Minimum wage directly affects approximately 1.1 million American workers who earn exactly the federal minimum, plus millions more whose wages are tied to minimum wage levels. For these workers, understanding state-by-state differences can mean thousands of dollars in annual income depending on where they live and work.
The gap is enormous: A full-time minimum wage worker in Washington earns roughly $34,700 annually. The same worker in Texas takes home just $15,080 — a difference of nearly $20,000 per year for identical hours worked. See our breakdown of what $15 an hour equals annually for detailed calculations.
2025 Federal minimum wage
The Federal minimum wage for 2025 is $7.25 per hour. Employers that are subject to the Fair Labor Standards Act must pay the Federal minimum wage. The last change to the Federal minimum wage was in 2009 when it was raised from $6.55 to $7.25 for a total increase of $0.70. For states that are subject to both state and federal minimum wage laws, the higher of the two minimum wages applies.
Adjusted for inflation, the federal minimum wage is worth less than in 1968. In 2009 dollars, that $7.25 bought significantly more than it does today. This purchasing power erosion is why most states have enacted their own higher minimums. At $7.25/hour working 40 hours/week for 52 weeks, a worker earns just $15,080 annually — well below the poverty line for a family of two.
Where is the minimum wage increasing in 2025?
There are a total of 21 states that have seen increases to the minimum wage in 2025 effective January 1, 2025. This table breaks down the minimum wage increases by each state compared to the previous 2024 minimum wage.
There are three types of increases for minimum wages in 2025:
- Inflation adjustments — Automatic increases tied to CPI (Consumer Price Index) to maintain purchasing power
- Legislation — Increases passed through state legislatures
- Ballot measures — Increases approved directly by voters
Inflation-indexed states provide more stability for workers since wages automatically keep pace with prices. States without indexing may go years without adjustments (like the federal rate frozen since 2009).
| State | 2025 Increase | Increase Type |
|---|---|---|
| Alaska | $0.18 | Inflation adj. |
| Arizona | $0.35 | Inflation adj. |
| California | $0.50 | Inflation adj. |
| Colorado | $0.39 | Inflation adj. |
| Connecticut | $0.66 | Inflation adj. |
| Delaware | $1.75 | Legislation |
| Illinois | $1.00 | Legislation |
| Maine | $0.50 | Inflation adj. |
| Michigan | $0.23 | Legislation |
| Minnesota | $0.28 | Inflation adj. |
| Missouri | $1.45 | Ballot |
| Montana | $0.25 | Inflation adj. |
| Nebraska | $1.50 | Ballot |
| New Jersey | $0.36 | Inflation adj. |
| New York | $0.50 | Legislation |
| Ohio | $0.25 | Inflation adj. |
| Rhode Island | $1.00 | Legislation |
| South Dakota | $0.30 | Inflation adj. |
| Vermont | $0.34 | Inflation adj. |
| Virginia | $0.41 | Inflation adj. |
| Washington | $0.38 | Inflation adj. |
The following are future enacted increases in the minimum wages
- Florida: $14 eff. 9-30-25; $15 eff. 9-30-26
- Hawaii: $16 eff. 1-1-26; $18 eff. 1-1-28
- Michigan: $12.48 eff. 2-21-2025; $13.29 eff. 2-21-2026; $14.16 eff. 2-21-2027; $14.97 eff. 2-21-2028
- Nebraska: $15 eff. 1-1-26
2025 minimum wage by state
This map shows a breakdown of the 2025 minimum wage in the U.S. by state:
Geographic patterns are clear: The West Coast and Northeast generally have the highest minimum wages, while the South and parts of the Midwest tend to follow federal minimums. This often (but not always) correlates with cost of living by state — though high-minimum states like Washington and California also have expensive housing.
