive tips, such as waiters, bellhops, counter personnel (who serve customers), bussers, and service bartenders.", "offset": 7444, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:53:58.081Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/indiana/2026/15-tipped-employees-flsa.txt" } }, { "key": "dual-jobs", "heading": "Doing two jobs for one employer", "body": "In Indiana, if you work two completely different jobs for the same employer - like being a maintenance worker and also working as a server - you're only considered a tipped employee for the job where you actually receive tips. The employer cannot take a tip credit for your hours working in the non-tipped position. Each job is treated separately for wage purposes. So if you spend some hours cleaning hotel rooms and other hours serving tables, your employer must pay you the full minimum wage for your maintenance hours, but can use the tip credit for your server hours. This prevents employers from using your tipped income to subsidize wages for work that doesn't involve receiving tips. The two jobs must be genuinely different occupations, not just different tasks within the same tipped job.", "quote": "In such a situation the employee, if they customarily and regularly receive at least $30 a month in tips for their work as a server, is a tipped employee only with respect to their employment as a server.", "offset": 9667, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:53:58.081Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/indiana/2026/15-tipped-employees-flsa.txt" } } ], "estimate": null }, { "program": "tipped-minimum-wage", "name": "Tipped Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "iowa", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-30", "published_at": "2026-08-30T05:57:00.990Z", "canonical_url": "https://ratesandlimits.com/tipped-minimum-wage/iowa/", "figures": [ { "key": "cash-wage", "label": "Minimum cash wage", "value": 4.35, "format": "usd", "formatted": "$4.35", "scope": null, "derived": false, "quote": "Iowa $7.25 40% of the applicable minimum wage ($2.90) $4.35 More than $30", "offset": 3755, "source": { "url": "https://www.dol.gov/agencies/whd/state/minimum-wage/tipped", "title": "Minimum Wages for Tipped Employees", "publisher": "DOL", "fetched_at": "2026-08-29T02:59:03.556Z", "sha256_text": "d9cd16d4bdbf481040de3edf63de4fc5fbcddec3e63b4b8ed3992622607bd43d", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/iowa/2026/tipped.txt" } } ], "schedule": null, "explainers": [ { "key": "who-is-a-tipped-employee", "heading": "Who counts as a tipped employee", "body": "In Iowa, you are considered a tipped employee under federal law if you work in an occupation where you customarily and regularly receive more than $30 a month in tips. This threshold determines whether your employer is allowed to pay you the lower tipped cash wage rather than the full minimum wage. If your occupation typically generates tips that exceed this amount, your employer may classify you as a tipped employee and pay you the Iowa minimum cash wage of $4.35 per hour, with your tips making up the remainder to reach the full minimum wage. If you do not regularly receive more than $30 a month in tips in your occupation, your employer must pay you the full minimum wage for all hours worked. The $30 monthly amount is measured across all tips you actually receive from customers in that occupation, not estimated or projected tips.", "quote": "Under the FLSA, a tipped employee is an employee engaged in an occupation in which they customarily and regularly receive more than $30 a month in tips.", "offset": 2188, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:53:59.693Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/iowa/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-credit-and-cash-wage", "heading": "What a tip credit is, and the cash wage underneath it", "body": "Under federal law, a tip credit lets an Iowa employer pay you a lower cash wage and count your tips toward the minimum wage. The credit equals the difference between the cash wage the employer pays you directly and the full minimum wage. In Iowa, the minimum cash wage is $4.35 per hour. Your employer pays you this amount each pay period, and your tips are supposed to bridge the gap between $4.35 and the full minimum wage. The employer's obligation is to ensure that your cash wage plus your tips together reach at least the minimum wage for every hour you work in a given workweek. Only the tips you actually receive count toward this calculation. If the combination of the cash wage and your tips falls short, the employer must pay the remainder.", "quote": "An employer can take an FLSA tip credit equal to the difference between the direct wage, or the cash wage it pays directly to the tipped employee, and the federal minimum wage, which is currently $7.25 per hour.", "offset": 3054, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:53:59.693Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/iowa/2026/15-tipped-employees-flsa.txt" } }, { "key": "tips-that-fall-short", "heading": "When the tips do not get you to the minimum wage", "body": "In Iowa, your employer must guarantee that you earn at least the full minimum wage for every workweek. Even when the employer takes a tip credit and pays you the lower cash wage of $4.35 per hour, the employer must verify each workweek that your tips combined with the direct cash wages add up to at least the full minimum wage. If your tips are low in a particular workweek and the total falls short, the employer must make up the difference out of its own funds. This protection applies on a workweek-by-workweek basis; the employer cannot average a slow week with a busy week to hide a shortfall. As a tipped worker in Iowa, this means your employer cannot shift the risk of slow business entirely onto you. If your cash wage plus tips in any given workweek do not reach the full minimum wage, you are owed additional pay from your employer for that week.", "quote": "If an employee’s tips combined with the employer’s direct (or cash) wages do not equal the minimum hourly wage of $7.25 per hour in each workweek, the employer must make up the difference.", "offset": 3740, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:53:59.693Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/iowa/2026/15-tipped-employees-flsa.txt" } }, { "key": "notice-before-the-tip-credit", "heading": "The notice an employer owes you before it takes the credit", "body": "Before an Iowa employer can take a tip credit and pay you the lower cash wage, it must inform you of specific information about how the tip credit works. This includes telling you the cash wage amount being paid (at least $4.35 per hour in Iowa), the tip credit amount being claimed, the fact that the credit cannot exceed your actual tips, your right to keep all your tips except for valid tip pool contributions, and the fact that the credit will not apply unless you have been told all of these things. The employer can give this notice orally or in writing. If the employer does not provide this information before taking the tip credit, it loses the right to claim the credit entirely. That means the employer would owe you the full minimum wage for all hours worked, with no credit for tips. Iowa workers should make sure they have received this notice before their employer begins paying them the lower tipped wage.", "quote": "Employers may provide oral or written notice to tipped employees informing them of items 1-5 above. An employer that fails to provide the required information cannot take the section 3(m)(2)(A) tip credit.", "offset": 4835, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:53:59.693Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/iowa/2026/15-tipped-employees-flsa.txt" } }, { "key": "state-law-most-protective", "heading": "When state law gives more than the federal rule", "body": "Iowa may set its own rules for tipped employees that differ from federal law. When Iowa's rules and the federal rules conflict, your employer must follow whichever standard gives you greater protections and higher pay. For example, Iowa sets a minimum cash wage of $4.35 per hour for tipped employees, which is higher than the federal cash wage. An employer in Iowa must pay you at least $4.35 per hour in direct wages, even though the federal floor is lower. Similarly, if Iowa prohibits certain practices that federal law allows, or requires notice beyond what federal law demands, the Iowa rule controls. The principle is straightforward: you always get the benefit of the rule that is more favorable to you as a worker. Iowa employers operating in multiple states must track each state's requirements separately and cannot assume the federal standard is sufficient when Iowa law sets a higher bar.", "quote": "When state law differs from the federal FLSA, an employer must comply with the standard most protective to employees.", "offset": 5070, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:53:59.693Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/iowa/2026/15-tipped-employees-flsa.txt" } }, { "key": "employers-may-not-keep-tips", "heading": "Your employer, your manager and your supervisor may not keep your tips", "body": "In Iowa, your tips belong to you, not to your employer, your manager, or your supervisor. Federal law is clear that no employer may keep any portion of tips earned by employees, whether the employer does so directly or through a tip pool arrangement. This rule applies even when the employer pays you the full minimum wage without taking any tip credit. Your manager or supervisor cannot take a share of your tips, require you to hand over tips, or use a tip pool as a way to funnel money back to the business or to management. The cash wage your employer pays (at least $4.35 per hour in Iowa) is separate from your tips and is not a trade-off that allows the employer to claim any part of your gratuities. Tips are your earnings from customers, and neither your employer nor any supervisor may intercept, retain, or redirect them for any purpose.", "quote": "Regardless of whether an employer takes a tip credit, the FLSA prohibits employers from keeping any portion of employees’ tips for any purpose, whether directly or through a tip pool.", "offset": 5521, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:53:59.693Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/iowa/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-pooling", "heading": "Which tip pools you can be made to join", "body": "In Iowa, when your employer takes a tip credit and pays you the lower cash wage of $4.35 per hour, it may require you to participate in a tip pool, but only a traditional one. A traditional tip pool is limited to employees in occupations where they customarily and regularly receive tips. This means the pool can include workers such as waiters, bussers, service bartenders, bellhops, and counter personnel who serve customers. It cannot include employees who do not regularly receive tips, such as cooks, dishwashers, or janitors. Your employer must notify you of any required contribution amount before imposing the pool. The employer may only take a tip credit based on the tips you ultimately keep after the pool distribution, and it may not retain any of the pooled tips for itself. If your employer pays you the full minimum wage without taking a tip credit, different rules apply to the tip pool, but for tipped employees in Iowa earning the $4.35 cash wage, the pool must be limited to traditionally tipped occupations.", "quote": "to a tip pool which is limited to employees in occupations in which they customarily and regularly receive tips, such as waiters, bellhops, counter personnel (who serve customers), bussers, and service bartenders.", "offset": 7533, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:53:59.693Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/iowa/2026/15-tipped-employees-flsa.txt" } }, { "key": "dual-jobs", "heading": "Doing two jobs for one employer", "body": "In Iowa, if you work two distinct jobs for the same employer, such as performing maintenance work during part of your shift and serving tables during another part, you are considered a tipped employee only for the hours you spend in the tipped occupation. For example, if you also work as a server and receive at least $30 a month in tips for that work, the employer may take a tip credit and pay you the cash wage of $4.35 per hour for your server hours. However, for all hours you spend in the non-tipped occupation, such as maintenance work, no tip credit is allowed and the employer must pay you the full minimum wage. The two jobs must be genuinely distinct occupations. This rule is different from a server who performs related duties like cleaning tables, making coffee, or washing dishes as part of the serving job. Those related tasks are part of the tipped occupation and the tip credit still applies. The key question is whether you are performing work in a separate, non-tipped occupation.", "quote": "In such a situation the employee, if they customarily and regularly receive at least $30 a month in tips for their work as a server, is a tipped employee only with respect to their employment as a server. The worker is employed in two occupations, and no tip credit can be taken for their hours of employment in their occupation as a maintenance person.", "offset": 9667, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:53:59.693Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/iowa/2026/15-tipped-employees-flsa.txt" } } ], "estimate": null }, { "program": "tipped-minimum-wage", "name": "Tipped Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "kansas", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-30", "published_at": "2026-08-30T05:55:42.729Z", "canonical_url": "https://ratesandlimits.com/tipped-minimum-wage/kansas/", "figures": [ { "key": "cash-wage", "label": "Minimum cash wage", "value": 2.13, "format": "usd", "formatted": "$2.13", "scope": null, "derived": false, "quote": "Kansas 12 $7.25 $5.12 $2.13 Not specified", "offset": 5459, "source": { "url": "https://www.dol.gov/agencies/whd/state/minimum-wage/tipped", "title": "Minimum Wages for Tipped Employees", "publisher": "DOL", "fetched_at": "2026-08-29T02:59:36.437Z", "sha256_text": "d9cd16d4bdbf481040de3edf63de4fc5fbcddec3e63b4b8ed3992622607bd43d", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/kansas/2026/tipped.txt" } } ], "schedule": null, "explainers": [ { "key": "who-is-a-tipped-employee", "heading": "Who counts as a tipped employee", "body": "Under federal law, a worker in Kansas counts as a tipped employee only if they are engaged in an occupation where they customarily and regularly receive more than $30 a month in tips. If the tips fall below that threshold, the worker is not considered tipped for purposes of the lower cash wage and the tip credit. Only tips actually received by the employee count when making this determination; tips that are owed but never collected do not qualify. This definition matters because it decides whether an employer in Kansas may pay the minimum cash wage of $2.13 per hour and take a credit against the tips earned, or whether the employer must instead pay the full minimum wage without relying on a tip credit.", "quote": "Under the FLSA, a tipped employee is an employee engaged in an occupation in which they customarily and regularly receive more than $30 a month in tips.", "offset": 2188, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:53:58.670Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/kansas/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-credit-and-cash-wage", "heading": "What a tip credit is, and the cash wage underneath it", "body": "The tip credit is the gap between what your employer pays you directly and the full minimum wage. In Kansas, your employer must pay you a cash wage of at least $2.13 per hour, and the tip credit makes up the rest. The federal minimum wage is currently $7.25 per hour, so the maximum tip credit an employer can claim is $5.12 per hour ($7.25 minus $2.13). However, your employer can only claim a tip credit up to the amount of tips you actually receive. If you earn fewer tips than the credit amount, your employer must increase your direct wages to ensure you reach at least $7.25 per hour. The tip credit is not automatic—your employer must verify each workweek that your cash wages plus your tips equal or exceed the minimum wage.", "quote": "An employer can take an FLSA tip credit equal to the difference between the direct wage, or the cash wage it pays directly to the tipped employee, and the federal minimum wage, which is currently $7.25 per hour. The maximum tip credit that an employer can currently claim is $5.12 per hour: ($7.25 - $2.13 direct (or cash) wage = $5.12).", "offset": 3054, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:53:58.670Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/kansas/2026/15-tipped-employees-flsa.txt" } }, { "key": "tips-that-fall-short", "heading": "When the tips do not get you to the minimum wage", "body": "Kansas employers must verify each workweek that your cash wages plus your tips equal at least the full minimum wage of $7.25 per hour. If your tips fall short—say you work a slow week and your tips plus the $2.13 per hour cash wage don't add up to $7.25—your employer must make up the difference. This guarantee applies every single workweek, not just on average. Your employer cannot use a good week to offset a bad week; each pay period stands alone. The employer's obligation is to ensure you receive at least $7.25 per hour for every hour worked, regardless of how much you earned in tips. This protection ensures that the risk of slow business falls on the employer, not on you.", "quote": "If an employee’s tips combined with the employer’s direct (or cash) wages do not equal the minimum hourly wage of $7.25 per hour in each workweek, the employer must make up the difference.", "offset": 3740, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:53:58.670Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/kansas/2026/15-tipped-employees-flsa.txt" } }, { "key": "notice-before-the-tip-credit", "heading": "The notice an employer owes you before it takes the credit", "body": "Before your Kansas employer can pay you the lower cash wage of $2.13 per hour and claim a tip credit, they must notify you of specific information. They must tell you the amount of the direct wage they are paying, the amount they are claiming as a tip credit, that the tip credit cannot exceed the tips you actually receive, that all your tips are yours to keep except for valid tip pooling arrangements limited to employees who customarily receive tips, and that the tip credit will not apply if you have not been informed of these provisions. Your employer can give this notice orally or in writing. If they fail to provide it, they cannot take the tip credit and must pay you the full minimum wage for all hours worked.", "quote": "An employer that fails to provide the required information cannot take the section 3(m)(2)(A) tip credit.", "offset": 4935, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:53:58.670Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/kansas/2026/15-tipped-employees-flsa.txt" } }, { "key": "state-law-most-protective", "heading": "When state law gives more than the federal rule", "body": "When Kansas state law provides greater protections than the federal FLSA, employers must comply with the standard most protective to employees. For example, if Kansas requires a higher cash wage than the federal minimum of $2.13 per hour, or if it prohibits the tip credit altogether, your employer must follow the state rule. The federal baseline is just a floor—Kansas can set a higher floor, and your employer must meet it. This principle ensures that workers receive the maximum protection available under either law. If you are uncertain whether your employer is following the correct standard, you can check with the Kansas Department of Labor to see what state law requires for tipped employees in your occupation.", "quote": "When state law differs from the federal FLSA, an employer must comply with the standard most protective to employees.", "offset": 5070, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:53:58.670Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/kansas/2026/15-tipped-employees-flsa.txt" } }, { "key": "employers-may-not-keep-tips", "heading": "Your employer, your manager and your supervisor may not keep your tips", "body": "In Kansas, regardless of whether your employer takes a tip credit, the law prohibits employers from keeping any portion of your tips for any purpose. This includes your manager and your supervisor. Your employer cannot require you to turn over your tips, whether directly or through a tip pool. Even if your employer pays you the full minimum wage of $7.25 per hour and takes no tip credit at all, they still cannot touch your tips. The prohibition applies to any arrangement where your employer benefits from your gratuities. Managers and supervisors are specifically barred from participating in tip pools or receiving any share of tips that customers leave for you.", "quote": "Regardless of whether an employer takes a tip credit, the FLSA prohibits employers from keeping any portion of employees’ tips for any purpose, whether directly or through a tip pool. An employer may not require an employee to give their tips to the employer, a supervisor, or a manager, even where a tipped employee receives at least the federal minimum wage (currently $7.25) per hour in wages directly from the employer and the employer takes no tip credit.", "offset": 5521, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:53:58.670Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/kansas/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-pooling", "heading": "Which tip pools you can be made to join", "body": "In Kansas, when your employer takes a tip credit and requires you to participate in a tip pool, that pool is limited to employees in occupations in which they customarily and regularly receive tips. This means the pool can only include workers like waiters, bellhops, bussers, and service bartenders—people whose jobs typically involve receiving gratuities. Your employer cannot force you to share your tips with cooks, dishwashers, or other back-of-house employees who do not customarily receive tips, unless your employer pays you the full minimum wage and does not take a tip credit. The tip pool must be valid under federal law, and your employer must notify you of the required contribution amount. Only tips you actually retain after the pool distribution count toward meeting the minimum wage.", "quote": "An employer that takes a tip credit can require tipped employees to contribute tips only\nto a tip pool which is limited to employees in occupations in which they customarily and regularly receive tips, such as waiters, bellhops, counter personnel (who serve customers), bussers, and service bartenders.", "offset": 7444, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:53:58.670Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/kansas/2026/15-tipped-employees-flsa.txt" } }, { "key": "dual-jobs", "heading": "Doing two jobs for one employer", "body": "In Kansas, if you work two jobs for the same employer—one where you receive tips and one where you do not—the tip credit applies only to the tipped job. For example, if you work as a maintenance person but also serve as a server, and you customarily and regularly receive at least $30 a month in tips for your server work, you are a tipped employee only with respect to your employment as a server. Your employer can take a tip credit for your hours worked as a server, but not for your hours worked as a maintenance person. For the non-tipped hours, your employer must pay you the full minimum wage. This rule prevents employers from applying the tip credit across all your hours when only some of those hours involve work where you regularly receive tips.", "quote": "In such a situation the employee, if they customarily and regularly receive at least $30 a month in tips for their work as a server, is a tipped employee only with respect to their employment as a server. The worker is employed in two occupations, and no tip credit can be taken for their hours of employment in their occupation as a maintenance person.", "offset": 9667, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:53:58.670Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/kansas/2026/15-tipped-employees-flsa.txt" } } ], "estimate": null }, { "program": "tipped-minimum-wage", "name": "Tipped Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "kentucky", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-30", "published_at": "2026-08-30T05:59:05.819Z", "canonical_url": "https://ratesandlimits.com/tipped-minimum-wage/kentucky/", "figures": [ { "key": "cash-wage", "label": "Minimum cash wage", "value": 2.13, "format": "usd", "formatted": "$2.13", "scope": null, "derived": false, "quote": "Kentucky $7.25 $5.12 $2.13 More than $30", "offset": 5501, "source": { "url": "https://www.dol.gov/agencies/whd/state/minimum-wage/tipped", "title": "Minimum Wages for Tipped Employees", "publisher": "DOL", "fetched_at": "2026-08-29T02:59:38.167Z", "sha256_text": "d9cd16d4bdbf481040de3edf63de4fc5fbcddec3e63b4b8ed3992622607bd43d", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/kentucky/2026/tipped.txt" } } ], "schedule": null, "explainers": [ { "key": "who-is-a-tipped-employee", "heading": "Who counts as a tipped employee", "body": "In Kentucky, you are considered a tipped employee under federal law if you work in an occupation where you customarily and regularly receive more than $30 a month in tips. This definition applies to workers like servers, bartenders, bellhops, and other roles where tips are a regular part of compensation. If you meet this threshold, your employer may pay you a lower direct cash wage and claim a tip credit toward its minimum wage obligations. Only tips that you actually receive count toward determining whether you qualify as a tipped employee and toward applying the tip credit. This means that tips your employer keeps or redistributes to others cannot be counted in this calculation.", "quote": "Under the FLSA, a tipped employee is an employee engaged in an occupation in which they customarily and regularly receive more than $30 a month in tips.", "offset": 2188, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:57:03.353Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/kentucky/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-credit-and-cash-wage", "heading": "What a tip credit is, and the cash wage underneath it", "body": "In Kentucky, the tip credit is the amount your employer counts from your tips toward its obligation to pay you the minimum wage. Your employer must pay you a direct cash wage of at least $2.13 per hour. It can then claim a tip credit equal to the difference between that cash wage and the full minimum wage. In practice, this means the employer uses your tips to cover the gap between what it pays you directly and the full minimum wage it owes. The tip credit cannot be larger than the tips you actually bring in. If the credit would exceed your real tips, the employer must limit the credit to what you actually earned and pay you more out of pocket. Only tips you actually receive count toward this calculation; tips held or redistributed by the employer cannot be used to justify the credit.", "quote": "An employer can take an FLSA tip credit equal to the difference between the direct wage, or the cash wage it pays directly to the tipped employee, and the federal minimum wage, which is currently $7.25 per hour.", "offset": 3054, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:57:03.353Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/kentucky/2026/15-tipped-employees-flsa.txt" } }, { "key": "tips-that-fall-short", "heading": "When the tips do not get you to the minimum wage", "body": "In Kentucky, if your cash wage plus your tips fall below the full minimum wage in any workweek, your employer must make up the difference. Your employer cannot simply pay you the minimum cash wage and hope your tips bring you up to the minimum wage; it has a legal obligation to verify each workweek that your total compensation reaches at least the full minimum hourly wage. If it does not, the employer owes you the shortfall and must pay it to you at the regular payday for that workweek. This protection applies regardless of whether your tips were low because business was slow or for any other reason. The rule makes clear that the risk of slow tip earnings falls on the employer, not on you.", "quote": "If an employee’s tips combined with the employer’s direct (or cash) wages do not equal the minimum hourly wage of $7.25 per hour in each workweek, the employer must make up the difference.", "offset": 3740, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:57:03.353Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/kentucky/2026/15-tipped-employees-flsa.txt" } }, { "key": "notice-before-the-tip-credit", "heading": "The notice an employer owes you before it takes the credit", "body": "In Kentucky, before your employer can pay you the lower tipped cash wage and claim a tip credit, it must give you specific written or oral notice describing the arrangement. The notice must tell you the exact cash wage the employer is paying you, the amount it is claiming as a tip credit, the fact that the credit cannot exceed the tips you actually receive, your right to keep all your tips except through a valid tip pool, and the fact that the credit will not apply unless you have been informed of all these provisions. If the employer fails to give you this information before processing your pay, it loses the right to take the tip credit at all for that period and must pay you the full minimum wage. This notice requirement ensures you know in advance how your wages are being calculated and what rights you retain.", "quote": "Employers must provide the following information to tipped employees before taking a tip credit under the FLSA:\nthe amount of the direct (or cash) wage the employer is paying a tipped employee, which must be at least $2.13 per hour;\nthe additional amount claimed by the employer as a tip credit, which cannot exceed $5.12 (the difference between the minimum required direct (or cash) wage of $2.13 and the current minimum wage of $7.25);\nthat the tip credit claimed by the employer cannot exceed the amount of tips actually received by the tipped employee;\nthat all tips received by the tipped employee are to be retained by the employee except for a valid tip pooling arrangement limited to employees who customarily and regularly receive tips; and\nthat the tip credit will not apply to any tipped employee unless the employee has been informed of these tip credit provisions.", "offset": 3957, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:57:03.353Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/kentucky/2026/15-tipped-employees-flsa.txt" } }, { "key": "state-law-most-protective", "heading": "When state law gives more than the federal rule", "body": "In Kentucky, when state law and the federal Fair Labor Standards Act set different rules for tipped employees, your employer must follow whichever standard is more protective to you as a worker. For example, if Kentucky were to require a higher cash wage than the federal floor, or to limit or prohibit the tip credit entirely, the employer would have to comply with the Kentucky rule instead of the more lenient federal one. This principle ensures that you always receive the benefit of the law that gives you the higher wage or the stronger protections, regardless of which level of government set it. You cannot be forced to accept a less favorable arrangement simply because the federal rule would permit it. In practice, this means checking both the federal and Kentucky rules and applying the one that results in the greater pay or the tighter restrictions on your employer.", "quote": "When state law differs from the federal FLSA, an employer must comply with the standard most protective to employees.", "offset": 5070, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:57:03.353Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/kentucky/2026/15-tipped-employees-flsa.txt" } }, { "key": "employers-may-not-keep-tips", "heading": "Your employer, your manager and your supervisor may not keep your tips", "body": "In Kentucky, regardless of whether your employer takes a tip credit or pays you the full minimum wage directly, the law prohibits employers from keeping any portion of your tips for any purpose, whether directly or through a tip pool. Your employer may not require you to hand over your tips to the business, to a supervisor, or to a manager. This rule applies even in situations where your employer pays you at least the full minimum wage out of its own pocket and takes no tip credit at all. The protections extend to managers and supervisors, who are defined as employees whose primary duty is managing the enterprise or a recognized department, who regularly direct at least two other employees, and who have hiring or firing authority. A manager or supervisor may keep only tips they receive directly from customers for service they personally and solely provided, and may not participate in a tip pool to collect other employees' tips.", "quote": "Regardless of whether an employer takes a tip credit, the FLSA prohibits employers from keeping any portion of employees’ tips for any purpose, whether directly or through a tip pool.", "offset": 5521, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:57:03.353Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/kentucky/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-pooling", "heading": "Which tip pools you can be made to join", "body": "In Kentucky, when your employer takes a tip credit and pays you the lower cash wage, any mandatory tip pool it requires you to join must be limited to employees in occupations in which they customarily and regularly receive tips. This is sometimes called a traditional tip pool. Eligible participants include workers such as waiters, bellhops, counter personnel who serve customers, bussers, and service bartenders. The pool may not include employees who do not customarily receive tips, such as back-of-house workers who are not in a tipped occupation. The employer must notify you of the required contribution amount, may only claim a tip credit for the tips you ultimately retain after the pool is distributed, and may not keep any of the pooled tips for itself or allow managers and supervisors to participate. If the employer pays you the full minimum wage in cash wages instead of taking a tip credit, different rules apply and the pool may include non-tipped employees.", "quote": "An employer that takes a tip credit can require tipped employees to contribute tips only\nto a tip pool which is limited to employees in occupations in which they customarily and regularly receive tips, such as waiters, bellhops, counter personnel (who serve customers), bussers, and service bartenders.", "offset": 7444, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:57:03.353Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/kentucky/2026/15-tipped-employees-flsa.txt" } }, { "key": "dual-jobs", "heading": "Doing two jobs for one employer", "body": "In Kentucky, if you work two distinct jobs for the same employer, you are considered a tipped employee only with respect to the job in which you customarily and regularly receive tips. For example, if you work as a hotel maintenance person and also as a server, and you receive at least the required monthly tip threshold for your server work, your employer may pay you the lower tipped cash wage only for the hours you spend working as a server. For the hours you spend working as a maintenance person, the employer must pay you the full minimum wage and may not take any tip credit. The two occupations must be genuinely separate; the rule does not apply when you are simply performing related duties that are part of your tipped occupation, such as a server who spends time cleaning tables, toasting bread, or making coffee as part of their normal serving role. In that case, all the time counts as tipped employment.", "quote": "In such a situation the employee, if they customarily and regularly receive at least $30 a month in tips for their work as a server, is a tipped employee only with respect to their employment as a server.", "offset": 9667, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:57:03.353Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/kentucky/2026/15-tipped-employees-flsa.txt" } } ], "estimate": null }, { "program": "tipped-minimum-wage", "name": "Tipped Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "louisiana", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-30", "published_at": "2026-08-30T05:58:44.362Z", "canonical_url": "https://ratesandlimits.com/tipped-minimum-wage/louisiana/", "figures": [ { "key": "cash-wage", "label": "Minimum cash wage", "value": 2.13, "format": "usd", "formatted": "$2.13", "scope": null, "derived": false, "quote": "Louisiana 11 $7.25 $5.12 $2.13 More than $30", "offset": 5542, "source": { "url": "https://www.dol.gov/agencies/whd/state/minimum-wage/tipped", "title": "Minimum Wages for Tipped Employees", "publisher": "DOL", "fetched_at": "2026-08-29T02:59:40.088Z", "sha256_text": "d9cd16d4bdbf481040de3edf63de4fc5fbcddec3e63b4b8ed3992622607bd43d", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/louisiana/2026/tipped.txt" } } ], "schedule": null, "explainers": [ { "key": "who-is-a-tipped-employee", "heading": "Who counts as a tipped employee", "body": "In Louisiana, you count as a tipped employee under federal law if your job is one where you customarily and regularly receive more than $30 a month in tips. The work itself must be of a type where tips are the norm — not just an occasional gratuity. Only the tips you actually receive matter when your employer is figuring out whether you qualify as a tipped employee and when it is applying the tip credit. If your tips in a given month fall below that $30 threshold, you are not considered a tipped employee for that period, and your employer loses the right to pay you the lower cash wage of $2.13 an hour. This definition sets the floor for every other rule on tipped wages: until you clear it, the full minimum wage applies to you in Louisiana.", "quote": "Under the FLSA, a tipped employee is an employee engaged in an occupation in which they customarily and regularly receive more than $30 a month in tips.", "offset": 2188, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:57:03.835Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/louisiana/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-credit-and-cash-wage", "heading": "What a tip credit is, and the cash wage underneath it", "body": "In Louisiana, the Fair Labor Standards Act lets an employer pay a tipped worker a direct cash wage of at least $2.13 per hour and claim a tip credit to cover the gap between that cash wage and the full federal minimum wage. The tip credit is the difference between what the employer pays in cash and the minimum wage it would otherwise owe. The employer can only use this credit if it can show, for every workweek, that your cash wages plus the tips you actually received add up to at least the full minimum wage. Only tips you actually receive count — not projected or estimated tips. If in any workweek your cash wages and tips together fall below the minimum wage, your employer must make up the shortfall. This two-part system — a guaranteed floor of $2.13 in cash plus enough tips to reach the full minimum wage — is what the tip credit means for workers in Louisiana.", "quote": "An employer must pay a tipped worker at least $2.13 per hour under the FLSA. An employer can take an FLSA tip credit equal to the difference between the direct wage, or the cash wage it pays directly to the tipped employee, and the federal minimum wage, which is currently $7.25 per hour.", "offset": 2977, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:57:03.835Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/louisiana/2026/15-tipped-employees-flsa.txt" } }, { "key": "tips-that-fall-short", "heading": "When the tips do not get you to the minimum wage", "body": "In Louisiana, if your tips combined with your employer's direct cash wages do not equal at least $7.25 per hour in any workweek, the employer must make up the difference. This protection applies every single workweek, not just on average over a month or pay period. Your employer cannot rely on good weeks to offset bad weeks—each workweek stands on its own. If customer traffic is slow or tips are otherwise insufficient in a particular week, your employer is legally required to pay you enough in direct wages to bring your total earnings up to the full minimum wage. This rule ensures that tipped employees in Louisiana always receive at least the minimum wage for every hour they work, regardless of how much they earn in tips during any given week.", "quote": "If an employee’s tips combined with the employer’s direct (or cash) wages do not equal the minimum hourly wage of $7.25 per hour in each workweek, the employer must make up the difference.", "offset": 3740, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:57:03.835Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/louisiana/2026/15-tipped-employees-flsa.txt" } }, { "key": "notice-before-the-tip-credit", "heading": "The notice an employer owes you before it takes the credit", "body": "In Louisiana, before an employer can use the tip credit to pay you less than the full minimum wage, it must give you specific information. The employer must tell you the amount of the cash wage it is paying you, which must be at least $2.13 per hour; the amount it is claiming as a tip credit; that the tip credit cannot exceed the tips you actually receive; that all tips you receive are yours to keep, except for valid tip-pool contributions; and that the tip credit will not apply unless you have been told all of this. The notice can be oral or written, but if the employer fails to provide it, it cannot take the tip credit at all and must pay you the full minimum wage. This requirement gives Louisiana workers a chance to understand how their pay is being calculated and to verify that the employer is following the rules before the lower wage takes effect.", "quote": "Employers must provide the following information to tipped employees before taking a tip credit under the FLSA:", "offset": 3957, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:57:03.835Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/louisiana/2026/15-tipped-employees-flsa.txt" } }, { "key": "state-law-most-protective", "heading": "When state law gives more than the federal rule", "body": "In Louisiana, when state law differs from the federal FLSA, employers must comply with the standard most protective to employees. This means if Louisiana law provides a higher cash wage, better tip protections, or other more favorable terms than federal law, your employer must follow the Louisiana rule. For example, some states require employers to pay tipped workers more than the federal minimum cash wage of $2.13 per hour, and some states prohibit employers from taking a tip credit entirely. You are entitled to whichever rule—federal or state—gives you greater protection or higher wages. This principle ensures that workers in Louisiana receive the best available treatment under applicable law, rather than being limited to the federal floor when state standards are more generous.", "quote": "When state law differs from the federal FLSA, an employer must comply with the standard most protective to employees.", "offset": 5070, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:57:03.835Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/louisiana/2026/15-tipped-employees-flsa.txt" } }, { "key": "employers-may-not-keep-tips", "heading": "Your employer, your manager and your supervisor may not keep your tips", "body": "In Louisiana, federal law prohibits employers from keeping any portion of employees' tips for any purpose, whether directly or through a tip pool. This rule applies regardless of whether the employer takes a tip credit. Your employer, and any managers or supervisors who work at the establishment, cannot require you to hand over your tips to them or to the business. Even if the employer pays you the full minimum wage in direct cash wages and takes no tip credit at all, your tips still belong to you. The only lawful exception is a valid tip pool contribution shared with other non-supervisory employees in traditionally tipped occupations. This protection ensures that the gratuities customers leave for you as a reward for your service reach you, not your employer or its managers.", "quote": "Regardless of whether an employer takes