U.S. Department of Labor Data, Updated 2026
Minimum Wage by StateAll 50 States + DC Compared
The federal minimum wage is $7.25/hr — unchanged since 2009. But 30+ states have set their own higher minimums, creating a patchwork where a worker in Washington earns $16.66/hr while a worker in Texas earns $7.25/hr for the same hour of labor.
Federal Min
$7.25
$15,080/yr
State Median
$12.00
$24,960/yr
Highest (DC)
$17.50
$36,400/yr
Minimum Wage Map
Color-coded by wage level. Red states sit at the federal $7.25 floor. Green states have passed $15+.
Top 10 Highest Minimum Wages
These states and DC lead the nation. Washington and California have been in a race to the top for years.
$36,400/yr full-time · Tipped: $10.00/hr
$34,653/yr full-time · Tipped: $16.66/hr
$34,320/yr full-time · Tipped: $16.50/hr
$34,008/yr full-time · Tipped: $6.38/hr
$33,280/yr full-time · Tipped: $10.65/hr
$32,219/yr full-time · Tipped: $5.62/hr
$31,200/yr full-time · Tipped: $2.23/hr
$31,200/yr full-time · Tipped: $9.00/hr
$31,200/yr full-time · Tipped: $3.63/hr
$31,200/yr full-time · Tipped: $6.75/hr
All 50 States + DC
Complete minimum wage data for every state. Annual earnings assume 40 hours/week, 52 weeks/year (2,080 hours). “vs Federal” shows the premium over the $7.25 floor.
| State | Min Wage | vs Federal |
|---|---|---|
| ALAlabama | $7.25 | $0.00 |
| AKAlaska | $11.73 | +$4.48 (62%) |
| AZArizona | $14.70 | +$7.45 (103%) |
| ARArkansas | $11.00 | +$3.75 (52%) |
| CACalifornia | $16.50 | +$9.25 (128%) |
| COColorado | $14.81 | +$7.56 (104%) |
| CTConnecticut | $16.35 | +$9.10 (126%) |
| DEDelaware | $15.00 | +$7.75 (107%) |
| DCDistrict of Columbia | $17.50 | +$10.25 (141%) |
| FLFlorida | $14.00 | +$6.75 (93%) |
| GAGeorgia | $7.25 | $0.00 |
| HIHawaii | $14.25 | +$7.00 (97%) |
| IDIdaho | $7.25 | $0.00 |
| ILIllinois | $15.00 | +$7.75 (107%) |
| INIndiana | $7.25 | $0.00 |
| IAIowa | $7.25 | $0.00 |
| KSKansas | $7.25 | $0.00 |
| KYKentucky | $7.25 | $0.00 |
| LALouisiana | $7.25 | $0.00 |
| MEMaine | $14.65 | +$7.40 (102%) |
| MDMaryland | $15.00 | +$7.75 (107%) |
| MAMassachusetts | $15.00 | +$7.75 (107%) |
| MIMichigan | $12.48 | +$5.23 (72%) |
| MNMinnesota | $11.13 | +$3.88 (54%) |
| MSMississippi | $7.25 | $0.00 |
| MOMissouri | $13.75 | +$6.50 (90%) |
| MTMontana | $10.55 | +$3.30 (46%) |
| NENebraska | $13.50 | +$6.25 (86%) |
| NVNevada | $12.00 | +$4.75 (66%) |
| NHNew Hampshire | $7.25 | $0.00 |
| NJNew Jersey | $15.49 | +$8.24 (114%) |
| NMNew Mexico | $12.00 | +$4.75 (66%) |
| NYNew York | $16.00 | +$8.75 (121%) |
| NCNorth Carolina | $7.25 | $0.00 |
| NDNorth Dakota | $7.25 | $0.00 |
| OHOhio | $10.65 | +$3.40 (47%) |
| OKOklahoma | $7.25 | $0.00 |
| OROregon | $14.70 | +$7.45 (103%) |
| PAPennsylvania | $7.25 | $0.00 |
| RIRhode Island | $15.00 | +$7.75 (107%) |
| SCSouth Carolina | $7.25 | $0.00 |
| SDSouth Dakota | $11.50 | +$4.25 (59%) |
| TNTennessee | $7.25 | $0.00 |
| TXTexas | $7.25 | $0.00 |
| UTUtah | $7.25 | $0.00 |
| VTVermont | $14.01 | +$6.76 (93%) |
| VAVirginia | $12.41 | +$5.16 (71%) |
| WAWashington | $16.66 | +$9.41 (130%) |
| WVWest Virginia | $8.75 | +$1.50 (21%) |
| WIWisconsin | $7.25 | $0.00 |
| WYWyoming | $7.25 | $0.00 |
The $7.25 Club: 20 States at the Federal Floor
These states have no state-level minimum wage above the federal $7.25. Workers in these states earn $15,080/year full-time — below the poverty line for a household of two.