This table shows the hourly minimum wage by state in the U.S. as well as increases from the 2024 minimum wage as a side by side comparison.
| State | 2025 Minimum wage per hour | Increase |
|---|---|---|
| Alabama | $7.25 | $0.00 |
| Georgia | $7.25 | $0.00 |
| Iowa | $7.25 | $0.00 |
| Idaho | $7.25 | $0.00 |
| Indiana | $7.25 | $0.00 |
| Kansas | $7.25 | $0.00 |
| Kentucky | $7.25 | $0.00 |
| Louisiana | $7.25 | $0.00 |
| Mississippi | $7.25 | $0.00 |
| North Carolina | $7.25 | $0.00 |
| North Dakota | $7.25 | $0.00 |
| New Hampshire | $7.25 | $0.00 |
| Oklahoma | $7.25 | $0.00 |
| Pennsylvania | $7.25 | $0.00 |
| South Carolina | $7.25 | $0.00 |
| Tennessee | $7.25 | $0.00 |
| Texas | $7.25 | $0.00 |
| Utah | $7.25 | $0.00 |
| Wisconsin | $7.25 | $0.00 |
| Wyoming | $7.25 | $0.00 |
| West Virginia | $8.75 | $0.00 |
| Montana | $10.55 | $0.25 |
| Michigan | $10.56 | $0.23 |
| Ohio | $10.70 | $0.25 |
| Arkansas | $11.00 | $0.00 |
| Minnesota | $11.13 | $0.28 |
| South Dakota | $11.50 | $0.30 |
| Alaska | $11.91 | $0.18 |
| New Mexico | $12.00 | $0.00 |
| Nevada | $12.00 | $0.00 |
| Virginia | $12.41 | $0.41 |
| Florida | $13.00 | $0.00 |
| Nebraska | $13.50 | $1.50 |
| Missouri | $13.75 | $1.45 |
| Hawaii | $14.00 | $0.00 |
| Vermont | $14.01 | $0.34 |
| Maine | $14.65 | $0.50 |
| Arizona | $14.70 | $0.35 |
| Oregon | $14.70 | $0.00 |
| Colorado | $14.81 | $0.39 |
| Delaware | $15.00 | $1.75 |
| Illinois | $15.00 | $1.00 |
| Massachusetts | $15.00 | $0.00 |
| Maryland | $15.00 | $0.00 |
| Rhode Island | $15.00 | $1.00 |
| New Jersey | $15.49 | $0.36 |
| New York | $15.50 | $0.50 |
| Connecticut | $16.35 | $0.66 |
| California | $16.50 | $0.50 |
| Washington | $16.66 | $0.38 |
For workers comparing opportunities across state lines, remember that higher minimum wages don’t always mean more purchasing power. A $16.50 minimum wage in California may actually provide less lifestyle than $12.00 in Nevada after accounting for housing costs and taxes.
New York
New York has a few different minimum wage rates based on location as job type. As well as minimum wages for tipped service employees and tipped food service workers. All of the general minimum wages in New York saw an increase effective 1-1-2025.
| location | 2025 min. wage | 2024 min. wage |
|---|---|---|
| New York City | $16.50 | $16.00 |
| Long Island & Westchester | $16.50 | $16.00 |
| Remainder of New York | $15.50 | $15.00 |
New York City
The New York City minimum wage is $16.50 for 2025 effective 1-1-2025. For those that are tipped service employees the minimum wage is $13.75 as a cash and $2.75 tip credit. For those working in the food service industry the minimum wage is $11.00 cash and $5.50 tip credit.
Long Island & Westchester
The Long Island & Westchester minimum wage is $16.50 for 2025 effective 1-1-2025. For those who are tipped service employees the minimum wage is $13.75 cash and $2.75 tip credit. Workers in the food service industry have a minimum wage of $11.00 cash and $5.50 tip credit in Long Island & Westchester.
Remainder of New York States
The remainder of the New York state has a minimum wage of $15.50 in 2025 effective 1-1-2025. For those who are tipped service employees the minimum wage is $12.90 cash and $2.60 tip credit. For food service workers the minimum wage is $10.35 cash and $5.15 tip credit.
Florida
2025 Florida Minimum wage: $13.00 from 1-1-2025 to 9-29-2025; $14.00 on 9-30-2025
The basic minimum wage in Florida is $13.00 per hour. The next minimum wage increase for Florida will be on 9-30-2025 when the minimum wage will increase from $13.00 to $14.00 per hour. Another minimum wage increase is set for 9-30-2026 where the basic minimum wage will increase to $15.00 per hour.
