The minimum wage in the USA determines the lowest hourly pay employers are legally allowed to offer workers. While the federal minimum wage has remained unchanged for years, many US states and cities have set higher local minimum wages to reflect rising living costs.
In this 2026 guide, we break down the minimum wage in the USA by state, explain how it works, and what it means for workers and employers.
What Is the Federal Minimum Wage in the USA?
As of 2026, the federal minimum wage in the USA is:
$7.25 per hour
This rate applies only in states that have not set their own higher minimum wage. In practice, most US workers earn more due to state and local wage laws.
Minimum Wage in the USA by State (2026)
Below is an updated overview of state-level minimum wages:
| State | Minimum Wage (Hourly) |
|---|---|
| California | $16.00 |
| New York | $15.00 |
| Washington | $16.28 |
| Massachusetts | $15.00 |
| New Jersey | $15.13 |
| Arizona | $14.35 |
| Colorado | $14.42 |
| Oregon | $15.45 |
| Illinois | $14.00 |
| Florida | $13.00 |
| Texas | $7.25 |
| Pennsylvania | $7.25 |
| Georgia | $7.25 |
| Ohio | $10.45 |
| North Carolina | $7.25 |
Note: Some cities (like Seattle, San Francisco, and New York City) require higher minimum wages than the state level.
Why Minimum Wage Differs by State
States set their own minimum wages based on:
- Cost of living
- Inflation
- Local labor demand
- Political and economic priorities
High-cost states tend to raise wages to support basic living expenses.
Also read : Cost of Living in the USA (2026): State-Wise & City Comparison
Minimum Wage vs Average Salary in the USA
Minimum wage applies mostly to entry-level and hourly workers. Most full-time employees earn more than the minimum wage.
For comparison:
- Federal minimum wage (full-time): ~$15,080/year
- Average salary in the USA: ~$63,000/year
Also read : Average Salary in the USA (2026): State-Wise & Job-Wise Guide
Who Earns Minimum Wage in the USA?
Jobs commonly paid near minimum wage include:
- Retail associates
- Fast food workers
- Grocery store employees
- Hotel housekeeping staff
- Entry-level warehouse workers
Many of these roles offer tips, overtime, or performance incentives, increasing total earnings.
Tipped Minimum Wage in the USA
Some states allow a lower cash wage for tipped workers.
- Federal tipped minimum wage: $2.13/hour
- Employers must ensure total earnings meet regular minimum wage
States like California do not allow a lower tipped wage.
How Minimum Wage Affects Take-Home Pay
Even minimum wage workers must pay:
- Federal income tax
- Social Security
- Medicare
- State taxes (if applicable)
A worker earning $15/hour typically takes home $11–$12/hour after taxes, depending on state.
States with the Highest Minimum Wage
Top states by hourly minimum wage:
- Washington
- California
- Oregon
- New York
- New Jersey
These states also have higher rent and living expenses.
States Using Federal Minimum Wage Only
States that still use $7.25/hour include:
- Texas
- Georgia
- Pennsylvania
- North Carolina
- Wisconsin
Living costs may be lower, but wages also remain modest.
Will Minimum Wage Increase in the USA?
Many states have automatic annual increases tied to inflation. Others review wage laws every few years.
Minimum wage increases are expected mainly at the state and city level, not federally.
The minimum wage in the USA varies widely depending on where you live. While higher wages help offset living costs, they often come with higher rent and taxes.
- Before accepting a minimum wage job:
- Check local city laws
- Compare wages with cost of living
- Factor in benefits and overtime
