Minimum Wage 2026 — Federal Rate, All 50 States & Complete Guide
The federal minimum wage in 2026 is $7.25 per hour — unchanged since July 24, 2009, the longest stretch without a federal increase in FLSA history. Complete guide: every state minimum wage rate, tipped worker rules, city-level rates, living wage gap, mid-year increases, annual salary breakdown, and the federal contractor minimum.
2026 Minimum Wage — Key Numbers at a Glance
Federal Minimum Wage 2026 — Quick Reference
Source: DOL Wage and Hour Division. 19 states raised rates Jan 1 2026. Highest state: DC $17.95/hr. Lowest effective: $7.25 (20 states).
| Rate type | Hourly rate | Weekly (40 hrs) | Annual (2,080 hrs) | Applies to |
|---|---|---|---|---|
| Federal minimum wage | $7.25 | $290.00 | $15,080 | All FLSA-covered non-tipped workers |
| Federal tipped minimum | $2.13 | $85.20 | $4,430 base | Tipped workers — tips must bring total to $7.25 |
| Federal youth/training wage | $4.25 | $170.00 | $8,840 | Workers under 20, first 90 days |
| Federal contractor minimum | $17.75 | $710.00 | $36,920 | Workers on federal government contracts (EO 14026) |
| Highest state (DC) | $17.95 | $718.00 | $37,336 | Washington D.C. — all covered workers |
| Highest state excl. DC (WA) | $17.13 | $685.20 | $35,630 | Washington State |
| 2026 federal poverty line | $7.24/hr equiv. | $289.62 | $15,060 | Single person — HHS 2026 guidelines |
Minimum Wage by State 2026 — All 50 States
The state minimum wage 2026 and minimum wage per hour 2026 range from $7.25 (federal floor, 20 states) to $17.95 in Washington D.C. The minimum wage increase 2026 affected 19 states on January 1 alone. Higher state rates reflect local cost of living differences across the country. — a gap of $10.70 per hour for identical work. When a state minimum wage exceeds the federal rate, the state rate applies to all covered workers. Employers must always pay the highest applicable rate — federal, state, or local. The minimum wage by state list below reflects rates effective January 1, 2026 unless noted.
| State | Min. wage 2026 | Annual (full-time) | Notes |
|---|---|---|---|
| Washington D.C. | $17.95 | $37,336 | Highest in nation; mid-year increase scheduled |
| Washington State | $17.13 | $35,630 | CPI-indexed annually under Initiative 1433 |
| Connecticut | $16.94 | $35,235 | Raised Jan 1 2026 |
| California | $16.90 | $35,152 | CPI-indexed; fast food workers $20/hr |
| New York | $16.50 | $34,320 | Statewide; NYC $17.00, Long Island/Westchester $17.00 |
| Oregon | $15.95 | $33,176 | Mid-year increase scheduled Jul 1 |
| Hawaii | $16.00 | $33,280 | Step 4 of Act 114 (2022) — reaches $18 by 2028 |
| New Jersey | $15.92 | $33,114 | CPI-indexed |
| Colorado | $15.16 | $31,533 | CPI-indexed; local rates may be higher |
| Arizona | $15.15 | $31,512 | CPI-indexed under Prop 206 |
| Maine | $15.10 | $31,408 | Raised Jan 1 2026 |
| Massachusetts | $15.00 | $31,200 | Reached $15 — future increases under review |
| Illinois | $15.00 | $31,200 | Reached target $15 |
| Maryland | $15.00 | $31,200 | Reached target $15 |
| Rhode Island | $16.00 | $33,280 | Raised Jan 1 2026 per enacted schedule |
| Missouri | $15.00 | $31,200 | Completed ballot measure schedule Jan 1 2026 |
| Nebraska | $15.00 | $31,200 | Completed ballot measure schedule Jan 1 2026 |
| Virginia | $15.00 | $31,200 | Completed 2020 Minimum Wage Act schedule |
| Delaware | $15.00 | $31,200 | Reached $15 target |
| Michigan | $10.56 | $21,965 | Tipped subminimum wage rollback under SB 8 |
| Nevada | $12.00 | $24,960 | No tip credit allowed — same for all workers |
| Minnesota | $11.41 | $23,733 | Large employers; small employers $9.33 |
| Ohio | $11.00 | $22,880 | CPI-indexed; small employers $8.80 |
| Montana | $10.85 | $22,568 | CPI-indexed; no tip credit |
| Florida | $14.00 | $29,120 | Rises to $15.00 on Sep 30 2026 (mid-year) |
