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Minimum wage is among the most significant labor standards in the United States. It establishes the minimum amount of compensation workers must receive for their time and effort. Just as the federal government sets a federal minimum wage, however, individual states make their own rule regarding state minimum wage.
Minimum Wage laws are updated through 2026; some states have raised their wage rates to help workers dealing with soaring living costs, although others are still adhering to the federal standard. Due to these differences, employees and employers should be aware of how the minimum wage rules are enforced in their particular state.
This guide breaks down the federal minimum wage and how it works with state laws in 2026. It also addresses tipped wages, state authority, and the ultimate purpose of minimum wage protections, so you can make accurate payroll documents by using a paycheck stub generator.
What Is Minimum Wage?
Minimum wage is the lowest hourly pay that employers are required to give their employees. It serves as a wage floor that is intended to protect workers against extremely low pay and ensure compliance with basic labor standards.
The federal minimum wage system in the United States was enacted by the Fair Labor Standards Act (FLSA) in 1938. When the minimum wage was introduced, it was set at a mere $0.25 per hour. Over the decades, the rate has been increased several times to account for economic conditions and inflation.
Today, the federal minimum wage is the mandated national floor that all employers must adhere to unless there’s a higher state or local rate. States have the power to create their own minimum wage per state laws, but those hourly rates cannot be below the federal standard.
Tipped Wages
Another part of the minimum wage federal laws deals with tipped employees, such as waiters or bartenders. Under federal rules, employers can pay people who receive tips a lower base wage, provided the employee’s gratuities bring their total earnings to at least the default minimum wage. This difference is referred to as the tip credit. Some states permit such a system, while in others, employers must pay the full minimum wage no matter what tips are received.
What Is A Federal Minimum Wage?
As of 2026, the federal minimum wage in the United States is still $7.25 per hour for most employees who are covered by the Fair Labor Standards Act (FLSA).
For tipped employees like servers or bartenders, employers are permitted to pay a lower base wage of $2.13 per hour, as long as the employee’s tips bridge the gap between that tipped wage and the federal minimum wage.
This difference is called the tip credit, which can be as much as $5.12 per hour. If a server’s tips do not raise their total earnings to at least $7.25 an hour, the employer must legally make up that difference, so that the worker can earn the full federal minimum wage.
| Wage Type | Hourly Rate |
| Federal Minimum Wage 2026 | $7.25 |
| Tipped Minimum Wage 2026 | $2.13 |
| Maximum Tip Credit 2026 | $5.12 |
How the Federal Minimum Wage Started?
The federal minimum wage was first established in 1938 when Franklin D. Roosevelt signed the Fair Labor Standards Act into law. Whereas the (federal) minimum wage at that time was $0.25/hour, a rate designed to provide minimal wage protections for workers in the U.S.A.
Currently, 20 states adhere to the federal minimum wage of $7.25 because they do not have their own law setting a higher rate, or their state’s level aligns with that standard.
These states are Alabama, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, New Hampshire, North Carolina, North Dakota, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Wisconsin, and Wyoming.
In these states, employers typically adhere to the federal wage rate unless a local law mandates a larger amount.
Federal Minimum Wage 2026 Rates Across All States
While the minimum wage for employees in America is determined by the federal minimum wage, each state has the power to implement its own minimum wage laws.
Due to variations in living expenses and economic climates, many states have opted for higher wage rates than the federal baseline. Certain states also have annual increases to their minimum wage based on inflation by pegging it to the Consumer Price Index (CPI).
Alabama Minimum Wage 2026
The minimum wage in Alabama follows the federal standard because the state does not have its own minimum wage law. Employers covered by federal regulations must pay $7.25 per hour. Tipped employees must receive at least $2.13 per hour before tips.
Alaska Minimum Wage 2026
The minimum wage in Alaska is $13.00 per hour in 2026. Alaska does not allow employers to pay a lower tipped wage. All employees must receive the full minimum wage.
Arizona Minimum Wage 2026
The Arizona minimum wage increases to $15.15 per hour in 2026. Tipped employees must receive $12.15 per hour under the minimum wage in Arizona. Some cities, like Flagstaff, have higher wage rates.
Arkansas Minimum Wage 2026
The minimum wage in Arkansas is $11.00 per hour. Tipped employees must receive $2.63 per hour before tips. State law requires that tips bring the worker’s total earnings to at least the full minimum wage.
California Minimum Wage 2026
The California minimum wage increases to $16.90 per hour. Under minimum wage California laws, employers cannot use a tip credit. Cities such as San Francisco and San Diego may have higher local wages.
Colorado Minimum Wage 2026
The minimum wage Colorado increases to $15.16 per hour. Tipped employees must receive $12.14 per hour under minimum wage in Colorado rules. Denver and other cities may have higher wage requirements.