a tip credit, the FLSA prohibits employers from keeping any portion of employees’ tips for any purpose, whether directly or through a tip pool.", "offset": 5521, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:57:03.835Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/louisiana/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-pooling", "heading": "Which tip pools you can be made to join", "body": "In Louisiana, when your employer takes a tip credit, it can require you to contribute to a tip pool, but that pool must be limited to employees in occupations in which they customarily and regularly receive tips. This is called a traditional tip pool. It includes workers such as waiters, bellhops, counter personnel who serve customers, bussers, and service bartenders. It cannot include back-of-house employees such as cooks or dishwashers. The employer must notify you of any required contribution amount and may only take a tip credit for the tips you actually keep after the pool is distributed. It may not retain any of the pooled tips for itself. This rule ensures that tip pools serve their intended purpose — sharing customer gratuities among workers who depend on tips as a regular part of their compensation in Louisiana.", "quote": "to a tip pool which is limited to employees in occupations in which they customarily and regularly receive tips", "offset": 7533, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:57:03.835Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/louisiana/2026/15-tipped-employees-flsa.txt" } }, { "key": "dual-jobs", "heading": "Doing two jobs for one employer", "body": "In Louisiana, when you work two different jobs for the same employer—like a hotel maintenance worker who also serves as a server—you are a tipped employee only with respect to the job where you customarily and regularly receive tips. If you earn at least $30 a month in tips as a server, your employer can take a tip credit for your hours worked as a server. However, for your hours worked as a maintenance person, no tip credit can be taken, and your employer must pay you the full minimum wage for every hour you spend doing maintenance work. This rule prevents employers from applying the lower tipped wage to jobs where you do not regularly receive tips. You must be paid the full minimum wage for all non-tipped work, even if you also work in a tipped position for the same employer.", "quote": "In such a situation the employee, if they customarily and regularly receive at least $30 a month in tips for their work as a server, is a tipped employee only with respect to their employment as a server. The worker is employed in two occupations, and no tip credit can be taken for their hours of employment in their occupation as a maintenance person.", "offset": 9667, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:57:03.835Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/louisiana/2026/15-tipped-employees-flsa.txt" } } ], "estimate": null }, { "program": "tipped-minimum-wage", "name": "Tipped Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "maine", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-30", "published_at": "2026-08-30T05:58:39.972Z", "canonical_url": "https://ratesandlimits.com/tipped-minimum-wage/maine/", "figures": [ { "key": "cash-wage", "label": "Minimum cash wage", "value": 7.55, "format": "usd", "formatted": "$7.55", "scope": null, "derived": false, "quote": "Maine $15.10 50% of the applicable minimum wage ($7.55) $7.55 More than $191", "offset": 3829, "source": { "url": "https://www.dol.gov/agencies/whd/state/minimum-wage/tipped", "title": "Minimum Wages for Tipped Employees", "publisher": "DOL", "fetched_at": "2026-08-29T02:59:05.286Z", "sha256_text": "d9cd16d4bdbf481040de3edf63de4fc5fbcddec3e63b4b8ed3992622607bd43d", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/maine/2026/tipped.txt" } } ], "schedule": null, "explainers": [ { "key": "who-is-a-tipped-employee", "heading": "Who counts as a tipped employee", "body": "In Maine, you are considered a tipped employee under federal law if you work in an occupation where you customarily and regularly receive more than $30 a month in tips. This definition matters because it determines whether your employer is allowed to count a portion of your tips toward its minimum wage obligation. If you do not meet this threshold, your employer must pay you the full minimum wage without relying on a tip credit. The rule looks at the nature of your occupation, not just your individual tip receipts in a given month. So if you work as a server, bartender, or bellhop in Maine and tips are a regular and customary part of what you earn, you fall into this category even if some months are slow. Only tips you actually receive count toward this definition.", "quote": "Under the FLSA, a tipped employee is an employee engaged in an occupation in which they customarily and regularly receive more than $30 a month in tips.", "offset": 2188, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:57:04.372Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/maine/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-credit-and-cash-wage", "heading": "What a tip credit is, and the cash wage underneath it", "body": "In Maine, the tip credit is the amount your employer counts from your tips toward meeting the minimum wage. The cash wage your employer must pay you directly is $7.55 per hour in 2026. The tip credit equals the difference between that direct wage and the full minimum wage, so your employer must still ensure that your cash wage plus your tips add up to at least the full minimum wage each workweek. Only tips you actually receive count toward this calculation. This means the tip credit cannot exceed what you genuinely earn from customers, and your employer cannot claim credit for tips you never saw. The rule is designed to make sure that even when an employer takes a tip credit, you still walk away with at least the minimum wage when your cash wages and tips are combined.", "quote": "An employer can take an FLSA tip credit equal to the difference between the direct wage, or the cash wage it pays directly to the tipped employee, and the federal minimum wage, which is currently $7.25 per hour.", "offset": 3054, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:57:04.372Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/maine/2026/15-tipped-employees-flsa.txt" } }, { "key": "tips-that-fall-short", "heading": "When the tips do not get you to the minimum wage", "body": "In Maine, if your tips combined with your employer's direct cash wage do not add up to the full minimum wage in any workweek, your employer must make up the difference. This is a weekly test, not an average over a month or a pay period. So if business is slow one week and your tips fall short, your employer has to pay extra out of pocket to bring you up to the minimum wage for that specific workweek. This rule protects you from weeks when customer traffic is low or tips are otherwise insufficient, ensuring that your total compensation never dips below the legal floor regardless of how much you received in tips. Your employer bears the risk of slow weeks, not you.", "quote": "If an employee’s tips combined with the employer’s direct (or cash) wages do not equal the minimum hourly wage of $7.25 per hour in each workweek, the employer must make up the difference.", "offset": 3740, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:57:04.372Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/maine/2026/15-tipped-employees-flsa.txt" } }, { "key": "notice-before-the-tip-credit", "heading": "The notice an employer owes you before it takes the credit", "body": "In Maine, before your employer can take a tip credit against the minimum wage, it must give you specific notice. Employers must provide the following information to tipped employees before taking a tip credit: the amount of the direct cash wage being paid, the additional amount claimed as a tip credit, that the tip credit cannot exceed the tips actually received, that all tips are to be retained by the employee except for a valid tip pool, and that the tip credit will not apply unless the employee has been informed of these provisions. This notice can be given orally or in writing. If your employer fails to give you this information, it cannot legally take the tip credit at all, meaning it would owe you the full minimum wage in cash regardless of what you earned in tips.", "quote": "Employers must provide the following information to tipped employees before taking a tip credit under the FLSA:\nthe amount of the direct (or cash) wage the employer is paying a tipped employee, which must be at least $2.13 per hour;\nthe additional amount claimed by the employer as a tip credit, which cannot exceed $5.12 (the difference between the minimum required direct (or cash) wage of $2.13 and the current minimum wage of $7.25);\nthat the tip credit claimed by the employer cannot exceed the amount of tips actually received by the tipped employee;\nthat all tips received by the tipped employee are to be retained by the employee except for a valid tip pooling arrangement limited to employees who customarily and regularly receive tips; and\nthat the tip credit will not apply to any tipped employee unless the employee has been informed of these tip credit provisions.", "offset": 3957, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:57:04.372Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/maine/2026/15-tipped-employees-flsa.txt" } }, { "key": "state-law-most-protective", "heading": "When state law gives more than the federal rule", "body": "Maine has its own tipped-employee rules that can be more generous than the federal FLSA, and when the two conflict your employer must follow whichever standard is most protective to you. For example, Maine requires a higher minimum cash wage than the federal floor, and your employer cannot use the lower federal figure just because it is also a rule. The federal tip credit provisions still apply to the extent they give you more, but any Maine rule that pays you more or restricts the employer more takes precedence over the federal baseline. This principle means you are protected by the better of the two regimes, not just one or the other, and your employer cannot pick and choose which rules to follow based on which one costs less.", "quote": "When state law differs from the federal FLSA, an employer must comply with the standard most protective to employees.", "offset": 5070, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:57:04.372Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/maine/2026/15-tipped-employees-flsa.txt" } }, { "key": "employers-may-not-keep-tips", "heading": "Your employer, your manager and your supervisor may not keep your tips", "body": "In Maine, regardless of whether your employer takes a tip credit, the law prohibits employers from keeping any portion of employees' tips for any purpose, whether directly or through a tip pool. This means your employer, your manager, and your supervisor may not take your tips, require you to hand them over, or use them for any business purpose. Even if your employer pays you the full minimum wage in cash and takes no tip credit at all, your tips still belong to you. The rule covers both direct retention and indirect retention through tip pools that benefit the house. Your tips are your earnings, and no one above you in the workplace hierarchy is allowed to claim a share.", "quote": "Regardless of whether an employer takes a tip credit, the FLSA prohibits employers from keeping any portion of employees’ tips for any purpose, whether directly or through a tip pool.", "offset": 5521, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:57:04.372Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/maine/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-pooling", "heading": "Which tip pools you can be made to join", "body": "In Maine, when your employer takes a tip credit, any mandatory tip pool it requires you to join is limited to employees in occupations in which they customarily and regularly receive tips. This means the pool can include fellow servers, bussers, bellhops, counter personnel who serve customers, and service bartenders, but cannot include back-of-house workers who do not traditionally receive tips, such as cooks or dishwashers. If your employer does not take a tip credit and instead pays you the full minimum wage in cash, different rules may apply to the tip pool. But if the tip credit is being taken, the pool must be made up only of traditionally tipped positions. This restriction ensures that tips are shared only among workers whose compensation is built around customer gratuities.", "quote": "An employer that takes a tip credit can require tipped employees to contribute tips only\nto a tip pool which is limited to employees in occupations in which they customarily and regularly receive tips, such as waiters, bellhops, counter personnel (who serve customers), bussers, and service bartenders.", "offset": 7444, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:57:04.372Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/maine/2026/15-tipped-employees-flsa.txt" } }, { "key": "dual-jobs", "heading": "Doing two jobs for one employer", "body": "In Maine, if you work two different jobs for the same employer, you are a tipped employee only with respect to the job where you customarily and regularly receive tips. For example, if you work as a maintenance person at a hotel and also serve as a server, you are a tipped employee only for your hours spent as a server. No tip credit can be taken for your hours working in your non-tipped occupation, such as maintenance. Your employer must pay you the full minimum wage in cash for every hour you spend doing non-tipped work, and can only apply the tip credit to the hours you spend in your tipped role. This prevents employers from using a tip credit to underpay workers during hours when they are performing jobs that do not generate tips.", "quote": "In such a situation the employee, if they customarily and regularly receive at least $30 a month in tips for their work as a server, is a tipped employee only with respect to their employment as a server.", "offset": 9667, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:57:04.372Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/maine/2026/15-tipped-employees-flsa.txt" } } ], "estimate": null }, { "program": "tipped-minimum-wage", "name": "Tipped Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "maryland", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-30", "published_at": "2026-08-30T05:58:44.526Z", "canonical_url": "https://ratesandlimits.com/tipped-minimum-wage/maryland/", "figures": [ { "key": "cash-wage", "label": "Minimum cash wage", "value": 3.63, "format": "usd", "formatted": "$3.63", "scope": null, "derived": false, "quote": "Maryland $15.00 $11.37 $3.63 More than $30", "offset": 3906, "source": { "url": "https://www.dol.gov/agencies/whd/state/minimum-wage/tipped", "title": "Minimum Wages for Tipped Employees", "publisher": "DOL", "fetched_at": "2026-08-29T02:59:07.003Z", "sha256_text": "d9cd16d4bdbf481040de3edf63de4fc5fbcddec3e63b4b8ed3992622607bd43d", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/maryland/2026/tipped.txt" } } ], "schedule": null, "explainers": [ { "key": "who-is-a-tipped-employee", "heading": "Who counts as a tipped employee", "body": "In Maryland, you count as a tipped employee under federal law if you work in an occupation where you customarily and regularly receive more than $30 a month in tips. This definition matters because it determines whether your employer is allowed to pay you the lower tipped minimum cash wage and claim a tip credit against your tips. If your tips in a given month fall to $30 or less, or if your occupation is not one where tipping is customary and regular, you are not considered a tipped employee for that work, and your employer must pay you the full applicable minimum wage without using the tip credit. Only tips you actually receive are counted toward this threshold and toward the tip credit. So for a Maryland server, bartender, bellhop, or similar occupation where tips are routine, reaching more than $30 per month in tips is what places you in the tipped-employee category and allows your employer to use the special tipped-wage rules.", "quote": "Under the FLSA, a tipped employee is an employee engaged in an occupation in which they customarily and regularly receive more than $30 a month in tips.", "offset": 2188, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:57:03.355Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/maryland/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-credit-and-cash-wage", "heading": "What a tip credit is, and the cash wage underneath it", "body": "In Maryland, a tip credit lets your employer count a portion of the tips you receive toward its obligation to pay you the minimum wage. The employer pays you a direct cash wage of $3.63 per hour, and the tip credit makes up the gap between that cash wage and the full minimum wage you are owed. Under federal law, the tip credit equals the difference between the cash wage the employer pays you and the federal minimum wage, which is $7.25 per hour. In practice, this means your employer does not have to pay you the full minimum wage out of its own funds as long as your cash wage plus your tips together reach at least the minimum wage in every workweek. Your employer can only count tips you actually receive - not projected or expected tips. If the combined total of the $3.63 hourly cash wage and your tips falls short of the minimum wage in any workweek, your employer is responsible for covering the gap, which is addressed in the next section.", "quote": "An employer can take an FLSA tip credit equal to the difference between the direct wage, or the cash wage it pays directly to the tipped employee, and the federal minimum wage, which is currently $7.25 per hour.", "offset": 3054, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:57:03.355Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/maryland/2026/15-tipped-employees-flsa.txt" } }, { "key": "tips-that-fall-short", "heading": "When the tips do not get you to the minimum wage", "body": "In Maryland, if your tips combined with your employer's direct cash wage do not add up to at least the full minimum wage in any workweek, your employer must pay the shortfall out of its own pocket. The rule is calculated workweek by workweek, not averaged over a longer period. So even if you had a very good week earlier in the pay period, a slow week where tips were light still requires your employer to bring your total earnings up to the minimum wage for that particular week. This protection ensures that the risk of slow business falls on the employer rather than on you. Your employer is required to track both the cash wage it pays you and the tips you actually receive, and to verify the combined amount reaches the minimum wage before issuing your paycheck. If it does not, the employer must make up the difference - and if it fails to do so, you are owed back wages for that workweek.", "quote": "If an employee’s tips combined with the employer’s direct (or cash) wages do not equal the minimum hourly wage of $7.25 per hour in each workweek, the employer must make up the difference.", "offset": 3740, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:57:03.355Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/maryland/2026/15-tipped-employees-flsa.txt" } }, { "key": "notice-before-the-tip-credit", "heading": "The notice an employer owes you before it takes the credit", "body": "In Maryland, before your employer can take a tip credit against your wages, it must give you specific notice about the arrangement. The notice must include: the amount of the cash wage the employer is paying you; the additional amount the employer claims as a tip credit; a statement that the tip credit cannot exceed the tips you actually receive; a statement that all your tips are yours to keep except for a valid tip pooling arrangement among employees who customarily and regularly receive tips; and a statement that the tip credit will not apply unless you have been informed of all these provisions. Your employer may deliver this notice orally or in writing, but it must be provided before the tip credit is applied. If the employer fails to give you this information, it loses the right to take the tip credit altogether and must pay you the full minimum wage without counting your tips. This means that in Maryland, if your employer never told you about these tip credit provisions, you may be entitled to the full minimum wage for every hour you worked.", "quote": "Employers must provide the following information to tipped employees before taking a tip credit under the FLSA:\nthe amount of the direct (or cash) wage the employer is paying a tipped employee, which must be at least $2.13 per hour;\nthe additional amount claimed by the employer as a tip credit, which cannot exceed $5.12 (the difference between the minimum required direct (or cash) wage of $2.13 and the current minimum wage of $7.25);\nthat the tip credit claimed by the employer cannot exceed the amount of tips actually received by the tipped employee;\nthat all tips received by the tipped employee are to be retained by the employee except for a valid tip pooling arrangement limited to employees who customarily and regularly receive tips; and\nthat the tip credit will not apply to any tipped employee unless the employee has been informed of these tip credit provisions.", "offset": 3957, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:57:03.355Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/maryland/2026/15-tipped-employees-flsa.txt" } }, { "key": "state-law-most-protective", "heading": "When state law gives more than the federal rule", "body": "In Maryland, when state law and federal law set different rules for tipped employees, your employer must follow whichever standard gives you the greater protection. Maryland's minimum cash wage for tipped employees is $3.63 per hour, which is higher than the federal cash wage. Because Maryland's requirement is more protective, your employer in Maryland must pay you at least $3.63 per hour in cash wages, not the lower federal amount. Some states go further and prohibit the tip credit entirely, requiring employers to pay the full minimum wage with no credit for tips. Where that is the case, the state rule controls. The principle is straightforward: you always get the benefit of the rule that puts more money in your pocket. For Maryland tipped workers, this means the state's higher cash wage floor applies regardless of what the federal baseline says, and your employer must comply with the standard most protective to employees.", "quote": "When state law differs from the federal FLSA, an employer must comply with the standard most protective to employees.", "offset": 5070, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:57:03.355Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/maryland/2026/15-tipped-employees-flsa.txt" } }, { "key": "employers-may-not-keep-tips", "heading": "Your employer, your manager and your supervisor may not keep your tips", "body": "In Maryland, your employer, your manager, and your supervisor may not keep any portion of your tips, regardless of whether the employer takes a tip credit. This prohibition applies whether the employer tries to take your tips directly, requires you to hand them over, or attempts to funnel them through a tip pool that includes managers or supervisors. Even if your employer pays you the full minimum wage in cash and does not use a tip credit at all, your tips still belong to you. The rule covers managers and supervisors broadly - anyone whose primary duty is managing the enterprise or a department, who regularly directs the work of at least two other employees, and who has hiring or firing authority. The only exception is that a manager may keep tips given directly by a customer for service the manager personally and solely provided. For Maryland tipped workers, this means your tips are legally yours, and no one above you in the workplace can claim a share.", "quote": "Regardless of whether an employer takes a tip credit, the FLSA prohibits employers from keeping any portion of employees’ tips for any purpose, whether directly or through a tip pool.", "offset": 5521, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:57:03.355Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/maryland/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-pooling", "heading": "Which tip pools you can be made to join", "body": "In Maryland, if your employer takes a tip credit, any mandatory tip pool you are required to join must be limited to employees in occupations in which they customarily and regularly receive tips. This is known as a traditional tip pool. Eligible participants include occupations such as waiters, bellhops, counter personnel who serve customers, bussers, and service bartenders - roles where tipping is a normal and expected part of the job. Your employer may not include back-of-house workers like cooks or dishwashers in this type of pool, and may not allow managers or supervisors to participate. The employer must also notify you of any required tip pool contribution amount, may only take a tip credit for tips you ultimately retain, and may not keep any portion of the pooled tips for itself. If your employer instead pays you the full minimum wage in cash without using a tip credit, it may operate a broader pool that includes non-tipped employees. But when the tip credit is in effect in Maryland, the pool must stay within occupations where tips are customary and regular.", "quote": "An employer that takes a tip credit can require tipped employees to contribute tips only\nto a tip pool which is limited to employees in occupations in which they customarily and regularly receive tips, such as waiters, bellhops, counter personnel (who serve customers), bussers, and service bartenders.", "offset": 7444, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:57:03.355Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/maryland/2026/15-tipped-employees-flsa.txt" } }, { "key": "dual-jobs", "heading": "Doing two jobs for one employer", "body": "In Maryland, if you work two distinct jobs for the same employer - for example, as a maintenance worker and also as a server - you are a tipped employee only with respect to your employment as a server, assuming you customarily and regularly receive at least $30 a month in tips for that server work. No tip credit can be taken for your hours worked in the other occupation, such as maintenance. This means your employer must pay you at least the full minimum wage for every hour you spend doing non-tipped work, and can only apply the lower tipped cash wage and tip credit to the hours you actually spend serving. The rule prevents employers from using the tipped wage for jobs where tips are not a regular part of the compensation. This situation is different from a server who spends part of their time on related duties like cleaning tables, making coffee, or washing dishes - those are considered part of the server occupation. For Maryland workers holding dual roles at one employer, the key question is whether each role is a separate occupation, and the tip credit applies only to the tipped one.", "quote": "In such a situation the employee, if they customarily and regularly receive at least $30 a month in tips for their work as a server, is a tipped employee only with respect to their employment as a server.", "offset": 9667, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:57:03.355Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/maryland/2026/15-tipped-employees-flsa.txt" } } ], "estimate": null }, { "program": "tipped-minimum-wage", "name": "Tipped Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "massachusetts", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-30", "published_at": "2026-08-30T06:00:57.122Z", "canonical_url": "https://ratesandlimits.com/tipped-minimum-wage/massachusetts/", "figures": [ { "key": "cash-wage", "label": "Minimum cash wage", "value": 6.75, "format": "usd", "formatted": "$6.75", "scope": null, "derived": false, "quote": "Massachusetts $15.00 $8.25 $6.75 More than $20", "offset": 3949, "source": { "url": "https://www.dol.gov/agencies/whd/state/minimum-wage/tipped", "title": "Minimum Wages for Tipped Employees", "publisher": "DOL", "fetched_at": "2026-08-29T02:59:08.721Z", "sha256_text": "d9cd16d4bdbf481040de3edf63de4fc5fbcddec3e63b4b8ed3992622607bd43d", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/massachusetts/2026/tipped.txt" } } ], "schedule": null, "explainers": [ { "key": "who-is-a-tipped-employee", "heading": "Who counts as a tipped employee", "body": "In Massachusetts, a tipped employee is someone who works in an occupation where they customarily and regularly receive more than $30 a month in tips. This threshold determines whether federal and state tip credit rules apply to a worker. If an employee meets this definition, their employer may pay them the state's minimum cash wage of $6.75 per hour instead of the full state minimum wage, with the employer claiming a tip credit for the difference. The $30 monthly threshold applies to tips actually received by the employee from customers. Workers in occupations that do not customarily generate this level of tipping are not considered tipped employees under the law, and their employer must pay them the full applicable minimum wage without taking any tip credit. This definition ensures that tip credit provisions only apply to workers in occupations where customers genuinely provide tips as a regular part of the compensation structure.", "quote": "Under the FLSA, a tipped employee is an employee engaged in an occupation in which they customarily and regularly receive more than $30 a month in tips.", "offset": 2188, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:59:12.252Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/massachusetts/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-credit-and-cash-wage", "heading": "What a tip credit is, and the cash wage underneath it", "body": "In Massachusetts, the tip credit is the difference between the minimum cash wage an employer pays directly to a tipped employee and the full state minimum wage. Under Massachusetts law, an employer must pay a tipped worker at least $6.75 per hour in direct cash wages. The employer can then claim a tip credit equal to the difference between this cash wage and the full state minimum wage. Only tips actually received by the employee count when determining whether the employee qualifies as a tipped employee and when applying the tip credit. The employer must be able to show in each workweek that the employee receives enough tips plus the cash wage to equal at least the full state minimum wage. This means the employer tracks both the cash wage paid and the tips earned each week. If the combined total falls below the full state minimum wage for any workweek, the employer must add wages to make up the shortfall. This structure lets employers count employees' tips toward their minimum wage obligation while guaranteeing the worker a meaningful cash wage of at least $6.75 per hour and ensuring the total always reaches the full state minimum.", "quote": "An employer can take an FLSA tip credit equal to the difference between the direct wage, or the cash wage it pays directly to the tipped employee, and the federal minimum wage, which is currently $7.25 per hour.", "offset": 3054, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:59:12.252Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/massachusetts/2026/15-tipped-employees-flsa.txt" } }, { "key": "tips-that-fall-short", "heading": "When the tips do not get you to the minimum wage", "body": "In Massachusetts, employers claiming a tip credit must be able to show in each workweek that tipped employees receive at least the full state minimum wage when the direct cash wages and the tip credit amount are combined. If an employee's tips combined with the employer's direct cash wages do not equal the full state minimum wage in any given workweek, the employer must make up the difference. This is a strict per-workweek requirement. The employer cannot average tips across multiple weeks or shift shortfall amounts forward. For example, if the employer pays the minimum cash wage of $6.75 per hour and the employee's tips for a particular week are low, the total may fall short of the full state minimum wage for that week. When that happens, the employer is legally obligated to add enough wages to close the gap. This protection ensures that tipped employees in Massachusetts never earn less than the full state minimum wage in any workweek, regardless of fluctuations in tip income. The burden of tracking and making up any shortfall falls entirely on the employer.", "quote": "If an employee’s tips combined with the employer’s direct (or cash) wages do not equal the minimum hourly wage of $7.25 per hour in each workweek, the employer must make up the difference.", "offset": 3740, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:59:12.252Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/massachusetts/2026/15-tipped-employees-flsa.txt" } }, { "key": "notice-before-the-tip-credit", "heading": "The notice an employer owes you before it takes the credit", "body": "In Massachusetts, employers must provide the following information to tipped employees before taking a tip credit: the amount of the direct cash wage the employer is paying, which must be at least $6.75 per hour under state law; the additional amount claimed by the employer as a tip credit; that the tip credit claimed cannot exceed the amount of tips actually received by the employee; that all tips received by the employee are to be retained by them except for a valid tip pooling arrangement limited to employees who customarily and regularly receive tips; and that the tip credit will not apply unless the employee has been informed of these provisions. Employers may provide this notice orally or in writing. An employer that fails to provide this required information cannot take the tip credit at all. This notice requirement ensures that tipped employees in Massachusetts are fully informed about their wages and tip rights before their employer reduces their cash wage below the full state minimum wage.", "quote": "Employers must provide the following information to tipped employees before taking a tip credit under the FLSA:\nthe amount of the direct (or cash) wage the employer is paying a tipped employee, which must be at least $2.13 per hour;\nthe additional amount claimed by the employer as a tip credit, which cannot exceed $5.12 (the difference between the minimum required direct (or cash) wage of $2.13 and the current minimum wage of $7.25);\nthat the tip credit claimed by the employer cannot exceed the amount of tips actually received by the tipped employee;\nthat all tips received by the tipped employee are to be retained by the employee except for a valid tip pooling arrangement limited to employees who customarily and regularly receive tips; and\nthat the tip credit will not apply to any tipped employee unless the employee has been informed of these tip credit provisions.", "offset": 3957, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:59:12.252Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/massachusetts/2026/15-tipped-employees-flsa.txt" } }, { "key": "state-law-most-protective", "heading": "When state law gives more than the federal rule", "body": "In Massachusetts, when state law differs from the federal FLSA, an employer must comply with the standard most protective to employees. This means that if Massachusetts provides a higher cash wage, a higher overall minimum wage, or additional protections beyond what the federal rules require, the employer must follow the Massachusetts standard. For example, Massachusetts requires employers to pay tipped workers a minimum cash wage of $6.75 per hour, which is more protective than the federal floor. Under this rule, Massachusetts employers must pay that higher state amount rather than the lower federal figure. The same principle applies if Massachusetts prohibits the taking of a tip credit in certain circumstances, provides broader protections for tip pooling, or imposes additional notice requirements. Workers in Massachusetts are entitled to whichever set of rules—state or federal—gives them the greater wage or the stronger protection. Employers cannot choose the less protective standard simply because it happens to be allowed under one layer of law when another layer offers more.", "quote": "When state law differs from the federal FLSA, an employer must comply with the standard most protective to employees.", "offset": 5070, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:59:12.252Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/massachusetts/2026/15-tipped-employees-flsa.txt" } }, { "key": "employers-may-not-keep-tips", "heading": "Your employer, your manager and your supervisor may not keep your tips", "body": "In Massachusetts, regardless of whether an employer takes a tip credit, the law prohibits employers from keeping any portion of employees' tips for any purpose, whether directly or through a tip pool. An employer may not require an employee to hand over their tips to the employer, a supervisor, or a manager. This protection holds even when a tipped employee receives at least the full state minimum wage per hour in direct wages and the employer takes no tip credit at all. The prohibition also covers managers and supervisors, who include anyone whose primary duty is managing the enterprise or a department, who regularly directs the work of at least two full-time employees, and who has hiring or firing authority or whose recommendations carry particular weight. Business owners who hold a bona fide equity interest and are actively engaged in management are similarly barred from keeping employees' tips. A manager or supervisor may keep only tips received directly from customers for service they personally and solely provide. This ensures that all tips earned by Massachusetts workers through their labor stay with them.", "quote": "Regardless of whether an employer takes a tip credit, the FLSA prohibits employers from keeping any portion of employees’ tips for any purpose, whether directly or through a tip pool.", "offset": 5521, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:59:12.252Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/massachusetts/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-pooling", "heading": "Which tip pools you can be made to join", "body": "In Massachusetts, when an employer takes a tip credit, it can require tipped employees to contribute tips only to a tip pool which is limited to employees in occupations in which they customarily and regularly receive tips. This is known as a traditional tip pool. Examples of eligible occupations include waiters, bellhops, counter personnel who serve customers, bussers, and service bartenders. The employer cannot include managers, supervisors, or back-of-house workers like dishwashers or cooks in a traditional tip pool. An employer that implements a traditional tip pool must notify tipped employees of any required tip pool contribution amount. The employer may only take a tip credit for tips each tipped employee ultimately receives after the pool distribution. The employer may not retain any of the employees' tips for any other purpose and may not allow managers and supervisors to receive tips from the pool. This rule ensures that tip pooling arrangements when a tip credit is taken are restricted to front-of-house workers who traditionally depend on tips as part of their compensation in Massachusetts.", "quote": "An employer that takes a tip credit can require tipped employees to contribute tips only\nto a tip pool which is limited to employees in occupations in which they customarily and regularly receive tips, such as waiters, bellhops, counter personnel (who serve customers), bussers, and service bartenders.", "offset": 7444, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:59:12.252Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/massachusetts/2026/15-tipped-employees-flsa.txt" } }, { "key": "dual-jobs", "heading": "Doing two jobs for one employer", "body": "In Massachusetts, when an employee works in a dual job situation—such as a hotel maintenance person who also serves as a server—the employee is a tipped employee only with respect to their employment as a server if they customarily and regularly receive at least $30 a month in tips for that work. The worker is employed in two separate occupations, and no tip credit can be taken for their hours worked in their other occupation, such as maintenance. This means the employer must pay the full state minimum wage for all hours the employee spends working in the non-tipped occupation. The employer may only apply the tip credit to hours the employee spends working as a server. This situation is different from a server who spends part of their time performing related duties like cleaning tables, toasting bread, or washing dishes, which are considered part of the server occupation. The dual job rule ensures that Massachusetts workers who perform substantially different jobs for the same employer receive proper compensation for each role, with the tip credit applying only to the tipped occupation.", "quote": "In such a situation the employee, if they customarily and regularly receive at least $30 a month in tips for their work as a server, is a tipped employee only with respect to their employment as a server.", "offset": 9667, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:59:12.252Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/massachusetts/2026/15-tipped-employees-flsa.txt" } } ], "estimate": null }, { "program": "tipped-minimum-wage", "name": "Tipped Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "michigan", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-30", "published_at": "2026-08-30T06:00:47.975Z", "canonical_url": "https://ratesandlimits.com/tipped-minimum-wage/michigan/", "figures": [ { "key": "cash-wage", "label": "Minimum cash wage", "value": 5.49, "format": "usd", "formatted": "$5.49", "scope": null, "derived": false, "quote": "Michigan 15 $13.73 $8.24 $5.49 Not specified", "offset": 3996, "source": { "url": "https://www.dol.gov/agencies/whd/state/minimum-wage/tipped", "title": "Minimum Wages for Tipped Employees", "publisher": "DOL", "fetched_at": "2026-08-29T02:59:10.398Z", "sha256_text": "d9cd16d4bdbf481040de3edf63de4fc5fbcddec3e63b4b8ed3992622607bd43d", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/michigan/2026/tipped.txt" } } ], "schedule": null, "explainers": [ { "key": "who-is-a-tipped-employee", "heading": "Who counts as a tipped employee", "body": "In Michigan, you count as a tipped employee under federal law if your occupation is one where you customarily and regularly bring in more than $30 a month in tips. The $30 figure is a threshold for the occupation itself, not a week-by-week test: it describes the kind of work you do, not whether every single month happens to clear that line. Only tips you actually receive are counted toward this determination and toward any tip credit your employer may later claim. If you meet this definition, your employer may be permitted to pay you a lower direct cash wage and to count a portion of your tips toward its minimum-wage obligation, subject to the other rules that apply to tipped workers in Michigan. If your job does not ordinarily produce tips at that level, you are not a tipped employee for FLSA purposes and your employer must pay you the full minimum wage without relying on a tip credit.", "quote": "Under the FLSA, a tipped employee is an employee engaged in an occupation in which they customarily and regularly receive more than $30 a month in tips.", "offset": 2188, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:59:08.651Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/michigan/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-credit-and-cash-wage", "heading": "What a tip credit is, and the cash wage underneath it", "body": "In Michigan, the tip credit is the amount your employer may count from your tips toward its minimum-wage obligation. Under federal law, an employer can take a tip credit equal to the difference between the direct wage, or the cash wage it pays directly to the tipped employee, and the federal minimum wage, which is currently $7.25 per hour. Michigan's minimum cash wage for tipped employees in 2026 is $5.49, which is the direct wage your employer must hand you before any tip credit is applied. The credit itself is the gap between that cash wage and the full minimum wage your employer owes; only tips you actually receive count when determining whether you qualify as a tipped employee and when the credit is applied. Your