“What state has the lowest minimum wage?” sounds like a simple question, but the answer depends on how the federal and state laws fit together. Here is how it works in plain terms, using the U.S. Department of Labor’s guidance.
The short version
- The federal minimum wage is $7.25 an hour, set by the Fair Labor Standards Act (FLSA).
- States can set a higher minimum. The Department of Labor says employers must comply with both, so in practice workers get the higher rate.
- Twenty states have no minimum above $7.25. Georgia and Wyoming have a $5.15 state rate, but most employers there must pay $7.25.
- Tipped workers can be paid as little as $2.13 an hour in cash under federal law, but tips must bring them up to $7.25.
Two laws, one paycheck
The FLSA sets a nationwide floor of $7.25 an hour for covered, non-exempt workers. On top of that, states and some cities pass their own minimum wage laws. The Department of Labor puts it simply: “Some state laws provide greater employee protections; employers must comply with both.” If your state requires $15 and federal law requires $7.25, paying $15 satisfies both, so $15 is what you are owed.
The same logic applies to cities. Where a city sets a higher minimum than the state, employers in that city follow the city rate.
Where the federal rate is the one that matters
| Situation | States | What most workers get |
|---|---|---|
| No state minimum wage law | Alabama, Louisiana, Mississippi, South Carolina, Tennessee | $7.25 (federal) |
| State rate below $7.25 | Georgia, Wyoming ($5.15) | $7.25 (federal) for employers covered by the FLSA |
| State rate equal to $7.25 | Idaho, Indiana, Iowa, Kansas, Kentucky, New Hampshire, North Carolina, North Dakota, Oklahoma, Pennsylvania, Texas, Utah, Wisconsin | $7.25 |
So the “lowest minimum wage” in practice is $7.25, in 20 states. The $5.15 written into Georgia and Wyoming law only matters for the few employers that the federal law doesn’t cover.
The highest state rates
At the other end, Washington, D.C. requires $18.40 and Washington state $17.13, followed by Connecticut ($16.94) and California ($16.90). The full list is in minimum wage by state in 2026 and on our minimum wage by state page.
Tipped workers
Under federal law, the Department of Labor says an employer “must pay a tipped worker at least $2.13 per hour” in cash wages and can count tips toward the rest, a “tip credit” of up to $5.12 an hour. The employer must be able to show that cash wages plus tips reach the full $7.25 in each workweek; if they fall short, the employer pays the difference.
Many states require a higher cash wage for tipped workers, and some don’t allow a tip credit at all. Check your state’s labor department.
Example: how the tip credit works
Luis waits tables in San Antonio, where Texas follows the federal rules. His employer pays $2.13 an hour in cash. In a 30-hour week he earns $63.90 in cash wages and $310 in tips, about $12.46 an hour in total, well above $7.25. In a slow week with only $120 in tips, he would be at $6.13 an hour, so his employer would owe him the difference: 30 × $7.25 − $63.90 − $120 = $33.60.
What the minimum means for yearly pay
Full time at $7.25 is $15,080 a year before taxes (2,080 hours). At $15.00, it’s $31,200. Our hourly to salary calculator shows weekly, monthly and yearly pay for any rate.
If you think you’re being underpaid
- Check the current rate for your state, and your city if it has one: for example Georgia, Texas or California.
- Keep your own record of hours worked and pay received.
- Ask your employer’s payroll or HR team first.
- Contact your state labor department or the U.S. Department of Labor’s Wage and Hour Division, which handles federal minimum wage complaints.
Cities with their own minimum wage
Some cities and counties set a minimum above their state’s, including Seattle, Denver, Chicago and Montgomery County, Maryland. Employers in those places must pay the local rate to people who work there. If you work in a city with its own minimum, check the city’s labor office for the current rate, since many adjust every January 1.
Who isn’t covered by the minimum wage
The federal law has exemptions. Some salaried executive, administrative and professional employees are exempt, as are certain other categories defined by the Department of Labor. State laws have their own coverage rules. If you aren’t sure whether you are covered, the Department of Labor’s Wage and Hour Division and your state labor department can tell you.
What to keep in your own records
- Your start and end times each day, including breaks.
- Your pay stubs, with hours, rate and deductions.
- For tipped work, a daily log of cash and card tips.
- Any written policies about pay, tips or schedules.
Good records make it much easier to resolve a pay question with an employer or a labor agency.