Predominantly Southern and Midwestern states. Workers in these states rely on a wage that hasn't changed since 2009 — 17 years.
Can You Live on Minimum Wage?
Monthly budget breakdown at three wage levels. The federal minimum leaves $18/month after bare essentials. That's not a typo.
| Expense | $7.25/hr | $15/hr | $20/hr |
|---|---|---|---|
| Gross Monthly Income | $1257 | $2600 | $3467 |
| Federal + State Taxes (~15%) | -$189 | -$390 | -$520 |
| Take-Home Pay | $1068 | $2210 | $2947 |
| Rent (Studio/Shared) | -$600 | -$800 | -$900 |
| Utilities & Phone | -$120 | -$150 | -$160 |
| Groceries | -$200 | -$300 | -$350 |
| Transportation | -$80 | -$150 | -$200 |
| Health Insurance | -$50 | -$100 | -$150 |
| Remaining for Everything Else | $18 | $710 | $1187 |
Assumes single adult, no dependents, LCOL area for $7.25 column. Rent figures are national averages for studios or shared housing.
Purchasing Power: Minimum Wage Adjusted for Cost of Living
A high nominal wage doesn't help if everything costs more. This adjusts each state's minimum wage by its cost-of-living index (national average = 100). Some surprising reshuffles happen.
Missouri, Nebraska, and Florida rank surprisingly well after cost-of-living adjustment — their lower costs stretch minimum wage dollars further. Hawaii and DC drop significantly.
Historical Federal Minimum Wage: 1938 to 2026
The minimum wage peaked in real purchasing power in 1968 at $14.05 in today's dollars. Today's $7.25 buys barely half of what the 1968 minimum could.
Fair Labor Standards Act signed by FDR
Post-WWII expansion
Extended to retail & service workers
Peak purchasing power (inflation-adjusted)
Stagflation era
Reagan era begins
Post-Gulf War recession
Clinton-era increase
First increase in 10 years
Last federal increase — still current
17 years with no increase
The Fight for $15: A Timeline
What started as 200 fast-food workers walking off the job in New York City became the most consequential labor movement of the 21st century.
2012
200 fast-food workers walk out in NYC, demanding $15/hr and union rights.
2014
Movement spreads to 150+ cities. Strikes at McDonald's, Wendy's, Burger King.
2015
NY and CA announce phased increases to $15. Seattle already passed $15 in 2014.
2016
DC voters approve $15 minimum wage. Movement goes national in elections.
2019
House passes Raise the Wage Act ($15 federal). Senate blocks it.
2021
Biden proposes $15 federal minimum. Senate parliamentarian blocks it from COVID relief bill.
2023
30+ states now above federal minimum. $15 achieved in CA, NY, WA, MA, CT, NJ.
2026
Federal minimum still $7.25. Movement shifts to $20 in high-cost states (CA fast food hits $20).
Glen's Take
An Investor & Employer's Perspective on Wages
I've been on both sides of this. As someone who ran a hedge fund and now runs a software consultancy, I've written the checks. And as someone who started his career making $10/hour tutoring calculus, I remember what it feels like to do the math on whether you can afford both groceries and gas this week.
