Minimum Wage 2026
Federal minimum wage remains $7.25/hour. 30 states + DC have higher minimums. Tipped minimum wage varies by state.
How minimum wage works
When state and federal rates differ, employees are entitled to the higher wage. This is why state minimums effectively override the federal $7.25 in 30 states.
Federal tipped minimum is $2.13/hr, but employers must ensure tips bring total to $7.25+. Several states (CA, WA, NV, OR, MN) require full minimum wage before tips.
Many cities set higher rates: Seattle $20.76, Denver $18.81, Chicago $16.20, NYC $16.50, Portland $15.95. Check local ordinances.
Frequently asked questions
The federal minimum wage is $7.25 per hour and has not changed since 2009. Where a state or city sets a higher rate, the higher rate applies to most workers.
Roughly 20 states default to the federal $7.25 (mostly in the South and parts of the Midwest), including Texas, Georgia, Tennessee, and the Carolinas. The other 30 states plus Washington, D.C. set higher minimums.
Many cities set their own local minimum wage above the state floor — for example Seattle, Denver, Chicago, New York City, and Portland. Where a city rate is higher, employers in that city must pay it.
The federal tipped minimum is $2.13/hour, but the employer must make up the difference if tips do not bring the worker to the full minimum wage. Several states (including California, Washington, Nevada, Oregon, and Minnesota) do not allow a tip credit, so tipped workers get the full minimum before tips.
Most state increases take effect on January 1, though some (such as Florida and Oregon) change mid-year. Several states index their minimum to inflation, so the rate adjusts automatically each year.