| Alaska | $13.00 | $27,040 | Rises to $14.00 on Jul 1 2026 (mid-year) |
| Vermont | $14.42 | $29,994 | CPI-indexed |
| South Dakota | $11.85 | $24,648 | CPI-indexed |
| New Mexico | $12.00 | $24,960 | Raised Jan 1 2026 |
| Arkansas | $11.00 | $22,880 | Legislated increase |
| West Virginia | $10.00 | $20,800 | Above federal floor |
| North Carolina | $7.25 | $15,080 | Federal floor only |
| Texas | $7.25 | $15,080 | Federal floor only — no state increase |
| Georgia | $7.25 | $15,080 | State law $5.15 but FLSA overrides to $7.25 |
| Wyoming | $7.25 | $15,080 | State law $5.15 but FLSA overrides to $7.25 |
| Alabama | $7.25 | $15,080 | No state law — federal floor applies |
| Louisiana | $7.25 | $15,080 | No state law — federal floor applies |
| Mississippi | $7.25 | $15,080 | No state law — federal floor applies |
| South Carolina | $7.25 | $15,080 | No state law — federal floor applies |
| Tennessee | $7.25 | $15,080 | No state law — federal floor applies |
Source: DOL Wage and Hour Division state minimum wage laws. Rates reflect January 1, 2026 effective dates unless noted. Mid-year increases: Alaska Jul 1, Florida Sep 30, DC and Oregon also scheduled. Always verify with your state labor department — local city and county rates may exceed state rates.
Mid-Year 2026 Minimum Wage Increases
Most minimum wage increases take effect January 1. However, several states have legislated mid-year effective dates. If you are checking compliance after June 30, verify these updated rates apply in your state.
| State | Current rate (Jan 1) | New rate | Effective date | Annual change (full-time) |
|---|---|---|---|---|
| Alaska | $13.00 | $14.00 | July 1, 2026 | $13,520 → $14,560 (+$1,040/yr) |
| Florida | $14.00 | $15.00 | September 30, 2026 | $29,120 → $31,200 (+$2,080/yr) |
| Washington D.C. | $17.95 | TBC | Mid-year 2026 | DC CPI-indexed annually |
| Oregon | $15.95 | TBC | July 1, 2026 | Oregon standard rate; Portland area higher |
Tipped Minimum Wage 2026 — Federal and State Rules
The federal tipped minimum wage of $2.13 per hour is the lowest cash wage an employer can pay a tipped employee under the FLSA — as long as tips bring the worker's total hourly compensation to at least $7.25. The difference between $2.13 and $7.25 ($5.12) is called the tip credit. If tips in any workweek fall short, the employer must pay the difference. Seven states do not permit any tip credit — tipped workers in those states must receive the full state minimum wage before tips.
| Jurisdiction | Tipped cash wage | Tip credit | No tip credit states |
|---|---|---|---|
| Federal (FLSA) | $2.13/hr | $5.12/hr | — |
| Washington D.C. | $17.95/hr | $0 — no tip credit | ✅ Full minimum for all workers |
| California | $16.90/hr | $0 — no tip credit | ✅ Full minimum before tips |
| Washington State | $17.13/hr | $0 — no tip credit | ✅ Full minimum before tips |
| Oregon | $15.95/hr | $0 — no tip credit | ✅ Full minimum before tips |
| Alaska | $13.00/hr | $0 — no tip credit | ✅ Full minimum before tips |
| Minnesota | $11.41/hr | $0 — no tip credit | ✅ Full minimum before tips |
| Montana | $10.85/hr | $0 — no tip credit | ✅ Full minimum before tips |
| Nevada | $12.00/hr | $0 — no tip credit | ✅ Full minimum before tips |
| Most other states | $2.13–$8.00/hr | Varies | Tip credit applies — check state rate |
Minimum Wage vs Living Wage 2026 — Living Wage vs Minimum Wage Gap
The minimum wage is the legal floor. The living wage is the income needed to cover basic expenses — housing, food, transportation, healthcare, and childcare — without relying on public assistance. The MIT Living Wage Calculator estimates these requirements for every US county. The gap between the federal minimum wage and the living wage has grown substantially since 2009 as housing and healthcare costs have risen while the federal floor stayed frozen.