Connecticut Minimum Wage 2026
The minimum wage in CT increases to $16.94 per hour. Connecticut has separate tipped wages including $6.38 for waitstaff and $8.23 for bartenders. These CT minimum wage rates apply across the state.
Delaware Minimum Wage 2026
The Delaware minimum wage is $15.00 per hour in 2026. Tipped employees must receive at least $2.23 per hour before tips. Employers must ensure total earnings reach the state minimum wage.
Florida Minimum Wage 2026
The Florida minimum wage increases to $14.00 per hour in 2026. Tipped employees must receive $10.98 per hour before tips. The state continues to raise wages gradually toward $15.
Georgia Minimum Wage 2026
The minimum wage Georgia is technically $5.15 per hour, but most employers must follow the federal minimum wage of $7.25. Tipped employees generally receive the federal tipped wage rate.
Hawaii Minimum Wage 2026
The minimum wage Hawaii increases to $16.00 per hour in 2026. Tipped employees must receive $14.75 per hour before tips. Hawaii has one of the highest wage requirements in the country.
Idaho Minimum Wage 2026
The minimum wage in Idaho follows the federal rate of $7.25 per hour. Tipped employees must receive $3.35 per hour before tips. Employers must ensure total pay meets minimum wage standards.
Illinois Minimum Wage 2026
The minimum wage in Illinois increases to $15.00 per hour. Tipped employees must receive $9.00 per hour before tips.
Indiana Minimum Wage 2026
The minimum wage Indiana remains $7.25 per hour, matching the federal rate. Tipped employees must receive $2.13 per hour before tips. This rate has remained unchanged for several years.
Iowa Minimum Wage 2026
The minimum wage in Iowa is $7.25 per hour, matching the federal standard. Tipped employees must receive $4.35 per hour before tips. Some counties previously attempted higher local wages.
Kansas Minimum Wage 2026
The minimum wage Kansas follows the federal minimum wage of $7.25 per hour. Tipped workers must receive $2.13 per hour before tips.
Kentucky Minimum Wage 2026
The minimum wage Kentucky is $7.25 per hour, consistent with the federal rate. Tipped workers must receive $2.13 per hour before tips.
Louisiana Minimum Wage 2026
The minimum wage in Louisiana follows the federal minimum wage of $7.25 per hour. Tipped employees must receive $2.13 per hour before tips.
Maine Minimum Wage 2026
The minimum wage in Maine increases to $15.10 per hour. Tipped employees must receive $7.55 per hour before tips. Some cities like Portland have higher local wage rates.
Maryland Minimum Wage 2026
The minimum wage in Maryland is $15.00 per hour. Tipped employees must receive $3.63 per hour before tips. Some counties and cities require higher wages.
Massachusetts Minimum Wage 2026
The Massachusetts minimum wage is $15.00 per hour in 2026. Tipped employees must receive $6.75 per hour before tips.
Michigan Minimum Wage 2026
The minimum wage Michigan increases to $13.73 per hour. Tipped employees must receive $5.49 per hour before tips. Additional increases are planned in future years.
Minnesota Minimum Wage 2026
The minimum wage Minnesota increases to $11.41 per hour. The state does not allow a separate tipped wage, so all employees receive the same minimum pay.
Mississippi Minimum Wage 2026
The minimum wage in Mississippi follows the federal minimum wage of $7.25 per hour. Tipped employees receive $2.13 per hour before tips.
Missouri Minimum Wage 2026
The minimum wage in Missouri increases to $15.00 per hour. Tipped employees must receive $7.50 per hour before tips.
Montana Minimum Wage 2026
The minimum wage in Montana increases to $10.85 per hour. The state does not allow a tipped wage credit.
Nebraska Minimum Wage 2026
The minimum wage Nebraska increases to $15.00 per hour. Tipped workers receive $2.13 per hour before tips.
Nevada Minimum Wage 2026
The minimum wage in Nevada is $12.00 per hour. The state does not allow a lower tipped wage.
New Hampshire Minimum Wage 2026
The minimum wage in New Hampshire follows the federal rate of $7.25 per hour. Tipped workers receive $3.26 per hour before tips.
New Jersey Minimum Wage 2026
The minimum wage in New Jersey increases to $15.92 per hour in 2026. Tipped employees must receive $6.05 per hour before tips.
New Mexico Minimum Wage 2026
The minimum wage New Mexico is $12.00 per hour. Tipped workers must receive $3.00 per hour before tips.
New York Minimum Wage 2026
The minimum wage in New York increases to $16.00 per hour in many areas. Tipped workers must receive at least $13.30 per hour, depending on the industry.
North Carolina Minimum Wage 2026
The minimum wage North Carolina follows the federal minimum wage of $7.25 per hour. Tipped workers must receive $2.13 per hour before tips.
