The federal minimum wage is $7.25 per hour as of 2026 - unchanged since July 24, 2009, making it the longest stretch without a federal increase in U.S. history. However, 45 states and DC have passed their own higher minimum wages that supersede the federal rate for workers in those states.
Every wage figure on this site starts from the federal floor set by law. The U.S. Department of Labor is the primary authority on that rate:
"The federal minimum wage provisions are contained in the Fair Labor Standards Act (FLSA). The federal minimum wage is $7.25 per hour effective July 24, 2009. Many states also have minimum wage laws."Source: U.S. Department of Labor - Minimum Wage
- U.S. Department of Labor, Wage and Hour Division
Federal Minimum Wage Take-Home Pay 2026
A full-time worker earning $7.25/hr for 40 hours/week earns $15,080 annually before taxes. After 2026 IRS deductions:
| Pay Period | Gross Pay | Est. Take Home | Taxes/FICA |
|---|---|---|---|
| Hourly | $7.25 | ~$6.70 | ~$0.55 |
| Weekly (40 hrs) | $290.00 | ~$267 | ~$23 |
| Monthly | $1,256.67 | ~$1,161 | ~$98 |
| Annual | $15,080 | ~$13,926 | ~$1,180 |
Estimates based on 2026 IRS federal tax brackets, $16,100 standard deduction (single filer), 6.2% Social Security, 1.45% Medicare. State taxes not included - check your state page for the full picture.
Why Your Take-Home Is More Than the Federal Rate
At $7.25/hr and the 2026 standard deduction of $16,100, a full-time minimum wage worker's taxable income after the standard deduction is only about $0 - meaning most federal minimum wage workers pay zero federal income tax. The deductions you do pay are Social Security (6.2%) and Medicare (1.45%), totaling 7.65% of gross pay.
States Still at the Federal Minimum Wage ($7.25)
These states have not passed a higher state minimum wage and defer to the federal $7.25 rate:
Why $7.25 Has Not Moved Since 2009
The federal minimum wage was last raised on July 24, 2009, when the final step of the Fair Minimum Wage Act of 2007 took effect. Every increase requires an act of Congress, and no bill raising the rate has passed both chambers since. That makes the current stretch the longest period without a federal increase since the minimum wage was created by the Fair Labor Standards Act in 1938. States responded by setting their own higher floors, which is why the federal rate now functions as a true minimum in only a minority of states.
For a full-time worker, $7.25 an hour produces $15,080 in annual gross pay. Because that figure now sits below the $16,100 standard deduction for 2026, a single filer working full time at the federal minimum owes no federal income tax at all. The only mandatory federal deductions are FICA taxes: Social Security at 6.2% and Medicare at 1.45%, a combined 7.65% that applies from the first dollar earned. That is why the take-home math on this page shows $1,153.62 in annual FICA and $13,926 in annual take-home pay.
The Federal Tipped Minimum Wage
Federal law also sets a separate cash minimum of $2.13 per hour for tipped employees, unchanged since 1991. Employers may claim a tip credit of up to $5.12 per hour, but only if tips actually bring the worker up to at least $7.25 for every hour worked - if they do not, the employer must make up the difference. Many states have eliminated or narrowed the tip credit and require tipped workers to receive the full state minimum before tips, which changes take-home math significantly. Check your state page for how tipped wages are handled where you work.
Who Is Not Covered by the Federal Minimum
The FLSA covers most employees, but there are real exceptions worth knowing. Workers younger than 20 may be paid a youth minimum of $4.25 per hour for their first 90 consecutive calendar days of employment. Full-time students in retail, agriculture, or higher education may be paid 85% of the minimum under special certificates. Some seasonal amusement businesses, small farms, and certain disabled-worker certificate programs are also exempt. If you suspect you are being paid below the applicable minimum without a valid exemption, the Department of Labor's Wage and Hour Division handles complaints at no cost to the worker.
“The federal minimum wage is $7.25 per hour effective July 24, 2009.”
- U.S. Department of Labor, Wage and Hour Division
“The basic minimum wage was raised to $7.25 an hour effective July 24, 2009.”
- Congressional Research Service