The federal minimum wage in the United States remains $7.25 per hour as of 2026, unchanged since 2009. However, 30 states plus Washington DC have set higher minimum wages, with rates ranging from $8.65 in Florida to $20.29 in Washington state.
Federal Minimum Wage Requirements
The federal minimum wage of $7.25 per hour applies to all covered employees under the Fair Labor Standards Act (FLSA). This rate serves as the absolute floor β no state can legally set their minimum wage below this federal standard. Employers must pay whichever rate is higher between federal and state minimums.
Highest State Minimum Wages in 2026
- Washington: $20.29 per hour (automatic inflation adjustment)
- California: $19.00 per hour (fast food workers: $22.00)
- Connecticut: $18.00 per hour
- New York: $17.50 per hour (NYC: $18.00)
- Massachusetts: $17.25 per hour
- Oregon: $16.45-$18.95 per hour (varies by region)
- Maryland: $16.50 per hour
- New Jersey: $16.13 per hour
States Using Federal Minimum Wage
Twenty states continue to use the federal minimum wage of $7.25 per hour as of 2026. These states include 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. Workers in these states earning minimum wage make approximately $15,080 annually working full-time.
Tipped Worker Minimum Wage Rates
The federal tipped minimum wage remains $2.13 per hour for workers who regularly receive tips, provided their total earnings meet the standard minimum wage. Eight states require employers to pay the full minimum wage before tips: Alaska, California, Minnesota, Montana, Nevada, Oregon, Washington, and Hawaii. This means tipped workers in these states earn significantly more than their counterparts in other states.
Local Municipality Higher Wages
Many cities and counties have established minimum wages exceeding both federal and state requirements. Seattle leads with $19.97 per hour for large employers, while San Francisco mandates $18.67 per hour across all businesses. Over 40 municipalities nationwide have implemented local minimum wage ordinances, typically in high-cost metropolitan areas where standard wages don't cover basic living expenses.
Upcoming Minimum Wage Changes
Several states have scheduled automatic increases for 2027 and beyond based on inflation indexing or legislative timelines. Florida will reach $12.00 per hour by September 2026, while Illinois is set to hit $15.00 per hour in January 2027. These scheduled increases reflect ongoing efforts to address wage stagnation and rising living costs across different regions.
The dramatic variation in minimum wages across states reflects different economic conditions and political priorities. Workers in states with higher minimum wages generally experience better purchasing power, though this often correlates with higher living costs. The federal minimum wage's purchasing power has declined significantly since its last increase in 2009, prompting ongoing legislative discussions about potential increases.
For workers and employers, understanding these wage requirements is crucial for compliance and financial planning. Many economists argue that the current federal rate is insufficient for basic living expenses in most US markets, while business groups express concerns about potential job losses from rapid wage increases. This ongoing debate continues to shape minimum wage policy at federal, state, and local levels.
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