Minimum Wage by State (2025)
Quick Answer
The federal minimum wage is $7.25/hour, but about 30 states have set higher minimums ranging up to $17.28/hour (Washington state) in 2025. At the federal minimum, a full-time worker earns just $15,080 per year — below the poverty line. Even at higher state minimums, annual earnings range from $22,000 to $35,000, making budgeting tight in most areas.
State Minimum Wages (2025 Highlights)
Highest State Minimums
| State | Minimum Wage | Annual (40 hrs/wk) |
|---|---|---|
| Washington | $17.28 | $35,942 |
| California | $16.50 | $34,320 |
| Connecticut | $16.35 | $34,008 |
| Massachusetts | $15.75 | $32,760 |
| New York | $15.50-$16.50* | $32,240-$34,320 |
| New Jersey | $15.49 | $32,219 |
| Oregon | $14.70-$15.95** | $30,576-$33,176 |
| Colorado | $14.81 | $30,805 |
| Maryland | $15.00 | $31,200 |
| Arizona | $14.70 | $30,576 |
*NYC and some suburbs are higher than rest of state. **Varies by region (Portland metro vs standard vs non-urban).
States at Federal Minimum ($7.25)
Georgia, Wyoming, and several southern states have minimum wages at or below the federal level, meaning the federal $7.25 floor applies. These include:
- Alabama, Louisiana, Mississippi, South Carolina, Tennessee (no state minimum wage law — federal applies)
- Georgia and Wyoming ($5.15 state minimum, but federal $7.25 overrides)
Annual Salary at Minimum Wage
| Hourly Rate | Annual Gross | Federal Tax | FICA | Take-Home |
|---|---|---|---|---|
| $7.25 | $15,080 | ~$0* | $1,154 | ~$13,926 |
| $10.00 | $20,800 | ~$550 | $1,591 | ~$18,659 |
| $12.00 | $24,960 | ~$1,100 | $1,909 | ~$21,951 |
| $15.00 | $31,200 | ~$1,850 | $2,387 | ~$26,963 |
| $16.50 | $34,320 | ~$2,250 | $2,626 | ~$29,444 |
*At $15,080, federal income tax is near zero after the standard deduction.
Real Example With Actual Numbers
Carlos works full-time at $15.00/hour in Florida (no state tax).
| Item | Annual |
|---|---|
| Gross pay (2,080 hours) | $31,200 |
| Federal income tax | ~$1,850 |
| Social Security (6.2%) | $1,934 |
| Medicare (1.45%) | $452 |
| Take-home pay | $26,964 |
Carlos takes home about $2,247/month. Average rent for a 1-bedroom in Florida is about $1,500/month, which would consume 67% of his take-home pay — well above the recommended 30% threshold. Check rent affordability at your wage level.
With the Earned Income Tax Credit (if Carlos has a qualifying child), he could receive a refund of $2,000-$4,000, significantly improving his annual finances.
City Minimum Wages
Several cities set minimums above their state level:
| City | Minimum Wage (2025) |
|---|---|
| Seattle, WA | $20.76 |
| San Francisco, CA | $18.67 |
| New York City, NY | $16.50 |
| Denver, CO | $18.29 |
| Los Angeles, CA | $17.28 |
| Chicago, IL | $16.20 |
| Washington, D.C. | $17.50 |
The Minimum Wage Debate
Arguments for increasing the minimum wage:
- Current federal minimum has not kept pace with inflation since 2009
- Full-time minimum wage workers cannot afford basic needs in any state
- Higher wages reduce employee turnover and government assistance costs
Arguments against:
- May reduce hours or jobs for some workers
- Small businesses in low-cost areas face the largest burden
- Rapid increases can accelerate automation
Making the Most of a Minimum Wage Income
If you are earning minimum wage:
- Check for tax credits: The Earned Income Tax Credit and Child Tax Credit can provide thousands in refunds
- File as head of household if you qualify — larger standard deduction
- Consider state differences: The same job in Washington ($17.28) vs Georgia ($7.25) pays $21,000 more per year. Use the relocation tool
- Track overtime carefully: Overtime at 1.5x can significantly boost annual earnings
See your take-home pay at any wage with the SalaryHog calculator.