The federal minimum wage in the US remains $7.25 per hour in 2026. It has not changed since 2009. However, 30 states and Washington, D.C. have higher minimum wages, with D.C. reaching $18.40 per hour. 

Minimum wage rules can vary by state and job. This guide covers each state’s 2026 minimum wage, federal contractor rates, and tipped worker rules. It helps workers, business owners, and payroll teams understand which wage rules apply to them.

The federal rate has stayed the same for more than 16 years, while many states have increased their rates. Your required minimum wage depends on where you work and the type of job.

What Is the Federal Minimum Wage in 2026?

The federal minimum wage in the US in 2026 is $7.25 per hour, set under the Fair Labor Standards Act (FLSA). It applies to any employer covered by the FLSA. According to the Department of Labor, that generally means businesses with at least $500,000 in annual gross sales that engage in interstate commerce.

The federal minimum wage has stayed at $7.25 since July 24, 2009, when it increased from $6.55. By mid-2026, this is the longest period without a federal increase since the FLSA was created in 1938. 

A worker earning $7.25 an hour and working 40 hours a week makes about $15,080 a year before taxes. In many parts of the U.S., this is not enough to cover basic living costs. That is why many states have set higher minimum wages. 

A Quick History of the Federal Minimum Wage

Congress created the first federal minimum wage in 1938 at just $0.25 an hour. Lawmakers raised it several times over the following decades, generally keeping pace with the cost of living. That pattern broke down after 2009.

Data from the  Federal Reserve Bank of St. Louis (FRED) and Macrotrends show that the federal minimum wage has stayed at $7.25 since 2009. Because of inflation, $7.25 now buys less than it did in 2009. This means the federal minimum wage has lost buying power over the years. 

The 2009 increase applied only to employers covered by the FLSA, while state-regulated employers continued to follow their own wage laws. 

Federal vs. State Minimum Wage: Which Rate Applies to You?

The simple rule is: the higher minimum wage applies. If your state’s minimum wage is more than $7.25, your employer must pay the state rate. 

Some states have no minimum wage law. Others, such as Georgia and Wyoming, have a rate below $7.25. In these cases, employers covered by federal law must still pay at least $7.25 per hour. They cannot legally pay less than the federal minimum wage. 

Minimum Wage by State 2026: Full Breakdown

Rates below reflect the DOL’s official state minimum wage table, current as of July 1, 2026. Figures were also cross-checked against multiple published state wage-rate trackers for accuracy. Always confirm with your state labor office before making payroll decisions. Local minimum wages set by cities and counties can push rates even higher than the state figure.

States Still Paying the Federal Minimum ($7.25/hour)

Twenty states currently follow the federal minimum wage. Some have no state minimum wage law, while others link their state rate to the federal rate. 

• Alabama, Louisiana, Mississippi, South Carolina, and Tennessee: No state minimum wage law.
• Idaho, Indiana, Iowa, Kansas, and Kentucky: Minimum wage is $7.25 per hour.
• New Hampshire, North Carolina, North Dakota, Pennsylvania, Texas, Utah, and Wisconsin: Minimum wage is $7.25 per hour.
• Georgia and Wyoming: The state minimum wage is $5.15, but covered employers must pay at least $7.25 under federal law.
• Oklahoma: Larger employers must pay $7.25. Smaller employers may have a lower state rate.

States With the Highest Minimum Wage in 2026

On the other hand, these states and the District of Columbia pay much more than the federal minimum. 

Florida will also reach a $15 minimum wage in 2026. The rate will increase to $15 an hour on September 30, 2026, as part of a plan approved by voters. 

States With Special or Split Minimum Wage Rules

• Montana: $10.85 for most employers, but businesses with $110,000 or less in annual sales that are not FLSA-covered may pay $4.00.
• Oregon: $15.55 standard, $16.80 in the Portland metro area, and $14.55 in non-urban counties.
• New York: Employers in New York City and its nearest suburbs must pay $17.00 per hour; the rest of the state pays $16.00.
• Ohio: Employers with gross receipts of $405,000 or more must pay $11.00 per hour; smaller employers pay $7.25.

Federal Contractor Minimum Wage in 2026

Federal contractors must pay workers a minimum wage set by a separate executive order. This rate is higher than the federal minimum wage of $7.25 and is adjusted each year for inflation. 

