Tipped Minimum Wage in St. Paul (2026)
St. Paul pays tipped workers $16.37 an hour in full cash at large and macro employers starting January 1, 2026 — and the smallest tiers step up to meet it on July 1. Minnesota banned the tip credit long ago, so there is no split cash wage here: your tips are pure addition on top of the local rate, which sits well above the state's $11.41 floor. Here is how the four tiers work, what the mid-year step-up changes, and what St. Paul servers should check on every check.
By the TippedPay editorial team · Updated $1
Key numbers at a glance
| Rule | Federal | Minnesota (2026) | St. Paul (2026) |
|---|---|---|---|
| Full minimum wage | $7.25 | $11.41 — single rate, all employers | $16.37 macro/large; $15.00 → $16.37 small; $13.25 → $14.25 micro |
| Tipped cash wage | $2.13 | $11.41 — no tip credit | Full tier rate — no tip credit |
| Maximum tip credit | $5.12 | None allowed | None allowed |
| Top-up when tips fall short | Required every workweek | Not applicable — full wage in cash | Not applicable — full wage in cash |

How St. Paul tipped pay works
St. Paul sets its own minimum wage by ordinance, administered by the city's Department of Human Rights and Equal Economic Opportunity. For 2026 the schedule runs in four tiers, per stpaul.gov: macro businesses with 10,001 or more employees and the City of Saint Paul itself pay $16.37 an hour from January 1, 2026; large businesses with 101 to 10,000 employees also pay $16.37 from January 1; small businesses with 6 to 100 employees hold at $15.00 until July 1, 2026, then rise to $16.37; and micro businesses with 5 or fewer hold at $13.25 until July 1, then rise to $14.25. The rate is calculated using the inflation formula run by the Minnesota Department of Labor and Industry, so it adjusts annually.
The mechanics are the simplest kind because Minnesota law does not permit a tip credit — the state's own rule is that no employer may take one, per dli.mn.gov. Whatever tier applies, the employer pays that full rate in cash for every hour worked in St. Paul, and 100 percent of your tips land on top. There is no weekly top-up calculation to argue about because tips were never counted toward the wage. A 40-hour week at $16.37 makes it concrete: 40 × $16.37 = $654.80 in guaranteed wages whether the room is packed or empty. Keep $280 in tips across that week and your total is $934.80 — an effective $23.37 an hour. Run your own hours and tips through the server paycheck calculator to see your effective rate.
The comparison is the story. The same shift worked in most of the country rides on a $2.13 federal cash wage, and elsewhere in Minnesota it rides on the $11.41 state minimum that took effect January 1, 2026. St. Paul's tiers clear both — the numbers line up like this:
St. Paul vs. Minnesota vs. the federal rule
| Rule | Federal | Minnesota (2026) | St. Paul (2026) |
|---|---|---|---|
| Full minimum wage | $7.25 | $11.41 — single rate, all employers | $16.37 macro/large; $15.00 → $16.37 small; $13.25 → $14.25 micro |
| Tipped cash wage | $2.13 | $11.41 — no tip credit | Full tier rate — no tip credit |
| Maximum tip credit | $5.12 | None allowed | None allowed |
| Top-up when tips fall short | Required every workweek | Not applicable — full wage in cash | Not applicable — full wage in cash |
| Overtime threshold | After 40 hours | After 48 hours (state law) | 40 or 48 — whichever is more favorable applies |
| Tip pools | Employees only, never managers | Employees only, never managers | Employees only, never managers |
Every dollar figure in St. Paul's column is guaranteed cash. Where a federal-floor server's guarantee on a 40-hour week is $290.00, a St. Paul server's is $654.80 at the large-employer rate — and unlike a tip-credit state, none of it depends on how the tips ran. Tips change your total, never your floor.

What St. Paul servers should watch
July 1, 2026 is a real deadline. The small-business tier jumps $1.37 to $16.37 and the micro tier rises to $14.25 on that date. If you work at a 6-to-100-employee restaurant, your base pay should step up mid-summer without you asking; if it does not, that is a wage claim. Confirm your employer's tier size and the effective dates with the city's minimum wage office.
City limits are the line. The St. Paul rate attaches to hours worked inside the city. Minneapolis runs its own ordinance with its own schedule — see our Minneapolis page — and hours elsewhere in Minnesota fall to the $11.41 state rate. A server whose schedule hops between the Twin Cities should see different rates coded for different hours.
Overtime has two clocks. Minnesota state law requires overtime pay only after 48 hours in a workweek, while the federal FLSA requires it after 40 for covered workers — and whichever law is more favorable to you governs, per Minnesota DLI. With no tip credit, overtime is 1.5 times the full rate in cash: about $24.56 an hour at St. Paul's $16.37. Price a long week with the overtime calculator before you volunteer for one.
Tip pools have ranks. Federal rules apply to pooling: servers, bussers, bartenders and runners may share, managers and owners may not. Because the wage is fully in cash here, there is no employer cut hiding inside a tip credit — but check the split percentages anyway with our tip pool guide.
Your real number. A $16.37 base with $24 an hour in tips is a $40.37-an-hour job — among the better floor-plus-tips combinations outside the coasts. Compute effective hourly (wages plus kept tips, divided by hours) before comparing offers; the statewide background is in our Minnesota state breakdown, and the city-by-city landscape is on our city minimum wage hub.

FAQ
What is the tipped minimum wage in St. Paul in 2026?
$16.37 an hour in cash at macro and large employers from January 1, 2026. Small businesses pay $15.00 until July 1, 2026, then $16.37; micro businesses pay $13.25 until July 1, then $14.25. Minnesota bans the tip credit, so tips go on top of the full rate.
Can a St. Paul employer count my tips toward the minimum wage?
No. Minnesota law states no employer may take a tip credit. Tipped employees must be paid the full applicable minimum wage per hour plus any tips they earn.
When do small and micro businesses in St. Paul reach $16.37?
July 1, 2026. Small businesses (6-100 employees) rise from $15.00 to $16.37 that day; micro businesses (5 or fewer) rise from $13.25 to $14.25. Large and macro employers already pay $16.37 from January 1.
How is overtime calculated for St. Paul tipped workers?
Minnesota law requires overtime after 48 hours in a workweek; federal law requires it after 40 for covered workers, and whichever is more favorable applies. With no tip credit, overtime is 1.5 times the full rate in cash - about $24.56 an hour at St. Paul's $16.37.
Is there a training or youth wage in Minnesota?
Yes. Minnesota allows a 90-day training wage of $9.31 an hour in 2026 for workers under 20. St. Paul's local ordinance sets its own rates for work performed in the city, so verify which applies with the city and the state.
Does Minneapolis pay the same as St. Paul?
No. Minneapolis runs its own ordinance with its own tier schedule and annual adjustments. For hours worked in Minneapolis, the Minneapolis rates apply; for hours in St. Paul, St. Paul's rates apply. Track where the hours happen.