North Carolina Tipped Minimum Wage 2026
Figure basis: Official North Carolina Department of LaborNorth Carolina lets employers pay tipped workers a cash wage of $2.13 an hour and take a tip credit of up to $5.12, as long as tips bring total pay to at least the $7.25 minimum wage. This North Carolina tipped minimum wage calculator shows what that means in practice. Enter your average tips per hour and your weekly hours, and it works out whether your tips clear the tip credit, whether your employer owes you a top-up to reach the $7.25 minimum, and your effective hourly, weekly and yearly pay. A tip credit lets an employer pay a lower direct cash wage and count part of your tips toward the regular minimum wage, but it can never leave you below the minimum: if tips fall short in a given week, the law requires the employer to make up the difference. The cash wage, tip credit and minimum wage used here are the 2026 figures for North Carolina, sourced from the North Carolina Department of Labor. Tips you earn above the minimum are always yours to keep.
North Carolina tipped workers get a cash wage of $2.13/hr, with up to a $5.12 tip credit toward the $7.25 minimum wage.
How the North Carolina tipped wage and tip credit work
cash wage = $2.13/hr (paid by employer)
total before top-up = cash wage + your tips per hour
if total < $7.25: employer tops up to $7.25
effective pay = greater of (cash + tips) and $7.25
These are gross figures before tax. Tips are taxable income and must be reported. For your after-tax pay, see the North Carolina paycheck calculator, and for the regular rate the North Carolina minimum wage calculator.
The North Carolina top-up worth watching
North Carolina uses the lowest tipped cash wage the law allows, $2.13 an hour, with a tip credit of up to $5.12 toward the $7.25 minimum. Because that base is so small, the made-whole rule matters more here than almost anywhere: your employer is counting on tips to supply nearly three-quarters of your minimum pay, and in a slow week they may not.
The check is straightforward. Add your $2.13 cash wage to your tips per hour and confirm the total reaches $7.25. If a shift averages only $3.00 an hour in tips, your $2.13 base plus tips is $5.13, and the employer must top up the $2.12 shortfall so every hour clears $7.25. This is measured over the workweek, so a strong Friday can offset a dead Tuesday, but the weekly average can never fall below the minimum, and you keep any tips above that line.
North Carolina's wage is fixed at the federal $7.25 statewide, and a preemption clause bars any city or county from setting a higher local minimum, so unlike a New Mexico or New York worker you do not need to check a city rate. What you do need is your own record of hours, cash wage and declared tips: with a $2.13 base, an unpaid top-up is the single most common way tipped pay goes wrong. Report shortfalls to the North Carolina Department of Labor.
North Carolina tipped minimum wage: frequently asked questions
What is the tipped minimum wage in North Carolina in 2026?
In North Carolina, the minimum cash wage for tipped employees is $2.13 an hour in 2026. Employers may count up to $5.12 an hour of tips (the "tip credit") toward the $7.25 minimum wage. If an employee's cash wage plus tips does not average at least $7.25 an hour, the employer must pay the difference.
Does North Carolina allow a tip credit?
Yes. North Carolina allows employers to take a tip credit of up to $5.12 an hour, meaning the direct cash wage can be as low as $2.13 an hour provided tips make up the rest to $7.25. The federal tip-credit floor is a $2.13 cash wage.
What happens if my tips do not reach minimum wage in North Carolina?
Your employer must make up the shortfall. In any week where your cash wage of $2.13 plus your tips does not average at least $7.25 an hour, North Carolina and federal law require the employer to top your pay up to $7.25. You should never earn less than the full minimum wage once tips are counted.
How much does a tipped worker make in North Carolina?
It depends on tips, but here is a worked example: a server working 30 hours a week and averaging $12.00 an hour in tips. Cash wage $2.13 plus $12.00 tips is $14.13 an hour, which is above the $7.25 minimum, so the effective rate is $14.13 an hour, about $423.90 a week or $22,042.80 a year before tax. Use the calculator with your own tips and hours.
Is the tip credit the same as the tipped wage?
No, they are two sides of the same figure. The "tipped minimum wage" (or tipped cash wage) is what the employer pays directly: $2.13 in North Carolina. The "tip credit" is how much of your tips the employer is allowed to count toward the regular minimum wage: $5.12 in North Carolina. Cash wage plus tip credit equals the $7.25 minimum wage.
Official sources
- North Carolina 2026 tipped and minimum wage figures: North Carolina Department of Labor, as at July 11, 2026.
- Federal tip credit and the $2.13 cash-wage floor: US Department of Labor, Wage and Hour Division.
Reviewed by the CalculatorHub team, edited by James Graham, 11 July 2026. See our methodology. General information, not legal or financial advice. The employer must pay at least $2.13/hr and ensure tips plus cash reach $7.25; otherwise the employer covers the difference.