employer must be able to show that, in every workweek, your cash wages plus the tip credit amount together reach at least the full minimum wage.", "quote": "An employer can take an FLSA tip credit equal to the difference between the direct wage, or the cash wage it pays directly to the tipped employee, and the federal minimum wage, which is currently $7.25 per hour.", "offset": 3054, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:59:08.651Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/michigan/2026/15-tipped-employees-flsa.txt" } }, { "key": "tips-that-fall-short", "heading": "When the tips do not get you to the minimum wage", "body": "In Michigan, if your tips combined with the cash wage your employer pays you do not reach the full minimum hourly wage in a given workweek, the employer must make up the difference. This is a workweek-by-workweek test: your employer cannot average a slow week against a busy one. The rule applies whether or not your employer takes a formal tip credit on your paycheck. As a practical matter, your employer must track both the direct cash wages it pays you and the tips you actually receive, and must add to your pay whenever the two together fall short of the minimum wage for the hours you worked that week. Michigan's minimum cash wage for tipped employees in 2026 is $5.49; that cash wage is the floor your employer must meet directly, and the make-up obligation sits on top of it whenever tips are not enough to bring your total compensation up to the full minimum wage.", "quote": "If an employee’s tips combined with the employer’s direct (or cash) wages do not equal the minimum hourly wage of $7.25 per hour in each workweek, the employer must make up the difference.", "offset": 3740, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:59:08.651Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/michigan/2026/15-tipped-employees-flsa.txt" } }, { "key": "notice-before-the-tip-credit", "heading": "The notice an employer owes you before it takes the credit", "body": "In Michigan, before your employer can count your tips toward its minimum-wage obligation, it must give you specific notice. The employer must inform you of the cash wage it is paying you, the amount it is claiming as a tip credit, that the tip credit cannot exceed the tips you actually receive, that you are entitled to keep all your tips except for valid tip pool contributions, and that the tip credit will not apply unless you have been told of these provisions. The notice may be given orally or in writing. If your employer fails to give you this information, it cannot take the tip credit at all and must pay you the full minimum wage directly. Michigan's minimum cash wage for tipped employees in 2026 is $5.49; the notice requirement still applies even where state law sets a higher cash wage than the federal floor, and your employer must still explain all five elements before it can use the credit.", "quote": "Employers must provide the following information to tipped employees before taking a tip credit under the FLSA:\nthe amount of the direct (or cash) wage the employer is paying a tipped employee, which must be at least $2.13 per hour;\nthe additional amount claimed by the employer as a tip credit, which cannot exceed $5.12 (the difference between the minimum required direct (or cash) wage of $2.13 and the current minimum wage of $7.25);\nthat the tip credit claimed by the employer cannot exceed the amount of tips actually received by the tipped employee;\nthat all tips received by the tipped employee are to be retained by the employee except for a valid tip pooling arrangement limited to employees who customarily and regularly receive tips; and\nthat the tip credit will not apply to any tipped employee unless the employee has been informed of these tip credit provisions.", "offset": 3957, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:59:08.651Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/michigan/2026/15-tipped-employees-flsa.txt" } }, { "key": "state-law-most-protective", "heading": "When state law gives more than the federal rule", "body": "In Michigan, the federal rule is only the floor. When state law differs from the federal FLSA, an employer must comply with the standard most protective to employees. Some states require a higher cash wage than the federal floor or in some cases prohibit the taking of a tip credit altogether. Michigan's minimum cash wage for tipped employees in 2026 is $5.49, which is higher than the federal floor, so employers in Michigan must pay at least that amount in direct cash wages to tipped employees. If Michigan law also provides stronger protections on tip pooling, notice, or the make-up obligation, those state rules govern instead of the weaker federal versions. The \"most protective\" principle means you always get the benefit of whichever rule — state or federal — leaves you with more pay or keeps more of your tips in your pocket.", "quote": "When state law differs from the federal FLSA, an employer must comply with the standard most protective to employees.", "offset": 5070, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:59:08.651Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/michigan/2026/15-tipped-employees-flsa.txt" } }, { "key": "employers-may-not-keep-tips", "heading": "Your employer, your manager and your supervisor may not keep your tips", "body": "In Michigan, your tips belong to you, not to the business. Regardless of whether an employer takes a tip credit, the FLSA prohibits employers from keeping any portion of employees' tips for any purpose, whether directly or through a tip pool. An employer may not require an employee to give their tips to the employer, a supervisor, or a manager, even where a tipped employee receives at least the full minimum wage per hour in wages directly from the employer and the employer takes no tip credit. This rule covers owners, managers, and supervisors: none of them may take a share of what customers leave for you, and none of them may use a tip pool as a way to funnel your tips back to the business. Michigan's minimum cash wage for tipped employees in 2026 is $5.49; that cash wage is what the employer owes you directly, and the rule against keeping tips is a separate protection that prevents the employer from reclaiming any of what customers intended for you.", "quote": "Regardless of whether an employer takes a tip credit, the FLSA prohibits employers from keeping any portion of employees’ tips for any purpose, whether directly or through a tip pool.", "offset": 5521, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:59:08.651Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/michigan/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-pooling", "heading": "Which tip pools you can be made to join", "body": "In Michigan, when your employer takes a tip credit, it can require you to contribute your tips only to a pool of workers who themselves customarily and regularly receive tips. A tip pool in that situation is limited to employees in occupations in which they customarily and regularly receive tips, such as waiters, bellhops, counter personnel (who serve customers), bussers, and service bartenders. This is sometimes called a \"traditional\" tip pool. The employer must notify you of any required contribution amount, may only take a tip credit for the tips you ultimately keep after the pool is distributed, and may not retain any of the pooled tips for itself or for managers and supervisors. If your employer does not take a tip credit and instead pays you the full minimum wage directly, it has more flexibility to include non-traditionally-tipped occupations in the pool, but it still cannot let managers, supervisors, or the business itself keep a share. Michigan's minimum cash wage for tipped employees in 2026 is $5.49; if your employer pays you at that level and takes a tip credit, the traditional-pool restrictions apply.", "quote": "An employer that takes a tip credit can require tipped employees to contribute tips only\nto a tip pool which is limited to employees in occupations in which they customarily and regularly receive tips, such as waiters, bellhops, counter personnel (who serve customers), bussers, and service bartenders.", "offset": 7444, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:59:08.651Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/michigan/2026/15-tipped-employees-flsa.txt" } }, { "key": "dual-jobs", "heading": "Doing two jobs for one employer", "body": "In Michigan, when you work two distinct jobs for the same employer — for example, a hotel maintenance worker who also works shifts as a server — you are a tipped employee only with respect to the job where you customarily and regularly receive tips. The worker is employed in two occupations, and no tip credit can be taken for their hours of employment in their occupation as a maintenance person. This means your employer must pay you the full minimum wage for every hour you spend in the non-tipped job, and may only apply the lower tipped-employee cash wage to the hours you actually spend serving. Michigan's minimum cash wage for tipped employees in 2026 is $5.49 for server hours; for the maintenance hours, your employer owes you at least the full Michigan minimum wage, not the reduced tipped rate. This rule is distinct from the situation of a server who spends part of their time on related duties like cleaning tables, toasting bread, or making coffee — those are still part of the tipped occupation and the tip credit can still apply to them.", "quote": "In such a situation the employee, if they customarily and regularly receive at least $30 a month in tips for their work as a server, is a tipped employee only with respect to their employment as a server. The worker is employed in two occupations, and no tip credit can be taken for their hours of employment in their occupation as a maintenance person.", "offset": 9667, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:59:08.651Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/michigan/2026/15-tipped-employees-flsa.txt" } } ], "estimate": null }, { "program": "tipped-minimum-wage", "name": "Tipped Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "mississippi", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-30", "published_at": "2026-08-30T06:01:37.967Z", "canonical_url": "https://ratesandlimits.com/tipped-minimum-wage/mississippi/", "figures": [ { "key": "cash-wage", "label": "Minimum cash wage", "value": 2.13, "format": "usd", "formatted": "$2.13", "scope": null, "derived": false, "quote": "Mississippi 11 $7.25 $5.12 $2.13 More than $30", "offset": 5587, "source": { "url": "https://www.dol.gov/agencies/whd/state/minimum-wage/tipped", "title": "Minimum Wages for Tipped Employees", "publisher": "DOL", "fetched_at": "2026-08-29T02:59:41.823Z", "sha256_text": "d9cd16d4bdbf481040de3edf63de4fc5fbcddec3e63b4b8ed3992622607bd43d", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/mississippi/2026/tipped.txt" } } ], "schedule": null, "explainers": [ { "key": "who-is-a-tipped-employee", "heading": "Who counts as a tipped employee", "body": "In Mississippi, you count as a tipped employee under federal law if you work in an occupation where you customarily and regularly receive more than $30 a month in tips. This definition matters because it determines whether your employer can pay you the lower cash wage and use a tip credit toward its minimum wage obligation. If you do not meet this threshold—for example, if your tips average less than that amount in a typical month—you are not classified as a tipped employee for that job, and your employer must pay you the full minimum wage without relying on a tip credit. The tips must actually be received by you; projected or assumed tips do not count toward this test.", "quote": "Under the FLSA, a tipped employee is an employee engaged in an occupation in which they customarily and regularly receive more than $30 a month in tips.", "offset": 2188, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:59:09.254Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/mississippi/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-credit-and-cash-wage", "heading": "What a tip credit is, and the cash wage underneath it", "body": "When an employer in Mississippi takes a tip credit, it pays a tipped employee a direct cash wage of at least $2.13 per hour and claims a credit for the tips the employee receives, up to the gap between that cash wage and the federal minimum wage. The tip credit is equal to the difference between the direct wage the employer pays and the full minimum wage. This means the employer counts a portion of your tips toward its wage obligation rather than paying the full amount in cash. The employer must still ensure that your cash wage plus tips together reach at least the full minimum wage in every workweek. Only tips you actually received count when determining whether you qualify as a tipped employee and when applying the tip credit.", "quote": "An employer can take an FLSA tip credit equal to the difference between the direct wage, or the cash wage it pays directly to the tipped employee, and the federal minimum wage, which is currently $7.25 per hour.", "offset": 3054, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:59:09.254Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/mississippi/2026/15-tipped-employees-flsa.txt" } }, { "key": "tips-that-fall-short", "heading": "When the tips do not get you to the minimum wage", "body": "If you are a tipped employee in Mississippi and your employer takes a tip credit, federal law requires that your combined cash wage and tips equal at least the full minimum wage in every workweek. If your tips combined with the employer's direct (or cash) wages do not equal the minimum hourly wage of $7.25 per hour in each workweek, the employer must make up the difference. This means your employer cannot rely on slow weeks or bad tips to shortchange you—it is legally responsible for ensuring you receive at least $7.25 per hour in total compensation. The employer bears this obligation every single workweek; if tips fall short in any week, the employer must pay the shortfall out of its own funds. This guarantee applies regardless of whether the tips you earn happen to be generous or meager during any particular period.", "quote": "If an employee’s tips combined with the employer’s direct (or cash) wages do not equal the minimum hourly wage of $7.25 per hour in each workweek, the employer must make up the difference.", "offset": 3740, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:59:09.254Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/mississippi/2026/15-tipped-employees-flsa.txt" } }, { "key": "notice-before-the-tip-credit", "heading": "The notice an employer owes you before it takes the credit", "body": "Before an employer in Mississippi can take a tip credit, it must give you specific information about how the credit works. Employers must provide the following information to tipped employees before taking a tip credit under the FLSA: the amount of the direct (or cash) wage the employer is paying, which must be at least $2.13 per hour; the additional amount claimed as a tip credit, which cannot exceed $5.12; that the tip credit cannot exceed the tips actually received; that all your tips are to be retained by you except for valid tip pooling; and that the tip credit will not apply unless you have been informed of these provisions. The employer may give this notice orally or in writing. If the employer fails to provide all required information before taking the credit, it cannot legally claim the tip credit at all, meaning it owes you the full minimum wage for every hour worked.", "quote": "Employers must provide the following information to tipped employees before taking a tip credit under the FLSA:\nthe amount of the direct (or cash) wage the employer is paying a tipped employee, which must be at least $2.13 per hour;\nthe additional amount claimed by the employer as a tip credit, which cannot exceed $5.12 (the difference between the minimum required direct (or cash) wage of $2.13 and the current minimum wage of $7.25);", "offset": 3957, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:59:09.254Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/mississippi/2026/15-tipped-employees-flsa.txt" } }, { "key": "state-law-most-protective", "heading": "When state law gives more than the federal rule", "body": "In Mississippi, the federal Fair Labor Standards Act sets the baseline rules for tipped employees, including a cash wage of $2.13 per hour and a tip credit. However, when state law differs from the federal FLSA, an employer must comply with the standard most protective to employees. This means that if Mississippi were to enact a law requiring a higher cash wage or prohibiting the tip credit altogether, your employer would have to follow whichever rule gives you more protection—whether that comes from federal or state law. Some states require employers to pay a cash wage higher than $2.13 per hour or ban the tip credit entirely. In those cases, employees in that state receive the benefit of the more generous rule. For workers in Mississippi, the federal standards currently apply because the state has not set a higher minimum wage or a more protective tipped-employee wage rule.", "quote": "When state law differs from the federal FLSA, an employer must comply with the standard most protective to employees.", "offset": 5070, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:59:09.254Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/mississippi/2026/15-tipped-employees-flsa.txt" } }, { "key": "employers-may-not-keep-tips", "heading": "Your employer, your manager and your supervisor may not keep your tips", "body": "Under the Fair Labor Standards Act, your tips belong to you, not to your employer, your manager, or your supervisor. Regardless of whether an employer takes a tip credit, the FLSA prohibits employers from keeping any portion of employees' tips for any purpose, whether directly or through a tip pool. An employer may not require you to hand over your tips to the business, a supervisor, or a manager, even in situations where the employer pays you the full minimum wage directly and does not claim any tip credit at all. This rule applies in Mississippi just as it does everywhere in the United States. The purpose is to ensure that tips—money given by customers to reward service—stay with the workers who earned them. If an employer violates this prohibition, it has broken federal law regardless of how well it otherwise pays its workers.", "quote": "Regardless of whether an employer takes a tip credit, the FLSA prohibits employers from keeping any portion of employees’ tips for any purpose, whether directly or through a tip pool.", "offset": 5521, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:59:09.254Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/mississippi/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-pooling", "heading": "Which tip pools you can be made to join", "body": "When your employer in Mississippi takes a tip credit, the law limits which tip pools you can be required to join. An employer that takes a tip credit can require tipped employees to contribute tips only to a tip pool which is limited to employees in occupations in which they customarily and regularly receive tips, such as waiters, bellhops, counter personnel (who serve customers), bussers, and service bartenders. This is sometimes known as a \"traditional\" tip pool. The employer must notify you of any required contribution amount, may only take a tip credit for the tips you ultimately receive after the pool is distributed, and may not keep any of the pooled tips for itself. Managers and supervisors are not allowed to receive tips from such a pool. If your employer does not take a tip credit and instead pays you the full minimum wage in cash, broader tip-pooling arrangements that include back-of-house staff may be permitted, but when the tip credit is in play, the pool must stay among traditionally tipped workers.", "quote": "An employer that takes a tip credit can require tipped employees to contribute tips only\nto a tip pool which is limited to employees in occupations in which they customarily and regularly receive tips, such as waiters, bellhops, counter personnel (who serve customers), bussers, and service bartenders.", "offset": 7444, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:59:09.254Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/mississippi/2026/15-tipped-employees-flsa.txt" } }, { "key": "dual-jobs", "heading": "Doing two jobs for one employer", "body": "In Mississippi, when you hold two distinct jobs with the same employer—such as working as both a maintenance worker and a server—the tipped-employee rules apply only to the job where you actually receive tips. If you customarily and regularly receive at least $30 a month in tips for your work as a server, you are a tipped employee only with respect to your employment as a server. This means your employer may take a tip credit for the hours you spend serving but not for the hours you spend doing maintenance work. For the non-tipped hours, the employer must pay you the full minimum wage without relying on a tip credit. This rule protects you from having your employer count your tips as a credit against wages earned in a completely different occupation. It is different from situations where you spend part of your serving time on related duties like cleaning tables or making coffee—those are considered part of the same tipped occupation.", "quote": "In such a situation the employee, if they customarily and regularly receive at least $30 a month in tips for their work as a server, is a tipped employee only with respect to their employment as a server.", "offset": 9667, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:59:09.254Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/mississippi/2026/15-tipped-employees-flsa.txt" } } ], "estimate": null }, { "program": "tipped-minimum-wage", "name": "Tipped Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "missouri", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-30", "published_at": "2026-08-30T06:00:38.187Z", "canonical_url": "https://ratesandlimits.com/tipped-minimum-wage/missouri/", "figures": [ { "key": "cash-wage", "label": "Minimum cash wage", "value": 7.5, "format": "usd", "formatted": "$7.50", "scope": null, "derived": false, "quote": "Missouri $15.00 50% of the applicable minimum wage ($7.50) $7.50 Not specified", "offset": 4041, "source": { "url": "https://www.dol.gov/agencies/whd/state/minimum-wage/tipped", "title": "Minimum Wages for Tipped Employees", "publisher": "DOL", "fetched_at": "2026-08-29T02:59:12.121Z", "sha256_text": "d9cd16d4bdbf481040de3edf63de4fc5fbcddec3e63b4b8ed3992622607bd43d", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/missouri/2026/tipped.txt" } } ], "schedule": null, "explainers": [ { "key": "who-is-a-tipped-employee", "heading": "Who counts as a tipped employee", "body": "In Missouri, you count as a tipped employee under federal law if you work in an occupation where you customarily and regularly receive more than $30 a month in tips. This definition applies regardless of whether your employer pays you the full minimum wage or takes a tip credit against your wages. Only the tips you actually receive yourself are counted when determining whether you meet this threshold and when your employer calculates any tip credit. If you occasionally receive tips but not as a regular part of your job duties, or if your monthly tip total stays at or below $30, you are not considered a tipped employee for purposes of these rules and your employer must pay you the full minimum wage without using a tip credit.", "quote": "Under the FLSA, a tipped employee is an employee engaged in an occupation in which they customarily and regularly receive more than $30 a month in tips.", "offset": 2188, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:59:08.671Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/missouri/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-credit-and-cash-wage", "heading": "What a tip credit is, and the cash wage underneath it", "body": "In Missouri, a tip credit allows your employer to count a portion of the tips you receive from customers toward meeting its minimum wage obligation to you. The employer must still pay you a direct cash wage, which in Missouri is $7.50 per hour for 2026. The tip credit equals the difference between that cash wage and the full minimum wage. Your employer must be able to show each workweek that your cash wages plus your tips together equal at least the minimum wage. Only tips you actually receive count toward this calculation. If you do not receive enough tips in a given workweek to bring your total compensation up to the minimum wage when combined with your cash wage, your employer must make up the difference before your paycheck is finalized for that period.", "quote": "An employer can take an FLSA tip credit equal to the difference between the direct wage, or the cash wage it pays directly to the tipped employee, and the federal minimum wage, which is currently $7.25 per hour.", "offset": 3054, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:59:08.671Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/missouri/2026/15-tipped-employees-flsa.txt" } }, { "key": "tips-that-fall-short", "heading": "When the tips do not get you to the minimum wage", "body": "In Missouri, if your tips combined with the direct cash wage your employer pays you do not add up to at least the minimum hourly wage in any workweek, your employer must make up the difference. This is a workweek-by-workweek requirement, meaning your employer cannot average your tips across multiple weeks to avoid paying you what you are owed. The employer bears the responsibility for ensuring you receive the full minimum wage in every single workweek, regardless of how busy or slow business is. If you work a particularly slow week and your tips fall short, your employer must increase your cash pay for that week to cover the gap so that your total earnings reach the minimum wage threshold before your paycheck is issued.", "quote": "If an employee’s tips combined with the employer’s direct (or cash) wages do not equal the minimum hourly wage of $7.25 per hour in each workweek, the employer must make up the difference.", "offset": 3740, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:59:08.671Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/missouri/2026/15-tipped-employees-flsa.txt" } }, { "key": "notice-before-the-tip-credit", "heading": "The notice an employer owes you before it takes the credit", "body": "In Missouri, before your employer can take a tip credit against your wages, it must provide you with specific information about how your pay is being calculated. This notice must include the amount of the cash wage the employer is paying you, the additional amount it is claiming as a tip credit, confirmation that the tip credit cannot exceed the tips you actually receive, notice that you get to keep all your tips except for valid tip pooling arrangements, and an explanation that the tip credit will not apply unless you have been informed of these provisions. Your employer may give this notice orally or in writing. If the employer fails to provide all of this information before taking the tip credit, it loses the right to use the tip credit at all and must pay you the full minimum wage without relying on your tips to make up any portion of it.", "quote": "Employers must provide the following information to tipped employees before taking a tip credit under the FLSA:\nthe amount of the direct (or cash) wage the employer is paying a tipped employee, which must be at least $2.13 per hour;\nthe additional amount claimed by the employer as a tip credit, which cannot exceed $5.12 (the difference between the minimum required direct (or cash) wage of $2.13 and the current minimum wage of $7.25);\nthat the tip credit claimed by the employer cannot exceed the amount of tips actually received by the tipped employee;\nthat all tips received by the tipped employee are to be retained by the employee except for a valid tip pooling arrangement limited to employees who customarily and regularly receive tips; and\nthat the tip credit will not apply to any tipped employee unless the employee has been informed of these tip credit provisions.", "offset": 3957, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:59:08.671Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/missouri/2026/15-tipped-employees-flsa.txt" } }, { "key": "state-law-most-protective", "heading": "When state law gives more than the federal rule", "body": "In Missouri, when state law provides greater protections than federal law, your employer must follow whichever standard is most protective to you as an employee. This means that even though federal law sets certain baseline rules for tipped employees, Missouri law may require a higher cash wage, different notice procedures, or other additional protections that supersede the federal requirements. Your employer cannot simply follow the federal rules if Missouri law gives you more. For example, if Missouri requires employers to pay tipped employees a higher direct cash wage than federal law mandates, or if it restricts tip pooling more strictly, those state requirements control your employment situation. Always check Missouri-specific labor laws because they may provide you with stronger wage protections than the federal baseline establishes for tipped workers.", "quote": "When state law differs from the federal FLSA, an employer must comply with the standard most protective to employees.", "offset": 5070, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:59:08.671Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/missouri/2026/15-tipped-employees-flsa.txt" } }, { "key": "employers-may-not-keep-tips", "heading": "Your employer, your manager and your supervisor may not keep your tips", "body": "In Missouri, federal law prohibits employers from keeping any portion of your tips for any purpose, whether they do so directly or through a tip pool arrangement. This rule applies regardless of whether your employer takes a tip credit against your wages or pays you the full minimum wage directly. Your employer cannot require you to hand over your tips to the business, to a supervisor, or to a manager, even if you are earning at least the minimum wage through your regular pay without any tip credit being applied. The only exception is that managers and supervisors may keep tips they receive directly from customers for service they personally and solely provide to those customers, but they cannot participate in tip pools or take any portion of other employees' tips. This protection ensures that tips you earn from customers remain yours to keep, subject only to valid tip pooling arrangements with other non-management employees.", "quote": "Regardless of whether an employer takes a tip credit, the FLSA prohibits employers from keeping any portion of employees’ tips for any purpose, whether directly or through a tip pool.", "offset": 5521, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:59:08.671Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/missouri/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-pooling", "heading": "Which tip pools you can be made to join", "body": "In Missouri, if your employer takes a tip credit against your wages, you can only be required to participate in a traditional tip pool with other employees who work in occupations where they customarily and regularly receive tips. This includes positions like waiters, bussers, bellhops, counter personnel who serve customers, and service bartenders. Your employer cannot force you to share your tips with employees who do not customarily receive tips, such as cooks or dishwashers, when the employer is using a tip credit. However, if your employer pays you the full minimum wage as a direct cash wage without taking any tip credit, then different rules apply and the tip pool can include employees from non-tipped occupations as well. Your employer must notify you of any required tip pool contribution amounts and cannot retain any of the pooled tips for itself or allow managers and supervisors to participate in the pool.", "quote": "An employer that takes a tip credit can require tipped employees to contribute tips only\nto a tip pool which is limited to employees in occupations in which they customarily and regularly receive tips, such as waiters, bellhops, counter personnel (who serve customers), bussers, and service bartenders.", "offset": 7444, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:59:08.671Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/missouri/2026/15-tipped-employees-flsa.txt" } }, { "key": "dual-jobs", "heading": "Doing two jobs for one employer", "body": "In Missouri, when you work two different jobs for the same employer—one where you receive tips regularly and one where you do not—your employer can only take a tip credit for the hours you actually work in the tipped occupation. For example, if you work as both a hotel maintenance person and a server, and you customarily receive at least $30 per month in tips from your server work, you are considered a tipped employee only for your server hours. Your employer cannot apply the tip credit to your maintenance work hours, even though both jobs are with the same company. You must be paid the full minimum wage for all your non-tipped work hours. This is different from situations where you perform related duties in your tipped occupation, like a server who also cleans tables or makes coffee—those related tasks are still part of your tipped job and the tip credit can apply to them.", "quote": "In such a situation the employee, if they customarily and regularly receive at least $30 a month in tips for their work as a server, is a tipped employee only with respect to their employment as a server.", "offset": 9667, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:59:08.671Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/missouri/2026/15-tipped-employees-flsa.txt" } } ], "estimate": null }, { "program": "tipped-minimum-wage", "name": "Tipped Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "nebraska", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-09-01", "published_at": "2026-09-01T09:36:23.814Z", "canonical_url": "https://ratesandlimits.com/tipped-minimum-wage/nebraska/", "figures": [ { "key": "cash-wage", "label": "Minimum cash wage", "value": 2.13, "format": "usd", "formatted": "$2.13", "scope": null, "derived": false, "quote": "Nebraska $15.00 $12.87 $2.13 Not specified", "offset": 5634, "source": { "url": "https://www.dol.gov/agencies/whd/state/minimum-wage/tipped", "title": "Minimum Wages for Tipped Employees", "publisher": "DOL", "fetched_at": "2026-08-29T02:59:43.518Z", "sha256_text": "d9cd16d4bdbf481040de3edf63de4fc5fbcddec3e63b4b8ed3992622607bd43d", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/nebraska/2026/tipped.txt" } } ], "schedule": null, "explainers": [ { "key": "tip-pooling", "heading": "Which tip pools you can be made to join", "body": "In Nebraska, when an employer pays the minimum cash wage of $2.13 and takes a tip credit toward the state minimum wage, the employer can require tipped workers to contribute a portion of their tips to a shared tip pool. However, federal rules restrict who can participate in that pool. The tip pool must be limited to employees in occupations in which they customarily and regularly receive tips. In Nebraska, this means a restaurant owner can require servers, bussers, bartenders, bellhops, and counter staff to share tips with each other, but cannot require those workers to share their tips with cooks, dishwashers, janitors, or other back-of-house employees who do not customarily receive tips from customers. The employer must also notify tipped employees of the required contribution amount before the pool takes effect, and the employer cannot retain any portion of the pooled tips for itself. If Nebraska employers pay tipped workers the full minimum wage instead of taking a tip credit, different pooling rules apply that may allow broader participation.", "quote": "Traditional Tip Pooling: An employer that takes a tip credit can require tipped employees to contribute tips only\nto a tip pool which is limited to employees in occupations in which they customarily and regularly receive tips, such as waiters, bellhops, counter personnel (who serve customers), bussers, and service bartenders.", "offset": 7419, "verified_at": "2026-09-01", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:26:47.564Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/nebraska/2026/15-tipped-employees-flsa.txt" } }, { "key": "who-is-a-tipped-employee", "heading": "Who counts as a tipped employee", "body": "In Nebraska, you count as a tipped employee under federal law if you work in an occupation where you customarily and regularly receive more than $30 a month in tips. This definition matters because it determines whether your employer is allowed to pay you the lower cash wage and take a tip credit against its minimum wage obligation. If you do not meet this threshold—for example, if you work in a role where tips are occasional or small—you are entitled to the full minimum wage from your employer, with no tip credit allowed. Only tips you actually receive count toward this calculation; tips that never reach you are not included.", "quote": "Under the FLSA, a tipped employee is an employee engaged in an occupation in which they customarily and regularly receive more than $30 a month in tips.", "offset": 2188, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:26:47.564Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/nebraska/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-credit-and-cash-wage", "heading": "What a tip credit is, and the cash wage underneath it", "body": "Nebraska employers may take a tip credit toward their minimum wage obligation for tipped employees. The tip credit equals the difference between the cash wage the employer pays directly to the tipped employee and the full minimum wage. Under federal law, the employer must pay at least $2.13 per hour in cash wages. The tip credit represents the portion of the minimum wage that the employer expects the employee to cover through tips received from customers. The employer must ensure that the employee's cash wages plus tips received equal at least the full minimum wage for each workweek. Only tips actually received by the employee count when determining whether the employee qualifies as a tipped employee and when applying the tip credit.", "quote": "An employer can take an FLSA tip credit equal to the difference between the direct wage, or the cash wage it pays directly to the tipped employee, and the federal minimum wage, which is currently $7.25 per hour.", "offset": 3054, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:26:47.564Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/nebraska/2026/15-tipped-employees-flsa.txt" } }, { "key": "tips-that-fall-short", "heading": "When the tips do not get you to the minimum wage", "body": "In Nebraska, if your tips combined with your employer's cash wages do not equal the full minimum hourly wage in any workweek, your employer must make up the difference. This rule protects you during slow periods when customer tips are low. Your employer cannot rely on an average across multiple weeks—the minimum wage requirement applies to each individual workweek. The employer is responsible for tracking your total compensation (cash wages plus tips) and ensuring it meets or exceeds the minimum wage for every workweek you work. If it falls short, your employer owes you the additional amount needed to reach the minimum wage for that week.", "quote": "If an employee’s tips combined with the employer’s direct (or cash) wages do not equal the minimum hourly wage of $7.25 per hour in each workweek, the employer must make up the difference.", "offset": 3740, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:26:47.564Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/nebraska/2026/15-tipped-employees-flsa.txt" } }, { "key": "notice-before-the-tip-credit", "heading": "The notice an employer owes you before it takes the credit", "body": "Before taking a tip credit in Nebraska, an employer must give you notice of specific information, including the amount of the direct or cash wage the employer is paying you, which must be at least $2.13 per hour. The notice must also tell you the additional amount the employer is claiming as a tip credit, that the tip credit cannot exceed the actual tips you receive, that you get to keep all your tips except for a valid tip pool, and that the tip credit will not apply unless the employer has given you this information. The employer may give this notice orally or in writing. If the employer fails to provide this required information, it cannot take the tip credit at all and must pay you the full minimum wage. This notice protects you by ensuring you understand how your pay is structured before the employer relies on your tips to meet its wage obligations.", "quote": "Employers must provide the following information to tipped employees before taking a tip credit under the FLSA:", "offset": 3957, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:26:47.564Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/nebraska/2026/15-tipped-employees-flsa.txt" } }, { "key": "state-law-most-protective", "heading": "When state law gives more than the federal rule", "body": "When Nebraska state law differs from the federal FLSA rules, employers must follow whichever standard is most protective to employees. This means if state law requires a higher cash wage than the federal amount or provides other stronger protections for tipped workers, Nebraska employers must comply with the state requirements instead of the federal minimum. Some states require employers to pay a higher cash wage than the federal floor or prohibit taking a tip credit entirely. When both federal and state rules apply, you are entitled to whichever arrangement gives you greater wage protection. This rule ensures that stronger worker protections at the state level are not undermined by weaker federal standards.", "quote": "When state law differs from the federal FLSA, an employer must comply with the standard most protective to employees.", "offset": 5070, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:26:47.564Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/nebraska/2026/15-tipped-employees-flsa.txt" } }, { "key": "employers-may-not-keep-tips", "heading": "Your employer, your manager and your supervisor may not keep your tips", "body": "In Nebraska, your employer, managers, and supervisors are prohibited from keeping any portion of your tips for any purpose, whether they take a tip credit or not. This rule applies regardless of whether the employer pays you the full minimum wage directly or uses the tip credit provision. Employers cannot require you to give your tips to them, to supervisors, or to managers. This protection extends to tip pools as well—while tip pooling is allowed under certain conditions, employers and their managers cannot participate in or take any share of the pooled tips. Your tips belong to you, and the law prevents those in authority from taking them for any reason.", "quote": "Regardless of whether an employer takes a tip credit, the FLSA prohibits employers from keeping any portion of employees’ tips for any purpose, whether directly or through a tip pool.", "offset": 5521, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:26:47.564Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/nebraska/2026/15-tipped-employees-flsa.txt" } }, { "key": "dual-jobs", "heading": "Doing two jobs for one employer", "body": "In Nebraska, when you work two different jobs for the same employer—one that is tipped and one that is not—you are considered a tipped employee only with respect to the tipped occupation. For example, if you work as both a maintenance person and a server for the same hotel, your employer can take a tip credit only for the hours you work as a server. They cannot apply the tip credit to your hours working in maintenance, even if you receive some tips while serving. The employer must pay you the full minimum wage for all hours worked in the non-tipped position. This rule prevents employers from using the tip credit to reduce wages for work in occupations that do not traditionally involve receiving tips.", "quote": "In such a situation the employee, if they customarily and regularly receive at least $30 a month in tips for their work as a server, is a tipped employee only with respect to their employment as a server.", "offset": 9667, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:26:47.564Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/nebraska/2026/15-tipped-employees-flsa.txt" } } ], "estimate": null }, { "program": "tipped-minimum-wage", "name": "Tipped Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "new-hampshire", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-09-01", "published_at": "2026-09-01T08:28:43.628Z", "canonical_url": "https://ratesandlimits.com/tipped-minimum-wage/new-hampshire/", "figures": [ { "key": "cash-wage", "label": "Minimum cash wage", "value": 3.27, "format": "usd", "formatted": "$3.27", "scope": null, "derived": false, "quote": "New Hampshire $7.25 $3.98 $3.27 More than $30", "offset": 4120, "source": { "url": "https://www.dol.gov/agencies/whd/state/minimum-wage/tipped", "title": "Minimum Wages for Tipped Employees", "publisher": "DOL", "fetched_at": "2026-08-29T02:59:13.810Z", "sha256_text": "d9cd16d4bdbf481040de3edf63de4fc5fbcddec3e63b4b8ed3992622607bd43d", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/new-hampshire/2026/tipped.txt" } } ], "schedule": null, "explainers": [ { "key": "state-law-most-protective", "heading": "When state law gives more than the federal rule", "body": "Under the federal Fair Labor Standards Act, the Department of Labor states that when state law differs from the federal FLSA, an employer must comply with the standard most protective to employees. For workers in New Hampshire, this means the more favorable rule applies. If New Hampshire law requires a higher cash wage than the federal cash wage, or if it restricts the tip credit more than the federal rule does, employers in the state must follow New Hampshire's requirements instead. For 2026, New Hampshire's minimum cash wage for tipped employees is $3.27, which is higher than the federal cash wage. Because the state figure is more protective, employers in New Hampshire must pay at least $3.27 per hour in cash wages to tipped employees. Employers can find links to the New Hampshire state labor department at https://www.dol.gov/agencies/whd/state/contacts.", "quote": "Interaction with State Laws: When state law differs from the federal FLSA, an employer must comply with the standard most protective to employees.", "offset": 5041, "verified_at": "2026-09-01", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:33:01.603Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/new-hampshire/2026/15-tipped-employees-flsa.txt" } }, { "key": "who-is-a-tipped-employee", "heading": "Who counts as a tipped employee", "body": "In New Hampshire, a tipped employee is someone who works in an occupation where they customarily and regularly receive more than $30 a month in tips. This $30 monthly threshold is the federal standard that determines whether the tipped-employee rules apply to you. If your tips typically fall below that amount, your employer must pay you the full minimum wage and cannot use the tip credit provisions. If your tips regularly exceed it, your employer may treat you as a tipped employee under the Fair Labor Standards Act and may apply the tip credit, subject to the other rules on this page. The determination looks at what is customary and regular in your occupation, not just a single busy month.", "quote": "Under the FLSA, a tipped employee is an employee engaged in an occupation in which they customarily and regularly receive more than $30 a month in tips.", "offset": 2188, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:33:01.603Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/new-hampshire/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-credit-and-cash-wage", "heading": "What a tip credit is, and the cash wage underneath it", "body": "New Hampshire employers may take a tip credit equal to the difference between the direct wage they pay a tipped employee and the minimum wage that applies. Under the federal Fair Labor Standards Act, the minimum cash wage an employer must pay is $3.27 per hour. The tip credit lets the employer count a portion of the tips you receive from customers toward its minimum-wage obligation, so long as your cash wage plus your tips together reach at least the required minimum hourly rate for every workweek. The employer must actually pay you the cash wage directly each pay period, and only the tips you actually receive count toward the credit. If the cash wage is lower than the required minimum, the credit cannot make up the gap.", "quote": "An employer can take an FLSA tip credit equal to the difference between the direct wage, or the cash wage it pays directly to the tipped employee, and the federal minimum wage, which is currently $7.25 per hour.", "offset": 3054, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:33:01.603Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/new-hampshire/2026/15-tipped-employees-flsa.txt" } }, { "key": "tips-that-fall-short", "heading": "When the tips do not get you to the minimum wage", "body": "In New Hampshire, if your tips combined with the cash wage your employer pays you do not reach the required minimum hourly wage in a workweek, the employer must make up the difference. This rule applies each workweek, not just on average over a pay period. Employers claiming a tip credit must be able to show that every tipped employee received at least the full minimum wage when direct wages and the tip credit amount are added together. Slow weeks, bad weather, or a light shift do not excuse the shortfall; the employer must pay the extra cash so your total compensation for that workweek meets the minimum wage floor.", "quote": "If an employee’s tips combined with the employer’s direct (or cash) wages do not equal the minimum hourly wage of $7.25 per hour in each workweek, the employer must make up the difference.", "offset": 3740, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:33:01.603Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/new-hampshire/2026/15-tipped-employees-flsa.txt" } }, { "key": "notice-before-the-tip-credit", "heading": "The notice an employer owes you before it takes the credit", "body": "Before an employer in New Hampshire can take a tip credit, it must give you specific information about how your wages and tips work. Employers must provide the following information to tipped employees before taking a tip credit under the FLSA: the amount of the direct (or cash) wage the employer is paying a tipped employee, which must be at least $2.13 per hour; the additional amount claimed by the employer as a tip credit, which cannot exceed $5.12 (the difference between the minimum required direct (or cash) wage of $2.13 and the current minimum wage of $7.25); that the tip credit claimed by the employer cannot exceed the amount of tips actually received by the tipped employee; that all tips received by the tipped employee are to be retained by the employee except for a valid tip pooling arrangement limited to employees who customarily and regularly receive tips; and that the tip credit will not apply to any tipped employee unless the employee has been informed of these tip credit provisions. The notice can be given orally or in writing. If the employer fails to provide this information, it cannot take the tip credit at all and must pay you the full minimum wage directly.", "quote": "Employers must provide the following information to tipped employees before taking a tip credit under the FLSA:\nthe amount of the direct (or cash) wage the employer is paying a tipped employee, which must be at least $2.13 per hour;\nthe additional amount claimed by the employer as a tip credit, which cannot exceed $5.12 (the difference between the minimum required direct (or cash) wage of $2.13 and the current minimum wage of $7.25);\nthat the tip credit claimed by the employer cannot exceed the amount of tips actually received by the tipped employee;\nthat all tips received by the tipped employee are to be retained by the employee except for a valid tip pooling arrangement limited to employees who customarily and regularly receive tips; and\nthat the tip credit will not apply to any tipped employee unless the employee has been informed of these tip credit provisions.", "offset": 3957, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:33:01.603Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/new-hampshire/2026/15-tipped-employees-flsa.txt" } }, { "key": "employers-may-not-keep-tips", "heading": "Your employer, your manager and your supervisor may not keep your tips", "body": "In New Hampshire, regardless of whether an employer takes a tip credit, the FLSA prohibits employers from keeping any portion of employees' tips for any purpose, whether directly or through a tip pool. This means your employer may not require you to give your tips to the employer, a supervisor, or a manager, even if you receive at least the federal minimum wage per hour in wages directly from the employer and the employer takes no tip credit. The rule applies to managers and supervisors as well as to the business itself. Your tips belong to you, and no one in a managerial or supervisory role may take a share for any reason.", "quote": "Regardless of whether an employer takes a tip credit, the FLSA prohibits employers from keeping any portion of employees’ tips for any purpose, whether directly or through a tip pool.", "offset": 5521, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:33:01.603Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/new-hampshire/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-pooling", "heading": "Which tip pools you can be made to join", "body": "In New Hampshire, an employer that takes a tip credit can require you to contribute tips only to a tip pool which is limited to employees in occupations in which they customarily and regularly receive tips. This means a traditional tip pool can only include workers like waiters, bellhops, counter personnel who serve customers, bussers, and service bartends—people whose jobs regularly involve receiving tips. The employer cannot include back-of-house workers like cooks or dishwashers in a tip pool if the employer is taking a tip credit. The employer must notify tipped employees of any required tip pool contribution amount, may only take a tip credit for tips each tipped employee ultimately receives after the pool distribution, and may not retain any of the employees' tips in the pool. This rule ensures that tip pooling under a tip credit arrangement stays within the group of workers who traditionally rely on customer tips as part of their compensation.", "quote": "Traditional Tip Pooling: An employer that takes a tip credit can require tipped employees to contribute tips only\nto a tip pool which is limited to employees in occupations in which they customarily and regularly receive tips, such as waiters, bellhops, counter personnel (who serve customers), bussers, and service bartenders.", "offset": 7419, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:33:01.603Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/new-hampshire/2026/15-tipped-employees-flsa.txt" } }, { "key": "dual-jobs", "heading": "Doing two jobs for one employer", "body": "In New Hampshire, when you work two jobs for the same employer, the dual-job rule determines when your employer can take a tip credit. For example, if you work as a maintenance person at a hotel and also as a server, and you customarily and regularly receive at least $30 a month in tips for your server work, you are a tipped employee only with respect to your employment as a server. Your employer can take the tip credit for your server hours but not for your maintenance hours. The tip credit cannot be applied to time you spend in an occupation where you do not customarily and regularly receive tips. This protects you from having your non-tipped work subsidized by customer tips.", "quote": "In such a situation the employee, if they customarily and regularly receive at least $30 a month in tips for their work as a server, is a tipped employee only with respect to their employment as a server.", "offset": 9667, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:33:01.603Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/new-hampshire/2026/15-tipped-employees-flsa.txt" } } ], "estimate": null }, { "program": "tipped-minimum-wage", "name": "Tipped Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "new-jersey", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-30", "published_at": "2026-08-30T06:32:59.451Z", "canonical_url": "https://ratesandlimits.com/tipped-minimum-wage/new-jersey/", "figures": [ { "key": "cash-wage", "label": "Minimum cash wage", "value": 6.05, "format": "usd", "formatted": "$6.05", "scope": null, "derived": false, "quote": "New Jersey 6 $15.92 $9.87 $6.05 More than $30", "offset": 4166, "source": { "url": "https://www.dol.gov/agencies/whd/state/minimum-wage/tipped", "title": "Minimum Wages for Tipped Employees", "publisher": "DOL", "fetched_at": "2026-08-29T02:59:15.543Z", "sha256_text": "d9cd16d4bdbf481040de3edf63de4fc5fbcddec3e63b4b8ed3992622607bd43d", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/new-jersey/2026/tipped.txt" } } ], "schedule": null, "explainers": [ { "key": "who-is-a-tipped-employee", "heading": "Who counts as a tipped employee", "body": "Under federal law, a tipped employee in New Jersey is anyone engaged in an occupation where they customarily and regularly receive more than $30 a month in tips. This threshold determines whether your employer can use the tip credit rules at all. If you earn tips but they average $30 or less per month, you are not classified as a tipped employee for that job, and the full minimum wage rules apply to you instead. Only tips you actually receive count toward this determination — tips kept by the employer, manager, or supervisor do not count.", "quote": "Under the FLSA, a tipped employee is an employee engaged in an occupation in which they customarily and regularly receive more than $30 a month in tips.", "offset": 2188, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:31:05.340Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/new-jersey/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-credit-and-cash-wage", "heading": "What a tip credit is, and the cash wage underneath it", "body": "In New Jersey, the federal tip credit is the gap between the cash wage your employer pays you directly and the full minimum wage you are owed. Your employer pays you $6.05 per hour in cash, and then counts some of your tips as making up the rest. The tip credit cannot exceed what you actually earned in tips during the workweek — if your tips fall short, the credit shrinks accordingly. This means the tip credit is not a fixed amount that comes off the top; it is limited by what you actually brought in. Employers must be able to show, each workweek, that your cash wage plus the tip credit together equal at least the minimum wage. Only tips you actually received count toward the credit.", "quote": "An employer can take an FLSA tip credit equal to the difference between the direct wage, or the cash wage it pays directly to the tipped employee, and the federal minimum wage, which is currently $7.25 per hour.", "offset": 3054, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:31:05.340Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/new-jersey/2026/15-tipped-employees-flsa.txt" } }, { "key": "tips-that-fall-short", "heading": "When the tips do not get you to the minimum wage", "body": "In New Jersey, if your cash wage plus your tips fall short of the full minimum wage in any workweek, your employer must pay the difference. This guarantee applies every week, not just on average across a pay period. For example, if your employer pays you the minimum cash wage of $6.05 per hour and your tips in a particular week are unusually low, your total earnings for that week might not reach the required minimum hourly rate. When that happens, the employer cannot simply wait for a busier week to make up for it—the shortfall must be covered in the same workweek it occurred. This rule ensures that tipped employees in New Jersey never receive less than the full minimum wage for any week of work, regardless of how generous or sparse customer tips happen to be.", "quote": "If an employee’s tips combined with the employer’s direct (or cash) wages do not equal the minimum hourly wage of $7.25 per hour in each workweek, the employer must make up the difference.", "offset": 3740, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:31:05.340Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/new-jersey/2026/15-tipped-employees-flsa.txt" } }, { "key": "notice-before-the-tip-credit", "heading": "The notice an employer owes you before it takes the credit", "body": "In New Jersey, before your employer can take a tip credit against the wages it owes you, it must give you specific written or oral notice covering five items: the cash wage the employer is paying you, the amount it claims as a tip credit, the fact that the tip credit cannot exceed the tips you actually receive, your right to keep all your tips except for valid tip pooling contributions, and the fact that the credit will not apply unless you have been informed of all these provisions. This notice must come before the employer begins using the tip credit—not after the fact and not buried in an employee handbook you never see. If the employer fails to give you this notice, it loses the right to take the tip credit at all and must pay you the full minimum wage in cash without counting any of your tips toward that obligation.", "quote": "Employers must provide the following information to tipped employees before taking a tip credit under the FLSA:", "offset": 3957, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:31:05.340Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/new-jersey/2026/15-tipped-employees-flsa.txt" } }, { "key": "state-law-most-protective", "heading": "When state law gives more than the federal rule", "body": "In New Jersey, when the state's own tipped-employee rules are more favorable to workers than the federal FLSA rules, employers must follow whichever standard gives you greater protection. For example, New Jersey requires a minimum cash wage of $6.05 per hour for tipped employees, which is significantly higher than the federal cash wage floor. If a federal provision would let an employer pay you less in cash, but New Jersey law requires a higher cash wage, the employer must comply with the New Jersey rule. The same principle applies if state law prohibits the tip credit entirely or sets stricter conditions on tip pooling. In practice, New Jersey tipped workers are entitled to whichever combination of rules—state or federal—results in higher pay and stronger protections.", "quote": "When state law differs from the federal FLSA, an employer must comply with the standard most protective to employees.", "offset": 5070, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:31:05.340Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/new-jersey/2026/15-tipped-employees-flsa.txt" } }, { "key": "employers-may-not-keep-tips", "heading": "Your employer, your manager and your supervisor may not keep your tips", "body": "In New Jersey, your employer, your manager, and your supervisor may never take any portion of your tips, no matter what. This rule applies regardless of whether the employer uses a tip credit or pays you the full minimum wage in cash. Employers cannot require you to hand over tips to them, to a supervisor, or to a manager. They also cannot use a tip pool as a way to funnel your tips to management. This protection is absolute: even if your employer pays you well above the minimum wage and never takes a tip credit, your tips still belong to you. If a manager or supervisor receives money from your tips—whether directly or through a shared pool—the employer has violated the law and owes you the full amount that was improperly kept.", "quote": "Regardless of whether an employer takes a tip credit, the FLSA prohibits employers from keeping any portion of employees’ tips for any purpose, whether directly or through a tip pool.", "offset": 5521, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:31:05.340Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/new-jersey/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-pooling", "heading": "Which tip pools you can be made to join", "body": "In New Jersey, if your employer takes a tip credit, it can require you to participate in a tip pool, but only a traditional one. A traditional tip pool is limited to employees in occupations where they customarily and regularly receive tips—such as waiters, bellhops, counter staff, bussers, and service bartenders. Your employer cannot force you to share tips with employees who do not work in tipped occupations, like dishwashers or cooks, if the employer is using the tip credit. If the employer wants to create a nontraditional pool that includes back-of-house workers who are not customarily tipped, it must pay all employees in the pool the full minimum wage in cash without taking any tip credit. In either type of pool, managers and supervisors are never allowed to receive any share of the pooled tips.", "quote": "Traditional Tip Pooling: An employer that takes a tip credit can require tipped employees to contribute tips only\nto a tip pool which is limited to employees in occupations in which they customarily and regularly receive tips", "offset": 7419, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:31:05.340Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/new-jersey/2026/15-tipped-employees-flsa.txt" } }, { "key": "dual-jobs", "heading": "Doing two jobs for one employer", "body": "In New Jersey, if you work two completely separate jobs for the same employer—like a hotel maintenance worker who also serves as a server during other shifts—you are a tipped employee only with respect to the job where you customarily and regularly receive tips. Your employer can apply the tip credit only to the hours you spend in the tipped occupation, not to the hours you spend doing non-tipped work. For example, no tip credit can be taken for your hours spent on maintenance duties, even if you are also a tipped server during other shifts. This is different from performing related duties within a single tipped occupation, such as a server who also cleans tables or makes coffee—those tasks are part of the tipped job and the tip credit can still apply to them.", "quote": "In such a situation the employee, if they customarily and regularly receive at least $30 a month in tips for their work as a server, is a tipped employee only with respect to their employment as a server.", "offset": 9667, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:31:05.340Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/new-jersey/2026/15-tipped-employees-flsa.txt" } } ], "estimate": null }, { "program": "tipped-minimum-wage", "name": "Tipped Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "new-mexico", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-30", "published_at": "2026-08-30T06:31:03.283Z", "canonical_url": "https://ratesandlimits.com/tipped-minimum-wage/new-mexico/", "figures": [ { "key": "cash-wage", "label": "Minimum cash wage", "value": 3, "format": "usd", "formatted": "$3", "scope": null, "derived": false, "quote": "New Mexico $12.00 $9.00 $3.00 More than $30", "offset": 4212, "source": { "url": "https://www.dol.gov/agencies/whd/state/minimum-wage/tipped", "title": "Minimum Wages for Tipped Employees", "publisher": "DOL", "fetched_at": "2026-08-29T02:59:17.221Z", "sha256_text": "d9cd16d4bdbf481040de3edf63de4fc5fbcddec3e63b4b8ed3992622607bd43d", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/new-mexico/2026/tipped.txt" } } ], "schedule": null, "explainers": [ { "key": "who-is-a-tipped-employee", "heading": "Who counts as a tipped employee", "body": "In New Mexico, you are considered a tipped employee under federal law if you work in an occupation where you customarily and regularly receive more than $30 a month in tips. This threshold matters because it determines whether your employer is allowed to pay you the lower tipped minimum wage and apply a tip credit toward its minimum wage obligation. Only the tips you actually receive from customers count toward this calculation — tips held by the employer or passed through a pool to someone else do not qualify. If your role regularly brings in more than $30 per month in customer tips, your employer may treat you as a tipped employee for purposes of the Fair Labor Standards Act. If your tips fall below that amount, or if your occupation is not one where tips are customary and regular, you are entitled to the full minimum wage without any tip credit being applied.", "quote": "Under the FLSA, a tipped employee is an employee engaged in an occupation in which they customarily and regularly receive more than $30 a month in tips.", "offset": 2188, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:29:28.506Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/new-mexico/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-credit-and-cash-wage", "heading": "What a tip credit is, and the cash wage underneath it", "body": "In New Mexico, the tip credit is the amount your employer subtracts from the regular minimum wage, claiming your customers' tips cover the gap. Under federal law, an employer may take a tip credit equal to the difference between the direct wage it pays you in cash and the minimum wage. New Mexico requires employers to pay a minimum cash wage of $3 per hour to tipped employees. That means the tip credit an employer can claim is the difference between that $3 cash wage and the full minimum wage. Your employer must still be able to show that your cash wage plus the tips you actually received add up to at least the minimum wage in every workweek. Only tips you personally received from customers can be counted toward the tip credit — tips held by the employer or sent elsewhere do not qualify. If your combined cash wages and tips fall short in any workweek, your employer owes you the balance.", "quote": "An employer can take an FLSA tip credit equal to the difference between the direct wage, or the cash wage it pays directly to the tipped employee, and the federal minimum wage, which is currently $7.25 per hour.", "offset": 3054, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:29:28.506Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/new-mexico/2026/15-tipped-employees-flsa.txt" } }, { "key": "tips-that-fall-short", "heading": "When the tips do not get you to the minimum wage", "body": "In New Mexico, if your tips combined with the cash wage your employer pays you do not add up to the minimum hourly wage in a given workweek, the employer must make up the difference. This guarantee applies every single workweek — not averaged over a pay period or a month. Your employer cannot rely on a slow week being balanced by a busy one; each workweek stands on its own. The employer's obligation is to ensure you receive at least the full minimum wage when its direct cash wages and the tip credit amount are combined. If your tips fall short for any reason — slow season, fewer customers, or any other cause — the employer is responsible for paying the remaining amount out of its own pocket so that your total compensation reaches the required hourly minimum for every hour you worked that week.", "quote": "If an employee’s tips combined with the employer’s direct (or cash) wages do not equal the minimum hourly wage of $7.25 per hour in each workweek, the employer must make up the difference.", "offset": 3740, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:29:28.506Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/new-mexico/2026/15-tipped-employees-flsa.txt" } }, { "key": "notice-before-the-tip-credit", "heading": "The notice an employer owes you before it takes the credit", "body": "In New Mexico, before your employer is allowed to take a tip credit against your wages, it must give you specific notice about how the credit works. Employers must provide the following information to tipped employees before taking a tip credit: the amount of the direct cash wage the employer is paying you; the additional amount it is claiming as a tip credit; the fact that the credit cannot exceed the tips you actually received; that all tips you receive are yours to keep except for a valid tip pool limited to employees who customarily and regularly receive tips; and that the tip credit will not apply unless you have been told of these rules. The employer may give this notice orally or in writing. If the employer fails to provide all of this information before claiming the credit, it loses the right to use the tip credit entirely and must pay you the full minimum wage.", "quote": "Employers must provide the following information to tipped employees before taking a tip credit under the FLSA:\nthe amount of the direct (or cash) wage the employer is paying a tipped employee, which must be at least $2.13 per hour;\nthe additional amount claimed by the employer as a tip credit, which cannot exceed $5.12 (the difference between the minimum required direct (or cash) wage of $2.13 and the current minimum wage of $7.25);\nthat the tip credit claimed by the employer cannot exceed the amount of tips actually received by the tipped employee;\nthat all tips received by the tipped employee are to be retained by the employee except for a valid tip pooling arrangement limited to employees who customarily and regularly receive tips; and\nthat the tip credit will not apply to any tipped employee unless the employee has been informed of these tip credit provisions.", "offset": 3957, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:29:28.506Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/new-mexico/2026/15-tipped-employees-flsa.txt" } }, { "key": "state-law-most-protective", "heading": "When state law gives more than the federal rule", "body": "In New Mexico, when state law provides greater protection to workers than the federal Fair Labor Standards Act, employers must follow whichever standard is most protective to employees. This means you are always entitled to the better of the two rules — whether that is a higher cash wage, a smaller tip credit, or no tip credit at all. For example, some states require employers to pay a cash wage higher than the federal floor, and some states ban tip credits entirely. In New Mexico, the minimum cash wage for tipped employees is $3 per hour, which is higher than the federal cash wage, so employers here must pay at least that amount. If a future state rule further raises the cash wage or limits the tip credit, New Mexico employers must comply with the more generous standard. You are entitled to whichever version of the law — federal or state — puts more money in your pocket.", "quote": "When state law differs from the federal FLSA, an employer must comply with the standard most protective to employees.", "offset": 5070, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:29:28.506Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/new-mexico/2026/15-tipped-employees-flsa.txt" } }, { "key": "employers-may-not-keep-tips", "heading": "Your employer, your manager and your supervisor may not keep your tips", "body": "In New Mexico, regardless of whether your employer takes a tip credit, the FLSA prohibits employers from keeping any portion of employees' tips for any purpose, whether directly or through a tip pool. Your tips belong to you. An employer may not require you to hand your tips over to the business, a manager, or a supervisor — even if the employer pays you the full minimum wage in cash and takes no tip credit at all. This protection covers managers and supervisors, defined as employees whose primary duty is managing the enterprise or a recognized department, who regularly direct the work of at least two full-time employees, and who have hiring or firing authority. Business owners who hold a significant equity stake and are actively engaged in management are also treated as supervisors who may not keep your tips. A manager or supervisor may keep only tips they receive directly from a customer for service the manager personally provided.", "quote": "Regardless of whether an employer takes a tip credit, the FLSA prohibits employers from keeping any portion of employees’ tips for any purpose, whether directly or through a tip pool.", "offset": 5521, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:29:28.506Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/new-mexico/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-pooling", "heading": "Which tip pools you can be made to join", "body": "In New Mexico, when your employer takes a tip credit, it can require you to participate in a tip pool, but that pool is limited to employees in occupations in which they customarily and regularly receive tips. These are sometimes called \"traditional\" tip pools. Eligible participants typically include waiters, bellhops, counter personnel who serve customers, bussers, and service bartenders — workers whose roles regularly bring in customer tips. The employer may not include managers, supervisors, or itself in the pool, and it may not retain any of the pooled tips for any other purpose. The employer must also notify you of the required contribution amount and may only take a tip credit based on the tips you ultimately receive after the pool is distributed. If the employer instead pays all workers the full minimum wage in cash, without taking a tip credit, it may include non-tipped employees such as cooks and dishwashers in the pool, but it still may not keep any tips or let managers and supervisors participate.", "quote": "An employer that takes a tip credit can require tipped employees to contribute tips only\nto a tip pool which is limited to employees in occupations in which they customarily and regularly receive tips, such as waiters, bellhops, counter personnel (who serve customers), bussers, and service bartenders.", "offset": 7444, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:29:28.506Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/new-mexico/2026/15-tipped-employees-flsa.txt" } }, { "key": "dual-jobs", "heading": "Doing two jobs for one employer", "body": "In New Mexico, if you work two separate jobs for the same employer — for example, as a maintenance worker and also as a server — you are a tipped employee only with respect to their employment as a server, provided you customarily and regularly receive at least $30 a month in tips from your server work. Your employer cannot take a tip credit for the hours you spend working as a maintenance person or in any other non-tipped occupation. For those non-tipped hours, you must be paid the full minimum wage. This rule is distinct from situations where a server performs related duties like cleaning tables, toasting bread, or making coffee — those tasks are considered part of the tipped occupation itself and do not trigger the dual-job rule. The key distinction is whether you are performing work in a genuinely separate occupation that is not a tipped one. When you are, your employer must pay you the full minimum wage for every hour you spend in that role.", "quote": "In such a situation the employee, if they customarily and regularly receive at least $30 a month in tips for their work as a server, is a tipped employee only with respect to their employment as a server.", "offset": 9667, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:29:28.506Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/new-mexico/2026/15-tipped-employees-flsa.txt" } } ], "estimate": null }, { "program": "tipped-minimum-wage", "name": "Tipped Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "north-carolina", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-30", "published_at": "2026-08-30T06:43:44.370Z", "canonical_url": "https://ratesandlimits.com/tipped-minimum-wage/north-carolina/", "figures": [ { "key": "cash-wage", "label": "Minimum cash wage", "value": 2.13, "format": "usd", "formatted": "$2.13", "scope": null, "derived": false, "quote": "North Carolina 13 $7.25 $5.12 $2.13 More than $20", "offset": 5677, "source": { "url": "https://www.dol.gov/agencies/whd/state/minimum-wage/tipped", "title": "Minimum Wages for Tipped Employees", "publisher": "DOL", "fetched_at": "2026-08-29T02:59:45.453Z", "sha256_text": "d9cd16d4bdbf481040de3edf63de4fc5fbcddec3e63b4b8ed3992622607bd43d", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/north-carolina/2026/tipped.txt" } } ], "schedule": null, "explainers": [ { "key": "who-is-a-tipped-employee", "heading": "Who counts as a tipped employee", "body": "In North Carolina, the federal definition applies: a tipped employee is someone whose occupation regularly brings in more than $30 a month in tips. If your job in a restaurant, hotel, or similar setting means customers tip you as part of the norm, you fall under this rule. Only tips you actually receive count toward that $30 threshold and toward the tip credit your employer may claim. If your role does not customarily produce that level of tips, you are not a tipped employee under the FLSA and your employer must pay you the full minimum wage without using a tip credit. This matters in North Carolina because it determines whether your employer can pay you the lower cash wage of $2.13 per hour or must pay the full minimum wage from the start.", "quote": "Under the FLSA, a tipped employee is an employee engaged in an occupation in which they customarily and regularly receive more than $30 a month in tips.", "offset": 2188, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:41:19.954Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/north-carolina/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-credit-and-cash-wage", "heading": "What a tip credit is, and the cash wage underneath it", "body": "In North Carolina, the federal tip credit rules apply. An employer must pay a tipped worker at least $2.13 per hour in direct cash wages. On top of that, the employer can claim a tip credit equal to the difference between that cash wage and the full minimum wage. This means the employer counts a portion of the tips you receive from customers toward meeting its minimum wage obligation. The maximum tip credit available is $5.12 per hour, which is the gap between the $2.13 cash wage floor and $7.25. However, only tips you actually receive count toward this calculation. Your employer must be able to show each workweek that your cash wages plus your tips together reach at least the full minimum wage. If they fall short in any workweek, the employer must add money to close the gap. The $2.13 minimum cash wage is the lowest your employer in North Carolina can pay you directly before the tip credit applies.", "quote": "An employer must pay a tipped worker at least $2.13 per hour under the FLSA. An employer can take an FLSA tip credit equal to the difference between the direct wage, or the cash wage it pays directly to the tipped employee, and the federal minimum wage, which is currently $7.25 per hour. The maximum tip credit that an employer can currently claim is $5.12 per hour: ($7.25 - $2.13 direct (or cash) wage = $5.12).", "offset": 2977, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:41:19.954Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/north-carolina/2026/15-tipped-employees-flsa.txt" } }, { "key": "tips-that-fall-short", "heading": "When the tips do not get you to the minimum wage", "body": "In North Carolina, if you are a tipped employee and your employer takes a tip credit, the employer must verify each workweek that your direct cash wages plus your tips together equal at least the full minimum wage. If your tips combined with the employer's direct cash wages do not reach the minimum hourly wage in any given workweek, the employer must make up the difference. This protection applies on a workweek-by-workweek basis, so a slow week with fewer tips cannot be averaged against a busier week. The employer bears the responsibility for ensuring the shortfall is covered; it is not optional or left to the employee to request. For workers in North Carolina receiving the $2.13 cash wage, this rule means that no matter how low your tips fall in a particular week, you are still guaranteed at least the full minimum wage for every hour you worked that week.", "quote": "If an employee’s tips combined with the employer’s direct (or cash) wages do not equal the minimum hourly wage of $7.25 per hour in each workweek, the employer must make up the difference.", "offset": 3740, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:41:19.954Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/north-carolina/2026/15-tipped-employees-flsa.txt" } }, { "key": "notice-before-the-tip-credit", "heading": "The notice an employer owes you before it takes the credit", "body": "In North Carolina, before an employer can take a tip credit, it must inform you of specific facts about how the credit works. The employer must tell you the amount of the direct cash wage it is paying you, which must be at least $2.13 per hour. It must also tell you the additional amount it is claiming as a tip credit, which cannot exceed $5.12. The employer must explain that the credit cannot exceed the tips you actually receive, that all your tips belong to you except for a valid tip pooling arrangement, and that the tip credit will not apply unless you have been told all of these things. The notice can be given orally or in writing. If the employer fails to give you this information before taking the credit, it loses the right to use the tip credit at all. This means the employer would owe you the full minimum wage for every hour you worked, regardless of the tips you received.", "quote": "Employers must provide the following information to tipped employees before taking a tip credit under the FLSA:\nthe amount of the direct (or cash) wage the employer is paying a tipped employee, which must be at least $2.13 per hour;\nthe additional amount claimed by the employer as a tip credit, which cannot exceed $5.12 (the difference between the minimum required direct (or cash) wage of $2.13 and the current minimum wage of $7.25);\nthat the tip credit claimed by the employer cannot exceed the amount of tips actually received by the tipped employee;\nthat all tips received by the tipped employee are to be retained by the employee except for a valid tip pooling arrangement limited to employees who customarily and regularly receive tips; and\nthat the tip credit will not apply to any tipped employee unless the employee has been informed of these tip credit provisions.", "offset": 3957, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:41:19.954Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/north-carolina/2026/15-tipped-employees-flsa.txt" } }, { "key": "state-law-most-protective", "heading": "When state law gives more than the federal rule", "body": "In North Carolina, when state law and the federal FLSA set different standards for tipped employees, the employer must follow whichever rule is more protective of workers. For example, if North Carolina requires a higher cash wage than the federal floor of $2.13 per hour, the employer must pay that higher amount. Similarly, if North Carolina prohibits the tip credit altogether, the employer must pay the full minimum wage without counting tips toward it. This means you should always compare North Carolina law with the federal rules to determine which gives you the greater protection. Your employer cannot pick the rule that is more favorable to the business; it must apply the one that gives you more money or better safeguards. Even though this Fact Sheet is a federal document, the principle of following the more protective standard applies to every tipped worker in North Carolina.", "quote": "When state law differs from the federal FLSA, an employer must comply with the standard most protective to employees.", "offset": 5070, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:41:19.954Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/north-carolina/2026/15-tipped-employees-flsa.txt" } }, { "key": "employers-may-not-keep-tips", "heading": "Your employer, your manager and your supervisor may not keep your tips", "body": "In North Carolina, the FLSA prohibits employers from keeping any portion of employees' tips for any purpose, whether directly or through a tip pool. This rule applies regardless of whether the employer takes a tip credit. Your employer may not require you to hand over your tips to the employer, a supervisor, or a manager, even if you receive at least the full minimum wage directly from the employer and the employer takes no tip credit at all. Managers and supervisors are broadly defined under the rule, and the prohibition extends to business owners who hold a significant equity stake and actively manage the business. A manager or supervisor may only keep tips they receive directly from a customer for service they personally and solely provided. For example, a restaurant manager who serves their own tables may keep tips from those customers but cannot participate in a tip pool to collect other employees' tips.", "quote": "Regardless of whether an employer takes a tip credit, the FLSA prohibits employers from keeping any