| Location | Min. wage | Living wage (MIT est.) | Gap per hour | Annual gap |
|---|---|---|---|---|
| Mississippi (federal floor) | $7.25 | ~$17.50 | −$10.25 | −$21,320 |
| Texas (federal floor) | $7.25 | ~$19.00 | −$11.75 | −$24,440 |
| Georgia (federal floor) | $7.25 | ~$18.50 | −$11.25 | −$23,400 |
| Florida ($14.00 Jan) | $14.00 | ~$21.00 | −$7.00 | −$14,560 |
| Illinois ($15.00) | $15.00 | ~$22.00 | −$7.00 | −$14,560 |
| California ($16.90) | $16.90 | ~$25.00 | −$8.10 | −$16,848 |
| New York City ($17.00) | $17.00 | ~$27.00 | −$10.00 | −$20,800 |
| Washington D.C. ($17.95) | $17.95 | ~$28.00 | −$10.05 | −$20,904 |
Even in the highest-paying jurisdictions, the minimum wage falls below the MIT living wage estimate for a single adult. This reflects the reality that the living wage accounts for actual local costs — particularly housing — which have risen sharply in high-wage cities. A worker earning $17.95 in Washington D.C. earns $37,336 annually, but a one-bedroom apartment in D.C. averages over $2,000 per month ($24,000/year) — consuming 64% of gross income. The minimum wage and the living wage are not the same measure and should not be used interchangeably.
Federal Minimum Wage History — 1938 to 2026
The federal minimum wage was established by the Fair Labor Standards Act (FLSA) signed by President Franklin D. Roosevelt on June 25, 1938. The original rate was $0.25 per hour — roughly $5.40 in 2026 inflation-adjusted dollars. Congress has raised the minimum wage 22 times since 1938. The current $7.25 rate, in effect since July 24, 2009, represents the longest gap without a federal increase in the 88-year history of the FLSA.
| Year | Federal rate | 2026 inflation equiv. | Key context |
|---|---|---|---|
| 1938 (FLSA enacted) | $0.25 | ~$5.40 | New Deal — Great Depression — 20% of labor force covered |
| 1950 | $0.75 | ~$9.50 | Post-war expansion — coverage expanded |
| 1961 | $1.15 | ~$11.70 | FLSA amendments — retail and service workers added |
| 1968 (peak real value) | $1.60 | ~$14.50 | Highest real-dollar value in FLSA history |
| 1981 | $3.35 | ~$11.30 | Reagan era — no further increase until 1990 |
| 1990 | $3.80 | ~$9.00 | First increase in 9 years |
| 1997 | $5.15 | ~$9.80 | Clinton-era increase — held until 2007 |
| 2007 | $5.85 | ~$8.80 | First of three-step increase |
| 2008 | $6.55 | ~$9.50 | Step 2 of 2007 legislation |
| 2009 (most recent) | $7.25 | ~$10.40 | Step 3 — unchanged for 17 years through 2026 |
| 2026 (current) | $7.25 | $7.25 | Longest gap without increase in FLSA history |
In real purchasing power terms, the 1968 minimum wage of $1.60 per hour equals approximately $14.50 in 2026 dollars — nearly double the current $7.25 federal rate. This means the purchasing power of the federal minimum wage has declined by roughly 50% since its historical peak. Workers earning the federal minimum today have significantly less real income than minimum wage workers in 1968 when adjusted for inflation.
