Article · Jobs and income
Minimum wage in the United States
The federal minimum wage is $7.25 an hour and has not changed since July 24, 2009 — 17 years and 3 months, the longest wait since the federal minimum began in 1938. Prices have risen since, so $7.25 now buys what $4.65 bought then. 30 states and DC set a higher minimum, up to $18.40.
unchanged since July 24, 2009: 17 years and 3 months
prices rose since July 2009: buying power down 36%
$1.60 an hour in February 1968
highest: District of Columbia, $18.40; in 20 states the federal $7.25 applies
2,080 hours, before taxes: 17% of the median household income ($87,460 in 2025)
What is the federal minimum wage?
It is the lowest hourly pay the Fair Labor Standards Act allows for most jobs in the United States: $7.25 an hour since July 24, 2009. Congress sets it by law, and it does not follow prices on its own — it changes only when a new law passes.
States and cities may set a higher minimum, and then the higher rate applies. 30 states and DC do. 13 states use the federal $7.25 as their own minimum, and 7 states have no minimum wage law or one below it; in all of them the federal $7.25 applies to jobs the federal law covers. Some workers may legally be paid less: tipped employees, young workers in their first months on a job, some full-time students and some workers with disabilities.
Every raise since 1938
The first federal minimum, $0.25 an hour, took effect on October 24, 1938. Congress has raised it 22 times since, the last time on July 24, 2009 — the staircase on the chart, in dollars of each day.
The line above the steps is the same minimum in dollars of October 2026. Each raise lifts it; then rising prices wear it down until the next one. It was worth the most in February 1968: $1.60 an hour then, $15.71 in today's dollars. Today's $7.25 buys 54% less.
Every raise as a table
| Took effect | An hour | Raise | In Oct 2026 dollars, at the start | … before the next raise | Years in force |
|---|---|---|---|---|---|
| July 24, 2009 | $7.25 | +11% | $11.30 | $7.25 | 17.3until now |
| July 24, 2008 | $6.55 | +12% | $10.00 | $10.20 | 1.0until July 24, 2009 |
| July 24, 2007 | $5.85 | +14% | $9.43 | $8.98 | 1.0until July 24, 2008 |
| September 1, 1997 | $5.15 | +8% | $10.73 | $8.30 | 9.9until July 24, 2007 |
| October 1, 1996 | $4.75 | +12% | $10.08 | $9.92 | 0.9until September 1, 1997 |
| April 1, 1991 | $4.25 | +12% | $10.56 | $9.04 | 5.5until October 1, 1996 |
| April 1, 1990 | $3.80 | +13% | $9.90 | $9.45 | 1.0until April 1, 1991 |
| January 1, 1981 | $3.35 | +8% | $12.93 | $8.74 | 9.2until April 1, 1990 |
| January 1, 1980 | $3.10 | +7% | $13.38 | $12.06 | 1.0until January 1, 1981 |
| January 1, 1979 | $2.90 | +9% | $14.26 | $12.70 | 1.0until January 1, 1980 |
| January 1, 1978 | $2.65 | +15% | $14.24 | $13.14 | 1.0until January 1, 1979 |
| January 1, 1976 | $2.30 | +10% | $13.89 | $12.44 | 2.0until January 1, 1978 |
| January 1, 1975 | $2.10 | +5% | $13.53 | $12.71 | 1.0until January 1, 1976 |
| May 1, 1974 | $2.00 | +25% | $13.82 | $12.94 | 0.7until January 1, 1975 |
| February 1, 1968 | $1.60 | +14% | $15.71 | $11.19 | 6.2until May 1, 1974 |
| February 1, 1967 | $1.40 | +12% | $14.29 | $13.79 | 1.0until February 1, 1968 |
| September 3, 1963 | $1.25 | +9% | $13.67 | $12.76 | 3.4until February 1, 1967 |
| September 3, 1961 | $1.15 | +15% | $12.87 | $12.58 | 2.0until September 3, 1963 |
| March 1, 1956 | $1.00 | +33% | $12.53 | $11.23 | 5.5until September 3, 1961 |
| January 25, 1950 | $0.75 | +88% | $10.72 | $9.40 | 6.1until March 1, 1956 |
| October 24, 1945 | $0.40 | +33% | $7.42 | $5.69 | 4.3until January 25, 1950 |
| October 24, 1939 | $0.30 | +20% | $7.20 | $5.57 | 6.0until October 24, 1945 |
| October 24, 1938 | $0.25 | — | $6.00 | $5.95 | 1.0until October 24, 1939 |
In Oct 2026 dollars: the hourly rate times the rise in consumer prices from the month it took effect (start) or from the month before the next raise (end). From 1961 to 1977 workers newly covered by amendments had lower rates for some years; they are not shown.
