The federal minimum wage is $7.25 per hour, but most states set their own rate above that floor. Rates range from the federal $7.25 in states with no state-level law all the way up to $17.13 in Washington. Where a state rate is higher than the federal rate, employers must pay the higher amount. Where a state has no minimum wage law or sets its rate below $7.25, most workers are still entitled to the federal rate.
States With No Minimum Wage Law
Five states have no state-level minimum wage law at all: Alabama, Louisiana, Mississippi, South Carolina, and Tennessee. Workers in these states who are covered by the federal Fair Labor Standards Act (which applies to most employers) earn at least the federal minimum of $7.25 per hour.
States With Rates Below the Federal Minimum
Three states have minimum wage laws on the books that set rates lower than $7.25. Georgia and Wyoming both have a state rate of $5.15, while Oklahoma’s rate for certain employers is $2.00. In practice, these rates rarely apply. Any employer subject to the Fair Labor Standards Act, which covers businesses with at least $500,000 in annual revenue and most interstate commerce, must pay the federal $7.25. The lower state rates only affect the small number of employers who fall entirely outside federal coverage.
States With Rates Above the Federal Minimum
The remaining states and the District of Columbia have set minimum wages above $7.25. These rates change frequently, with many states adjusting annually based on inflation or following a scheduled series of increases. A few of the highest state rates as of January 1, 2026, based on U.S. Department of Labor data:
- Washington: $17.13 per hour
- California: $16.90 per hour
- Oregon: $15.05 per hour (with a higher rate of $16.30 in the Portland metro area and a lower rate of $14.05 in nonurban counties)
- Hawaii: $14.75 per hour
- Alaska: $13.00 per hour
- Nevada: $12.00 per hour
- Minnesota: $11.41 per hour
- Montana: $10.85 per hour
Many other states fall somewhere in between, with rates commonly ranging from $8.00 to $15.00 depending on the state. Because rates update annually in many states (often on January 1 or July 1), the most reliable way to check your specific state’s current rate is the Department of Labor’s state minimum wage page at dol.gov.
How the Federal Floor Works
When a state minimum wage is higher than the federal rate, employers must pay the state rate. When a state has no law or a lower rate, the federal $7.25 applies to any worker covered by the Fair Labor Standards Act. The federal rate has not changed since July 2009, making it the longest period without an increase since the minimum wage was established in 1938.
For a full-time worker at $7.25 per hour, that comes out to about $15,080 per year before taxes. At the highest state rate of $17.13, full-time annual pay is roughly $35,630, more than double the federal floor.
Tipped Employee Wages
Tipped workers, such as servers and bartenders, are subject to different rules. Under federal law, employers can pay tipped employees as little as $2.13 per hour in direct wages, as long as the worker’s tips bring their total hourly earnings up to at least $7.25. This gap between the cash wage and the full minimum wage is called a “tip credit.”
Many states require a higher cash wage for tipped workers. Some examples as of January 1, 2026: Florida requires $10.98, Illinois requires $9.00, Missouri requires $7.50, and Arizona requires $12.15.
Several states eliminate the tip credit entirely, meaning tipped employees earn the full state minimum wage before tips. These states include Alaska, California, Minnesota, Montana, Nevada, Oregon, and Washington. A server in Washington, for instance, earns $17.13 per hour plus whatever tips they receive.
Cities and Counties With Higher Rates
At least 69 cities and counties across the country have enacted their own minimum wage ordinances, often setting rates well above the state level. This trend has accelerated since 2012, when only five localities had such laws. Local rates are most common in states that allow cities to set their own labor standards.
Some of the highest local minimum wages in the country as of January 2026 include West Hollywood at $20.25, Mountain View at $19.70, Sunnyvale at $19.50, and Richmond at $19.18. Denver, Seattle, Minneapolis, Chicago, and several other large cities also maintain rates above their respective state minimums. Some localities also distinguish between large and small employers, with smaller businesses given a lower rate or a longer timeline to reach the full amount.
If you work in a city or county with its own minimum wage ordinance, your employer must pay whichever rate is highest: federal, state, or local.
How Rates Change Over Time
Many states now tie their minimum wage to a cost-of-living index, which means the rate adjusts automatically each year based on inflation. This approach avoids the political gridlock that has kept the federal rate frozen since 2009. States using this method typically announce the new rate in the fall and implement it on January 1.
Other states have passed laws with a fixed schedule of annual increases. These phase-in plans typically raise the wage by $0.50 to $1.00 per year over several years until reaching a target rate, after which the state may switch to inflation-based adjustments. If you want to know whether your state has a scheduled increase coming, check your state’s department of labor website, which will list both the current rate and any upcoming changes.