North Dakota Minimum Wage 2026
The minimum wage North Dakota is $7.25 per hour. Tipped workers receive $4.86 per hour before tips.
Ohio Minimum Wage 2026
The minimum wage Ohio increases to $11.00 per hour. Tipped employees must receive $5.50 per hour before tips.
Oklahoma Minimum Wage 2026
The rules for minimum wage in Oklahoma follow the federal rate of $7.25 per hour. Tipped employees receive $3.63 per hour before tips.
Oregon Minimum Wage 2026
The minimum wage in Oregon is $15.05 per hour in 2026. The state does not allow a tipped wage credit.
Pennsylvania Minimum Wage 2026
The minimum wage Pennsylvania remains $7.25 per hour. Tipped employees must receive $2.83 per hour before tips.
Rhode Island Minimum Wage 2026
The minimum wage in Rhode Island increases to $16.00 per hour. Tipped workers receive $3.89 per hour before tips.
South Carolina Minimum Wage 2026
The minimum wage South Carolina follows the federal minimum wage of $7.25 per hour.
South Dakota Minimum Wage 2026
The minimum wage in South Dakota increases to $11.85 per hour. Tipped workers receive about $5.93 per hour.
Tennessee Minimum Wage 2026
The minimum wage Tennessee follows the federal minimum wage of $7.25 per hour.
Texas Minimum Wage 2026
The minimum wage Texas follows the federal rate of $7.25 per hour. These rates has remained unchanged for several years.
Utah Minimum Wage 2026
The minimum wage Utah follows the federal minimum wage of $7.25 per hour.
Vermont Minimum Wage 2026
The minimum wage in Vermont increases to $14.42 per hour. Tipped workers receive $7.21 per hour before tips.
Virginia Minimum Wage 2026
The minimum wage in Virginia increases to $12.77 per hour. Tipped employees receive the federal tipped wage of $2.13 per hour.
Washington Minimum Wage 2026
The Washington state minimum wage increases to $17.13 per hour, the highest statewide wage in the U.S. Tipped credits are not allowed.
West Virginia Minimum Wage 2026
The West Virginia minimum wage is $8.75 per hour. Tipped workers must receive $2.62 per hour before tips.
Wisconsin Minimum Wage 2026
The minimum wage in Wisconsin remains $7.25 per hour. Tipped workers must receive $2.33 per hour before tips.
Wyoming Minimum Wage 2026
The minimum wage in Wyoming is technically $5.15 per hour, but most employers must follow the federal minimum wage of $7.25.
| State | Minimum Wage | Tipped Minimum Wage | Tip Credit |
| Alabama* | $7.25 | $2.13 | $5.12 |
| Alaska | $13.00 | Not Permitted | — |
| Arizona | $15.15 | $12.15 | $3.00 |
| Arkansas | $11.00 | $2.63 | $8.37 |
| California | $16.90 | $16.90 | Not Permitted |
| Colorado | $15.16 | $12.14 | $3.02 |
| Connecticut | $16.94 | $10.56 | $6.38 |
| Delaware | $15.00 | $2.23 | $12.77 |
| District of Columbia | $17.95 | $10.00 | $7.95 |
| Florida | $14.00 | $10.98 | $3.02 |
| Georgia** | $5.15 | Not Permitted | — |
| Hawaii | $16.00 | $14.75 | $1.25 |
| Idaho | $7.25 | $3.35 | $3.90 |
| Illinois | $15.00 | $9.00 | $6.00 |
| Indiana | $7.25 | $2.13 | $5.12 |
| Iowa | $7.25 | $4.35 | $2.90 |
| Kansas | $7.25 | $2.13 | $5.12 |
| Kentucky | $7.25 | $2.13 | $5.12 |
| Louisiana* | $7.25 | $2.13 | $5.12 |
| Maine | $15.10 | $7.55 | $7.55 |
| Maryland | $15.00 | $3.63 | $11.37 |
| Massachusetts | $15.00 | $6.75 | $8.25 |
| Michigan | $13.73 | $5.49 | $8.24 |
| Minnesota | $11.41 | Not Permitted | — |
| Mississippi* | $7.25 | $2.13 | $5.12 |
| Missouri | $15.00 | $7.50 | $7.50 |
| Montana | $10.85 | Not Permitted | — |
| Nebraska | $15.00 | $2.13 | $12.87 |
| Nevada | $12.00 | Not Permitted | — |
| New Hampshire | $7.25 | $3.26 | $3.99 |
| New Jersey | $15.92 | $6.05 | $9.87 |
| New Mexico | $12.00 | $3.00 | $9.00 |
| New York | $16.00 | $13.30 | $2.70 |
| North Carolina | $7.25 | $2.13 | $5.12 |
| North Dakota | $7.25 | $4.86 | $2.39 |
| Ohio*** | $11.00 | $5.50 | $5.50 |
| Oklahoma | $7.25 | $3.63 | $3.63 |
| Oregon | $15.05 | Not Permitted | — |
| Pennsylvania | $7.25 | $2.83 | $4.42 |
| Rhode Island | $16.00 | $3.89 | $12.11 |
| South Carolina* | $7.25 | $2.13 | $5.12 |
| South Dakota | $11.85 | $5.95 | $5.90 |
| Tennessee* | $7.25 | $2.13 | $5.12 |
| Texas | $7.25 | $2.13 | $5.12 |
| Utah | $7.25 | $2.13 | $5.12 |
| Vermont | $14.42 | $7.21 | $7.21 |
| Virginia | $12.77 | $2.13 | $10.64 |
| Washington | $17.13 | Not Permitted | — |
| West Virginia | $8.75 | $2.62 | $6.13 |
| Wisconsin | $7.25 | $2.33 | $4.92 |
| Wyoming** | $5.15 | $2.13 | $3.02 |
Notes
- States marked with * do not have their own minimum wage law and follow the federal minimum wage.
