The state minimum wage is $15.00 per hour. Employers may take a tip credit of up to 40% of the state minimum wage, which produces a tipped minimum wage of $9.00 per hour. Employers must ensure the tipped wage plus tips equals at least the full minimum wage of $15.00 per hour, and they must provide evidence that employees received the claimed tips.
Chicago
Current rate: as of July 1, 2025, the full minimum wage is $16.60 per hour and the tipped minimum wage is $12.62 per hour for employers with four or more employees. This rate remains in effect during the first half of 2026.
Phase-out adjustment: under Chicago's One Fair Wage ordinance, the city is phasing out the tipped wage credit. Effective July 1, 2026, the maximum allowable tip credit drops to 16% of the full minimum wage.
Practical impact: starting July 1, 2026, employers must pay at least 84% of the full minimum wage in cash wages (subject to any CPI adjustments to the base rate announced by the city), plus the tips employees earn. If the tipped wage plus tips do not equal the full minimum wage, the employer must make up the difference.
Future outlook: the tip credit will decrease by 8% annually until July 1, 2028, when the tipped minimum wage will equal the city's full minimum wage.
Cook County (excluding Chicago)
Current rate: the tipped minimum wage is $9.00 per hour, based on a 40% tip credit from the county's minimum wage of $15.00 per hour. This continues into 2026 unless increased due to CPI-based adjustments or a new ordinance.
Practical impact: employers must ensure the tipped wage plus tips meet or exceed the full minimum wage of $15.00 per hour. Certain municipalities within Cook County may opt out of the county ordinance, but in those cases the identical state rate ($15.00 / $9.00) generally applies.
Evanston and Oak Park
These municipalities follow the Cook County and state minimum wage structure for tipped workers. The tipped minimum wage in Evanston and Oak Park remains at $9.00 per hour in 2026, absent any local ordinance setting a higher rate.