City Minimum Wage 2026 — Local Rates Above State Minimums
Many cities and counties have enacted local minimum wages that exceed their state minimum. Employers operating in these jurisdictions must pay the highest applicable rate — federal, state, or local. This is not optional — the FLSA requires payment of the highest applicable wage at every level of government.
| City / County | Local min. wage | State minimum | Notes |
|---|---|---|---|
| Seattle, WA (large employers) | $20.29 | $17.13 (WA state) | 500+ employees; smaller employers lower rate |
| New York City, NY | $17.00 | $16.50 (NY state) | NYC, Long Island, Westchester all $17.00 |
| San Francisco, CA | $18.67 | $16.90 (CA state) | CPI-indexed annually |
| Denver, CO | $18.29 | $15.16 (CO state) | Denver city ordinance — significantly above state |
| Chicago, IL | $16.20 | $15.00 (IL state) | Chicago city ordinance |
| Portland, OR | $16.25+ | $15.95 (OR state) | Metro area higher rate applies |
| Minneapolis, MN | $15.57 | $11.41 (MN state) | Large employer rate — small employer lower |
| Los Angeles, CA | $17.28 | $16.90 (CA state) | LA city ordinance above state rate |
The rule is simple: always pay the highest applicable rate. A restaurant in Seattle with 600 employees must pay $20.29 per hour — not Washington State's $17.13. A retail store in Denver must pay $18.29 — not Colorado's $15.16. Failure to pay local minimum wages exposes employers to back wages, penalties, and state labor department enforcement actions.
Minimum Wage Annual Salary 2026 — Full Income Breakdown
How much does minimum wage work out to per year? The answer depends entirely on your state and whether you work full-time. The table below shows gross annual income and estimated take-home pay at different minimum wage rates for full-time workers.
| Hourly rate | Annual gross | FICA (7.65%) | Fed tax (est.) | Est. annual net | Monthly net |
|---|---|---|---|---|---|
| $7.25 (federal) | $15,080 | $1,154 | ~$390 | ~$13,536 | ~$1,128 |
| $10.00 | $20,800 | $1,591 | ~$812 | ~$18,397 | ~$1,533 |
| $12.00 | $24,960 | $1,909 | ~$1,164 | ~$21,887 | ~$1,824 |
| $15.00 | $31,200 | $2,387 | ~$1,839 | ~$26,974 | ~$2,248 |
| $16.50 (NY) | $34,320 | $2,625 | ~$2,240 | ~$29,455 | ~$2,455 |
| $16.90 (CA) | $35,152 | $2,689 | ~$2,370 | ~$30,093 | ~$2,508 |
| $17.95 (DC) | $37,336 | $2,856 | ~$2,705 | ~$31,775 | ~$2,648 |
| $20.29 (Seattle large) | $42,203 | $3,229 | ~$3,416 | ~$35,558 | ~$2,963 |
Net estimates assume single filer, standard deduction $16,100, no state income tax. Does not include overtime pay (time-and-a-half for hours above 40/week under FLSA) (varies significantly by state). Use the take-home pay calculator for exact net pay in your state. Federal poverty line 2026: $15,060 for a single person (HHS guidelines).
Who Is Exempt from Minimum Wage Laws?
Not all workers are covered by the FLSA minimum wage. Several categories of workers are exempt from the federal minimum wage requirement. Employers must understand these exemptions carefully — misclassifying a non-exempt worker as exempt is one of the most common and costly wage violations.
| Worker category | FLSA coverage | Rate that applies |
|---|---|---|
| Most private sector employees | ✅ Covered | $7.25 federal minimum (or higher state/local rate) |
| Federal, state, local government workers | ✅ Covered | $7.25 federal minimum (or higher state/local rate) |
| Tipped employees | ✅ Covered | $2.13 base if tips bring total to $7.25 |
| Executive, administrative, professional (EAP) | ❌ Exempt if salary ≥$684/week | No hourly minimum — must meet salary threshold |
| Workers under 20 — first 90 days (youth minimum wage) | Partial | $4.25 youth/training wage allowed |
| Full-time students (retail, service, farm, college) | Partial | 85% of minimum wage with DOL certificate |
| Workers with disabilities | Partial | Sub-minimum wage allowed under Section 14(c) — under legislative review |
| Agricultural workers on small farms | ❌ Exempt in some cases | Varies — FLSA agricultural exemptions complex |
| Independent contractors | ❌ Not covered | No federal minimum — subject to state laws |
| Misclassified employees | ✅ Covered regardless of label | Courts look at economic reality — not job title |
Minimum Wage 2026 — FAQ
What is the federal minimum wage in 2026?