If your company works on federal contracts, check the current contractor wage rate before setting payroll. This rate can change separately from the regular federal minimum wage. 

Tipped, Youth, and Training Wages

Not every worker gets the full $7.25 in cash pay. Federal law allows a few exceptions. 

• Tipped employees: Employers can pay a direct cash wage of $2.13 per hour. Using a tip credit of up to $5.12 per hour, this reaches the minimum wage for tipped workers, as long as total pay reaches at least $7.25 per hour.
• Youth minimum wage: Employers can pay workers under 20 a rate of $4.25 per hour during their first 90 consecutive calendar days on the job.
• Subminimum certificates: Full-time students, student learners, and some workers with disabilities may qualify for special lower rates. These lower rates require a specific certificate issued by the Department of Labor.

Overtime Pay and the Federal Minimum Wage

The FLSA also sets rules for overtime pay. Most nonexempt hourly workers must receive 1.5 times their regular pay for every hour worked over 40 hours in a workweek. 

Overtime pay is added to the worker’s regular wage. For example, if a worker earns $16 per hour, they would earn $24 for each hour worked over 40 hours.

Some workers may be exempt from overtime rules. This includes certain salaried executive, administrative, and professional employees who meet specific salary and job requirements. 

Employers must correctly classify workers because treating a nonexempt employee as exempt can lead to wage violations. When unsure, employers should check the latest Department of Labor (DOL) guidance. 

Why Is the Gap Between States Growing?

Several states raise their minimum wage each year based on inflation or the Consumer Price Index (CPI). California, Washington, and Washington, D.C., use this system. This is one reason they have some of the highest minimum wages in the country. 

The federal minimum wage works differently. Congress must approve every increase, but the federal rate has stayed at $7.25 since 2009. As prices rise, $7.25 buys less each year. This has created a growing gap between the federal minimum wage and state minimum wages. 

Most recent increases have come from state lawmakers and local voters, while the federal rate has remained unchanged. 

What This Means for Workers and Employers

Where you live can affect your income as much as the job you have. For example, a minimum-wage worker in Washington can earn nearly $10 more per hour than a worker doing the same job in Texas. These wage differences can influence where people choose to live and work. They also show how economic conditions shape wages across the United States. 

For employers with workers in different states, 2026 is not the time to use old wage rates. Some cities and counties have minimum wages higher than the state rate. These higher wages often occur in areas with a higher cost of living. Employers must stay updated on federal, state, and local wage laws to remain compliant. 

How to Check Your Exact Local Minimum Wage

State minimum wage rates are not the whole story. Some cities and counties have higher local minimum wages that may change at different times. 

1. First, check your state’s minimum wage in the table above.
2. Then, search your city or county name with “minimum wage ordinance” to find local rates.
3. Check if you are a tipped, young, or federal contract worker, as different rules may apply.
4. If you are unsure, contact your state labor office. Rates can change during the year, and the Department of Labor updates its information when new laws take effect.

Conclusion

The federal minimum wage has stayed at $7.25 an hour since 2009. However, workers in 30 states and Washington, D.C., earn more, while about 20 states still follow the federal rate. 

Tipped workers can receive as little as $2.13 an hour in direct wages if their tips bring their total pay up to the required minimum wage. 

The gap between wage rates is growing. Washington, D.C., has the highest rate at $18.40 an hour, followed by Washington State at $17.13. Federal contractors have separate rules with higher minimum wages. 

Has your state’s minimum wage moved past the federal floor, or is it still stuck at $7.25?

Tejas Jadhav

FAQs

1. Will the federal minimum wage increase in 2026?

There is no federal minimum wage increase planned for 2026. The federal minimum wage has stayed at $7.25 per hour since 2009 for employers covered by the FLSA. 

2. What is the highest minimum wage in the US in 2026?

The District of Columbia has the highest rate at $18.40 per hour, followed by Washington at $17.13 per hour. 

3. What is the minimum wage for tipped workers in 2026?

Under federal law, tipped workers can be paid a cash wage of $2.13 per hour. Employers can take a tip credit of up to $5.12 per hour if the worker’s total pay, including tips, reaches at least $7.25 per hour.