The federal minimum wage has been $7.25 per hour since 2009 — making it one of the longest stretches without an increase in US history. But the federal rate is almost irrelevant for most workers, because the majority of states have set their own minimums significantly higher. If you're earning minimum wage or want to verify your employer is paying at least the legal rate, here is the complete 2026 guide.
The federal minimum wage under the Fair Labor Standards Act (FLSA) remains $7.25 per hour for covered non-exempt employees. When a state's minimum wage is higher than the federal rate, employers must pay the higher state rate. The federal rate only applies in states that have not set their own minimum — or for workers in industries specifically exempted from state law.
At $7.25/hour working 40 hours/week, a full-year worker earns $15,080 gross annually — below the federal poverty line for a family of two. This is why most states have enacted significantly higher minimums.
| State | Hourly Rate | Annual (40hrs/52wks) |
|---|---|---|
| Washington | $16.66 | $34,653 |
| California | $16.50 | $34,320 |
| New York City | $16.50 | $34,320 |
| Connecticut | $16.35 | $34,008 |
| Massachusetts | $15.00 | $31,200 |
| New Jersey | $15.49 | $32,219 |
| Colorado | $14.81 | $30,805 |
| Illinois | $15.00 | $31,200 |
| Arizona | $14.70 | $30,576 |
| Maine | $14.65 | $30,472 |
Several states have chosen not to set a state minimum wage above the federal floor, meaning the $7.25 federal rate applies: Alabama, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, North Carolina, North Dakota, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia (state minimum is actually higher now), Wisconsin, and Wyoming.
💡 Important: Even if your state is at $7.25, many cities and counties have enacted local minimum wages that are higher. Always check your city's rate in addition to the state rate.
Under federal law, employers may pay tipped employees as little as $2.13/hour in cash wages — called the "tipped minimum wage" — as long as tips bring the worker's total pay to at least $7.25/hour. If tips don't cover the gap, the employer must make up the difference. This is called a "tip credit."
Many states have eliminated the tipped wage distinction and require all workers — tipped or not — to receive the full state minimum wage. California, Oregon, Washington, Montana, Minnesota, Nevada, and Alaska all require full minimum wage regardless of tip income. If you work in these states, your base hourly wage cannot be reduced because of tips.
Federal law allows employers to pay workers under 20 years old a "youth minimum wage" of $4.25/hour for the first 90 consecutive calendar days of employment. After 90 days, the worker must receive at least the standard minimum wage. Not all states permit this sub-minimum youth wage — check your state's department of labor for local rules.
The headline minimum wage rate is always a gross figure. After federal and state taxes and FICA deductions, your take-home pay will be significantly less. For example, a single worker in California earning $16.50/hour for 40 hours/week has a gross weekly pay of $660. After approximately $62 in federal income tax, $50.49 in Social Security, $9.57 in Medicare, and $52.80 in California state tax, their weekly take-home is roughly $485 — or about $25,220 annually.
Enter your hourly rate and state — see exactly what you net after all taxes.
Calculate My Take-Home Pay →Many states have scheduled automatic increases tied to inflation (CPI) or pre-set legislative increases. Washington state, California, Colorado, and over a dozen others have annual automatic adjustments. This means minimum wages in these states typically increase every January 1st without additional legislation. Always verify the current rate with your state's department of labor, as rates may have changed since this guide was published.
If your employer is paying you less than the applicable minimum wage, you have legal recourse. You can file a wage complaint with the US Department of Labor's Wage and Hour Division at dol.gov/agencies/whd, or with your state's department of labor. Complaints can be filed anonymously, and the DOL will investigate. Employers found in violation may be required to pay back wages plus damages. There is no cost to file a complaint.
Keep records of your hours worked and pay received — your pay stubs, timesheets, and any written communications about your rate of pay are important evidence if you ever need to file a complaint or pursue legal action.