How do tips work for servers? Your pay, explained
By the Steady Ground team ·
Restaurants are one of the fastest places to get hired. But if you're going to wait tables, you should know how tips work for servers before your first shift. Your paycheck may look very different from a cook's or a cashier's. Here's what to know, in plain words.
The tipped minimum wage
Most workers must be paid at least the minimum wage. Under federal law, that's $7.25 an hour. But servers can be paid differently.
Federal law lets a restaurant pay you as little as $2.13 an hour in cash wages. Your tips are supposed to make up the rest. This is called a tip credit.
Here's the key part. Your cash wage plus your tips must reach at least $7.25 an hour each workweek. If they don't, your employer has to pay you the difference.
Your state may pay more
Many states set their own rules. Some don't allow a lower tipped wage at all. Here's what a few states paid servers before tips in July 2026:
- Texas: $2.13 an hour
- Illinois: $9.00 an hour
- California: $16.90 an hour
- Washington: $17.13 an hour
Some cities and counties set even higher wages. The U.S. Department of Labor keeps a table of every state, which we link to below.
Who can't touch your tips
Your tips belong to you and the other workers who earn them. Under federal law, your employer, managers and supervisors can't keep your tips. They also can't take a share of a tip pool.
A tip pool is when servers, bussers and others put tips together and split them. That's allowed. A manager taking a cut is not.
Two more rules to know
Other work gets the regular wage
Say you also work a separate job at the restaurant that doesn't get tips. Your employer can't use the tip credit for those hours.
A service charge is not a tip
Some restaurants add an automatic service charge to big tables. Under federal rules, that money is not a tip. It belongs to the business. The business may or may not share it with you. So ask how yours is handled.
What to ask before you take the job
- What's the hourly pay before tips?
- What do servers usually make in tips here?
- Is there a tip pool? Who's in it?
- How many hours a week will I get?
- How is the schedule made?
If the restaurant uses a tip credit, it has to tell you certain things about it first.
Write down your tips every shift
Keep a simple record of your hours and tips each shift. A notes app on your phone works fine. It helps at tax time. It also helps if your pay ever looks wrong.
There's also a federal tax break on tips for 2025 to 2028. Ask a tax preparer if it fits your situation.
So what do servers really make?
The U.S. Bureau of Labor Statistics says servers earn a median of about $16.94 an hour, including tips. Cooks earn a median of about $17.62 an hour. Tips can change a lot with the restaurant, the shift and the season. A busy weekend dinner is very different from a slow Tuesday lunch.
How to get hired fast
Walk in during the afternoon, between lunch and dinner. Ask for the manager. Try three to five places in one trip. Many restaurants hire for jobs like dishwasher, host, prep or counter with no experience.
Some states require a food handler card, which costs about $10 to $20. In California, your employer has to pay for it. So check before you buy one.
Read our restaurant and food service guide for every step, from your first day to moving up. Need cash this week? See more ways to earn money now. Or take the career quiz.
Quick answers
What is the tipped minimum wage?
Under federal law, it's $2.13 an hour in cash, as long as tips bring you up to at least $7.25 an hour. Many states require more.
What happens if my tips don't reach minimum wage?
Your employer has to make up the difference so you earn at least $7.25 an hour each workweek. Your state's minimum may be higher.
Can my manager take part of my tips?
No. Under federal law, employers, managers and supervisors can't keep your tips or share in a tip pool.
Where these facts come from
We checked these sources when we wrote this post. Rules and fees change, so check them before you pay for anything.