The federal minimum wage
The federal minimum wage is $7.25 an hour and has not changed since July 24, 2009. When a state or city sets a higher rate, employers covered by both laws must pay the higher one.
Tipped workers
Under federal law, an employer can pay a tipped worker a cash wage of $2.13 an hour and count up to $5.12 an hour of tips toward the minimum wage. This only applies to workers who regularly get more than $30 a month in tips. If tips plus the cash wage do not reach $7.25 an hour in a workweek, the employer must make up the difference. Many states require a higher cash wage or do not allow a tip credit at all.
States with a higher minimum wage
| State | Hourly minimum |
|---|---|
| Alaska | $14.00 |
| Arizona | $15.15 |
| Arkansas | $11.00 |
| California | $16.90 |
| Colorado | $15.16 |
| Connecticut | $16.94 |
| Delaware | $15.00 |
| District of Columbia | $18.40 |
| Florida | $14.00 |
| Hawaii | $16.00 |
| Illinois | $15.00 |
| Maine | $15.10 |
| Maryland | $15.00 |
| Massachusetts | $15.00 |
| Michigan | $13.73 ($15.00 from January 1, 2027) |
| Minnesota | $11.41 |
| Missouri | $15.00 |
| Montana | $10.85 |
| Nebraska | $15.00 |
| Nevada | $12.00 |
| New Jersey | $15.92 ($15.23 for employers with fewer than 6 workers and seasonal jobs) |
| New Mexico | $12.00 |
| New York | $17.00 in New York City, Long Island and Westchester; $16.00 elsewhere |
| Ohio | $11.00 (larger employers) |
| Oregon | $15.55 standard; $16.80 Portland metro; $14.55 non-urban counties |
| Rhode Island | $16.00 |
| South Dakota | $11.85 |
| Vermont | $14.42 |
| Virginia | $12.77 |
| Washington | $17.13 |
| West Virginia | $8.75 |
Rates as shown in the Department of Labor's state table updated July 1, 2026. Some apply only above a certain number of employees or level of sales. Guam ($9.25), Puerto Rico ($10.50) and the U.S. Virgin Islands ($10.50) are also above the federal rate.
States at the federal rate or without their own law
Idaho, Indiana, Iowa, Kansas, Kentucky, New Hampshire, North Carolina, North Dakota, Oklahoma, Pennsylvania, Texas, Utah and Wisconsin use $7.25. Georgia and Wyoming have state rates below it, and Alabama, Louisiana, Mississippi, South Carolina and Tennessee have no state minimum wage law. In all of these, employers covered by the federal Fair Labor Standards Act must pay at least $7.25. Many cities and counties set their own higher rates, which this table does not show.
What it means for your monthly budget
Full time at 40 hours a week for 52 weeks, $7.25 an hour is $15,080 a year, about $1,257 a month before taxes. At $15.00 it is $31,200 a year, or $2,600 a month. If your hours vary, budget from the lowest month you can expect, not the average, and treat overtime or extra shifts as a bonus.