New Hampshire Tipping Laws & Regulations (2026)

Tip Credit Rules (45% Federal Standard)

New Hampshire follows federal FLSA rules and allows a tip credit of 45% of the federal minimum wage (approximately $3.27 per hour as of 2024), provided that:

• The employee receives tips that, combined with the $3.27 base wage, equal or exceed $7.25 per hour
• The employee is customarily tipped (servers, bartenders, cocktail servers, bussers)
• The employee is informed of the tip credit amount before employment begins
• Tips are properly documented and claimed
• If tips fall short in any pay period, the employer must make up the difference

No State Income Tax Advantage

New Hampshire stands out as one of only a few states with no income tax on wages or tips:

• Hospitality workers keep 100% of earned wages and tips (before federal taxes)
• This is a significant competitive advantage for recruitment and retention
• Federal taxes (FICA, Medicare) still apply to all wages and tips over $20 per month
• Employers still must withhold federal income tax, Social Security, and Medicare taxes
• State unemployment insurance taxes still apply to employers

Tip Pooling Regulations

New Hampshire allows pooled tip arrangements with clear restrictions:

• Tips may only be pooled among employees who are customarily tipped (servers, bartenders, bussers, food runners)
• Non-tipped employees (kitchen staff, dishwashers) cannot participate in tip pools
• Managers and supervisors cannot take a share of tips unless they regularly perform tipped work
• The tip pool must be reasonable and transparent
• Employees must be informed of the tip pool arrangement in advance

Overtime Rules for Tipped Employees

When calculating overtime for tipped employees in New Hampshire:

• Overtime is calculated on the full federal minimum wage ($7.25), not the reduced tipped wage
• Tipped employees are entitled to 1.5x the full minimum wage for hours over 40 per week
• Overtime calculation: 1.5 × $7.25 = $10.875 per overtime hour
• This is a significant compliance point employers often overlook
• Gratuity Solutions automatically recalculates for overtime compliance

Record-Keeping Requirements

New Hampshire employers must maintain:

• Daily tip records for each employee claiming tip credit
• Documentation of the tip credit policy provided to employees
• Proof of any tip make-up payments when tips fall short
• Records of tip pooling or sharing arrangements and distributions
• These records must be kept for at least 3 years

Federal Law Precedence

Since New Hampshire has not set its own minimum wage or tipping rules:

• Federal FLSA rules apply directly to all covered employers
• Federal tip credit of 45% is the standard
• Federal overtime rules apply without state modifications
• If federal rules change, New Hampshire automatically follows
• Employers need only comply with federal regulations