- States with ** have a lower state minimum wage, but most employers must still follow the federal minimum wage if they are subject to federal law.
- *** In Ohio, businesses with annual gross sales below $385,000 may follow the federal minimum wage instead of the state rate.
Key Takeaway
In 2026, minimum wage laws in the United States vary significantly. Despite the federal minimum wage of $7.25 per hour, many states have established higher rates that help them adapt to driving currents and inflation in their economy. Given these differences, employers must adhere to the highest applicable wage rate and ensure that employees who receive tips still earn at least the required minimum through their wages plus tips combined.
If you are dealing with different wage rules in different states, it is important to keep clear payroll records. An accurate free check stub template should give businesses a strong layout for clear reports of employee earnings, deductions, and tip credits on every paycheck.
Cusrious Mind Asks
1) Is the federal minimum wage going up in 2026?
No, the federal minimum wage is not rising in 2026. The pay remains $7.25 per hour, the same as it has been since 2009.
2) Is the federal minimum wage $15?
No, the federal minimum wage isn’t $15 per hour. The federal rate remains $7.25 (many states have established their own, higher minimum wages).
3) What states have a $15 minimum wage?
Several other states (plus D.C.) already have a $15 minimum wage in place or have been scheduled to for years; they include California, Washington, Massachusetts, New Jersey, Maryland, Connecticut, and Illinois[109].
4) Is it true that the federal minimum wage is going up?
There have been no federal laws passed to raise the federal minimum wage in 2026, so it stays at $7.25 per hour.
5) What 10 states have the highest minimum wage?
Some of the states with the highest minimum wages out there are Washington, California, Connecticut, New Jersey, Massachusetts, New York, Colorado, Oregon, and Arizona and Maine.
6) What state has the lowest pay?
States that adhere to the federal minimum wage of $7.25 typically have some of the lowest pay floors. These are states like Alabama, Mississippi, Tennessee and South Carolina.
6) What state has the $20 minimum wage?
No state has a statewide minimum wage of $20. But some cities in expensive areas may have local pay hitting or surpassing that for certain industries.
7) What is the minimum wage in all 50 states?
Some states adhere to the federal rate, which is $7.25 an hour, while others have established a higher minimum wage that varies across state law from about $10 to more than $17 per hour.
8) What 10 states have the highest minimum wage?
Among the states with the highest minimum wages are Washington, California, Connecticut, New Jersey, Massachusetts, New York, Colorado and Oregon; Arizona and Maine.
9) What state pays the lowest salary?
States that fall under laws with lower minimum wage states or in alignment with the federal rate traditionally experience their lowest hourly pay levels, around $7.25 per hour.
10) Which state is the lowest paid?
The states with the lowest wages are typically those that continue to depend on the federal minimum wage and have not passed higher laws at the state level.
Also Read:
I-9 Vs W4 Form: What They Are and How They Differ?
State Of Arizona Labor Laws 2025
FAQ's
What 5 states have no state minimum wage?
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5 states do not have their own state minimum wage laws; they use the federal rate. Those include Alabama, Louisiana, Mississippi, South Carolina and Tennessee.
What state has the cheapest minimum wage?
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The federal minimum wage is $7.25 an hour, and that number remains in use in … several states where voters have not approved higher rates.
Is minimum wage supposed to go up in 2026?
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The federal minimum wage will not rise again in 2026, unless different legislation is adopted.
Who still pays $7.25 an hour?
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In states that follow federal wage law, many employers are still paying $7.25 per hour, especially if the state doesn’t have its own higher minimum wage.
What will the CO minimum wage be in 2026?
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In 2026, the Colorado minimum will be $15.16 per hour; state rules permit a lower tipped wage.
