The federal minimum wage is $7.25 per hour โ and it has not changed since July 2009. That makes it the longest federal minimum wage freeze in U.S. history. In real purchasing power terms, the federal minimum wage is at a 70-year low. But the federal floor is just that โ a floor. Over 30 states and Washington D.C. have established significantly higher minimums, and dozens of cities and counties have gone even further.
Many workers don't realize they may be entitled to a higher rate than the federal minimum โ or that their employer is violating state law by paying only $7.25. This guide covers every state's minimum wage for 2025 and 2026, tipped worker rules, city minimums, and what to do if you think you're being underpaid.
The Federal Minimum Wage โ Unchanged Since 2009
Under the Fair Labor Standards Act (FLSA), the federal minimum wage is $7.25 per hour. This applies in states that have not enacted their own higher minimum. Employers in those states are only required to pay $7.25 โ regardless of cost of living. For a full-time worker (40 hours/week, 52 weeks), this equals approximately $15,080 per year before taxes.
When a state minimum wage is higher than the federal rate, employers in that state must pay the higher state rate. You are always entitled to whichever is higher โ federal, state, or local. Your employer cannot choose the lower rate.
Minimum Wage by State โ 2025/2026
The following rates reflect enacted or scheduled rates as of the date of this article. Many states update January 1 or July 1. Always verify with your state's department of labor for the most current rate.
| State | 2025 Rate | 2026 Rate (Scheduled) | Notes |
|---|---|---|---|
| California | $16.50 | $17.00 | Fast food workers: $20/hr (Jan 2025) |
| Washington | $16.66 | ~$17.00+ | Indexed to inflation annually |
| Massachusetts | $15.00 | $15.00 | Tipped minimum: $6.75/hr |
| New York | $16.50 (NYC/LI/WC) | $17.00 (NYC area) | Upstate NY: $15.50; NYC/Nassau/Suffolk/Westchester: $16.50 |
| New Jersey | $15.49 | ~$15.90+ | Indexed annually |
| Connecticut | $16.35 | Indexed | Indexed to employment cost index |
| Colorado | $14.81 | Indexed | Indexed to inflation |
| Illinois | $15.00 | $15.00 | Chicago: higher local rate |
| Minnesota | $10.85 (small) / $11.13 (large) | Indexed | Different rates by employer size |
| Michigan | $10.56 | $12.48 | Court order restored tip credit changes |
| Maryland | $15.00 | $15.00 | Montgomery County: higher |
| Oregon | $14.70 (standard) | Indexed | Portland metro: $15.95; rural: $13.70 |
| Nevada | $12.00 | $12.00+ | Single tier since July 2024 |
| Arizona | $14.70 | Indexed | Indexed to CPI |
| Maine | $14.65 | Indexed | Indexed to inflation |
| Rhode Island | $15.00 | $15.00 | |
| Vermont | $14.01 | Indexed | Indexed to CPI |
| Delaware | $15.00 | $15.00 | |
| Hawaii | $14.00 | $16.00 (Jan 2026) | Scheduled increases through 2028 |
| D.C. | $17.50 | Indexed | Highest in the nation among states/territories |
| Florida | $13.00 | $14.00 (Sep 2026) | Scheduled annual increases through $15 |
| Missouri | $12.30 | $13.75 (Jan 2026) | Voter-approved increases through $15 |
| Ohio | $10.45 | Indexed | Indexed to CPI; small employers: $7.25 |
| Montana | $10.55 | Indexed | No tip credit allowed |
| Alaska | $11.91 | $13.00 (July 2026) | No tip credit |
| South Dakota | $11.20 | Indexed | Indexed to CPI |
| Nebraska | $13.50 | $15.00 (Jan 2026) | Voter-approved |
| Texas | $7.25 (federal) | $7.25 | No state minimum above federal |
| Georgia | $5.15 state / $7.25 federal | $7.25 federal | Federal rate applies in practice |
| Tennessee | $7.25 (federal) | $7.25 | No state minimum |
| Alabama | $7.25 (federal) | $7.25 | No state minimum |
| Mississippi | $7.25 (federal) | $7.25 | No state minimum |
| South Carolina | $7.25 (federal) | $7.25 | No state minimum |
| North Carolina | $7.25 (federal) | $7.25 | No state minimum above federal |
Cities With Even Higher Minimums
Some cities have enacted local minimum wages that exceed their state minimums. Key examples:
- Seattle, WA: $20.76/hr (large employers, 2025) โ among the highest in the nation
- San Francisco, CA: $18.67/hr (2025)
- New York City, NY: $16.50/hr (2025), rising to $17.00 in 2026
- Denver, CO: $18.81/hr (2025)
- Chicago, IL: $16.20/hr (2025)
- Washington D.C.: $17.50/hr (2025)
- Minneapolis, MN: $15.57 to $15.57+ depending on employer size
Tipped Workers โ A Different Set of Rules
Under federal law, employers may pay tipped workers a direct cash wage of only $2.13/hour โ one of the most confusing and least-known aspects of wage law. This is called the "tip credit." The idea is that tips from customers will bring the worker's total hourly earnings up to at least $7.25. If tips plus the $2.13 base do not reach $7.25, the employer is legally required to make up the difference.
However, many states have eliminated the tip credit entirely. In these states, tipped workers must receive the full state minimum wage regardless of tips:
- Alaska, California, Minnesota, Montana, Nevada, Oregon, Washington โ no tip credit; full minimum applies
- Several other states have much higher tipped minimums than the federal $2.13
What to Do If You're Being Paid Below Minimum Wage
- Document your hours worked and pay received โ keep your pay stubs, and if you're paid in cash, keep your own records
- File a wage claim with your state's department of labor โ most states allow online filing and investigate promptly
- File a complaint with the U.S. Department of Labor's Wage and Hour Division (dol.gov) โ federal FLSA complaints can be filed online
- Consult an employment attorney โ wage theft cases often allow recovery of back wages plus an equal amount in liquidated (double) damages, plus attorney fees. See: Is My Boss Allowed to Dock My Pay?
Document Your Hours and Pay โ Privately
Wage claims are won with records. If you believe your employer is underpaying you, start a private log of your hours worked versus pay received. MyHRProof helps you build that record securely.
Start Documenting Free โRelated articles: Is My Boss Allowed to Dock My Pay? ยท Federal Labor Law Changes 2025 ยท When to Hire an Employment Attorney