What $7.25 is worth after inflation
Prices have risen since July 2009, the month of the last raise, so $7.25 today buys what $4.65 bought then — 36% less. To buy as much as it did in 2009, the minimum would have to be $11.30 an hour now.
Each raise won back part of the loss and inflation took it again. Measured in today's dollars, the minimum was worth the most in February 1968, $15.71. Today it is worth less than at any time since December 1949.
The longest waits for a raise
No rate has stayed this long. $7.25 has been in force for 17.3 years; the longest wait before it was 9.9 years (1997–2007). The bars show the longest periods without a raise and how much buying power rising prices took from the rate during each.
- $7.252009–now17.3yearsbuying power −36%
- $5.151997–20079.9yearsbuying power −23%
- $3.351981–19909.2yearsbuying power −32%
- $1.601968–19746.2yearsbuying power −29%
- $0.751950–19566.1yearsbuying power −12%
Years from one raise of the federal minimum to the next; the current rate up to today. Buying power: the rise in consumer prices from the first to the last month of each period.
Which states pay more than $7.25?
30 states and DC set a minimum above the federal one. The highest is in the District of Columbia, $18.40 an hour — 2.5 times the federal rate; among the states, Washington leads with $17.13. Half of the 50 states and DC have a minimum of $11.85 or more.
13 states use the federal $7.25 as their own minimum and 7 states have no minimum wage law or one below it; in all 20 states the federal $7.25 applies to jobs the federal law covers. Many cities and counties set still higher minimums; they are not shown here.
| # | State | Minimum wage as a bar | An hour | A full-time year |
|---|---|---|---|---|
| 1 | District of Columbia | $18.40 | $38,272 | |
| 2 | Washington | $17.13 | $35,630 | |
| 3 | New Yorkother rates by region or employer: $16.00 | $17.00 | $35,360 | |
| 4 | Connecticut | $16.94 | $35,235 | |
| 5 | California | $16.90 | $35,152 | |
| 6 | Hawaii | $16.00 | $33,280 | |
| 7 | Rhode Island | $16.00 | $33,280 | |
| 8 | New Jerseyother rates by region or employer: $15.23 | $15.92 | $33,114 | |
| 9 | Oregonother rates by region or employer: $16.80 · $14.55 | $15.55 | $32,344 | |
| 10 | Colorado | $15.16 | $31,533 | |
| 11 | Arizona | $15.15 | $31,512 | |
| 12 | Maine | $15.10 | $31,408 | |
| 13 | Delaware | $15.00 | $31,200 | |
| 14 | Florida | $15.00 | $31,200 | |
| 15 | Illinois | $15.00 | $31,200 | |
| 16 | Maryland | $15.00 | $31,200 | |
| 17 | Massachusetts | $15.00 | $31,200 | |
| 18 | Missouri | $15.00 | $31,200 | |
| 19 | Nebraska | $15.00 | $31,200 | |
| 20 | Vermont | $14.42 | $29,994 | |
| 21 | Alaska | $14.00 | $29,120 | |
| 22 | Michigan | $13.73 | $28,558 | |
| 23 | Virginia | $12.77 | $26,562 | |
| 24 | Nevada | $12.00 | $24,960 | |
| 25 | New Mexico | $12.00 | $24,960 | |
| 26 | South Dakota | $11.85 | $24,648 | |
| 27 | Minnesota | $11.41 | $23,733 | |
| 28 | Arkansas | $11.00 | $22,880 | |
| 29 | Ohioother rates by region or employer: $7.25 | $11.00 | $22,880 | |
| 30 | Montanaother rates by region or employer: $4.00 | $10.85 | $22,568 | |
| 31 | West Virginia | $8.75 | $18,200 | |
| Alabamano state minimum wage law | $7.25 | $15,080 | ||
| Georgiastate minimum $5.15, below the federal one | $7.25 | $15,080 | ||
| Idaho | $7.25 | $15,080 | ||
| Indiana | $7.25 | $15,080 | ||
| Iowa | $7.25 | $15,080 | ||
| Kansas | $7.25 | $15,080 | ||
| Kentucky | $7.25 | $15,080 | ||
| Louisianano state minimum wage law | $7.25 | $15,080 | ||
| Mississippino state minimum wage law | $7.25 | $15,080 | ||
| New Hampshire | $7.25 | $15,080 | ||
| North Carolina | $7.25 | $15,080 | ||
| North Dakota | $7.25 | $15,080 | ||
| Oklahomaother rates by region or employer: $2.00 | $7.25 | $15,080 | ||
| Pennsylvania | $7.25 | $15,080 | ||
| South Carolinano state minimum wage law | $7.25 | $15,080 | ||
| Tennesseeno state minimum wage law | $7.25 | $15,080 | ||
| Texas | $7.25 | $15,080 | ||
| Utah | $7.25 | $15,080 | ||
| Wisconsin | $7.25 | $15,080 | ||
| Wyomingstate minimum $5.15, below the federal one | $7.25 | $15,080 |
The higher of the state and the federal rate. Where a state has several basic rates, the first one the Wage and Hour Division lists. A full-time year is 2,080 hours.
