Idaho Minimum Wage 2026

Standard Hourly Minimum Wage

As of 2026, the standard minimum wage in Idaho is $7.25 per hour for covered employees, matching the federal minimum wage rate. This rate applies to all non-exempt employees unless they fall under specific exemptions outlined in Idaho Code § 44-1502 or federal law.

Idaho Code § 44-1502(1) provides that “no employer shall pay to any of his employees any wages computed at a rate of less than seven dollars and twenty-five cents ($7.25) per hour for employment.” The statute further specifies that “The amount of the minimum wage shall conform to, and track with, the federal minimum wage.”

The federal minimum wage of $7.25 per hour has remained unchanged since July 24, 2009. Because Idaho law tracks the federal rate, Idaho’s minimum wage has likewise remained at $7.25 per hour since 2009. No scheduled increases are currently in effect under Idaho law.

Minimum Wage for Tipped Employees

Idaho permits employers to pay tipped employees a reduced cash wage, provided that employee tips combined with the cash wage equal at least the full minimum wage.

Cash wage requirement: $3.35 per hour
Maximum tip credit: $3.90 per hour
Total minimum compensation: $7.25 per hour (cash wage + tips)

According to Idaho Code § 44-1502(2), “In determining the wage of a tipped employee, the amount of direct wages paid by an employer to the employee shall be deemed to be increased on account of tips actually received by the employee; provided however, the direct wages paid to the employee by the employer shall not be in an amount less than three dollars and thirty-five cents ($3.35) an hour.”

If the tips actually received by the employee combined with the direct cash wages paid by the employer do not at least equal the minimum wage of $7.25 per hour, the employer must make up the difference. In the event of a dispute between employee and employer regarding the amount of tips actually received, Idaho law places the burden of proof on the employer to demonstrate the amount of tips received.

Who Qualifies as a Tipped Employee

Under Idaho law and federal FLSA standards, a “tipped employee” is defined as an employee who customarily and regularly receives more than $30 per month in tips. Qualifying occupations typically include:

• Restaurant servers and bartenders
• Hotel and casino service workers
• Parking attendants and valets
• Delivery drivers who receive tips
• Barbers, hairstylists, and other personal service workers who receive tips

Employer Obligations for Tipped Workers

Employers who claim a tip credit must:

1. Inform employees of the tip credit provisions before claiming the credit
2. Ensure total compensation (cash wage plus tips) equals or exceeds $7.25 per hour for all hours worked
3. Pay the difference if an employee’s tips fail to bring total compensation to the minimum wage
4. Maintain accurate records of employee tips and hours worked
5. Demonstrate tip amounts if a dispute arises regarding tips received

Tip Pooling and Sharing

Any portion of tips paid to an employee that is shared with other employees under a tip pooling or similar arrangement shall not be deemed to be tips actually received by the employee for purposes of calculating whether the employee has received sufficient tips to meet minimum wage requirements. Employers cannot include pooled or shared tips when determining if an employee’s total compensation meets the $7.25 minimum wage threshold.

Idaho law does not permit employers to retain any portion of tips received by employees. Tips are the property of employees. Mandatory service charges added to customer bills may not necessarily be considered tips under Idaho law and may be retained by employers unless specifically designated as gratuities for employees.

Youth Minimum Wage

Idaho permits employers to pay a youth training wage to workers under age 20 during their initial employment period.

Youth minimum wage: $4.25 per hour
Eligibility: Workers under age 20
Duration: First 90 consecutive calendar days of employment
Authority: Idaho Code § 44-1502(3)

According to Idaho Code § 44-1502(3), “In lieu of the rate prescribed by subsection (1) of this section, an employer may pay an employee who has not attained twenty (20) years of age a wage which is not less than four dollars and twenty-five cents ($4.25) an hour during the first ninety (90) consecutive calendar days after such employee is initially employed.”

Idaho law prohibits employers from taking any action to displace existing employees (including partial displacements such as reduction in hours, wages, or employment benefits) for purposes of hiring individuals at the youth wage rate. After the 90-day period expires, employers must pay the full minimum wage of $7.25 per hour.

Scheduled Increases

No minimum wage increases are currently scheduled in Idaho. The minimum wage will remain at $7.25 per hour unless modified by future federal legislation or Idaho state legislation.

Idaho law does not establish an automatic adjustment mechanism based on inflation or cost-of-living indices. Changes to Idaho’s minimum wage occur only when the federal minimum wage changes or when the Idaho Legislature enacts new minimum wage legislation.

Note on Proposed Legislation: House Bill 485 was introduced in the 2025 Idaho legislative session proposing to increase Idaho’s minimum wage to $12.00 per hour on July 1, 2025; $15.00 per hour on July 1, 2026; and $17.00 per hour on July 1, 2027, with annual CPI adjustments beginning July 1, 2028. As of February 2026, this bill has not been enacted into law and Idaho continues to apply the federal minimum wage of $7.25 per hour.