portion of employees’ tips for any purpose, whether directly or through a tip pool. An employer may not require an employee to give their tips to the employer, a supervisor, or a manager, even where a tipped employee receives at least the federal minimum wage (currently $7.25) per hour in wages directly from the employer and the employer takes no tip credit.", "offset": 5521, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:41:19.954Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/north-carolina/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-pooling", "heading": "Which tip pools you can be made to join", "body": "In North Carolina, if your employer takes a tip credit and pays you the $2.13 cash wage, it can require you to participate in a tip pool, but that pool is limited to employees in occupations in which they customarily and regularly receive tips. This is called a traditional tip pool. Eligible participants include waiters, bellhops, counter personnel who serve customers, bussers, and service bartenders. Your employer must notify you of any required tip pool contribution amount. The employer may only take a tip credit for tips you ultimately receive after the pool distributes them. The employer itself may not receive any money from the tip pool, and managers or supervisors are also barred from participating. There is no federal limit on how much of your tips you can be required to contribute to a valid traditional tip pool. If your employer pays you the full minimum wage without taking a tip credit, different rules apply and non-tipped employees like dishwashers and cooks may also be included.", "quote": "An employer that takes a tip credit can require tipped employees to contribute tips only\nto a tip pool which is limited to employees in occupations in which they customarily and regularly receive tips, such as waiters, bellhops, counter personnel (who serve customers), bussers, and service bartenders.", "offset": 7444, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:41:19.954Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/north-carolina/2026/15-tipped-employees-flsa.txt" } }, { "key": "dual-jobs", "heading": "Doing two jobs for one employer", "body": "In North Carolina, if you work two different jobs for the same employer, such as a hotel maintenance worker who also serves as a server, you are a tipped employee only with respect to your employment as a server, assuming you customarily and regularly receive at least $30 a month in tips for that work. For the hours you work in the other occupation, such as maintenance, no tip credit can be taken by your employer. This means your employer must pay you the full minimum wage for all hours you spend performing the non-tipped occupation. The two occupations are treated separately. Your employer cannot blend the tips from your server job with your maintenance hours to justify paying you the lower cash wage across the board. This protection matters because some employers try to apply the tip credit to all hours worked by an employee who does both tipped and non-tipped work, but the law requires a clear separation between the two roles.", "quote": "In such a situation the employee, if they customarily and regularly receive at least $30 a month in tips for their work as a server, is a tipped employee only with respect to their employment as a server. The worker is employed in two occupations, and no tip credit can be taken for their hours of employment in their occupation as a maintenance person.", "offset": 9667, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:41:19.954Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/north-carolina/2026/15-tipped-employees-flsa.txt" } } ], "estimate": null }, { "program": "tipped-minimum-wage", "name": "Tipped Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "north-dakota", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-30", "published_at": "2026-08-30T06:39:39.902Z", "canonical_url": "https://ratesandlimits.com/tipped-minimum-wage/north-dakota/", "figures": [ { "key": "cash-wage", "label": "Minimum cash wage", "value": 4.86, "format": "usd", "formatted": "$4.86", "scope": null, "derived": false, "quote": "North Dakota $7.25 33% of the applicable minimum wage ($2.39) $4.86 More than $30", "offset": 4463, "source": { "url": "https://www.dol.gov/agencies/whd/state/minimum-wage/tipped", "title": "Minimum Wages for Tipped Employees", "publisher": "DOL", "fetched_at": "2026-08-29T02:59:19.019Z", "sha256_text": "d9cd16d4bdbf481040de3edf63de4fc5fbcddec3e63b4b8ed3992622607bd43d", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/north-dakota/2026/tipped.txt" } } ], "schedule": null, "explainers": [ { "key": "who-is-a-tipped-employee", "heading": "Who counts as a tipped employee", "body": "In North Dakota, an employee counts as a tipped employee under federal law if they work in an occupation where they customarily and regularly receive more than $30 a month in tips. This threshold determines whether an employer may pay the lower minimum cash wage of $4.86 rather than the full minimum wage. If the employee does not meet this monthly tip threshold, the employer must pay the regular minimum wage for all hours worked. Only tips the employee actually receives count toward this determination. The rule applies occupation by occupation, so an employee who splits time between a tipped role and a non-tipped role may be a tipped employee only for the time spent in the tipped occupation, provided that role alone produces more than $30 per month in tips.", "quote": "Under the FLSA, a tipped employee is an employee engaged in an occupation in which they customarily and regularly receive more than $30 a month in tips.", "offset": 2188, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:35:50.815Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/north-dakota/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-credit-and-cash-wage", "heading": "What a tip credit is, and the cash wage underneath it", "body": "Under the FLSA, an employer may pay a tipped employee a reduced cash wage and claim a tip credit for the gap between that cash wage and the full minimum wage of $7.25 per hour. In North Dakota, the minimum cash wage an employer must pay a tipped employee is $4.86 per hour. The tip credit covers the difference, so that the employer's direct cash payment and the employee's tips together equal at least $7.25 per hour. Only tips that the employee actually receives count when applying the tip credit. The employer must be able to show that the combined total meets the required minimum wage in every single workweek. North Dakota's cash wage requirement of $4.86 is the amount the employer must guarantee in direct wages before any tip credit is applied, and the tip credit makes up the remainder to reach $7.25.", "quote": "An employer can take an FLSA tip credit equal to the difference between the direct wage, or the cash wage it pays directly to the tipped employee, and the federal minimum wage, which is currently $7.25 per hour.", "offset": 3054, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:35:50.815Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/north-dakota/2026/15-tipped-employees-flsa.txt" } }, { "key": "tips-that-fall-short", "heading": "When the tips do not get you to the minimum wage", "body": "Employers in North Dakota who claim a tip credit must verify each workweek that their tipped employees receive at least the full minimum wage of $7.25 per hour when cash wages and tips are combined. If an employee's tips plus the employer's direct cash wages do not reach $7.25 per hour in any given workweek, the employer must make up the difference from its own funds. This obligation exists every workweek without exception, regardless of how busy or slow the business may be. A high-earning week when tips far exceed the minimum wage does not excuse a low-earning week. In North Dakota, the employer pays a minimum cash wage of $4.86 per hour. If that wage plus tips received in a particular week fall short of $7.25, the employer must add enough to bring the total up to $7.25 for each hour worked that week.", "quote": "If an employee’s tips combined with the employer’s direct (or cash) wages do not equal the minimum hourly wage of $7.25 per hour in each workweek, the employer must make up the difference.", "offset": 3740, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:35:50.815Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/north-dakota/2026/15-tipped-employees-flsa.txt" } }, { "key": "notice-before-the-tip-credit", "heading": "The notice an employer owes you before it takes the credit", "body": "Before an employer in North Dakota can take a tip credit against a tipped employee's wages, federal law requires the employer to provide specific information to that employee. The notice must include the amount of the cash wage the employer is paying, which in North Dakota must be at least $4.86 per hour; the additional amount the employer is claiming as a tip credit; a statement that the tip credit cannot exceed the tips the employee actually receives; confirmation that the employee retains all tips except for contributions to a valid tip pool; and a statement that the tip credit will not apply unless the employee has received this information. The employer may deliver this notice orally or in writing. If the employer fails to provide all of this information before taking the tip credit, it loses the right to claim the credit entirely and must pay the full minimum wage. This protects tipped workers in North Dakota by ensuring they understand how their wages are calculated.", "quote": "Employers must provide the following information to tipped employees before taking a tip credit under the FLSA:", "offset": 3957, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:35:50.815Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/north-dakota/2026/15-tipped-employees-flsa.txt" } }, { "key": "state-law-most-protective", "heading": "When state law gives more than the federal rule", "body": "When North Dakota's own labor laws set a different standard than the federal FLSA for tipped employees, the employer must follow whichever rule provides greater protection to the worker. North Dakota requires a minimum cash wage of $4.86 per hour for tipped employees. If the federal rule would allow a lower cash wage, North Dakota's higher requirement controls because it is more protective of employees. Similarly, if a state law were to prohibit the tip credit entirely, an employer in North Dakota would have to pay the full minimum wage directly rather than relying on a reduced cash wage and a tip credit. This principle means that employers in North Dakota cannot simply default to the federal minimum; they must check whether the state's wage floor, tip-credit rules, or other protections set a higher bar and comply with whichever standard benefits the employee more. The goal is to ensure that tipped workers always receive the most favorable treatment available under either set of laws.", "quote": "When state law differs from the federal FLSA, an employer must comply with the standard most protective to employees.", "offset": 5070, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:35:50.815Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/north-dakota/2026/15-tipped-employees-flsa.txt" } }, { "key": "employers-may-not-keep-tips", "heading": "Your employer, your manager and your supervisor may not keep your tips", "body": "Federal law is clear: regardless of whether an employer takes a tip credit, employers in North Dakota may not keep any portion of their employees' tips for any purpose, whether directly or through a tip pool. This prohibition applies to owners, managers, and supervisors. A manager or supervisor may not require a tipped employee to hand over tips, and they may not participate in a tip pool that would route employee tips to them. Even if the employer pays the tipped employee at least the required minimum cash wage of $4.86 per hour and takes no tip credit at all, the employer still may not retain the employee's tips. The only tips a manager or supervisor may keep are those they receive directly from a customer for service they personally and solely provided. This rule ensures that tips belong to the workers who earn them from customers, not to the businesses or their leadership in North Dakota.", "quote": "Regardless of whether an employer takes a tip credit, the FLSA prohibits employers from keeping any portion of employees’ tips for any purpose, whether directly or through a tip pool.", "offset": 5521, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:35:50.815Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/north-dakota/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-pooling", "heading": "Which tip pools you can be made to join", "body": "In North Dakota, when an employer takes a tip credit, it may require tipped employees to share their tips through a tip pool, but that pool is restricted. The pool may include only employees in occupations where they customarily and regularly receive tips. Examples include waiters, bellhops, counter staff who serve customers, bussers, and service bartenders. Non-tipped workers such as cooks, dishwashers, or janitors cannot be included in this type of pool. The employer must notify tipped employees of any required contribution amount before implementing the pool. The employer may only claim a tip credit for tips each employee ultimately retains after the pool is distributed. Importantly, the employer itself may not retain any of the tips that flow through the pool. North Dakota tipped workers should know that their employer cannot force them to share tips with back-of-house staff when the employer is using a tip credit to pay the reduced cash wage of $4.86 per hour.", "quote": "to a tip pool which is limited to employees in occupations in which they customarily and regularly receive tips, such as waiters, bellhops, counter personnel (who serve customers), bussers, and service bartenders.", "offset": 7533, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:35:50.815Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/north-dakota/2026/15-tipped-employees-flsa.txt" } }, { "key": "dual-jobs", "heading": "Doing two jobs for one employer", "body": "In North Dakota, some workers hold two different roles for the same employer — for example, a hotel maintenance worker who also works as a server. When this happens, the employee is considered a tipped employee only for the time spent in the tipped occupation, such as serving, provided they customarily and regularly receive at least $30 a month in tips from that role. For the hours worked in the other, non-tipped role — such as maintenance duties — no tip credit may be taken, and the employer must pay the full minimum wage for those hours. This means the employer must track time separately for each occupation. The tipped employee must receive at least the minimum cash wage of $4.86 per hour for the server hours and the full minimum wage for the non-tipped hours. The rule prevents employers from applying a tip credit to work that does not produce tips.", "quote": "In such a situation the employee, if they customarily and regularly receive at least $30 a month in tips for their work as a server, is a tipped employee only with respect to their employment as a server. The worker is employed in two occupations, and no tip credit can be taken for their hours of employment in their occupation as a maintenance person.", "offset": 9667, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:35:50.815Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/north-dakota/2026/15-tipped-employees-flsa.txt" } } ], "estimate": null }, { "program": "tipped-minimum-wage", "name": "Tipped Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "northern-mariana-islands", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-30", "published_at": "2026-08-30T06:03:16.047Z", "canonical_url": "https://ratesandlimits.com/tipped-minimum-wage/northern-mariana-islands/", "figures": [ { "key": "cash-wage", "label": "Minimum cash wage", "value": 2.13, "format": "usd", "formatted": "$2.13", "scope": null, "derived": false, "quote": "Commonwealth of the Northern Mariana Islands $7.25 $5.12 $2.13 More than $30", "offset": 5727, "source": { "url": "https://www.dol.gov/agencies/whd/state/minimum-wage/tipped", "title": "Minimum Wages for Tipped Employees", "publisher": "DOL", "fetched_at": "2026-08-29T02:59:47.135Z", "sha256_text": "d9cd16d4bdbf481040de3edf63de4fc5fbcddec3e63b4b8ed3992622607bd43d", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/northern-mariana-islands/2026/tipped.txt" } } ], "schedule": null, "explainers": [ { "key": "who-is-a-tipped-employee", "heading": "Who counts as a tipped employee", "body": "In the Northern Mariana Islands, the Fair Labor Standards Act defines who counts as a tipped employee for minimum wage purposes. A worker qualifies as a tipped employee if they are engaged in an occupation where they customarily and regularly receive more than $30 a month in tips. This threshold matters because it determines whether an employer in the Northern Mariana Islands can apply the special tipped wage rules, including the lower cash wage requirement. If a worker does not meet this definition—perhaps because their tips are sporadic or fall below that monthly amount—the employer must pay them the full minimum wage for all hours worked, without relying on the tip credit provisions. Only the tips the employee actually receives count toward this determination; expected or hypothetical tips do not qualify the position as tipped employment.", "quote": "Under the FLSA, a tipped employee is an employee engaged in an occupation in which they customarily and regularly receive more than $30 a month in tips.", "offset": 2188, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:01:41.825Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/northern-mariana-islands/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-credit-and-cash-wage", "heading": "What a tip credit is, and the cash wage underneath it", "body": "The Fair Labor Standards Act allows employers in the Northern Mariana Islands to take a tip credit, which reduces the direct wage they must pay tipped employees. The tip credit equals the difference between what the employer pays directly and the full minimum wage. In the Northern Mariana Islands, the minimum cash wage employers must pay is $2.13 per hour. This means the employer can credit up to $5.12 per hour of the employee's tips toward meeting the full minimum wage obligation. However, the employer must still ensure that the combination of the $2.13 cash wage plus the tip credit equals at least the required minimum wage in each workweek. The tip credit only applies to tips actually received by the employee, and the employer cannot claim a credit that exceeds what the employee actually earns in tips during the work period.", "quote": "An employer must pay a tipped worker at least $2.13 per hour under the FLSA. An employer can take an FLSA tip credit equal to the difference between the direct wage, or the cash wage it pays directly to the tipped employee, and the federal minimum wage, which is currently $7.25 per hour. The maximum tip credit that an employer can currently claim is $5.12 per hour: ($7.25 - $2.13 direct (or cash) wage = $5.12).", "offset": 2977, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:01:41.825Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/northern-mariana-islands/2026/15-tipped-employees-flsa.txt" } }, { "key": "tips-that-fall-short", "heading": "When the tips do not get you to the minimum wage", "body": "Even with a tip credit, employers in the Northern Mariana Islands have a backstop obligation: they must ensure tipped employees receive at least the full minimum wage in every workweek. If an employee's tips combined with the employer's direct cash wages do not equal the required minimum hourly wage in a given workweek, the employer must make up the difference. This protection applies week by week, so a slow period with low tips does not shift the shortfall to the worker. The employer cannot average good weeks against bad weeks or require the employee to absorb the gap. This rule ensures that the tip credit system does not leave tipped workers in the Northern Mariana Islands earning less than the minimum wage, regardless of how much customers actually leave in tips.", "quote": "If an employee’s tips combined with the employer’s direct (or cash) wages do not equal the minimum hourly wage of $7.25 per hour in each workweek, the employer must make up the difference.", "offset": 3740, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:01:41.825Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/northern-mariana-islands/2026/15-tipped-employees-flsa.txt" } }, { "key": "notice-before-the-tip-credit", "heading": "The notice an employer owes you before it takes the credit", "body": "Before an employer in the Northern Mariana Islands can take a tip credit, it must give the tipped employee specific information. The employer must tell the employee the amount of the direct cash wage being paid, which must be at least $2.13 per hour. The employer must also disclose the additional amount claimed as a tip credit, which cannot exceed $5.12, and explain that this credit cannot exceed the tips actually received. The notice must inform the employee that all tips received belong to the employee except for valid tip pool contributions, and that the tip credit will not apply unless the employee has been informed of these provisions. This notice can be oral or written, but if the employer fails to provide it, the employer loses the right to take the tip credit entirely and must pay the full minimum wage without counting tips.", "quote": "Employers must provide the following information to tipped employees before taking a tip credit under the FLSA:\nthe amount of the direct (or cash) wage the employer is paying a tipped employee, which must be at least $2.13 per hour;\nthe additional amount claimed by the employer as a tip credit, which cannot exceed $5.12 (the difference between the minimum required direct (or cash) wage of $2.13 and the current minimum wage of $7.25);", "offset": 3957, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:01:41.825Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/northern-mariana-islands/2026/15-tipped-employees-flsa.txt" } }, { "key": "state-law-most-protective", "heading": "When state law gives more than the federal rule", "body": "When federal and territorial rules differ, employers in the Northern Mariana Islands must follow whichever standard provides the greatest protection to employees. This means that if a local law requires a higher cash wage than $2.13 per hour, or imposes stricter conditions on taking a tip credit, the employer must comply with that more protective standard rather than the federal minimum. Some jurisdictions prohibit tip credits entirely or set higher direct wage floors, and in those cases the federal rules do not override the local requirements. For workers in the Northern Mariana Islands, this interaction principle ensures that the most favorable wage protection applies, whether it comes from federal law or from territorial or local regulations that go beyond the FLSA baseline.", "quote": "When state law differs from the federal FLSA, an employer must comply with the standard most protective to employees.", "offset": 5070, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:01:41.825Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/northern-mariana-islands/2026/15-tipped-employees-flsa.txt" } }, { "key": "employers-may-not-keep-tips", "heading": "Your employer, your manager and your supervisor may not keep your tips", "body": "The Fair Labor Standards Act is clear: employers in the Northern Mariana Islands, including managers and supervisors, cannot keep any portion of employees' tips. This prohibition applies whether or not the employer takes a tip credit. An employer may not require a tipped employee to hand over their tips to the employer, a supervisor, or a manager, even if the employer pays the full minimum wage directly and takes no tip credit at all. The rule applies whether the employer tries to take the tips directly or attempts to do so indirectly through a tip pool arrangement. This protection ensures that tips belong to the workers who earn them from customers, and that management cannot divert those earnings for any purpose, including covering business expenses or supplementing other employees' wages.", "quote": "Regardless of whether an employer takes a tip credit, the FLSA prohibits employers from keeping any portion of employees’ tips for any purpose, whether directly or through a tip pool.", "offset": 5521, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:01:41.825Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/northern-mariana-islands/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-pooling", "heading": "Which tip pools you can be made to join", "body": "When an employer in the Northern Mariana Islands takes a tip credit, it can require tipped employees to contribute to a tip pool, but that pool must be traditional. This means the pool is limited to employees in occupations in which they customarily and regularly receive tips, such as waiters, bussers, service bartenders, bellhops, and counter personnel who serve customers. The employer cannot include workers who do not typically receive tips in the occupation, such as cooks, dishwashers, or janitors, in a traditional tip pool when taking a tip credit. The employer must notify tipped employees of any required contribution amount, can only take a tip credit for what each employee ultimately receives after the pool distribution, and cannot retain any portion of the pooled tips. This structure protects tipped workers from subsidizing back-of-house staff through mandatory contributions.", "quote": "An employer that takes a tip credit can require tipped employees to contribute tips only\nto a tip pool which is limited to employees in occupations in which they customarily and regularly receive tips, such as waiters, bellhops, counter personnel (who serve customers), bussers, and service bartenders.", "offset": 7444, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:01:41.825Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/northern-mariana-islands/2026/15-tipped-employees-flsa.txt" } }, { "key": "dual-jobs", "heading": "Doing two jobs for one employer", "body": "When an employee in the Northern Mariana Islands works two different jobs for the same employer, the tip credit rules apply only to the job where tips are regularly received. For example, if a hotel maintenance worker also works as a server and customarily receives at least $30 a month in tips for server work, that person is a tipped employee only with respect to their employment as a server. The employer cannot take a tip credit for hours worked in the maintenance occupation, where tips are not customarily received. The worker must receive at least the full minimum wage for all hours spent on non-tipped work. This dual job protection prevents employers from using the lower tipped wage for time spent in occupations that do not traditionally generate tips, ensuring that the tip credit applies narrowly to the specific tipped occupation only.", "quote": "In such a situation the employee, if they customarily and regularly receive at least $30 a month in tips for their work as a server, is a tipped employee only with respect to their employment as a server.", "offset": 9667, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:01:41.825Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/northern-mariana-islands/2026/15-tipped-employees-flsa.txt" } } ], "estimate": null }, { "program": "tipped-minimum-wage", "name": "Tipped Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "pennsylvania", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-30", "published_at": "2026-08-30T06:41:17.721Z", "canonical_url": "https://ratesandlimits.com/tipped-minimum-wage/pennsylvania/", "figures": [ { "key": "cash-wage", "label": "Minimum cash wage", "value": 2.83, "format": "usd", "formatted": "$2.83", "scope": null, "derived": false, "quote": "Pennsylvania $7.25 $4.42 $2.83 $135 per month", "offset": 4685, "source": { "url": "https://www.dol.gov/agencies/whd/state/minimum-wage/tipped", "title": "Minimum Wages for Tipped Employees", "publisher": "DOL", "fetched_at": "2026-08-29T02:59:20.702Z", "sha256_text": "d9cd16d4bdbf481040de3edf63de4fc5fbcddec3e63b4b8ed3992622607bd43d", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/pennsylvania/2026/tipped.txt" } } ], "schedule": null, "explainers": [ { "key": "who-is-a-tipped-employee", "heading": "Who counts as a tipped employee", "body": "In Pennsylvania, you are a tipped employee under federal law if you work in an occupation where you customarily and regularly receive more than $30 a month in tips. This definition matters because it determines whether your employer can pay you a lower cash wage and count your tips toward the minimum wage. If you do not meet this threshold—for example, because your tips are sporadic or your role rarely generates them—your employer must pay you the full minimum wage with no tip credit. Only the tips you actually receive count; projected or shared tips do not determine whether you qualify as a tipped employee. Once you meet the $30-a-month standard, special rules apply to how your employer pays you, what notice they must give, and how tip pools operate.", "quote": "Under the FLSA, a tipped employee is an employee engaged in an occupation in which they customarily and regularly receive more than $30 a month in tips.", "offset": 2188, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:39:42.864Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/pennsylvania/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-credit-and-cash-wage", "heading": "What a tip credit is, and the cash wage underneath it", "body": "The tip credit is the mechanism that allows Pennsylvania employers to count a portion of your tips toward their minimum wage obligation. The employer pays you a direct cash wage of $2.83 per hour, then takes a credit for the tips you receive. The tip credit equals the difference between this direct cash wage and the full minimum wage. Your employer must ensure that your cash wages plus your actual tips equal at least the full minimum wage for every workweek. Only tips you actually receive count when applying this credit, so your employer cannot claim credit for tips you never saw. The maximum tip credit they can claim depends on the difference between the cash wage they pay you and the applicable minimum wage, but regardless of how the calculation works, your total compensation must meet the minimum wage requirement in each workweek.", "quote": "An employer can take an FLSA tip credit equal to the difference between the direct wage, or the cash wage it pays directly to the tipped employee, and the federal minimum wage, which is currently $7.25 per hour.", "offset": 3054, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:39:42.864Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/pennsylvania/2026/15-tipped-employees-flsa.txt" } }, { "key": "tips-that-fall-short", "heading": "When the tips do not get you to the minimum wage", "body": "Pennsylvania employers claiming a tip credit have a legal duty to ensure you earn at least the full minimum wage in every workweek. They must calculate your total compensation by adding the cash wages they pay you directly plus the tips you actually receive from customers. If this combined amount falls short of the minimum hourly wage for any workweek, the employer must make up the difference. This means your employer cannot simply pay you the lower cash wage and hope your tips will be sufficient. They must verify each week that your total earnings meet the minimum wage requirement, and if they don't, your employer is obligated to pay you the additional amount needed to reach that threshold.", "quote": "If an employee’s tips combined with the employer’s direct (or cash) wages do not equal the minimum hourly wage of $7.25 per hour in each workweek, the employer must make up the difference.", "offset": 3740, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:39:42.864Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/pennsylvania/2026/15-tipped-employees-flsa.txt" } }, { "key": "notice-before-the-tip-credit", "heading": "The notice an employer owes you before it takes the credit", "body": "Before your Pennsylvania employer can take a tip credit, they must provide you with specific information about how the tip credit works. This notice must include the amount of the direct cash wage the employer is paying you. It must also state the additional amount the employer is claiming as a tip credit and explain that this credit cannot exceed the difference between the cash wage and the full minimum wage. The employer must inform you that the tip credit cannot exceed the actual tips you receive, and that all tips you receive belong to you unless you are required to contribute to a valid tip pool. This notice can be provided orally or in writing, but if the employer fails to give you this required information, they cannot legally claim the tip credit and must pay you the full minimum wage. Pennsylvania employers must ensure you receive this notice before they begin using the tip credit.", "quote": "Employers must provide the following information to tipped employees before taking a tip credit under the FLSA:\nthe amount of the direct (or cash) wage the employer is paying a tipped employee", "offset": 3957, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:39:42.864Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/pennsylvania/2026/15-tipped-employees-flsa.txt" } }, { "key": "state-law-most-protective", "heading": "When state law gives more than the federal rule", "body": "When Pennsylvania state law provides greater protections than federal law, employers must comply with the standard most protective to employees. This means if Pennsylvania requires a higher minimum cash wage than the federal level, or if state law restricts tip credits in ways the federal law does not, your employer must follow the Pennsylvania rule. Some states mandate a higher cash wage than the federal minimum, and others prohibit employers from taking any tip credit at all. In Pennsylvania, you are entitled to the minimum cash wage of $2.83 per hour, but if state law evolves to provide stronger protections, those protections apply to you. Your employer cannot hide behind weaker federal standards when Pennsylvania law offers you better safeguards.", "quote": "When state law differs from the federal FLSA, an employer must comply with the standard most protective to employees.", "offset": 5070, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:39:42.864Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/pennsylvania/2026/15-tipped-employees-flsa.txt" } }, { "key": "employers-may-not-keep-tips", "heading": "Your employer, your manager and your supervisor may not keep your tips", "body": "Regardless of whether your Pennsylvania employer takes a tip credit, the law prohibits employers from keeping any portion of employees' tips for any purpose. This prohibition applies whether the employer tries to take your tips directly or through a tip pool arrangement. Your employer cannot require you to hand over your tips to them, to a supervisor, or to a manager. This protection applies even if your employer pays you the full minimum wage in cash and takes no tip credit at all. The tips you receive from customers belong to you, not to the business or its management. Managers and supervisors are specifically barred from participating in or retaining any share of the tips that tipped employees earn, ensuring that customer gratuities reach the workers who earned them.", "quote": "Regardless of whether an employer takes a tip credit, the FLSA prohibits employers from keeping any portion of employees’ tips for any purpose, whether directly or through a tip pool.", "offset": 5521, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:39:42.864Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/pennsylvania/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-pooling", "heading": "Which tip pools you can be made to join", "body": "If your Pennsylvania employer takes a tip credit, they can require you to participate in a tip pool, but that pool is limited to employees in occupations in which they customarily and regularly receive tips. This means the tip pool can only include workers like waiters, bellhops, counter personnel who serve customers, bussers, and service bartenders. The employer cannot force you to share your tips with cooks, dishwashers, janitors, or other back-of-house staff who do not customarily receive tips. Your employer must notify you of any required tip pool contribution amount, and they can only take a tip credit for the tips you ultimately retain after the pool distribution. The employer cannot retain any portion of the tips in the pool for themselves. This type of arrangement is sometimes known as a traditional tip pool. If your employer takes no tip credit and pays you the full minimum wage, different rules may apply that allow broader tip pool participation.", "quote": "Traditional Tip Pooling: An employer that takes a tip credit can require tipped employees to contribute tips only\nto a tip pool which is limited to employees in occupations in which they customarily and regularly receive tips, such as waiters, bellhops, counter personnel (who serve customers), bussers, and service bartenders.", "offset": 7419, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:39:42.864Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/pennsylvania/2026/15-tipped-employees-flsa.txt" } }, { "key": "dual-jobs", "heading": "Doing two jobs for one employer", "body": "When you work two different jobs for the same Pennsylvania employer, the tip credit rules apply differently depending on which job you are performing. For example, if you work as both a maintenance worker and a server, you are a tipped employee only with respect to your employment as a server. This means your employer can only take a tip credit for the hours you spend working as a server and receiving tips. For the hours you work as a maintenance worker, no tip credit can be taken, and your employer must pay you the full minimum wage. You must customarily and regularly receive at least $30 a month in tips for your server work to qualify as a tipped employee in that role. The law carefully distinguishes between truly dual jobs and situations where you perform related duties in a single occupation, such as a server who also cleans tables or makes coffee.", "quote": "In such a situation the employee, if they customarily and regularly receive at least $30 a month in tips for their work as a server, is a tipped employee only with respect to their employment as a server.", "offset": 9667, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:39:42.864Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/pennsylvania/2026/15-tipped-employees-flsa.txt" } } ], "estimate": null }, { "program": "tipped-minimum-wage", "name": "Tipped Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "puerto-rico", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-30", "published_at": "2026-08-30T06:04:29.668Z", "canonical_url": "https://ratesandlimits.com/tipped-minimum-wage/puerto-rico/", "figures": [ { "key": "cash-wage", "label": "Minimum cash wage", "value": 2.13, "format": "usd", "formatted": "$2.13", "scope": null, "derived": false, "quote": "Puerto Rico $10.50 $8.37 $2.13 More than $30", "offset": 5804, "source": { "url": "https://www.dol.gov/agencies/whd/state/minimum-wage/tipped", "title": "Minimum Wages for Tipped Employees", "publisher": "DOL", "fetched_at": "2026-08-29T02:59:48.862Z", "sha256_text": "d9cd16d4bdbf481040de3edf63de4fc5fbcddec3e63b4b8ed3992622607bd43d", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/puerto-rico/2026/tipped.txt" } } ], "schedule": null, "explainers": [ { "key": "who-is-a-tipped-employee", "heading": "Who counts as a tipped employee", "body": "In Puerto Rico, a worker counts as a tipped employee under federal law only if they work in an occupation where they customarily and regularly receive more than $30 a month in tips. This threshold is what unlocks the special wage rules that apply to tipped workers. If a worker in Puerto Rico receives tips but those tips fall below $30 in a typical month, or if the tips are sporadic rather than customary, they are not classified as a tipped employee and their employer must pay them the full minimum wage without using any tip credit. The occupation itself must be one where tipping is customary and regular; occasional tips in a non-tipping occupation do not qualify a worker for tipped-employee status.", "quote": "Under the FLSA, a tipped employee is an employee engaged in an occupation in which they customarily and regularly receive more than $30 a month in tips.", "offset": 2188, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:03:19.639Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/puerto-rico/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-credit-and-cash-wage", "heading": "What a tip credit is, and the cash wage underneath it", "body": "In Puerto Rico, employers can claim a tip credit that bridges the gap between what they pay you directly in cash wages and the full minimum wage. Your employer must pay you at least $2.13 per hour in direct wages, and can count your tips toward meeting the full minimum wage obligation. This means your total compensation—cash wages plus tips—must reach at least the applicable minimum wage for every hour you work. If your tips are substantial, your employer's direct wage obligation remains at the minimum cash wage level.", "quote": "An employer can take an FLSA tip credit equal to the difference between the direct wage, or the cash wage it pays directly to the tipped employee, and the federal minimum wage, which is currently $7.25 per hour.", "offset": 3054, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:03:19.639Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/puerto-rico/2026/15-tipped-employees-flsa.txt" } }, { "key": "tips-that-fall-short", "heading": "When the tips do not get you to the minimum wage", "body": "In Puerto Rico, if your tips combined with your employer's direct cash wages don't reach the full minimum wage for any workweek, your employer must pay you the shortfall. This protection applies every single workweek, not just on average over time. Your employer cannot use good weeks to offset bad weeks—each workweek stands on its own. This ensures that tipped workers in Puerto Rico receive at least the full minimum wage regardless of how much customers tip.", "quote": "If an employee’s tips combined with the employer’s direct (or cash) wages do not equal the minimum hourly wage of $7.25 per hour in each workweek, the employer must make up the difference.", "offset": 3740, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:03:19.639Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/puerto-rico/2026/15-tipped-employees-flsa.txt" } }, { "key": "notice-before-the-tip-credit", "heading": "The notice an employer owes you before it takes the credit", "body": "In Puerto Rico, before your employer can claim a tip credit and pay you the lower cash wage, they must give you specific information about how your wages will be calculated. This notice must include the amount of cash wage your employer is paying you, the amount of tip credit they're claiming, and confirmation that the tip credit cannot exceed the difference between the cash wage and the full minimum wage. Your employer must provide this information before taking the tip credit—not after. If they fail to give you proper notice, they cannot legally claim the tip credit and must pay you the full minimum wage directly.", "quote": "Employers must provide the following information to tipped employees before taking a tip credit under the FLSA:", "offset": 3957, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:03:19.639Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/puerto-rico/2026/15-tipped-employees-flsa.txt" } }, { "key": "state-law-most-protective", "heading": "When state law gives more than the federal rule", "body": "In Puerto Rico, when federal and local wage laws conflict, employers must follow whichever rule provides greater protection to workers. If Puerto Rico law requires a higher cash wage than the federal minimum or offers stronger tip protections, your employer must comply with the more favorable standard. This means you're entitled to whichever combination of wages and protections is better for you—not just the federal baseline. Always check both federal and Puerto Rico requirements, because the more protective rule applies to your situation.", "quote": "When state law differs from the federal FLSA, an employer