The states and the federal floor since 2000
On January 1, 2000, 11 of the 50 states and DC paid more than the federal minimum, at most $6.50 an hour. By 2024 there were 31, and there are still 31 now: while the federal rate stood still, the states moved on their own.
Each column is a year, each dot a state above the federal minimum (the gray step). The federal raises of 2007, 2008 and 2009 lifted the floor toward the states for a while. Switch to today's dollars to see every year at today's prices: the floor sinks, the states keep climbing.
A year at the minimum wage
Forty hours a week for 52 weeks is 2,080 hours: at $7.25, $15,080 a year before taxes, about $1,257 a month. At the highest rate, $18.40, the same year pays $38,272.
The median US household had an income of $87,460 in 2025; a full-time year at the federal minimum is 17% of that. In 1967 it was 40%, and at most 43%, in 1968. Many households have more than one earner, so this sets one full-time job against a whole household's income — a yardstick, not a like-for-like comparison.
Questions people ask
What is the federal minimum wage in 2026?
$7.25 an hour, the rate the Fair Labor Standards Act has set since July 24, 2009. Where a state or a city sets a higher minimum, the higher one applies; 30 states and DC do.
When did the federal minimum wage last go up?
On July 24, 2009, from $6.55 to $7.25 an hour. It has not changed since: 17 years and 3 months, the longest wait since the federal minimum began in 1938.
What is $7.25 worth after inflation?
$7.25 today buys what $4.65 bought in July 2009. Keeping the buying power it had then would take $11.30 an hour; matching the 1968 peak, $15.71.
Which state has the highest minimum wage?
The highest is in the District of Columbia, $18.40 an hour — 2.5 times the federal rate; among the states, Washington leads with $17.13. The rates are those on September 30, 2026. The lowest minimum above the federal one: West Virginia, $8.75.
How much is $7.25 an hour a year?
$15,080 for a full-time year of 2,080 hours, before taxes — about $1,257 a month. At the highest rate in the country, $18.40, the same hours pay $38,272.
Go deeper
How the numbers are calculated
- Minimum wages: U.S. Department of Labor, Wage and Hour Division — the history of the federal minimum wage, the consolidated table of state minimum wages and the state rates on January 1 of each year since 2000. Public domain (a work of the US government).
- Household income: U.S. Census Bureau, Current Population Survey, Annual Social and Economic Supplements, Historical Income Tables, Table H-5. Public domain.
- Inflation: the US consumer price index by month from Robert J. Shiller's data, Yale University.
- The federal rate is the one for workers covered by the original 1938 Act; since 1978 one rate applies to all covered, nonexempt workers. A rate counts for a month when it took effect in it.
- State rates: the basic rate for most private employers; where a state lists several (by region, employer size or sales), the first one the Wage and Hour Division lists; the federal rate where it is higher. Local minimums and tipped, youth and training rates are left out. The Division asks readers to confirm rates with the state labor offices.
- Today's dollars: a rate times the US consumer price index of Oct 2026 divided by the index of its month. Shiller's notes on the latest months: Sept/Oct CPI estimated.
- A full-time year is 2,080 hours (40 a week, 52 weeks) at the federal rate in force on each day of the calendar year, before taxes.
- Rates change; for what applies to a job, check the state labor office. Nothing here is legal or financial advice.