The Florida minimum wage & tipped wage have been set to gradually increase each year on September 30th in which the minimum wage and tipped minimum wage will increase until the minimum wage reaches $15.00 per hour on 9-30-2026.
| Date | Minimum Wage | Tipped Wage | Eff. Date |
|---|---|---|---|
| 2023 | $12.00 | $8.98 | 9-30-2023 |
| 2024 | $13.00 | $9.98 | 9-30-2024 |
| 2025 | $14.00 | $10.98 | 9-30-2025 |
| 2026 | $15.00 | $11.98 | 9-30-2026 |
Texas
The 2025 minimum wage for Texas is $7.25 per hour. The last time Texas saw a minimum wage increase was in 2009 when the Federal minimum wage was increased to the current $7.25 per hour.
California
The minimum wage in California for 2025 is $16.50 effective 1-1-2025.
Here is a breakdown of the historical minimum wages and increases for California over the past 10 years:
| Date | Minimum Wage | Increase |
|---|---|---|
| 2025 | $16.50 | $0.50 |
| 2024 | $16.00 | $0.50 |
| 2023 | $15.50 | $1.50 |
| 2022 | $14.00 | $1.00 |
| 2021 | $13.00 | $1.00 |
| 2020 | $12.00 | $0.00 |
| 2019 | $12.00 | $1.00 |
| 2018 | $11.00 | $0.50 |
| 2017 | $10.50 | $0.50 |
| 2016 | $10.00 | $1.00 |
| 2015 | $9.00 | $0.00 |
The minimum wage for fast food workers in California is $20.00 for 2025 which was effective 4-1-2024.
Which state has the highest minimum wage?
Washington has the highest 2025 minimum wage of $16.66 per hour. This minimum wage increased from $16.28 in 2024.
Washington’s high minimum wage is tied to CPI inflation indexing, ensuring automatic annual adjustments. This explains why Washington consistently leads — the minimums compound upward over time rather than requiring new legislation for each increase.
What is the lowest minimum wage in the US?
There are twenty states that have a hourly minimum wage of $7.25 per hour — the federal minimum.
Why do some states stick with $7.25? These states have either not passed their own minimum wage legislation or have explicitly set their minimum at the federal floor. Politically, these tend to be states with Republican legislatures that prefer leaving wage decisions to market forces rather than government mandates.
The lowest minimum wage in the U.S. is technically in Georgia and Wyoming where the minimum wage is $5.15 per hour. However, since these two states have minimum wages lower than the federal minimum wage, the federal wage of $7.25 applies to most workers.
Additionally, five states — Alabama, Louisiana, Mississippi, South Carolina, and Tennessee — have not adopted any state minimum wage, so the $7.25 per hour federal minimum wage applies by default.
How Much Can You Live On at Minimum Wage?
The math is challenging at federal minimum wage levels:
| Scenario | Annual Income | Monthly Income | After-Tax (Est.) |
|---|---|---|---|
| Federal min. wage ($7.25) | $15,080 | $1,257 | ~$1,130 |
| $12/hour state | $24,960 | $2,080 | ~$1,850 |
| $15/hour state | $31,200 | $2,600 | ~$2,275 |
| Washington ($16.66) | $34,653 | $2,888 | ~$2,500 |
At $7.25/hour, housing alone often exceeds income. Using the 30% rule for housing affordability, a federal minimum wage worker can afford $377/month for rent — a figure that’s below market rate in virtually every U.S. metro area. See our breakdowns of what $12/hour equals annually and what $16/hour equals for more detailed budgeting calculations.
Tipped Minimum Wage
Federal law allows employers to pay tipped workers just $2.13/hour as a “cash wage” if tips bring total compensation to at least $7.25/hour. Many states have eliminated this “tip credit” system:
States with eliminated or no tip credit: Alaska, California, Minnesota, Montana, Nevada, Oregon, and Washington pay tipped workers the full minimum wage before tips.
States allowing tip credit: Most other states allow some form of reduced cash wage for tipped employees, though the specifics vary significantly.
Tipped workers face income volatility since tips vary by shift, season, and customer behavior. This makes budgeting more difficult than hourly wage work.
Related: Income Needed to Afford a Home | Median Household Income by State | Income Percentile Calculator | Home Cost to Income Ratio | Cost of Living by State | Poverty Line by State
Check out the 2024 median income: USA Median Personal Income
Check out the 2024 average income: USA Average Personal Income