must comply with the standard most protective to employees.", "offset": 5070, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:03:19.639Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/puerto-rico/2026/15-tipped-employees-flsa.txt" } }, { "key": "employers-may-not-keep-tips", "heading": "Your employer, your manager and your supervisor may not keep your tips", "body": "In Puerto Rico, your employer, managers, and supervisors cannot keep any portion of your tips under any circumstances. This rule applies whether or not your employer claims a tip credit. Your tips belong to you, and no one higher up the chain can require you to hand them over or use them for business expenses. Even if your employer pays you the full minimum wage directly and takes no tip credit, they still cannot touch your tips. This protection ensures that tips remain compensation for the workers who earned them from customers.", "quote": "Regardless of whether an employer takes a tip credit, the FLSA prohibits employers from keeping any portion of employees’ tips for any purpose, whether directly or through a tip pool.", "offset": 5521, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:03:19.639Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/puerto-rico/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-pooling", "heading": "Which tip pools you can be made to join", "body": "In Puerto Rico, if your employer claims a tip credit, they can only require you to contribute tips to a pool that includes workers who customarily and regularly receive tips in their occupations. This means the pool must be limited to traditional tipped positions like servers, bussers, and bartenders—not back-of-house staff who don't typically receive tips. Your employer can only take a tip credit based on the tips you actually keep after the pool distribution, and they must notify you of any required pool contribution amounts.", "quote": "An employer that takes a tip credit can require tipped employees to contribute tips only\nto a tip pool which is limited to employees in occupations in which they customarily and regularly receive tips, such as waiters, bellhops, counter personnel (who serve customers), bussers, and service bartenders.", "offset": 7444, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:03:19.639Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/puerto-rico/2026/15-tipped-employees-flsa.txt" } }, { "key": "dual-jobs", "heading": "Doing two jobs for one employer", "body": "In Puerto Rico, if you work two different jobs for the same employer—one where you receive tips and one where you don't—you're only considered a tipped employee for the job where you customarily and regularly receive tips. For example, if you work as both a maintenance worker and a server, your employer can only claim a tip credit for the hours you actually work as a server. They cannot apply the tip credit to your maintenance hours. Each job must be evaluated separately based on whether you receive tips in that specific role.", "quote": "In such a situation the employee, if they customarily and regularly receive at least $30 a month in tips for their work as a server, is a tipped employee only with respect to their employment as a server.", "offset": 9667, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:03:19.639Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/puerto-rico/2026/15-tipped-employees-flsa.txt" } } ], "estimate": null }, { "program": "tipped-minimum-wage", "name": "Tipped Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "rhode-island", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-30", "published_at": "2026-08-30T06:05:03.475Z", "canonical_url": "https://ratesandlimits.com/tipped-minimum-wage/rhode-island/", "figures": [ { "key": "cash-wage", "label": "Minimum cash wage", "value": 3.89, "format": "usd", "formatted": "$3.89", "scope": null, "derived": false, "quote": "Rhode Island $16.00 $12.11 $3.89 More than $30", "offset": 4731, "source": { "url": "https://www.dol.gov/agencies/whd/state/minimum-wage/tipped", "title": "Minimum Wages for Tipped Employees", "publisher": "DOL", "fetched_at": "2026-08-29T02:59:22.423Z", "sha256_text": "d9cd16d4bdbf481040de3edf63de4fc5fbcddec3e63b4b8ed3992622607bd43d", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/rhode-island/2026/tipped.txt" } } ], "schedule": null, "explainers": [ { "key": "who-is-a-tipped-employee", "heading": "Who counts as a tipped employee", "body": "In Rhode Island, a tipped employee is someone who works in an occupation where they customarily and regularly receive more than $30 a month in tips. This threshold determines whether the federal and state tip-credit rules apply to a worker at all. If a Rhode Island employee does not meet this definition—because their tips are sporadic, small, or their job is not tip-oriented—the employer cannot use the tip credit and must pay the full minimum wage for every hour worked. Only the tips the employee actually receives count toward this determination; tips that never reach the worker's hands are irrelevant. Workers in restaurants, hotels, and similar service roles typically qualify, but the $30-a-month floor means that someone who gets tips only occasionally or in token amounts may still be entitled to the regular minimum wage from their employer.", "quote": "Under the FLSA, a tipped employee is an employee engaged in an occupation in which they customarily and regularly receive more than $30 a month in tips.", "offset": 2188, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:03:19.451Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/rhode-island/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-credit-and-cash-wage", "heading": "What a tip credit is, and the cash wage underneath it", "body": "In Rhode Island, the tip credit is the mechanism that lets an employer count a portion of the tips a worker receives toward the employer's minimum-wage obligation. The employer pays a direct cash wage to the tipped worker, and the tip credit makes up the gap between that cash wage and the applicable minimum wage. Rhode Island's minimum cash wage for tipped employees in 2026 is $3.89 per hour. The tip credit itself equals the difference between the cash wage the employer pays and the minimum wage the employer is required to meet. Only tips the employee actually receives count when determining whether the employee qualifies as a tipped employee and when applying the credit. The employer cannot claim a tip credit larger than the tips the employee actually brings in during the pay period.", "quote": "An employer can take an FLSA tip credit equal to the difference between the direct wage, or the cash wage it pays directly to the tipped employee, and the federal minimum wage, which is currently $7.25 per hour.", "offset": 3054, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:03:19.451Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/rhode-island/2026/15-tipped-employees-flsa.txt" } }, { "key": "tips-that-fall-short", "heading": "When the tips do not get you to the minimum wage", "body": "In Rhode Island, when a tipped employee's tips plus the employer's cash wage do not add up to the minimum hourly wage in a given workweek, the employer must make up the difference. This is a per-workweek guarantee: the employer must look at each individual workweek and confirm that the employee received at least the full minimum wage from the combination of direct wages and tips. If tips were low in a particular week—due to slow business, bad weather, or any other reason—the employer cannot average the shortfall against busier weeks and must pay the additional amount right away. The Rhode Island tipped worker is entitled to this safety net regardless of how much the employer expected them to earn in tips. The cash wage the employer pays directly must still meet the state's minimum of $3.89 per hour, but the employer's obligation does not end there if tips fall short.", "quote": "If an employee’s tips combined with the employer’s direct (or cash) wages do not equal the minimum hourly wage of $7.25 per hour in each workweek, the employer must make up the difference.", "offset": 3740, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:03:19.451Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/rhode-island/2026/15-tipped-employees-flsa.txt" } }, { "key": "notice-before-the-tip-credit", "heading": "The notice an employer owes you before it takes the credit", "body": "In Rhode Island, before an employer can take a tip credit against a tipped worker's wages, the employer must give the employee specific information in advance. The notice must cover five items: the amount of the cash wage the employer is paying (which in Rhode Island is $3.89 per hour); the additional amount claimed as a tip credit; the fact that the tip credit cannot exceed the tips the employee actually receives; the rule that all tips belong to the employee except for a valid tip pool limited to workers who customarily and regularly receive tips; and the requirement that the credit will not apply unless the employee has been told of all these provisions. The employer may deliver this notice orally or in writing, but if the employer fails to provide all five items before taking the credit, it cannot use the tip credit at all. Rhode Island workers who have not received this full notice are entitled to the full minimum wage from their employer without any offset for tips.", "quote": "Employers must provide the following information to tipped employees before taking a tip credit under the FLSA:", "offset": 3957, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:03:19.451Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/rhode-island/2026/15-tipped-employees-flsa.txt" } }, { "key": "state-law-most-protective", "heading": "When state law gives more than the federal rule", "body": "In Rhode Island, when state law and the federal FLSA set different rules for tipped employees, the employer must follow whichever standard gives the worker the greater protection. This means that if Rhode Island requires a higher cash wage than the federal floor, or if Rhode Island provides broader tip-pooling protections, the employer must apply the Rhode Island rule. For example, Rhode Island's minimum cash wage for tipped employees in 2026 is $3.89 per hour. If the federal cash wage were lower, the employer in Rhode Island would still have to pay at least $3.89. Likewise, if Rhode Island prohibited the tip credit entirely while the federal law allowed it, the employer would have to pay the full minimum wage without any tip offset. The principle is straightforward: the worker always receives the benefit of whichever law—state or federal—is more favorable to them.", "quote": "When state law differs from the federal FLSA, an employer must comply with the standard most protective to employees.", "offset": 5070, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:03:19.451Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/rhode-island/2026/15-tipped-employees-flsa.txt" } }, { "key": "employers-may-not-keep-tips", "heading": "Your employer, your manager and your supervisor may not keep your tips", "body": "In Rhode Island, the law prohibits employers from keeping any portion of employees' tips for any purpose, whether directly or through a tip pool. This rule applies regardless of whether the employer takes a tip credit against the minimum wage. An employer may not require a tipped worker to hand over their tips to the business, a manager, or a supervisor. Managers and supervisors are barred from receiving tips collected from employees, even if the employer pays the full minimum wage and takes no tip credit at all. The principle is that tips belong to the employee who earned them from the customer, and no one up the chain of command may skim or redirect those funds. Rhode Island workers should know that even if their employer pays well above the minimum wage, the employer still has no right to take any share of the tips those workers receive.", "quote": "Regardless of whether an employer takes a tip credit, the FLSA prohibits employers from keeping any portion of employees’ tips for any purpose, whether directly or through a tip pool.", "offset": 5521, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:03:19.451Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/rhode-island/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-pooling", "heading": "Which tip pools you can be made to join", "body": "In Rhode Island, when an employer takes a tip credit, it can require tipped employees to contribute to a tip pool, but the pool is limited to employees in occupations in which they customarily and regularly receive tips. This is sometimes called a \"traditional\" tip pool. Eligible participants typically include waiters, bellhops, counter personnel who serve customers, bussers, and service bartenders. The employer must notify tipped employees of the required contribution amount, may only take a tip credit for the tips each employee ultimately retains after the pool is distributed, and may not retain any of the pooled tips itself. Workers in Rhode Island who are not in traditionally tipped occupations—such as cooks, dishwashers, or maintenance staff—cannot be forced to participate in a traditional tip pool when the employer is using the tip credit. The rule ensures that tip pooling serves the workers who depend on tips as a regular part of their compensation.", "quote": "An employer that takes a tip credit can require tipped employees to contribute tips only\nto a tip pool which is limited to employees in occupations in which they customarily and regularly receive tips, such as waiters, bellhops, counter personnel (who serve customers), bussers, and service bartenders.", "offset": 7444, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:03:19.451Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/rhode-island/2026/15-tipped-employees-flsa.txt" } }, { "key": "dual-jobs", "heading": "Doing two jobs for one employer", "body": "In Rhode Island, when a worker holds two distinct jobs for the same employer—for example, a hotel maintenance person who also works as a server—that employee is a tipped employee only with respect to their employment as a server. The employer can take a tip credit only for the hours the worker spends in the tipped role, provided the worker customarily and regularly receives at least $30 a month in tips from that work. For the hours the worker spends in the non-tipped role, such as maintenance, no tip credit is allowed and the employer must pay the full minimum wage. Rhode Island workers who split their time between a tipped position and a non-tipped position for the same employer should track their hours carefully, because the lower cash wage applies only to the tipped-occupation hours. The two jobs are treated as separate employments even though the paycheck comes from the same employer.", "quote": "In such a situation the employee, if they customarily and regularly receive at least $30 a month in tips for their work as a server, is a tipped employee only with respect to their employment as a server.", "offset": 9667, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:03:19.451Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/rhode-island/2026/15-tipped-employees-flsa.txt" } } ], "estimate": null }, { "program": "tipped-minimum-wage", "name": "Tipped Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "south-carolina", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-30", "published_at": "2026-08-30T06:45:24.640Z", "canonical_url": "https://ratesandlimits.com/tipped-minimum-wage/south-carolina/", "figures": [ { "key": "cash-wage", "label": "Minimum cash wage", "value": 2.13, "format": "usd", "formatted": "$2.13", "scope": null, "derived": false, "quote": "South Carolina 11 $7.25 $5.12 $2.13 More than $30", "offset": 5849, "source": { "url": "https://www.dol.gov/agencies/whd/state/minimum-wage/tipped", "title": "Minimum Wages for Tipped Employees", "publisher": "DOL", "fetched_at": "2026-08-29T02:59:50.492Z", "sha256_text": "d9cd16d4bdbf481040de3edf63de4fc5fbcddec3e63b4b8ed3992622607bd43d", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/south-carolina/2026/tipped.txt" } } ], "schedule": null, "explainers": [ { "key": "who-is-a-tipped-employee", "heading": "Who counts as a tipped employee", "body": "In South Carolina, federal law defines a tipped employee as someone who works in an occupation where they customarily and regularly receive more than $30 a month in tips. If you work as a server, bartender, bellhop, or in a similar role and your tips typically exceed that threshold, you meet this definition. This matters because once you are classified as a tipped employee, your employer may be allowed to pay you a lower direct cash wage and claim a tip credit toward its minimum wage obligations. If your tips fall below $30 in a typical month, or if your occupation does not normally involve tipping, you are not considered a tipped employee under this rule and your employer must pay you the full minimum wage directly.", "quote": "Under the FLSA, a tipped employee is an employee engaged in an occupation in which they customarily and regularly receive more than $30 a month in tips.", "offset": 2188, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:43:45.853Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/south-carolina/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-credit-and-cash-wage", "heading": "What a tip credit is, and the cash wage underneath it", "body": "In South Carolina, the federal tip credit allows your employer to count a portion of the tips you receive toward its minimum wage obligation, as long as it pays you a direct cash wage of at least $2.13 per hour. The tip credit is the difference between that cash wage and the full federal minimum wage. Your employer must ensure that your cash wage plus your tips together reach at least the full minimum wage for every workweek. If they do not, the employer owes you the shortfall. Only tips you actually receive count toward this calculation. The tip credit is not a reduction in what you earn overall; it is a way for the employer to meet its minimum wage duty by combining a lower direct wage with the tips customers give you.", "quote": "An employer can take an FLSA tip credit equal to the difference between the direct wage, or the cash wage it pays directly to the tipped employee, and the federal minimum wage, which is currently $7.25 per hour.", "offset": 3054, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:43:45.853Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/south-carolina/2026/15-tipped-employees-flsa.txt" } }, { "key": "tips-that-fall-short", "heading": "When the tips do not get you to the minimum wage", "body": "In South Carolina, if your tips combined with the direct cash wage your employer pays you do not add up to at least the full federal minimum wage in a given workweek, your employer is required to pay the shortfall. This guarantee applies every workweek, not just on average over a pay period. For example, if business is slow and your tips are unusually low, your employer cannot simply accept the lower total; it must make up the difference so that your effective hourly earnings meet the minimum wage floor. This rule ensures that the tip credit does not leave you earning less than the minimum wage, regardless of how much customers tip in any particular week.", "quote": "If an employee’s tips combined with the employer’s direct (or cash) wages do not equal the minimum hourly wage of $7.25 per hour in each workweek, the employer must make up the difference.", "offset": 3740, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:43:45.853Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/south-carolina/2026/15-tipped-employees-flsa.txt" } }, { "key": "notice-before-the-tip-credit", "heading": "The notice an employer owes you before it takes the credit", "body": "In South Carolina, before your employer can claim a tip credit and pay you the lower cash wage, it must give you specific notice of the arrangement. The notice must include the amount of the direct cash wage the employer is paying you, the additional amount it is claiming as a tip credit, that the tip credit cannot exceed the tips you actually receive, and that you have the right to keep all your tips except those required by a valid tip pool. Your employer may give this notice orally or in writing, but it must be provided before the tip credit is taken. If the employer fails to give you this information, it cannot use the tip credit at all and must pay you the full minimum wage directly.", "quote": "Employers must provide the following information to tipped employees before taking a tip credit under the FLSA:", "offset": 3957, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:43:45.853Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/south-carolina/2026/15-tipped-employees-flsa.txt" } }, { "key": "state-law-most-protective", "heading": "When state law gives more than the federal rule", "body": "In South Carolina, when state law and the federal FLSA set different rules for tipped employees, your employer must follow whichever standard is more protective of you as a worker. For instance, if South Carolina were to require a higher cash wage than the federal $2.13 per hour or to prohibit the tip credit entirely, the employer would have to comply with that stricter state rule instead of the more permissive federal one. This principle ensures that you always receive the greater benefit available under either law. The federal rule sets a floor, not a ceiling; if South Carolina law gives you stronger protections, those protections apply.", "quote": "When state law differs from the federal FLSA, an employer must comply with the standard most protective to employees.", "offset": 5070, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:43:45.853Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/south-carolina/2026/15-tipped-employees-flsa.txt" } }, { "key": "employers-may-not-keep-tips", "heading": "Your employer, your manager and your supervisor may not keep your tips", "body": "In South Carolina, federal law prohibits employers from keeping any portion of your tips for any purpose, whether directly or through a tip pool. This rule applies regardless of whether the employer takes a tip credit or pays you the full minimum wage directly. Your employer may not require you to hand over your tips to the business, to a manager, or to a supervisor. Tips belong to the employees who receive them from customers. Managers and supervisors are barred from participating in tip pools or retaining any share of the tips that tipped employees earn. This protection ensures that the money customers intend for you reaches you and is not diverted to the house.", "quote": "Regardless of whether an employer takes a tip credit, the FLSA prohibits employers from keeping any portion of employees’ tips for any purpose, whether directly or through a tip pool.", "offset": 5521, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:43:45.853Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/south-carolina/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-pooling", "heading": "Which tip pools you can be made to join", "body": "In South Carolina, if your employer takes a tip credit and requires you to participate in a tip pool, that pool must be limited to employees in occupations where they customarily and regularly receive tips. This means only workers such as waiters, bellhops, bussers, counter personnel who serve customers, and service bartenders may share in the pool. Back-of-house staff who do not traditionally receive tips, such as cooks or dishwashers, cannot be included in this kind of traditional tip pool. The employer must notify you of the required contribution amount and may only take a tip credit for the tips you ultimately retain after the pool is distributed. Managers and supervisors may not receive any share from the pool.", "quote": "An employer that takes a tip credit can require tipped employees to contribute tips only\nto a tip pool which is limited to employees in occupations in which they customarily and regularly receive tips, such as waiters, bellhops, counter personnel (who serve customers), bussers, and service bartenders.", "offset": 7444, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:43:45.853Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/south-carolina/2026/15-tipped-employees-flsa.txt" } }, { "key": "dual-jobs", "heading": "Doing two jobs for one employer", "body": "In South Carolina, if you work two distinct jobs for the same employer, you are considered a tipped employee only for the job in which you customarily and regularly receive tips. For example, if you work as a maintenance person at a hotel and also serve as a server, you are a tipped employee only with respect to your work as a server. Your employer cannot take a tip credit for the hours you spend doing maintenance work, even if you earned tips during your server shift that week. Each occupation is treated separately. For the non-tipped occupation, your employer must pay you the full minimum wage without relying on any tip credit. This rule prevents employers from using tips earned in one role to subsidize sub-minimum wages in another.", "quote": "In such a situation the employee, if they customarily and regularly receive at least $30 a month in tips for their work as a server, is a tipped employee only with respect to their employment as a server.", "offset": 9667, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:43:45.853Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/south-carolina/2026/15-tipped-employees-flsa.txt" } } ], "estimate": null }, { "program": "tipped-minimum-wage", "name": "Tipped Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "south-dakota", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-30", "published_at": "2026-08-30T06:05:06.273Z", "canonical_url": "https://ratesandlimits.com/tipped-minimum-wage/south-dakota/", "figures": [ { "key": "cash-wage", "label": "Minimum cash wage", "value": 5.93, "format": "usd", "formatted": "$5.93", "scope": null, "derived": false, "quote": "South Dakota $11.85 50% of the applicable minimum wage ($5.92) $5.93 More than $35", "offset": 4778, "source": { "url": "https://www.dol.gov/agencies/whd/state/minimum-wage/tipped", "title": "Minimum Wages for Tipped Employees", "publisher": "DOL", "fetched_at": "2026-08-29T02:59:24.171Z", "sha256_text": "d9cd16d4bdbf481040de3edf63de4fc5fbcddec3e63b4b8ed3992622607bd43d", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/south-dakota/2026/tipped.txt" } } ], "schedule": null, "explainers": [ { "key": "who-is-a-tipped-employee", "heading": "Who counts as a tipped employee", "body": "Under the Fair Labor Standards Act, a tipped employee in South Dakota is someone who works in an occupation where they customarily and regularly receive more than $30 a month in tips. This $30 threshold is the federal standard used to determine whether the special tipped-employee rules apply. If a worker meets this definition, the employer may pay a lower direct cash wage and claim a tip credit, but only if all of the notice and wage requirements are satisfied. Workers who do not regularly receive tips above this monthly amount are not considered tipped employees under the FLSA, meaning the employer must pay them the full applicable minimum wage without relying on any tip credit. In South Dakota, the minimum cash wage for 2026 is $5.93.", "quote": "Under the FLSA, a tipped employee is an employee engaged in an occupation in which they customarily and regularly receive more than $30 a month in tips.", "offset": 2188, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:03:18.466Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/south-dakota/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-credit-and-cash-wage", "heading": "What a tip credit is, and the cash wage underneath it", "body": "The tip credit is the difference between the cash wage an employer pays directly to a tipped employee and the minimum wage that would otherwise be required. In South Dakota, employers may use the federal tip credit framework, which allows them to pay a reduced direct wage as long as the employee's tips make up the remainder. The employer can take a tip credit equal to the difference between the direct wage, or the cash wage it pays directly to the tipped employee, and the applicable minimum wage. For 2026, the minimum cash wage in South Dakota is $5.93. The employer must ensure that the combination of this cash wage and the employee's tips brings total compensation to at least the full minimum wage in every workweek. If the tips fall short, the employer must increase the cash payment to cover the gap.", "quote": "An employer can take an FLSA tip credit equal to the difference between the direct wage, or the cash wage it pays directly to the tipped employee, and the federal minimum wage, which is currently $7.25 per hour.", "offset": 3054, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:03:18.466Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/south-dakota/2026/15-tipped-employees-flsa.txt" } }, { "key": "tips-that-fall-short", "heading": "When the tips do not get you to the minimum wage", "body": "Federal law requires that tipped employees in South Dakota receive at least the full minimum wage in every workweek when you add the employer's direct cash wages and the employee's tips together. If an employee's tips combined with the employer's direct (or cash) wages do not equal the minimum hourly wage of $7.25 per hour in each workweek, the employer must make up the difference. This means the employer cannot simply pay the cash wage and walk away; it must verify each workweek that the employee's total compensation reaches the floor. South Dakota's minimum cash wage for 2026 is $5.93. If tips in a slow week leave the employee below the required minimum, the employer owes extra cash to close the gap.", "quote": "If an employee’s tips combined with the employer’s direct (or cash) wages do not equal the minimum hourly wage of $7.25 per hour in each workweek, the employer must make up the difference.", "offset": 3740, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:03:18.466Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/south-dakota/2026/15-tipped-employees-flsa.txt" } }, { "key": "notice-before-the-tip-credit", "heading": "The notice an employer owes you before it takes the credit", "body": "Before an employer in South Dakota can use a tip credit, it must give the tipped employee specific information in advance. Employers must provide the following information to tipped employees before taking a tip credit: the amount of the direct cash wage being paid, the additional amount claimed as a tip credit, a statement that the tip credit cannot exceed the tips actually received, a statement that all tips are the employee's property, and confirmation that the employee has been informed of these provisions. The notice may be oral or written, but it must come before the credit is applied. South Dakota's minimum cash wage for 2026 is $5.93. An employer that fails to deliver this notice loses the right to claim the tip credit entirely and must pay the full minimum wage directly to the employee for all hours worked.", "quote": "Employers must provide the following information to tipped employees before taking a tip credit under the FLSA:", "offset": 3957, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:03:18.466Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/south-dakota/2026/15-tipped-employees-flsa.txt" } }, { "key": "state-law-most-protective", "heading": "When state law gives more than the federal rule", "body": "When a state law and the federal FLSA set different rules for tipped employees, the employer in South Dakota must follow whichever standard gives the worker the greatest protection. When state law differs from the federal FLSA, an employer must comply with the standard most protective to employees. Some states, for example, require a higher cash wage than the federal floor or ban the tip credit entirely. South Dakota has its own minimum cash wage of $5.93 for 2026. If the South Dakota standard is more generous to the worker than the federal rule—whether through a higher cash wage, a larger minimum wage, or stronger tip-pooling protections—the employer must follow the South Dakota rule. The principle ensures that tipped workers always receive the better of the two overlapping legal schemes.", "quote": "When state law differs from the federal FLSA, an employer must comply with the standard most protective to employees.", "offset": 5070, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:03:18.466Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/south-dakota/2026/15-tipped-employees-flsa.txt" } }, { "key": "employers-may-not-keep-tips", "heading": "Your employer, your manager and your supervisor may not keep your tips", "body": "Federal law is clear that the tips a tipped employee earns in South Dakota belong to that employee, not to the business. Regardless of whether an employer takes a tip credit, the FLSA prohibits employers from keeping any portion of employees' tips for any purpose, whether directly or through a tip pool. An employer, manager, or supervisor may not require a worker to hand over their tips, even if the employer already pays the full minimum wage in cash and takes no tip credit at all. This rule protects all of a worker's tip income from being diverted upward to the house or to supervisors. In South Dakota the minimum cash wage for 2026 is $5.93, but regardless of the wage structure, the tips themselves remain the employee's property.", "quote": "Regardless of whether an employer takes a tip credit, the FLSA prohibits employers from keeping any portion of employees’ tips for any purpose, whether directly or through a tip pool.", "offset": 5521, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:03:18.466Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/south-dakota/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-pooling", "heading": "Which tip pools you can be made to join", "body": "When an employer in South Dakota takes a tip credit, it can require tipped employees to contribute to a tip pool, but only a limited one. An employer that takes a tip credit can require tipped employees to contribute tips only to a tip pool which is limited to employees in occupations in which they customarily and regularly receive tips, such as waiters, bellhops, counter personnel (who serve customers), bussers, and service bartenders. This is sometimes known as a \"traditional\" tip pool. Back-of-house workers such as cooks and dishwashers who do not customarily receive tips cannot be included in this type of pool. South Dakota's minimum cash wage for 2026 is $5.93. The employer may only take a tip credit for the tips each employee ultimately retains after the pool is distributed, and may not keep any of the pooled tips itself.", "quote": "An employer that takes a tip credit can require tipped employees to contribute tips only\nto a tip pool which is limited to employees in occupations in which they customarily and regularly receive tips, such as waiters, bellhops, counter personnel (who serve customers), bussers, and service bartenders.", "offset": 7444, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:03:18.466Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/south-dakota/2026/15-tipped-employees-flsa.txt" } }, { "key": "dual-jobs", "heading": "Doing two jobs for one employer", "body": "Some workers in South Dakota hold two different positions for the same employer—one tipped and one not. In such a situation the employee, if they customarily and regularly receive at least $30 a month in tips for their work as a server, is a tipped employee only with respect to their employment as a server. The worker is employed in two occupations, and no tip credit can be taken for their hours of employment in their occupation as a maintenance person. This means the employer can pay the lower cash wage only for the hours spent in the tipped role. For the non-tipped role, the employer must pay the full applicable minimum wage. South Dakota's minimum cash wage for 2026 is $5.93. The dual-job rule prevents employers from applying the tip credit to work that does not actually generate tips.", "quote": "In such a situation the employee, if they customarily and regularly receive at least $30 a month in tips for their work as a server, is a tipped employee only with respect to their employment as a server.", "offset": 9667, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:03:18.466Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/south-dakota/2026/15-tipped-employees-flsa.txt" } } ], "estimate": null }, { "program": "tipped-minimum-wage", "name": "Tipped Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "tennessee", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-30", "published_at": "2026-08-30T06:06:52.071Z", "canonical_url": "https://ratesandlimits.com/tipped-minimum-wage/tennessee/", "figures": [ { "key": "cash-wage", "label": "Minimum cash wage", "value": 2.13, "format": "usd", "formatted": "$2.13", "scope": null, "derived": false, "quote": "Tennessee 11 $7.25 $5.12 $2.13 More than $30", "offset": 5899, "source": { "url": "https://www.dol.gov/agencies/whd/state/minimum-wage/tipped", "title": "Minimum Wages for Tipped Employees", "publisher": "DOL", "fetched_at": "2026-08-29T02:59:52.184Z", "sha256_text": "d9cd16d4bdbf481040de3edf63de4fc5fbcddec3e63b4b8ed3992622607bd43d", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/tennessee/2026/tipped.txt" } } ], "schedule": null, "explainers": [ { "key": "who-is-a-tipped-employee", "heading": "Who counts as a tipped employee", "body": "Under federal law, a tipped employee in Tennessee is someone who works in an occupation where they customarily and regularly receive more than $30 a month in tips. This $30 threshold is the defining line: if you earn less than that in tips on a typical month, your employer cannot classify you as a tipped employee and cannot apply the lower cash wage. The rule looks at the nature of the occupation, not just a single busy month. Only tips actually received by you count toward this determination—tips that never reach your hands do not establish your status. Once you meet this definition, your employer may be permitted to pay you the reduced cash wage of $2.13 per hour, provided all other requirements for taking a tip credit are satisfied. If your occupation does not customarily produce that level of tips, the full minimum wage applies to every hour you work, regardless of whether customers occasionally leave something extra.", "quote": "Under the FLSA, a tipped employee is an employee engaged in an occupation in which they customarily and regularly receive more than $30 a month in tips.", "offset": 2188, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:05:09.156Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/tennessee/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-credit-and-cash-wage", "heading": "What a tip credit is, and the cash wage underneath it", "body": "In Tennessee, your employer can take a tip credit equal to the difference between the direct cash wage it pays you and the federal minimum wage. Your employer must pay you at least $2.13 per hour in direct wages. The tip credit represents the gap between what your employer pays you directly and what the minimum wage requires. Only tips you actually receive count toward determining whether you qualify as a tipped employee and toward applying the tip credit. Your employer must ensure that your direct wages plus your tips equal at least the minimum wage for each workweek. If they do not, your employer must pay the shortfall. The tip credit cannot exceed the amount of tips you actually receive.", "quote": "An employer can take an FLSA tip credit equal to the difference between the direct wage, or the cash wage it pays directly to the tipped employee, and the federal minimum wage, which is currently $7.25 per hour.", "offset": 3054, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:05:09.156Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/tennessee/2026/15-tipped-employees-flsa.txt" } }, { "key": "tips-that-fall-short", "heading": "When the tips do not get you to the minimum wage", "body": "In Tennessee, your employer must ensure you receive at least the full federal minimum wage of $7.25 per hour in each workweek when combining your direct cash wages and tips. If your tips plus the direct wages your employer pays you do not equal the minimum hourly wage in a given workweek, the employer must make up the difference. This means your employer cannot rely on you receiving enough tips to reach the minimum wage if that does not actually happen. The employer is responsible for paying you at least the minimum wage for every hour you work, regardless of how much you earn in tips.", "quote": "If an employee’s tips combined with the employer’s direct (or cash) wages do not equal the minimum hourly wage of $7.25 per hour in each workweek, the employer must make up the difference.", "offset": 3740, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:05:09.156Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/tennessee/2026/15-tipped-employees-flsa.txt" } }, { "key": "notice-before-the-tip-credit", "heading": "The notice an employer owes you before it takes the credit", "body": "In Tennessee, before your employer can take a tip credit, it must provide you with specific information about your wages and tips. Your employer must tell you the amount of the direct cash wage it is paying you. It must inform you that all tips you receive are yours to keep except for valid tip pooling arrangements. It must tell you that the tip credit cannot exceed the amount of tips you actually receive. Your employer can provide this information orally or in writing. If your employer fails to give you this required information before taking the tip credit, it loses the right to take the tip credit at all, and must pay you the full minimum wage for all your hours worked.", "quote": "Employers must provide the following information to tipped employees before taking a tip credit under the FLSA:", "offset": 3957, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:05:09.156Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/tennessee/2026/15-tipped-employees-flsa.txt" } }, { "key": "state-law-most-protective", "heading": "When state law gives more than the federal rule", "body": "In Tennessee, when state law differs from federal law, your employer must comply with the standard most protective to employees. This means if Tennessee law provides better protections than federal law for tipped workers, your employer must follow the Tennessee rule. For example, if Tennessee requires a higher cash wage than the federal minimum of $2.13 per hour, or if it prohibits employers from taking a tip credit entirely, your employer must comply with whichever standard gives you greater protection. You are entitled to the benefit of whichever law—state or federal—provides you with higher wages or better protections.", "quote": "When state law differs from the federal FLSA, an employer must comply with the standard most protective to employees.", "offset": 5070, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:05:09.156Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/tennessee/2026/15-tipped-employees-flsa.txt" } }, { "key": "employers-may-not-keep-tips", "heading": "Your employer, your manager and your supervisor may not keep your tips", "body": "In Tennessee, regardless of whether your employer takes a tip credit, federal law prohibits employers from keeping any portion of your tips for any purpose. This applies whether your employer keeps the tips directly or through a tip pool. Your employer may not require you to give your tips to the employer, a supervisor, or a manager. This protection applies even if your employer pays you at least the full minimum wage directly and takes no tip credit at all. Your tips belong to you, and neither your employer nor your managers or supervisors can take them.", "quote": "Regardless of whether an employer takes a tip credit, the FLSA prohibits employers from keeping any portion of employees’ tips for any purpose, whether directly or through a tip pool.", "offset": 5521, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:05:09.156Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/tennessee/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-pooling", "heading": "Which tip pools you can be made to join", "body": "In Tennessee, if your employer takes a tip credit, it can require you to participate in a tip pool, but the pool must be limited to employees in occupations where they customarily and regularly receive tips. This includes workers such as waiters, bellhops, counter personnel who serve customers, bussers, and service bartenders. Your employer cannot force you to share tips with employees who do not customarily