Idaho Tip Credit & Tipped Minimum Wage Calculator
Idaho's $3.35/hr cash wage and $3.90/hr tip credit, the make-up owed when tips fall short, tipped overtime, and take-home after FICA and the no-tax-on-tips deduction.
Employer cost this period
Pay composition & the minimum-wage check
The tip credit lets an employer count tips toward the minimum wage — but only up to the state cap, and only if cash wage plus tips reaches the full minimum for every hour. If it falls short, the employer must make up the difference.
Same shift, tip-credit state vs. no-tip-credit state
Tipped overtime is 1.5 × the full minimum, then minus the tip credit
The most common tipped-payroll mistake is taking time-and-a-half on the cash wage. Overtime is owed on the full minimum wage: the overtime rate is 1.5 × full minimum − tip credit, so the employer still pays the same tip credit on overtime hours but never less than that.
What the worker actually keeps
Take-home is cash wages plus the tips you keep after tipping out, minus FICA and income tax. The 2025 no-tax-on-tips deduction lowers income tax on your tips — but Social Security and Medicare (FICA) still apply to every dollar of tips.
— deducted from taxable income saves about — in income tax a year. It does not reduce the — of FICA you still owe on your tips. Model the full phase-out →
Two sides of the same shift
Tip credit & tipped minimum wage in Idaho (2026)
In Idaho in 2026, an employer may pay a tipped employee a direct cash wage as low as $3.35/hr and claim a tip credit of up to $3.90/hr against the $7.25/hr minimum wage. This page pre-loads Idaho's cash wage, tip credit, and minimum so the make-up and overtime math reflect your state.
In Idaho, cash wage plus tips must average at least $7.25/hr for every hour. Over a 40-hour week that is $290.00; at the $3.35/hr cash wage the employer pays $134.00 directly, so the worker's tips must add at least $156.00 that week or the employer owes make-up pay to close the gap. The tip credit can never leave a Idaho worker below the minimum wage.
Idaho's tipped overtime is paid on the full minimum wage, not the cash wage: the overtime cash rate is 1.5 × $7.25/hr minus the $3.90/hr tip credit, or $6.98/hr — not 1.5 × the cash wage ($5.03/hr). Paying the lower figure is one of the most common tipped-payroll violations.
Idaho figures were verified in July 2026 against the U.S. DOL tipped-wage tables and state labor-agency rates, and are reviewed annually. Federal figures: $2.13/hr cash wage, $5.12/hr tip credit, $7.25/hr minimum. This is an educational estimate only — not legal, payroll, or tax advice.
Idaho tipped-wage FAQ
What is the tipped minimum wage in Idaho for 2026?
In 2026, Idaho lets employers pay a direct cash wage as low as $3.35/hr to tipped employees and claim up to a $3.90/hr tip credit toward the $7.25/hr minimum wage. Cash wage plus tips must still reach $7.25/hr for every hour worked.
Does Idaho allow a tip credit?
Yes. Idaho allows a tip credit of up to $3.90/hr per hour, meaning an employer can pay $3.35/hr in cash and count tips for the rest of the $7.25/hr minimum. If tips fall short in a pay period, the employer must make up the difference.
How is tipped overtime calculated in Idaho?
Idaho tipped overtime is 1.5 × the full $7.25/hr minimum wage minus the $3.90/hr tip credit, which is $6.98/hr in cash — not 1.5 times the lower cash wage. The employer keeps the same tip credit on overtime hours but must pay this higher cash rate.
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