Overview

Minimum Wage Snapshot (2025)

After more than a decade of stagnation at the federal level, states have become the primary drivers of minimum wage policy. Here's where things stand in 2025.

$7.25
Federal Minimum Wage
Unchanged since July 2009 — 16+ years without a federal increase. Workers in states without their own law default to this rate.
U.S. DOL Fair Labor Standards Act
$17.95
Highest Rate — Washington D.C.
Effective July 1, 2025. Among the 50 states, New York City leads at $17.00/hour.
Workforce.com (Jan 2026); NY State DOL
$15,080
Annual Earnings at Federal Minimum
Full-time (2,080 hrs/yr) at $7.25. vs. avg. consumer spending of $72,967 in 2022.
BLS Consumer Expenditures Report; OnPay (2025)
21
States Raising Wages in 2026
Including CA ($16.90), CO ($15.16), CT ($16.94), HI ($16.00), NJ ($15.92).
Paycom 2026 Minimum Wage Guide
Complete Table

2025 Minimum Wage by State — Full Table

All 50 states plus D.C. Current rates effective as of 2025. States marked with ✓ index to inflation automatically.

State2025 Min. WageTipped Min.Indexed?Next Increasevs. Federal

Sources: U.S. Department of Labor (dol.gov); NCSL State Minimum Wages (Jan 2026); Paycor; Fingercheck.

State Minimum Wages — $15+ States vs. Federal Floor

Source: U.S. DOL · State agencies · Paycor 2025. Federal rate: $7.25/hr (unchanged since 2009).

Context

The Gap Between Minimum Wage and Living Wage

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Federal Minimum Purchasing Power Has Declined

The federal minimum wage of $7.25 has lost approximately 27% of its purchasing power since 2009 due to inflation. A worker earning $7.25 in 2025 has less real buying power than a minimum-wage worker had in 1968.

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Local Rates Can Far Exceed State Minimums

Cities and counties often set higher rates. In 2025, Tukwila, WA requires $21.65/hour — nearly 3× the federal rate. Denver: $18.81. Seattle: $20.29. Chicago: $16.60 for larger employers.

FAQ

Minimum Wage FAQ

The federal minimum wage remains $7.25 per hour in 2025, unchanged since July 24, 2009. The Fair Labor Standards Act (FLSA), enforced by the U.S. Department of Labor, sets this as the national floor. States may set higher rates; employees are entitled to whichever rate is higher — federal or state.
Among the 50 states, New York has the highest minimum wage at $17.00/hour for New York City, Long Island, and Westchester County ($16.50 for the rest of the state). Washington State's statewide minimum is $16.66/hour. Washington D.C. has the highest rate of any U.S. jurisdiction at $17.95/hour.
Under federal law, employers may pay tipped employees as little as $2.13/hour — the "tip credit" — as long as tips bring the total to at least $7.25/hour. In 8 states (AK, CA, MN, MT, NV, OR, WA, and others), employers must pay tipped workers the full state minimum wage before tips.

Sources

U.S. Department of Labor State Minimum Wage Laws (dol.gov) · NCSL State Minimum Wages (Jan 2026) · Paycor Minimum Wage by State 2025 · Fingercheck 2025 State Minimum Wages