The federal minimum wage is $7.25 per hour in 2026 — unchanged since July 24, 2009. This is the 17th consecutive year without a federal increase, the longest gap in the 88-year history of the Fair Labor Standards Act. Full-time annual earnings at $7.25 are $15,080 — just $20 above the 2026 federal poverty line of $15,060 for a single person. The federal tipped minimum wage remains at $2.13 per hour.
What is the minimum wage in my state in 2026?
State minimum wages range from $7.25 (20 states following the federal floor) to $17.95 in Washington D.C. The complete state-by-state table is above. Top states: DC $17.95, Washington $17.13, Connecticut $16.94, California $16.90, New York $16.50, Rhode Island $16.00, Hawaii $16.00. States at $7.25: Alabama, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, New Hampshire, North Carolina, North Dakota, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Wisconsin, Wyoming. Five states have no minimum wage law (AL, LA, MS, SC, TN) and default to the federal rate.
What is the minimum wage annual salary in 2026?
At the federal minimum wage of $7.25 per hour, full-time annual gross earnings are $15,080 ($7.25 × 40 hours × 52 weeks). After FICA taxes (7.65% = $1,154) and minimal federal income tax, annual take-home is approximately $13,500–$14,000. At DC's $17.95 minimum, annual gross is $37,336. At Washington State's $17.13, annual gross is $35,630. At California's $16.90, annual gross is $35,152. Use the annual salary calculator to convert any hourly rate.
What is the tipped minimum wage in 2026?
The federal tipped minimum wage is $2.13 per hour — provided tips bring total hourly pay to at least $7.25. If tips fall short, the employer must make up the difference. Eight states require tipped workers to receive the full state minimum wage regardless of tips — no tip credit allowed: Alaska, California, Minnesota, Montana, Nevada, Oregon, Washington, and Washington D.C. Tipped employees who believe their total hourly pay fell below $7.25 can file a complaint with the DOL Wage and Hour Division.
Which state has the highest minimum wage in 2026?
The highest minimum wage state is Washington D.C. at $17.95 per hour as of January 2026. Washington State follows at $17.13, Connecticut at $16.94, California at $16.90, and New York at $16.50 statewide. At the city level, Seattle's minimum wage reaches $20.29 for large employers — the highest local minimum wage in the country. San Francisco is $18.67, Denver is $18.29, and Los Angeles is $17.28.
Has the minimum wage kept up with inflation?
No. The federal minimum wage has lost substantial real purchasing power since its 1968 peak. In 1968, the minimum wage was $1.60 per hour — equivalent to approximately $14.50 in 2026 inflation-adjusted dollars. The current $7.25 federal rate is roughly half the real value of the 1968 minimum wage. Had the 1968 rate been indexed to inflation, the federal minimum would be approximately $14.50 per hour today. This erosion in real value is why states have increasingly enacted their own higher minimums and CPI-indexing mechanisms.
What is the difference between minimum wage and living wage?
The minimum wage is the legal floor — the least an employer can legally pay. The living wage is the income needed to cover basic needs (housing, food, transportation, healthcare) without public assistance. The MIT Living Wage Calculator estimates living wages of $15–$25+ per hour for single adults depending on location. At the federal minimum of $7.25, annual income is $15,080 — far below the living wage in virtually every US city. Even DC's $17.95 minimum is well below DC's estimated living wage of approximately $28 per hour for a single adult.
What is the minimum wage for federal contractors in 2026?
The federal contractor minimum wage is $17.75 per hour under Executive Order 14026 — significantly above the $7.25 federal minimum. This applies to workers performing work on or in connection with covered federal government contracts. Tipped federal contractors must receive at least $12.90 per hour base pay. Federal contractor rates are adjusted annually and apply regardless of what state the work is performed in.
Will the federal minimum wage increase in 2026?
No federal minimum wage increase is scheduled for 2026. Will minimum wage increase 2026? The answer at the federal level is no. Congress has not passed minimum wage legislation since the $7.25 rate took effect in 2009. Various proposals including the Raise the Wage Act have been introduced but not enacted. The federal minimum wage has no automatic CPI adjustment — it requires specific legislation. Without congressional action, the federal rate will remain at $7.25 through at least 2026. State and local minimums will continue to rise independently — 19 states increased their rates on January 1, 2026.