Here's the honest truth: $7.25/hour is indefensible in 2026. It hasn't moved in 17 years while everything else has. Rent, food, insurance, gas — all up 30-50% since 2009. Asking someone to survive on $15,080/year is asking them to fail. The math doesn't work, and pretending it does is dishonest.
But — and this matters — a $20 federal minimum imposed overnight on a rural Mississippi diner is a different conversation than $20 in Manhattan. Local cost of living matters enormously. The best policy is probably a regional floor indexed to local cost of living, with automatic annual inflation adjustments so we never go 17 years without an update again.
As an investor, I watch labor costs closely. Companies like Costco ($17.50 starting wage), In-N-Out ($20+), and Trader Joe's have proven that higher wages reduce turnover, improve service quality, and boost productivity. The “higher wages kill jobs” argument ignores the massive hidden cost of constant turnover at poverty wages — recruiting, training, lost institutional knowledge, and terrible customer experience.
The minimum wage should be a floor nobody falls through, not a political football. Index it to inflation, tie it to local costs, and let the market handle the rest.
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Frequently Asked Questions
What is the federal minimum wage in 2026?
The federal minimum wage is $7.25 per hour, unchanged since July 24, 2009. This is the longest period without an increase in the history of the federal minimum wage. At 40 hours per week, that's $15,080 per year before taxes — well below the federal poverty line for a family of two ($21,150).
How many states have a minimum wage above $15/hr?
As of 2026, approximately 10 states plus DC have minimum wages at or above $15.00 per hour: Washington ($16.66), California ($16.50), Connecticut ($16.35), New York ($16.00), New Jersey ($15.49), Delaware ($15.00), Illinois ($15.00), Maryland ($15.00), Massachusetts ($15.00), and Rhode Island ($15.00). DC leads at $17.50.
What is the tipped minimum wage?
The federal tipped minimum wage is $2.13 per hour — if the employee's tips bring their total hourly pay to at least $7.25. If not, the employer must make up the difference. However, 7 states (AK, CA, MN, MT, NV, OR, WA) require employers to pay the full state minimum wage before tips, eliminating the tipped sub-minimum entirely.
Which states still use the federal minimum of $7.25?
Twenty states have no state minimum wage above the federal level and effectively use $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, and Wyoming. These are predominantly in the South and Midwest.
Can you live on minimum wage?
At the federal minimum of $7.25/hr, a full-time worker earns $15,080/year — about $1,068/month after taxes. After rent, utilities, and groceries, that leaves roughly $18 per month for everything else: transportation, healthcare, clothing, emergencies. In practical terms, it's nearly impossible to live independently on federal minimum wage in any U.S. state without supplemental assistance.
Does raising the minimum wage cause job losses?
Economists are divided but increasingly find that moderate minimum wage increases have minimal employment effects. A landmark Card & Krueger study (1994) and subsequent research show little to no job loss from increases up to about 60% of the local median wage. However, very large sudden increases in low-cost-of-living areas can reduce hours or slow hiring. The CBO estimated a $15 federal minimum would raise pay for 17 million workers while potentially reducing employment by 1.3 million.
Why hasn't the federal minimum wage increased since 2009?
Political gridlock. Raising the federal minimum wage requires an act of Congress, and the Senate filibuster means you effectively need 60 votes. Neither party has held 60 Senate seats since the last increase. The House passed the Raise the Wage Act in 2019 and 2021, but it died in the Senate both times. Meanwhile, 30+ states have raised their own minimums, creating a patchwork system.
What was the minimum wage worth at its peak purchasing power?
The federal minimum wage hit peak purchasing power in 1968 at $1.60/hour, which equals approximately $14.05 in 2026 dollars. Today's $7.25 has roughly half the buying power of the 1968 minimum wage. If the minimum wage had kept pace with productivity growth since 1968, it would be over $24/hour today.
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