receive tips, such as cooks or dishwashers. Your employer must notify you of any required tip pool contribution amount. The employer can only take a tip credit for tips you ultimately receive after the pool is distributed, and may not keep any of the tips in the pool for itself.", "quote": "Traditional Tip Pooling: An employer that takes a tip credit can require tipped employees to contribute tips only\nto a tip pool which is limited to employees in occupations in which they customarily and regularly receive tips, such as waiters, bellhops, counter personnel (who serve customers), bussers, and service bartenders.", "offset": 7419, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:05:09.156Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/tennessee/2026/15-tipped-employees-flsa.txt" } }, { "key": "dual-jobs", "heading": "Doing two jobs for one employer", "body": "In Tennessee, if you work two different jobs for the same employer, you may be a tipped employee in one job but not the other. For example, if you work as a maintenance person at a hotel and also work as a server, you are a tipped employee only with respect to your employment as a server if you customarily and regularly receive at least $30 a month in tips for that server work. Your employer cannot take a tip credit for your hours worked as a maintenance person. You must be paid the full minimum wage for all your hours worked in the non-tipped occupation. This rule prevents employers from applying the tip credit to work that does not involve receiving tips.", "quote": "In such a situation the employee, if they customarily and regularly receive at least $30 a month in tips for their work as a server, is a tipped employee only with respect to their employment as a server.", "offset": 9667, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:05:09.156Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/tennessee/2026/15-tipped-employees-flsa.txt" } } ], "estimate": null }, { "program": "tipped-minimum-wage", "name": "Tipped Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "texas", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-30", "published_at": "2026-08-30T06:06:33.789Z", "canonical_url": "https://ratesandlimits.com/tipped-minimum-wage/texas/", "figures": [ { "key": "cash-wage", "label": "Minimum cash wage", "value": 2.13, "format": "usd", "formatted": "$2.13", "scope": null, "derived": false, "quote": "Texas 12 $7.25 $5.12 $2.13 More than $20", "offset": 5944, "source": { "url": "https://www.dol.gov/agencies/whd/state/minimum-wage/tipped", "title": "Minimum Wages for Tipped Employees", "publisher": "DOL", "fetched_at": "2026-08-29T02:59:53.826Z", "sha256_text": "d9cd16d4bdbf481040de3edf63de4fc5fbcddec3e63b4b8ed3992622607bd43d", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/texas/2026/tipped.txt" } } ], "schedule": null, "explainers": [ { "key": "who-is-a-tipped-employee", "heading": "Who counts as a tipped employee", "body": "In Texas, the federal Fair Labor Standards Act defines a tipped employee as someone who works in an occupation where they customarily and regularly receive more than $30 a month in tips. If you meet that threshold, your employer is allowed to pay you a lower direct cash wage and count a portion of your tips toward its minimum wage obligation. Only tips you actually receive count toward this determination — not estimated or shared tips that never reach you. If you work in a role where tips are occasional or do not regularly exceed $30 per month, you are not considered a tipped employee under this rule and your employer must pay you the full minimum wage for all your hours worked.", "quote": "Under the FLSA, a tipped employee is an employee engaged in an occupation in which they customarily and regularly receive more than $30 a month in tips.", "offset": 2188, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:41:16.828Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/texas/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-credit-and-cash-wage", "heading": "What a tip credit is, and the cash wage underneath it", "body": "The tip credit is the amount a Texas employer can count toward the minimum wage from a tipped employee's tips, rather than paying it directly as cash. The employer must still pay a direct cash wage of at least $2.13 per hour. The tip credit equals the difference between that direct cash wage and the federal minimum wage of $7.25 per hour. The employer must ensure that the employee's tips plus the direct cash wage equal at least the full minimum wage in every workweek. Only tips actually received by the employee count when determining whether the employee qualifies as a tipped employee and when applying the tip credit. If tips fall short, the employer must cover the gap. The employer cannot take a tip credit larger than the tips the employee actually brings in during the workweek.", "quote": "An employer can take an FLSA tip credit equal to the difference between the direct wage, or the cash wage it pays directly to the tipped employee, and the federal minimum wage, which is currently $7.25 per hour.", "offset": 3054, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:41:16.828Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/texas/2026/15-tipped-employees-flsa.txt" } }, { "key": "tips-that-fall-short", "heading": "When the tips do not get you to the minimum wage", "body": "Even with the tip credit, a Texas employer must guarantee that tipped employees earn at least the full minimum wage of $7.25 per hour in every workweek. If an employee's tips combined with the employer's direct cash wages fall short of that amount, the employer must make up the difference. This protection applies week by week, so employers cannot average out slow weeks with busy ones. The employer bears the risk if tips are insufficient, not the employee. Texas employers claiming the tip credit must track each workweek to ensure compliance with this requirement.", "quote": "If an employee’s tips combined with the employer’s direct (or cash) wages do not equal the minimum hourly wage of $7.25 per hour in each workweek, the employer must make up the difference.", "offset": 3740, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:41:16.828Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/texas/2026/15-tipped-employees-flsa.txt" } }, { "key": "notice-before-the-tip-credit", "heading": "The notice an employer owes you before it takes the credit", "body": "Before taking a tip credit, Texas employers must give tipped employees specific information about their pay. The notice must include the amount of the direct cash wage the employer is paying, which must be at least $2.13 per hour, and the additional amount claimed as a tip credit. Employers must also inform employees that the tip credit cannot exceed the tips actually received, that all tips belong to the employee except for valid tip pool contributions, and that the employee must be notified of all these provisions. Notice can be oral or written, but it must come before the employer starts using the tip credit. An employer that fails to provide this required information cannot take the tip credit at all, meaning it would owe the full minimum wage in cash.", "quote": "Employers must provide the following information to tipped employees before taking a tip credit under the FLSA:", "offset": 3957, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:41:16.828Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/texas/2026/15-tipped-employees-flsa.txt" } }, { "key": "state-law-most-protective", "heading": "When state law gives more than the federal rule", "body": "When Texas state law provides greater protection to employees than federal law, employers must follow whichever rule is most beneficial to the worker. For example, if Texas required a higher cash wage than the federal $2.13 per hour or prohibited the tip credit entirely, Texas employers would have to comply with that stricter standard. This principle ensures that federal minimum standards do not override state laws that give workers more money or stronger protections. Texas employers operating under the tip credit must check both federal and state requirements and apply whichever gives tipped employees the better deal.", "quote": "When state law differs from the federal FLSA, an employer must comply with the standard most protective to employees.", "offset": 5070, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:41:16.828Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/texas/2026/15-tipped-employees-flsa.txt" } }, { "key": "employers-may-not-keep-tips", "heading": "Your employer, your manager and your supervisor may not keep your tips", "body": "The FLSA strictly prohibits Texas employers, managers, and supervisors from keeping any portion of employees' tips, regardless of whether the employer takes a tip credit. This rule applies whether the employer takes tips directly or through a tip pool. Even if a Texas tipped employee earns well above the minimum wage in cash wages alone, the employer cannot require them to hand over their tips to the business, a supervisor, or a manager. Tips belong to the employees who receive them from customers. This protection is absolute and does not depend on the employer's financial situation or the employee's total compensation.", "quote": "Regardless of whether an employer takes a tip credit, the FLSA prohibits employers from keeping any portion of employees’ tips for any purpose, whether directly or through a tip pool.", "offset": 5521, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:41:16.828Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/texas/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-pooling", "heading": "Which tip pools you can be made to join", "body": "When a Texas employer takes a tip credit, it can only require tipped employees to contribute to a traditional tip pool limited to employees in occupations where they customarily and regularly receive tips. Eligible participants include waiters, bellhops, counter personnel who serve customers, bussers, and service bartenders. The employer cannot include back-of-house workers like cooks or dishwashers in this type of pool. Texas employers must notify tipped employees of any required tip pool contribution and can only take a tip credit for the tips each employee ultimately receives after pool contributions. The employer cannot retain any of the pooled tips.", "quote": "a tip pool which is limited to employees in occupations in which they customarily and regularly receive tips, such as waiters, bellhops, counter personnel (who serve customers), bussers, and service bartenders.", "offset": 7536, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:41:16.828Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/texas/2026/15-tipped-employees-flsa.txt" } }, { "key": "dual-jobs", "heading": "Doing two jobs for one employer", "body": "When a Texas employee works two different jobs for the same employer, one tipped and one not, the tip credit only applies to hours spent in the tipped occupation. For example, if someone works as both a maintenance person and a server, and they regularly receive enough tips for their serving work to qualify as a tipped employee, they are a tipped employee only for their server hours. The employer cannot apply the tip credit to hours worked in the non-tipped role and must pay the full minimum wage for those hours. The cash wage for the tipped hours must be at least $2.13 per hour. This prevents employers from using the tip credit to reduce wages for non-tipped work, even when the same employee performs both types of duties for the same business.", "quote": "is a tipped employee only with respect to their employment as a server.", "offset": 9800, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T05:41:16.828Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/texas/2026/15-tipped-employees-flsa.txt" } } ], "estimate": null }, { "program": "tipped-minimum-wage", "name": "Tipped Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "utah", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-30", "published_at": "2026-08-30T06:06:34.598Z", "canonical_url": "https://ratesandlimits.com/tipped-minimum-wage/utah/", "figures": [ { "key": "cash-wage", "label": "Minimum cash wage", "value": 2.13, "format": "usd", "formatted": "$2.13", "scope": null, "derived": false, "quote": "Utah 12 $7.25 $5.12 $2.13 More than $30", "offset": 5985, "source": { "url": "https://www.dol.gov/agencies/whd/state/minimum-wage/tipped", "title": "Minimum Wages for Tipped Employees", "publisher": "DOL", "fetched_at": "2026-08-29T02:59:55.515Z", "sha256_text": "d9cd16d4bdbf481040de3edf63de4fc5fbcddec3e63b4b8ed3992622607bd43d", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/utah/2026/tipped.txt" } } ], "schedule": null, "explainers": [ { "key": "who-is-a-tipped-employee", "heading": "Who counts as a tipped employee", "body": "In Utah, you count as a tipped employee under federal law if you work in an occupation where you customarily and regularly receive more than $30 a month in tips. Only the tips you actually receive count toward this threshold; tips that never reach you are not included. If you meet this definition, your employer may be allowed to pay you a lower direct cash wage and count a portion of your tips toward its minimum-wage obligation. If you do not regularly receive more than $30 a month in tips in your occupation, you are not a tipped employee for purposes of the tip-credit rules, and your employer must pay you the full minimum wage without relying on any tip credit.", "quote": "Under the FLSA, a tipped employee is an employee engaged in an occupation in which they customarily and regularly receive more than $30 a month in tips.", "offset": 2188, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:05:08.719Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/utah/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-credit-and-cash-wage", "heading": "What a tip credit is, and the cash wage underneath it", "body": "In Utah, the tip credit is the amount your employer may count from your tips toward its minimum-wage obligation. The credit equals the difference between the direct (cash) wage your employer pays you and the federal minimum wage. Your employer must pay you at least $2.13 per hour in cash; the rest of the minimum wage can be covered by the tip credit. Only tips you actually receive count when determining whether you qualify as a tipped employee and when the tip credit is applied. Your employer must be able to show, for every workweek, that your cash wages plus the tip credit together reach at least the full minimum wage.", "quote": "An employer can take an FLSA tip credit equal to the difference between the direct wage, or the cash wage it pays directly to the tipped employee, and the federal minimum wage, which is currently $7.25 per hour.", "offset": 3054, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:05:08.719Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/utah/2026/15-tipped-employees-flsa.txt" } }, { "key": "tips-that-fall-short", "heading": "When the tips do not get you to the minimum wage", "body": "In Utah, if your tips combined with the cash wages your employer pays you fall short of the full minimum hourly wage in any workweek, the employer must make up the difference. This is a workweek-by-workweek guarantee: the employer cannot average a slow week against a busy one. You are entitled to receive at least the full minimum wage for every hour worked in each workweek once tips and direct wages are combined, and if the total is short, the employer owes you the balance.", "quote": "If an employee’s tips combined with the employer’s direct (or cash) wages do not equal the minimum hourly wage of $7.25 per hour in each workweek, the employer must make up the difference.", "offset": 3740, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:05:08.719Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/utah/2026/15-tipped-employees-flsa.txt" } }, { "key": "notice-before-the-tip-credit", "heading": "The notice an employer owes you before it takes the credit", "body": "In Utah, before your employer can take a tip credit against your wages, it must give you notice containing specific information: the amount of direct (cash) wage it is paying you, which must be at least $2.13 per hour; the additional amount it is claiming as a tip credit; that the tip credit cannot exceed the tips you actually receive; that all tips you receive are yours to keep except for a valid tip pool limited to employees who customarily and regularly receive tips; and that the tip credit will not apply unless you have been told all of this. The notice can be oral or written. If the employer fails to give you this information, it cannot take the tip credit at all and must pay you the full minimum wage in cash.", "quote": "Employers must provide the following information to tipped employees before taking a tip credit under the FLSA:", "offset": 3957, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:05:08.719Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/utah/2026/15-tipped-employees-flsa.txt" } }, { "key": "state-law-most-protective", "heading": "When state law gives more than the federal rule", "body": "In Utah, when state law differs from the federal FLSA rule, an employer must comply with the standard most protective to employees. For example, some states require a higher cash wage than the federal direct (or cash) wage of $2.13 per hour, and some states prohibit employers from taking a tip credit at all. Whichever rule—federal or Utah state law—puts more money in your pocket or gives you stronger protections is the one your employer must follow. You are entitled to the benefit of the more favorable standard.", "quote": "When state law differs from the federal FLSA, an employer must comply with the standard most protective to employees.", "offset": 5070, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:05:08.719Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/utah/2026/15-tipped-employees-flsa.txt" } }, { "key": "employers-may-not-keep-tips", "heading": "Your employer, your manager and your supervisor may not keep your tips", "body": "In Utah, regardless of whether your employer takes a tip credit, the FLSA prohibits employers from keeping any portion of employees’ tips for any purpose, whether directly or through a tip pool. Your employer may not require you to hand your tips over to the employer, a supervisor, or a manager. This rule applies even if you receive at least the full federal minimum wage in cash wages from the employer and the employer takes no tip credit at all. The tips you receive from customers belong to you, not to the business or its managers.", "quote": "Regardless of whether an employer takes a tip credit, the FLSA prohibits employers from keeping any portion of employees’ tips for any purpose, whether directly or through a tip pool.", "offset": 5521, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:05:08.719Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/utah/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-pooling", "heading": "Which tip pools you can be made to join", "body": "In Utah, when your employer takes a tip credit, it can require you to contribute to a tip pool, but that pool is limited to employees in occupations in which they customarily and regularly receive tips. Eligible participants include waiters, bellhops, counter personnel who serve customers, bussers, and service bartenders. Managers, supervisors, and the employer itself may not receive tips from this pool. The employer must notify you of any required contribution amount and may take a tip credit only for the tips you ultimately retain after the pool is distributed.", "quote": "An employer that takes a tip credit can require tipped employees to contribute tips only\nto a tip pool which is limited to employees in occupations in which they customarily and regularly receive tips,", "offset": 7444, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:05:08.719Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/utah/2026/15-tipped-employees-flsa.txt" } }, { "key": "dual-jobs", "heading": "Doing two jobs for one employer", "body": "In Utah, if you work two jobs for one employer—for example, as a hotel maintenance person who also works as a server—you are a tipped employee only with respect to your employment as a server, assuming you customarily and regularly receive at least $30 a month in tips for that work. No tip credit can be taken for your hours worked in the other occupation, such as maintenance. Your employer must pay you the full minimum wage for every hour you spend in the non-tipped role, and may take a tip credit only for the hours you actually spend in the tipped occupation.", "quote": "In such a situation the employee, if they customarily and regularly receive at least $30 a month in tips for their work as a server, is a tipped employee only with respect to their employment as a server.", "offset": 9667, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:05:08.719Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/utah/2026/15-tipped-employees-flsa.txt" } } ], "estimate": null }, { "program": "tipped-minimum-wage", "name": "Tipped Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "vermont", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-30", "published_at": "2026-08-30T06:07:18.699Z", "canonical_url": "https://ratesandlimits.com/tipped-minimum-wage/vermont/", "figures": [ { "key": "cash-wage", "label": "Minimum cash wage", "value": 7.21, "format": "usd", "formatted": "$7.21", "scope": null, "derived": false, "quote": "Vermont $14.42 50% of the applicable minimum wage ($7.21) $7.21 More than $120", "offset": 4861, "source": { "url": "https://www.dol.gov/agencies/whd/state/minimum-wage/tipped", "title": "Minimum Wages for Tipped Employees", "publisher": "DOL", "fetched_at": "2026-08-29T02:59:25.989Z", "sha256_text": "d9cd16d4bdbf481040de3edf63de4fc5fbcddec3e63b4b8ed3992622607bd43d", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/vermont/2026/tipped.txt" } } ], "schedule": null, "explainers": [ { "key": "who-is-a-tipped-employee", "heading": "Who counts as a tipped employee", "body": "Under federal law, a tipped employee is someone who works in an occupation where they customarily and regularly receive more than $30 a month in tips. In Vermont, this definition determines whether your employer can pay you the state's tipped cash wage of $7.21 per hour instead of the full minimum wage. If you meet this threshold—for example, as a server, bartender, or bellhop—your employer may treat you as a tipped employee and apply the tip credit rules. Only the tips you actually receive count toward this determination. If your job does not involve customarily and regularly receiving more than $30 a month in tips, your employer must pay you at least the full applicable minimum wage for every hour you work, regardless of whether customers occasionally leave you something extra.", "quote": "Under the FLSA, a tipped employee is an employee engaged in an occupation in which they customarily and regularly receive more than $30 a month in tips.", "offset": 2188, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:05:08.210Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/vermont/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-credit-and-cash-wage", "heading": "What a tip credit is, and the cash wage underneath it", "body": "A tip credit lets an employer count a portion of the tips a worker receives toward its minimum wage obligation. Under the FLSA, the credit equals the difference between the cash wage the employer pays and the minimum wage. In Vermont, the minimum cash wage that must be paid directly to a tipped employee is $7.21 per hour. This means the employer takes a credit for the tips earned above that amount, so the employee's cash wage plus tips together must reach the applicable minimum wage. If the employer takes this credit, it must still verify each workweek that the combination of the $7.21 direct wage and the employee's tips meets or exceeds the full minimum wage. The employer cannot claim more as a credit than the tips the employee actually received.", "quote": "An employer can take an FLSA tip credit equal to the difference between the direct wage, or the cash wage it pays directly to the tipped employee, and the federal minimum wage, which is currently $7.25 per hour.", "offset": 3054, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:05:08.210Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/vermont/2026/15-tipped-employees-flsa.txt" } }, { "key": "tips-that-fall-short", "heading": "When the tips do not get you to the minimum wage", "body": "Under Vermont law, an employer paying a tipped employee the cash wage of $7.21 per hour must confirm that the employee's tips bring total compensation up to the full minimum wage in every workweek. If an employee's tips combined with the employer's direct cash wages do not equal the minimum hourly wage in a given workweek, the employer must make up the difference. This guarantee applies regardless of how slow business is or how few tips come in. For example, if a server in Vermont works a week with unusually low customer traffic and the tips fall short, the employer is still legally required to pay enough additional wages so the worker earns at least the full minimum wage for every hour worked that week. The employer bears the risk of slow periods, not the worker.", "quote": "If an employee’s tips combined with the employer’s direct (or cash) wages do not equal the minimum hourly wage of $7.25 per hour in each workweek, the employer must make up the difference.", "offset": 3740, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:05:08.210Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/vermont/2026/15-tipped-employees-flsa.txt" } }, { "key": "notice-before-the-tip-credit", "heading": "The notice an employer owes you before it takes the credit", "body": "Before an employer in Vermont can take a tip credit, it must give the tipped employee specific notice. Employers must provide the following information to tipped employees before taking a tip credit, including the amount of the direct (or cash) wage the employer is paying (which in Vermont is $7.21 per hour), the additional amount claimed as a tip credit, and confirmation that the tip credit cannot exceed the tips actually received. The employer must also inform the employee that all tips received belong to the employee and that the employer may not keep any portion of those tips. The notice can be oral or written, but if the employer fails to provide it, it loses the right to claim the tip credit entirely and must pay the full minimum wage. Vermont workers who have not received this notice can ask their employer to correct the omission or contact the state labor department.", "quote": "Employers must provide the following information to tipped employees before taking a tip credit under the FLSA:", "offset": 3957, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:05:08.210Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/vermont/2026/15-tipped-employees-flsa.txt" } }, { "key": "state-law-most-protective", "heading": "When state law gives more than the federal rule", "body": "When state law provides greater protections than the federal rule, the employer must follow whichever standard benefits the worker more. This means that in Vermont, if state law requires a higher cash wage, a stricter notice requirement, or a more favorable tip treatment than the federal baseline, the employer must comply with the standard most protective to employees. For example, Vermont sets its own minimum cash wage for tipped employees at $7.21 per hour, which may differ from the federal amount. An employer operating in Vermont cannot simply default to the federal numbers if Vermont's rule gives the worker more pay or stronger safeguards. Workers in Vermont should look to whichever rule—state or federal—leaves them better off, and employers are legally obligated to apply that rule.", "quote": "When state law differs from the federal FLSA, an employer must comply with the standard most protective to employees.", "offset": 5070, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:05:08.210Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/vermont/2026/15-tipped-employees-flsa.txt" } }, { "key": "employers-may-not-keep-tips", "heading": "Your employer, your manager and your supervisor may not keep your tips", "body": "Regardless of whether an employer in Vermont takes a tip credit, the FLSA prohibits employers from keeping any portion of employees' tips for any purpose, whether directly or through a tip pool. This means your employer, your manager, and your supervisor may never take, share in, or pocket the tips that customers leave for you. Even if the employer pays you the full minimum wage directly and does not claim a tip credit at all, the tips still belong to you alone. An employer cannot require you to hand over your tips to the business or to any supervisor or manager. This rule applies to all tipped employees in Vermont and ensures that tips earned through customer service stay with the workers who provided that service.", "quote": "Regardless of whether an employer takes a tip credit, the FLSA prohibits employers from keeping any portion of employees’ tips for any purpose, whether directly or through a tip pool.", "offset": 5521, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:05:08.210Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/vermont/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-pooling", "heading": "Which tip pools you can be made to join", "body": "When an employer in Vermont takes a tip credit, any mandatory tip pool is limited to employees in occupations in which they customarily and regularly receive tips, such as waiters, bellhops, counter personnel who serve customers, bussers, and service bartenders. This is sometimes called a \"traditional\" tip pool. The employer must notify tipped employees of any required contribution amount and may only claim a tip credit for the tips each employee ultimately retains after the pool is distributed. The employer may not keep any of the employees' tips for any other purpose, and managers and supervisors are not allowed to participate in or receive distributions from the pool. Vermont workers who are part of a traditional tip pool should see their share of the pool reflected in their pay, and any contribution taken from them should go only to other traditionally tipped coworkers.", "quote": "to a tip pool which is limited to employees in occupations in which they customarily and regularly receive tips, such as waiters, bellhops, counter personnel (who serve customers), bussers, and service bartenders.", "offset": 7533, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:05:08.210Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/vermont/2026/15-tipped-employees-flsa.txt" } }, { "key": "dual-jobs", "heading": "Doing two jobs for one employer", "body": "Some workers in Vermont hold two distinct jobs for the same employer. For example, a hotel maintenance worker who also works as a server on busy nights may regularly receive tips for the server work. In that case, the worker is a tipped employee only with respect to their employment as a server. The employer may take a tip credit—paying the cash wage of $7.21 per hour—only for the hours spent working as a server. For the hours worked as a maintenance person, no tip credit is allowed and the employer must pay the full minimum wage. This rule prevents employers from applying the lower tipped rate to work that does not generate tips. Vermont workers who split their time between a tipped occupation and a non-tipped one should verify that they are paid the full minimum wage for every hour in the non-tipped role.", "quote": "The worker is employed in two occupations, and no tip credit can be taken for their hours of employment in their occupation as a maintenance person.", "offset": 9872, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:05:08.210Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/vermont/2026/15-tipped-employees-flsa.txt" } } ], "estimate": null }, { "program": "tipped-minimum-wage", "name": "Tipped Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "virgin-islands", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-30", "published_at": "2026-08-30T06:10:59.973Z", "canonical_url": "https://ratesandlimits.com/tipped-minimum-wage/virgin-islands/", "figures": [ { "key": "cash-wage", "label": "Minimum cash wage", "value": 4.2, "format": "usd", "formatted": "$4.20", "scope": null, "derived": false, "quote": "Virgin Islands $10.50 $6.30 40% of the applicable minimum wage ($4.20) Not specified", "offset": 4940, "source": { "url": "https://www.dol.gov/agencies/whd/state/minimum-wage/tipped", "title": "Minimum Wages for Tipped Employees", "publisher": "DOL", "fetched_at": "2026-08-29T02:59:27.740Z", "sha256_text": "d9cd16d4bdbf481040de3edf63de4fc5fbcddec3e63b4b8ed3992622607bd43d", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/virgin-islands/2026/tipped.txt" } } ], "schedule": null, "explainers": [ { "key": "who-is-a-tipped-employee", "heading": "Who counts as a tipped employee", "body": "In the Virgin Islands, you count as a tipped employee under federal law if you work in an occupation where you customarily and regularly receive more than $30 a month in tips. This definition matters because it determines whether your employer is allowed to pay you the lower tipped minimum cash wage of $4.20 per hour and take a tip credit against the tips you earn. If you do not meet this threshold—for example, if you work in a back-office role where tips are rare or irregular—your employer must pay you the full minimum wage and cannot use the tip credit system. Only the tips you actually receive count toward this determination; tips that are promised but not collected do not qualify.", "quote": "Under the FLSA, a tipped employee is an employee engaged in an occupation in which they customarily and regularly receive more than $30 a month in tips.", "offset": 2188, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:07:20.622Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/virgin-islands/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-credit-and-cash-wage", "heading": "What a tip credit is, and the cash wage underneath it", "body": "In the Virgin Islands, the tip credit is the amount your employer counts from your tips toward meeting the minimum wage. Your employer must still pay you a direct cash wage of at least $4.20 per hour, which is the Virgin Islands minimum cash wage for tipped workers. The tip credit then fills the gap between that cash wage and the full minimum wage. In other words, the employer pays you $4.20 directly and credits your tips toward the rest. If your tips plus the $4.20 cash wage do not reach the full minimum wage in any workweek, the employer is responsible for covering whatever is missing. The concept comes from federal law, which describes the tip credit as equal to the difference between the direct cash wage the employer pays and the applicable minimum wage. Only tips you actually receive count—money that never reaches you cannot be used as part of the credit.", "quote": "An employer can take an FLSA tip credit equal to the difference between the direct wage, or the cash wage it pays directly to the tipped employee, and the federal minimum wage, which is currently $7.25 per hour.", "offset": 3054, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:07:20.622Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/virgin-islands/2026/15-tipped-employees-flsa.txt" } }, { "key": "tips-that-fall-short", "heading": "When the tips do not get you to the minimum wage", "body": "In the Virgin Islands, every workweek your combined earnings—your $4.20 per hour cash wage plus your tips—must reach at least the full minimum wage. If in any workweek your tips fall short and the total does not reach the minimum wage, your employer must pay the shortfall out of its own pocket. This rule is evaluated separately for each workweek, so a slow week cannot be averaged against a busy one. The employer cannot shift the risk of a bad tip week onto you; if customers do not leave enough to bring you to the minimum, the employer is legally required to cover whatever is missing before the regular payday for that workweek ends. You should keep track of your tips, because if your employer does not make up the difference, you have a wage claim for the unpaid amount.", "quote": "If an employee’s tips combined with the employer’s direct (or cash) wages do not equal the minimum hourly wage of $7.25 per hour in each workweek, the employer must make up the difference.", "offset": 3740, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:07:20.622Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/virgin-islands/2026/15-tipped-employees-flsa.txt" } }, { "key": "notice-before-the-tip-credit", "heading": "The notice an employer owes you before it takes the credit", "body": "In the Virgin Islands, before your employer can use the tip credit to count your tips toward the minimum wage, it must tell you certain things in advance. It must inform you of the cash wage it is paying you, the tip credit amount it is claiming, and that the credit cannot exceed the tips you actually receive. It must also tell you that you keep all your tips except for amounts going into a valid tip pool, and that the credit will not apply unless you have received all of this information. The notice can be oral or written, but it must come before the employer takes the credit, not after. If your employer skips this notice or gives it too late, it loses the right to use the tip credit altogether and must pay you the full minimum wage for every hour you worked. The Virgin Islands requires its employers to give you this notice so you can verify your pay is calculated correctly.", "quote": "Employers must provide the following information to tipped employees before taking a tip credit under the FLSA:\nthe amount of the direct (or cash) wage the employer is paying a tipped employee, which must be at least $2.13 per hour;\nthe additional amount claimed by the employer as a tip credit, which cannot exceed $5.12 (the difference between the minimum required direct (or cash) wage of $2.13 and the current minimum wage of $7.25);\nthat the tip credit claimed by the employer cannot exceed the amount of tips actually received by the tipped employee;\nthat all tips received by the tipped employee are to be retained by the employee except for a valid tip pooling arrangement limited to employees who customarily and regularly receive tips; and\nthat the tip credit will not apply to any tipped employee unless the employee has been informed of these tip credit provisions.", "offset": 3957, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:07:20.622Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/virgin-islands/2026/15-tipped-employees-flsa.txt" } }, { "key": "state-law-most-protective", "heading": "When state law gives more than the federal rule", "body": "In the Virgin Islands, both federal law under the FLSA and local Virgin Islands labor law may apply to your wages as a tipped employee. When the two laws differ, your employer must follow whichever rule gives you greater protection—meaning whichever one pays you more or restricts the employer more. For example, if Virgin Islands law requires a higher cash wage than the federal floor, or if it prohibits the tip credit entirely, the Virgin Islands standard controls. This means the $4.20 minimum cash wage that applies in the Virgin Islands must be honored regardless of what federal law alone would allow. You benefit from the better of the two rules without having to choose between them. If your employer applies only the federal standard and the Virgin Islands rule would have been more favorable to you, you may be owed back wages for the difference.", "quote": "When state law differs from the federal FLSA, an employer must comply with the standard most protective to employees.", "offset": 5070, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:07:20.622Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/virgin-islands/2026/15-tipped-employees-flsa.txt" } }, { "key": "employers-may-not-keep-tips", "heading": "Your employer, your manager and your supervisor may not keep your tips", "body": "In the Virgin Islands, your employer, your manager, and your supervisor are all prohibited from keeping any portion of your tips, no matter what. This rule applies whether your employer takes a tip credit or pays you the full minimum wage directly. Even if you earn well above the minimum wage from tips alone, your employer cannot require you to hand over any of those tips, and your managers cannot participate in a tip pool or take a cut of your earnings. This protection is absolute—there is no exception for administrative fees, house policies, or shared overhead costs. The only person who may keep tips is you, the tipped employee, or other eligible workers in a lawful tip pool. If your employer or any supervisor takes any share of your tips, that is a violation of federal law and you are entitled to recover those amounts.", "quote": "the FLSA prohibits employers from keeping any portion of employees’ tips for any purpose, whether directly or through a tip pool. An employer may not require an employee to give their tips to the employer, a supervisor, or a manager, even where a tipped employee receives at least the federal minimum wage (currently $7.25) per hour in wages directly from the employer and the employer takes no tip credit.", "offset": 5575, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:07:20.622Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/virgin-islands/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-pooling", "heading": "Which tip pools you can be made to join", "body": "In the Virgin Islands, if your employer takes a tip credit and requires you to participate in a tip pool, that pool can only include employees who work in occupations where they customarily and regularly receive tips. This means servers, bussers, bartenders, and bellhops can be in the pool, but back-of-house workers like dishwashers and cooks generally cannot be included unless your employer pays everyone the full minimum wage without taking a tip credit. The rule exists to prevent employers from forcing tipped workers to share their earnings with staff who do not themselves depend on tips. If your employer operates a tip pool that includes ineligible workers while still taking the tip credit, the entire arrangement may be invalid and you could be owed additional wages. Your employer must also tell you how much you are required to contribute to the pool and cannot take any portion of the pooled tips for itself.", "quote": "An employer that takes a tip credit can require tipped employees to contribute tips only\nto a tip pool which is limited to employees in occupations in which they customarily and regularly receive tips, such as waiters, bellhops, counter personnel (who serve customers), bussers, and service bartenders.", "offset": 7444, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:07:20.622Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/virgin-islands/2026/15-tipped-employees-flsa.txt" } }, { "key": "dual-jobs", "heading": "Doing two jobs for one employer", "body": "In the Virgin Islands, if you work two different jobs for the same employer—one that is tipped and one that is not—you are only considered a tipped employee for the hours you spend in the tipped occupation. For example, if you work as a server for part of your shift and as a maintenance worker for the rest, your employer can take the tip credit only for the hours you worked as a server. For the maintenance hours, your employer must pay you the full minimum wage with no tip credit allowed. This prevents employers from using the lower tipped wage rate for all your hours just because you happen to do some tipped work. The rule applies even if both jobs are related to the same business. You need to be paid the full minimum wage for any time spent in a non-tipped occupation, regardless of how much you earned in tips during your server hours.", "quote": "In such a situation the employee, if they customarily and regularly receive at least $30 a month in tips for their work as a server, is a tipped employee only with respect to their employment as a server. The worker is employed in two occupations, and no tip credit can be taken for their hours of employment in their occupation as a maintenance person.", "offset": 9667, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:07:20.622Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/virgin-islands/2026/15-tipped-employees-flsa.txt" } } ], "estimate": null }, { "program": "tipped-minimum-wage", "name": "Tipped Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "virginia", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-30", "published_at": "2026-08-30T06:08:35.627Z", "canonical_url": "https://ratesandlimits.com/tipped-minimum-wage/virginia/", "figures": [ { "key": "cash-wage", "label": "Minimum cash wage", "value": 2.13, "format": "usd", "formatted": "$2.13", "scope": null, "derived": false, "quote": "Virginia $12.77 $10.64 $2.13 More than $30", "offset": 6025, "source": { "url": "https://www.dol.gov/agencies/whd/state/minimum-wage/tipped", "title": "Minimum Wages for Tipped Employees", "publisher": "DOL", "fetched_at": "2026-08-29T02:59:57.265Z", "sha256_text": "d9cd16d4bdbf481040de3edf63de4fc5fbcddec3e63b4b8ed3992622607bd43d", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/virginia/2026/tipped.txt" } } ], "schedule": null, "explainers": [ { "key": "who-is-a-tipped-employee", "heading": "Who counts as a tipped employee", "body": "Under federal law, a worker in Virginia counts as a tipped employee when they are engaged in an occupation where they customarily and regularly bring in more than $30 a month in tips. That $30-a-month threshold is the only dollar figure in the definition — it is not tied to any particular hourly rate. If a Virginia employee's tips fall below that amount in a given month, the employer cannot treat them as tipped for that period and must pay them the full minimum wage without relying on a tip credit. The definition applies to any occupation in which tipping is customary and regular, such as server, bartender, or bellhop. It does not matter whether the tips arrive in cash, on a credit card, or through a digital platform; all tips the worker actually receives are counted when deciding whether they meet the $30-a-month line and when the employer applies its tip credit.", "quote": "Under the FLSA, a tipped employee is an employee engaged in an occupation in which they customarily and regularly receive more than $30 a month in tips.", "offset": 2188, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:07:20.992Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/virginia/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-credit-and-cash-wage", "heading": "What a tip credit is, and the cash wage underneath it", "body": "In Virginia, the federal tip credit lets an employer count a portion of a tipped employee's tips toward the minimum wage obligation, so long as the employer pays a direct cash wage of at least $2.13 per hour. The tip credit is equal to the difference between that cash wage and the federal minimum wage. The maximum tip credit currently available is the gap between $2.13 and the full federal minimum wage. Even with the credit in place, the employer must be able to show that the employee's cash wage plus tips received together reach at least the full minimum wage in every workweek. Only tips the employee actually received count toward this calculation. If the combination of cash wages and tips falls short in any workweek, the employer is required to make up the difference so the employee earns at least the minimum hourly wage.", "quote": "An employer can take an FLSA tip credit equal to the difference between the direct wage, or the cash wage it pays directly to the tipped employee, and the federal minimum wage, which is currently $7.25 per hour.", "offset": 3054, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:07:20.992Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/virginia/2026/15-tipped-employees-flsa.txt" } }, { "key": "tips-that-fall-short", "heading": "When the tips do not get you to the minimum wage", "body": "In Virginia, employers who take a tip credit must verify every workweek that a tipped employee's cash wage plus tips actually received add up to at least the full minimum hourly wage. If the employee's tips combined with the employer's direct (or cash) wages do not equal the minimum hourly wage in a given workweek, the employer must make up the difference. This is not an annual or average calculation — the employer must ensure the floor is met each and every week. The responsibility falls entirely on the employer; the employee cannot be left with sub-minimum earnings even in a slow week. The employer bears the risk of a tip shortfall and must pay whatever additional amount is needed to bring the employee's total compensation up to the required hourly minimum.", "quote": "If an employee’s tips combined with the employer’s direct (or cash) wages do not equal the minimum hourly wage of $7.25 per hour in each workweek, the employer must make up the difference.", "offset": 3740, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:07:20.992Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/virginia/2026/15-tipped-employees-flsa.txt" } }, { "key": "notice-before-the-tip-credit", "heading": "The notice an employer owes you before it takes the credit", "body": "In Virginia, before an employer may take a tip credit against a tipped employee's wages, it must give the employee specific information. Employers must provide the following information to tipped employees before taking a tip credit under the FLSA: the cash wage being paid (at least $2.13 per hour), the tip credit amount claimed, the fact that the credit cannot exceed the tips actually received, the employee's right to retain all tips except through a valid tip pool, and the notice that the credit will not apply unless the employee has been informed of these provisions. The notice may be given orally or in writing. An employer that fails to give this information simply cannot claim the tip credit at all — the full minimum wage must be paid without regard to tips.", "quote": "Employers must provide the following information to tipped employees before taking a tip credit under the FLSA:\nthe amount of the direct (or cash) wage the employer is paying a tipped employee, which must be at least $2.13 per hour;\nthe additional amount claimed by the employer as a tip credit, which cannot exceed $5.12 (the difference between the minimum required direct (or cash) wage of $2.13 and the current minimum wage of $7.25);\nthat the tip credit claimed by the employer cannot exceed the amount of tips actually received by the tipped employee;\nthat all tips received by the tipped employee are to be retained by the employee except for a valid tip pooling arrangement limited to employees who customarily and regularly receive tips; and\nthat the tip credit will not apply to any tipped employee unless the employee has been informed of these tip credit provisions.", "offset": 3957, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:07:20.992Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/virginia/2026/15-tipped-employees-flsa.txt" } }, { "key": "state-law-most-protective", "heading": "When state law gives more than the federal rule", "body": "In Virginia, the federal tip-credit rules under the FLSA set a floor, not a ceiling. When state law differs from the federal FLSA, an employer must comply with the standard most protective to employees. Virginia may, for example, require a higher cash wage than the federal direct (or cash) wage of $2.13 per hour, or it may prohibit the taking of a tip credit altogether. Where both federal and Virginia law apply, the employer must follow whichever rule leaves the employee better off — the higher cash wage, the larger tip credit limitation, or the stricter notice requirement. An employer cannot rely on the more permissive federal standard when Virginia law gives tipped workers greater protections.", "quote": "When state law differs from the federal FLSA, an employer must comply with the standard most protective to employees.", "offset": 5070, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:07:20.992Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/virginia/2026/15-tipped-employees-flsa.txt" } }, { "key": "employers-may-not-keep-tips", "heading": "Your employer, your manager and your supervisor may not keep your tips", "body": "In Virginia, the FLSA prohibits employers from keeping any portion of employees' tips for any purpose, whether directly or through a tip pool. This rule applies regardless of whether the employer takes a tip credit at all. An employer may not require a tipped employee to hand over tips to the employer, a supervisor, or a manager — even in a week where the employer pays the full minimum wage from its own funds and claims no tip credit. Managers and supervisors are specifically barred from participating in tip pools or receiving any share of a tipped employee's tips. The purpose is to ensure that tips remain the property of the non-supervisory workers who earned them from customers.", "quote": "Regardless of whether an employer takes a tip credit, the FLSA prohibits employers from keeping any portion of employees’ tips for any purpose, whether directly or through a tip pool.", "offset": 5521, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:07:20.992Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/virginia/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-pooling", "heading": "Which tip pools you can be made to join", "body": "In Virginia, when an employer takes a tip credit, any mandatory tip pool it requires must be a \"traditional\" tip pool — one that is limited to employees in occupations in which they customarily and regularly receive tips. Eligible participants include waiters, bellhops, counter personnel who serve customers, bussers, and service bartenders. Back-of-house workers who do not customarily receive tips, such as cooks or dishwashers, may not be included in a traditional tip pool if the employer is taking a tip credit. The employer must also notify tipped employees of the required contribution amount, may take a tip credit only for the tips each employee ultimately retains after the pool, and may not keep any portion of the pooled tips for itself.", "quote": "An employer that takes a tip credit can require tipped employees to contribute tips only\nto a tip pool which is limited to employees in occupations in which they customarily and regularly receive tips, such as waiters, bellhops, counter personnel (who serve customers), bussers, and service bartenders.", "offset": 7444, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:07:20.992Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/virginia/2026/15-tipped-employees-flsa.txt" } }, { "key": "dual-jobs", "heading": "Doing two jobs for one employer", "body": "In Virginia, an employee who works two distinct jobs for the same employer — for example, a hotel maintenance worker who also serves as a server — is a tipped employee only with respect to their employment as a server. The employer may take a tip credit only for the hours the employee spends in the tipped occupation. For all hours worked in the non-tipped occupation, no tip credit is allowed and the employer must pay at least the full minimum wage. This rule prevents an employer from applying the lower cash wage to time spent doing entirely different work. It is distinguishable from related duties that are part of the tipped occupation itself, such as a server cleaning and setting tables or making coffee, which are still considered tipped-employee work.", "quote": "In such a situation the employee, if they customarily and regularly receive at least $30 a month in tips for their work as a server, is a tipped employee only with respect to their employment as a server.", "offset": 9667, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:07:20.992Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/virginia/2026/15-tipped-employees-flsa.txt" } } ], "estimate": null }, { "program": "tipped-minimum-wage", "name": "Tipped Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "west-virginia", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-30", "published_at": "2026-08-30T06:09:02.683Z", "canonical_url": "https://ratesandlimits.com/tipped-minimum-wage/west-virginia/", "figures": [ { "key": "cash-wage", "label": "Minimum cash wage", "value": 2.62, "format": "usd", "formatted": "$2.62", "scope": null, "derived": false, "quote": "West Virginia 10 $8.75 70% of the applicable minimum wage ($6.13) $2.62 Not specified", "offset": 5069, "source": { "url": "https://www.dol.gov/agencies/whd/state/minimum-wage/tipped", "title": "Minimum Wages for Tipped Employees", "publisher": "DOL", "fetched_at": "2026-08-29T02:59:29.426Z", "sha256_text": "d9cd16d4bdbf481040de3edf63de4fc5fbcddec3e63b4b8ed3992622607bd43d", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/west-virginia/2026/tipped.txt" } } ], "schedule": null, "explainers": [ { "key": "who-is-a-tipped-employee", "heading": "Who counts as a tipped employee", "body": "In West Virginia, you count as a tipped employee under federal law if you work in an occupation where you customarily and regularly receive more than $30 a month in tips. This $30 threshold is the defining line: if your tips from customers typically stay below that amount in a typical month, your employer cannot treat you as a tipped employee and cannot use the tip credit rules described below. Only tips you actually receive count toward this determination; suggested tip amounts or service charges added by the house do not qualify. Once you meet this definition, special wage rules apply to you, including a lower minimum cash wage your employer is required to pay and the possibility that your employer will count a portion of your tips toward its obligation to pay you the minimum wage.", "quote": "Under the FLSA, a tipped employee is an employee engaged in an occupation in which they customarily and regularly receive more than $30 a month in tips.", "offset": 2188, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:07:20.389Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/west-virginia/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-credit-and-cash-wage", "heading": "What a tip credit is, and the cash wage underneath it", "body": "In West Virginia, the federal tip credit lets an employer count a portion of the tips you receive toward its obligation to pay you the minimum wage. The employer must still pay you a direct cash wage of at least $2.62 per hour. The tip credit is the difference between that cash wage and the minimum wage the employer owes you. If your tips plus your cash wage fall short of the minimum wage in any workweek, your employer must make up the difference out of its own funds. This guarantee applies every single workweek, not just on average over a month or a pay period. You do not have to agree to this arrangement in advance; instead, your employer is required to notify you of the cash wage it will pay and the tip credit it will take before it begins using the tip credit. If the employer fails to give you that notice, it cannot take a tip credit at all and must pay you the full minimum wage directly.", "quote": "An employer can take an FLSA tip credit equal to the difference between the direct wage, or the cash wage it pays directly to the tipped employee, and the federal minimum wage, which is currently $7.25 per hour.", "offset": 3054, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:07:20.389Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/west-virginia/2026/15-tipped-employees-flsa.txt" } }, { "key": "tips-that-fall-short", "heading": "When the tips do not get you to the minimum wage", "body": "In West Virginia, if your tips plus your employer's direct cash wage do not add up to at least the full minimum wage in a workweek, your employer must pay you the shortfall. This protection applies every single workweek, not just on average over a pay period or a month. The employer cannot wait to see if slow weeks are offset by busy weeks; each workweek stands on its own. This means that in weeks when business is slow and tips are low, you are still guaranteed to receive at least the minimum wage for all hours worked. The employer bears the risk of fluctuating tip income, not you. If the employer fails to make up the difference at the regular payday for the workweek in which the shortfall occurred, it has violated the law.", "quote": "If an employee’s tips combined with the employer’s direct (or cash) wages do not equal the minimum hourly wage of $7.25 per hour in each workweek, the employer must make up the difference.", "offset": 3740, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:07:20.389Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/west-virginia/2026/15-tipped-employees-flsa.txt" } }, { "key": "notice-before-the-tip-credit", "heading": "The notice an employer owes you before it takes the credit", "body": "In West Virginia, before an employer can take a tip credit against your wages, it must give you notice containing specific information. The notice must tell you the amount of the cash wage the employer is paying you, the additional amount the employer is claiming as a tip credit, that the tip credit cannot exceed the tips you actually receive, that you are entitled to keep all your tips except for valid tip pooling arrangements, and that the tip credit will not apply unless you have been informed of these provisions. The employer may give this notice orally or in writing, but it must be provided before the employer takes the credit. If the employer fails to provide this information, it cannot take the tip credit at all and must pay you the full minimum wage directly. This notice requirement ensures that tipped employees understand how their wages are being calculated and what portion of their tips the employer is counting toward its minimum wage obligation.", "quote": "Employers must provide the following information to tipped employees before taking a tip credit under the FLSA:", "offset": 3957, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:07:20.389Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/west-virginia/2026/15-tipped-employees-flsa.txt" } }, { "key": "state-law-most-protective", "heading": "When state law gives more than the federal rule", "body": "In West Virginia, when state law provides greater protections than federal law, employers must follow the rule that benefits employees more. This means if West Virginia requires a higher cash wage than the federal minimum, or if it prohibits tip credits entirely, the employer must comply with the state standard. Similarly, if federal law provides protections that West Virginia does not, the employer must follow the federal rule. The principle is simple: you are entitled to whichever standard gives you higher wages, better tip protections, or stronger notice requirements. Employers cannot cherry-pick the more favorable rule for themselves. This interaction between state and federal law ensures that tipped workers in West Virginia receive the maximum protection available under either legal system.", "quote": "When state law differs from the federal FLSA, an employer must comply with the standard most protective to employees.", "offset": 5070, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:07:20.389Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/west-virginia/2026/15-tipped-employees-flsa.txt" } }, { "key": "employers-may-not-keep-tips", "heading": "Your employer, your manager and your supervisor may not keep your tips", "body": "In West Virginia, the law prohibits employers, including managers and supervisors, from keeping any portion of employees' tips for any purpose, whether directly or through a tip pool. This rule applies regardless of whether the employer takes a tip credit or pays the full minimum wage directly. An employer cannot require you to hand over your tips to the business, to a supervisor, or to a manager. Managers and supervisors are defined as employees whose primary duty is managing the enterprise or a recognized department, who regularly direct the work of at least two other employees, and who have authority to hire or fire. Business owners with a significant equity interest who are actively engaged in management also fall into this category. A manager or supervisor may keep only tips they receive directly from customers for service they personally provide, but they cannot participate in tip pools or take a share of other employees' tips.", "quote": "Regardless of whether an employer takes a tip credit, the FLSA prohibits employers from keeping any portion of employees’ tips for any purpose, whether directly or through a tip pool.", "offset": 5521, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:07:20.389Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/west-virginia/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-pooling", "heading": "Which tip pools you can be made to join", "body": "In West Virginia, when an employer takes a tip credit, it can only require tipped employees to contribute to a tip pool that includes employees in occupations where they customarily and regularly receive tips. This is called a traditional tip pool and is limited to workers such as waiters, bellhops, counter personnel who serve customers, bussers, and service bartenders. The employer cannot include non-tipped employees like cooks or dishwashers in this pool. The employer must notify tipped employees of any required contribution amount and can only take a tip credit for the tips each employee ultimately receives after the pool is distributed. The employer itself cannot receive any portion of the pooled tips, and managers and supervisors are prohibited from participating. This restriction ensures that tip pools under the tip credit system stay within the group of employees who depend on tips as a regular part of their compensation.", "quote": "An employer that takes a tip credit can require tipped employees to contribute tips only\nto a tip pool which is limited to employees in occupations in which they customarily and regularly receive tips, such as waiters, bellhops, counter personnel (who serve customers), bussers, and service bartenders.", "offset": 7444, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:07:20.389Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/west-virginia/2026/15-tipped-employees-flsa.txt" } }, { "key": "dual-jobs", "heading": "Doing two jobs for one employer", "body": "In West Virginia, when you work two different jobs for the same employer, you are considered a tipped employee only with respect to the job where you customarily and regularly receive tips. For example, if you work as both a maintenance person and a server at a hotel, you are a tipped employee only for your hours as a server. The employer cannot take a tip credit for the hours you work as a maintenance person and must pay you the full minimum wage for those hours. This rule prevents employers from applying the lower tipped wage rate to all your hours just because you occasionally receive tips in one role. However, if you perform related duties in your tipped occupation, such as a server who cleans tables or makes coffee, those duties are still part of your tipped occupation and the tip credit can apply to those hours. The key distinction is whether you are performing work in a tipped occupation or in a separate non-tipped occupation.", "quote": "In such a situation the employee, if they customarily and regularly receive at least $30 a month in tips for their work as a server, is a tipped employee only with respect to their employment as a server.", "offset": 9667, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:07:20.389Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/west-virginia/2026/15-tipped-employees-flsa.txt" } } ], "estimate": null }, { "program": "tipped-minimum-wage", "name": "Tipped Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "wisconsin", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-09-01", "published_at": "2026-09-01T13:51:35.062Z", "canonical_url": "https://ratesandlimits.com/tipped-minimum-wage/wisconsin/", "figures": [ { "key": "cash-wage", "label": "Minimum cash wage", "value": 2.33, "format": "usd", "formatted": "$2.33", "scope": null, "derived": false, "quote": "If you receive tips, your employer must pay you at least $2.33 per hour in wages.", "offset": 1748, "source": { "url": "https://dwd.wisconsin.gov/er/laborstandards/minimumwage.htm", "title": "Minimum Wage", "publisher": "Wisconsin Department of Workforce Development", "fetched_at": "2026-09-01T13:51:34.086Z", "sha256_text": "c6e026b15940a70bc78cc79e1f112bb57af6a0cd4577fa1fd40f353460680116", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/wisconsin/2026/minimumwage.txt" } } ], "schedule": null, "explainers": [ { "key": "who-is-a-tipped-employee", "heading": "Who counts as a tipped employee", "body": "The $2.33 cash wage on this page is only available for a worker who actually counts as tipped, and the federal test is the one Wisconsin employers are measured against alongside state law: under the FLSA, a tipped employee is an employee engaged in an occupation in which they customarily and regularly receive more than $30 a month in tips. The test looks at the occupation and at how regularly tips come in, not at a job title and not at whether one particular week was busy. A Wisconsin cook or dishwasher who is handed a tip now and then is not a tipped employee; a server who routinely takes more than $30 a month in tips is. Where a Wisconsin worker does not meet that test, the $2.33 cash wage does not apply to them at all, and the full minimum wage is owed to them in wages rather than in tips.", "quote": "Under the FLSA, a tipped employee is an employee engaged in an occupation in which they customarily and regularly receive more than $30 a month in tips.", "offset": 2188, "verified_at": "2026-09-01", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-09-01T13:51:35.014Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/wisconsin/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-credit-and-cash-wage", "heading": "What a tip credit is, and the cash wage underneath it", "body": "A tip credit is the part of the minimum wage an employer is allowed to satisfy with the customer's money instead of its own. The Department of Labor states the mechanism this way: an employer can take an FLSA tip credit equal to the difference between the direct wage, or the cash wage it pays directly to the tipped employee, and the federal minimum wage, which is currently $7.25 per hour. In Wisconsin the cash wage underneath that credit is $2.33 per hour, and the credit is whatever is still needed to reach the applicable minimum wage. The cash wage is not a target and it is not optional: it is the amount a Wisconsin employer has to pay in its own money before a single tip is counted. A Wisconsin employer paying less than $2.33 per hour in wages has not paid the cash wage and cannot claim the credit at all.", "quote": "An employer can take an FLSA tip credit equal to the difference between the direct wage, or the cash wage it pays directly to the tipped employee, and the federal minimum wage, which is currently $7.25 per hour.", "offset": 3054, "verified_at": "2026-09-01", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-09-01T13:51:35.014Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/wisconsin/2026/15-tipped-employees-flsa.txt" } }, { "key": "tips-that-fall-short", "heading": "When the tips do not get you to the minimum wage", "body": "The tip credit is a permission to count tips, not a permission to pay less when the tips do not arrive. The federal rule is unconditional: if an employee's tips combined with the employer's direct (or cash) wages do not equal the minimum hourly wage of $7.25 per hour in each workweek, the employer must make up the difference. That test is applied workweek by workweek, so a Wisconsin worker who has one good week and one thin one cannot have the two averaged against each other. A Wisconsin employer that pays the $2.33 cash wage is therefore carrying a running obligation: if the tips fall short in any workweek, it owes the shortfall in wages for that week. A Wisconsin worker whose weekly pay stub shows only the cash wage, in a week when tips were poor, has been underpaid.", "quote": "If an employee’s tips combined with the employer’s direct (or cash) wages do not equal the minimum hourly wage of $7.25 per hour in each workweek, the employer must make up the difference.", "offset": 3740, "verified_at": "2026-09-01", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-09-01T13:51:35.014Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/wisconsin/2026/15-tipped-employees-flsa.txt" } }, { "key": "notice-before-the-tip-credit", "heading": "The notice an employer owes you before it takes the credit", "body": "Before a Wisconsin employer may pay the $2.33 tipped cash wage rather than the full minimum wage, it owes the worker a notice, and the notice is a condition of the credit rather than a courtesy. The federal rule states it as a precondition: employers must provide the following information to tipped employees before taking a tip credit under the FLSA. What has to be told is the cash wage the employer will pay, the extra amount it intends to claim as a tip credit, that the claimed credit can never exceed the tips the worker actually receives, that all tips belong to the worker except for a valid tip pool, and that the credit does not apply at all unless the worker has been told these things. A Wisconsin employer that never gave the notice has not met the condition and owes the full minimum wage in wages, not $2.33.", "quote": "Employers must provide the following information to tipped employees before taking a tip credit under the FLSA:", "offset": 3957, "verified_at": "2026-09-01", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-09-01T13:51:35.014Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/wisconsin/2026/15-tipped-employees-flsa.txt" } }, { "key": "state-law-most-protective", "heading": "When state law gives more than the federal rule", "body": "A tipped worker in Wisconsin is covered by two sets of rules at once, because Wisconsin sets a cash wage of $2.33 per hour and the federal Fair Labor Standards Act sets its own tipped wage rules. The Department of Labor resolves the overlap in one sentence: when state law differs from the federal FLSA, an employer must comply with the standard most protective to employees. That is a point-by-point comparison rather than a choice of which law to follow, so a Wisconsin employer applies the state rule where the state rule gives the worker more and the federal rule where the federal rule does. It also means the federal requirements that Wisconsin law does not duplicate, such as the notice before the credit and the limits on tip pooling, still bind Wisconsin employers covered by the FLSA.", "quote": "When state law differs from the federal FLSA, an employer must comply with the standard most protective to employees.", "offset": 5070, "verified_at": "2026-09-01", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-09-01T13:51:35.014Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/wisconsin/2026/15-tipped-employees-flsa.txt" } }, { "key": "employers-may-not-keep-tips", "heading": "Your employer, your manager and your supervisor may not keep your tips", "body": "Tips belong to the worker who earned them, and that is true in Wisconsin whether or not the employer is paying the $2.33 tipped cash wage. The federal rule is written to leave no gap: regardless of whether an employer takes a tip credit, the FLSA prohibits employers from keeping any portion of employees' tips for any purpose, whether directly or through a tip pool. The prohibition reaches the owner, the manager and the supervisor alike, so a Wisconsin restaurant cannot route a share of the tips to the person running the shift. It also reaches indirect routes: an employer cannot take a cut to cover credit card processing beyond the cost of the transaction, or use a tip pool as a way of moving money to people who are not tipped employees. A Wisconsin worker whose tips have been kept is owed them back.", "quote": "Regardless of whether an employer takes a tip credit, the FLSA prohibits employers from keeping any portion of employees’ tips for any purpose, whether directly or through a tip pool.", "offset": 5521, "verified_at": "2026-09-01", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-09-01T13:51:35.014Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/wisconsin/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-pooling", "heading": "Which tip pools you can be made to join", "body": "A Wisconsin employer paying the $2.33 tipped cash wage may require its tipped workers to share tips, but only within limits the federal rule draws. Traditional tip pooling is described this way: an employer that takes a tip credit can require tipped employees to contribute tips only to a tip pool which is limited to employees in occupations in which they customarily and regularly receive tips, such as waiters, bellhops, counter personnel (who serve customers), bussers, and service bartenders. The line is drawn by occupation, so a Wisconsin pool of servers and bussers is allowed while one that sweeps in the kitchen or the office is not, for as long as the employer is claiming the credit. Managers, supervisors and the employer itself are outside any pool. A Wisconsin worker made to pay into a pool that includes non-tipped staff is being asked for something the rule does not permit.", "quote": "Traditional Tip Pooling: An employer that takes a tip credit can require tipped employees to contribute tips only\nto a tip pool which is limited to employees in occupations in which they customarily and regularly receive tips, such as waiters, bellhops, counter personnel (who serve customers), bussers, and service bartenders.", "offset": 7419, "verified_at": "2026-09-01", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-09-01T13:51:35.014Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/wisconsin/2026/15-tipped-employees-flsa.txt" } }, { "key": "dual-jobs", "heading": "Doing two jobs for one employer", "body": "Many Wisconsin workers do two things for one employer, and the $2.33 tipped cash wage does not follow them from one job to the other. The federal rule works through the example of someone who serves customers and also does maintenance work: in such a situation the employee, if they customarily and regularly receive at least $30 a month in tips for their work as a server, is a tipped employee only with respect to their employment as a server. The consequence for a Wisconsin worker is that the hours spent in the non-tipped job are ordinary hours at the full minimum wage, paid in wages, with no tip credit taken against them. An employer in Wisconsin therefore has to keep the two occupations apart in its records rather than paying $2.33 for the whole shift.", "quote": "In such a situation the employee, if they customarily and regularly receive at least $30 a month in tips for their work as a server, is a tipped employee only with respect to their employment as a server.", "offset": 9667, "verified_at": "2026-09-01", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-09-01T13:51:35.014Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/wisconsin/2026/15-tipped-employees-flsa.txt" } } ], "estimate": null }, { "program": "tipped-minimum-wage", "name": "Tipped Minimum Wage", "category": "payroll-and-wages", "agency": "DOL", "year": 2026, "state": "wyoming", "status": "official", "effective_date": "2026-01-01", "date_basis": "effective", "verified_at": "2026-08-30", "published_at": "2026-08-30T06:10:13.952Z", "canonical_url": "https://ratesandlimits.com/tipped-minimum-wage/wyoming/", "figures": [ { "key": "cash-wage", "label": "Minimum cash wage", "value": 2.13, "format": "usd", "formatted": "$2.13", "scope": null, "derived": false, "quote": "Wyoming 14 $7.25 $5.12 $2.13 More than $30", "offset": 6068, "source": { "url": "https://www.dol.gov/agencies/whd/state/minimum-wage/tipped", "title": "Minimum Wages for Tipped Employees", "publisher": "DOL", "fetched_at": "2026-08-29T02:59:59.072Z", "sha256_text": "d9cd16d4bdbf481040de3edf63de4fc5fbcddec3e63b4b8ed3992622607bd43d", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/wyoming/2026/tipped.txt" } } ], "schedule": null, "explainers": [ { "key": "who-is-a-tipped-employee", "heading": "Who counts as a tipped employee", "body": "In Wyoming, you count as a tipped employee under federal law if the job you do is one where you customarily and regularly receive more than $30 a month in tips. It does not matter whether your employer pays you the full minimum wage or takes a tip credit; the definition is the same. If your tips in a given month fall below $30, or if the tips you get are irregular or incidental rather than a regular part of the occupation, you are not a tipped employee for that work and your employer must pay you the full minimum wage without using a tip credit. Only the tips you actually receive are counted when deciding whether you meet this threshold.", "quote": "Under the FLSA, a tipped employee is an employee engaged in an occupation in which they customarily and regularly receive more than $30 a month in tips.", "offset": 2188, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:07:20.596Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/wyoming/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-credit-and-cash-wage", "heading": "What a tip credit is, and the cash wage underneath it", "body": "In Wyoming, your employer must pay you at least $2.13 per hour in direct cash wages if it wants to use a tip credit. The tip credit is the difference between that cash wage and the federal minimum wage of $7.25 per hour, which means the maximum credit an employer can claim is $5.12 per hour. This system lets employers count a portion of the tips you receive toward their minimum wage obligation, but you must still receive at least $2.13 per hour directly from your employer. The tip credit only applies to tips you actually receive, not to estimated or projected tips.", "quote": "An employer must pay a tipped worker at least $2.13 per hour under the FLSA. An employer can take an FLSA tip credit equal to the difference between the direct wage, or the cash wage it pays directly to the tipped employee, and the federal minimum wage, which is currently $7.25 per hour. The maximum tip credit that an employer can currently claim is $5.12 per hour: ($7.25 - $2.13 direct (or cash) wage = $5.12).", "offset": 2977, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:07:20.596Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/wyoming/2026/15-tipped-employees-flsa.txt" } }, { "key": "tips-that-fall-short", "heading": "When the tips do not get you to the minimum wage", "body": "In Wyoming, the federal tip credit rule means your employer can pay you a cash wage of $2.13 per hour and count your tips toward the full minimum wage obligation. The tip credit equals the difference between that cash wage and the federal minimum wage. Your employer must verify each workweek that your cash wages plus your tips add up to at least the federal minimum wage. If they fall short in any workweek, your employer must pay the difference out of pocket. The tip credit is only available if your employer has given you the required notice beforehand. This guarantee applies to every individual workweek, so a slow week cannot be averaged out with a busy one.", "quote": "If an employee’s tips combined with the employer’s direct (or cash) wages do not equal the minimum hourly wage of $7.25 per hour in each workweek, the employer must make up the difference.", "offset": 3740, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:07:20.596Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/wyoming/2026/15-tipped-employees-flsa.txt" } }, { "key": "notice-before-the-tip-credit", "heading": "The notice an employer owes you before it takes the credit", "body": "In Wyoming, your employer must give you specific information before it can use a tip credit to pay you less than the full minimum wage. This notice must include the cash wage the employer will pay you, the tip credit amount it will claim, confirmation that the credit cannot exceed your actual tips, and notice of your tip pooling rights. The notice can be oral or written, but it must happen before the employer takes the credit. If your employer fails to provide this information, it cannot claim the tip credit at all and must pay you the full minimum wage. This protects you from surprise deductions and ensures you understand how your wages are calculated.", "quote": "An employer that fails to provide the required information cannot take the section 3(m)(2)(A) tip credit.", "offset": 4935, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:07:20.596Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/wyoming/2026/15-tipped-employees-flsa.txt" } }, { "key": "state-law-most-protective", "heading": "When state law gives more than the federal rule", "body": "Wyoming employers must follow whichever rule—state or federal—gives you the most protection. If Wyoming law requires a higher cash wage than $2.13 per hour or prohibits tip credits entirely, your employer must follow that stricter standard instead of the federal rule. The federal law sets a floor, not a ceiling. When state and federal rules conflict, you get the benefit of whichever one pays you more or restricts your employer more. This means your actual wage rights depend on both layers of law, and the more protective one always applies.", "quote": "When state law differs from the federal FLSA, an employer must comply with the standard most protective to employees.", "offset": 5070, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:07:20.596Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/wyoming/2026/15-tipped-employees-flsa.txt" } }, { "key": "employers-may-not-keep-tips", "heading": "Your employer, your manager and your supervisor may not keep your tips", "body": "In Wyoming, your employer, your manager, and your supervisor cannot keep any part of your tips, regardless of whether the employer takes a tip credit. This rule applies even if the employer pays you the full minimum wage and claims no tip credit at all. Your tips belong to you, not to the business or to management. The employer cannot require you to hand over your tips or share them with supervisors. This protection exists to prevent employers from using their position to take money that customers intended for you.", "quote": "Regardless of whether an employer takes a tip credit, the FLSA prohibits employers from keeping any portion of employees’ tips for any purpose, whether directly or through a tip pool.", "offset": 5521, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:07:20.596Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/wyoming/2026/15-tipped-employees-flsa.txt" } }, { "key": "tip-pooling", "heading": "Which tip pools you can be made to join", "body": "In Wyoming, if your employer takes a tip credit, it can only require you to share your tips with other employees who work in occupations where they customarily and regularly receive tips. This is called a traditional tip pool. Eligible participants include servers, bussers, bartenders, bellhops, and counter staff who serve customers. The employer cannot include dishwashers, cooks, or other back-of-house workers in the pool if it is using a tip credit. The employer also cannot take any portion of the pooled tips for itself. This rule ensures that tip credits are only used when tips flow among workers who depend on them as part of their regular compensation.", "quote": "An employer that takes a tip credit can require tipped employees to contribute tips only\nto a tip pool which is limited to employees in occupations in which they customarily and regularly receive tips, such as waiters, bellhops, counter personnel (who serve customers), bussers, and service bartenders.", "offset": 7444, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:07:20.596Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/wyoming/2026/15-tipped-employees-flsa.txt" } }, { "key": "dual-jobs", "heading": "Doing two jobs for one employer", "body": "In Wyoming, if you work two different jobs for the same employer—one where you receive tips and one where you do not—you are only considered a tipped employee for the job where you customarily and regularly receive at least $30 a month in tips. Your employer cannot take a tip credit for the hours you work in the non-tipped job. For example, if you work as a maintenance person and also serve as a server, the tip credit applies only to your server hours. For your maintenance hours, your employer must pay you the full minimum wage without using a tip credit. This prevents employers from applying tip credits to work that does not generate tips.", "quote": "In such a situation the employee, if they customarily and regularly receive at least $30 a month in tips for their work as a server, is a tipped employee only with respect to their employment as a server.", "offset": 9667, "verified_at": "2026-08-30", "source": { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)", "publisher": "DOL", "fetched_at": "2026-08-30T06:07:20.596Z", "sha256_text": "9dd6ad9d4ee42441dd7401a232063c4a92d12b04d0af977f7861f12e770d059c", "snapshot_url": "https://ratesandlimits.com/snapshots/tipped-minimum-wage/wyoming/2026/15-tipped-employees-flsa.txt" } } ], "estimate": null } ] }