Twenty US states currently have a minimum wage of exactly $7.25/hr, the federal minimum wage, unchanged since July 24, 2009. That's the longest period in US history without a federal minimum wage increase.
The 20 States at the Federal Minimum Wage
- Alabama
- Georgia
- Idaho
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Mississippi
- New Hampshire
- North Carolina
- North Dakota
- Oklahoma
- Pennsylvania
- South Carolina
- Tennessee
- Texas
- Utah
- Wisconsin
- Wyoming
In each of these states, workers are entitled to at least $7.25/hr under federal law (the Fair Labor Standards Act), since no state-level rate exceeds it. Unlike some other states, none of these 20 allow a city or county to set a local minimum wage above $7.25 — every one of them has a state preemption law or court ruling on the books that blocks it. More on that below.
Here's the full breakdown, including each state's tipped minimum cash wage (the amount an employer can pay a tipped worker directly, before tips) and tip credit (the gap the employer is allowed to assume tips will cover):
| State | Standard Rate | Tipped Cash Wage | Tip Credit | Local Wage Preemption |
|---|---|---|---|---|
| Alabama | $7.25 | $2.13 | $5.12 | Yes |
| Georgia | $7.25 | $2.13 | $5.12 | Yes |
| Idaho | $7.25 | $3.35 | $3.90 | Yes |
| Indiana | $7.25 | $2.13 | $5.12 | Yes |
| Iowa | $7.25 | $4.35 | $2.90 | Yes |
| Kansas | $7.25 | $2.13 | $5.12 | Yes |
| Kentucky | $7.25 | $2.13 | $5.12 | Yes |
| Louisiana | $7.25 | $2.13 | $5.12 | Yes |
| Mississippi | $7.25 | $2.13 | $5.12 | Yes |
| New Hampshire | $7.25 | $3.27 | $3.98 | Yes |
| North Carolina | $7.25 | $2.13 | $5.12 | Yes |
| North Dakota | $7.25 | $4.86 | $2.39 | Yes |
| Oklahoma | $7.25 | $2.13 | $5.12 | Yes |
| Pennsylvania | $7.25 | $2.83 | $4.42 | Yes |
| South Carolina | $7.25 | $2.13 | $5.12 | Yes |
| Tennessee | $7.25 | $2.13 | $5.12 | Yes |
| Texas | $7.25 | $2.13 | $5.12 | Yes |
| Utah | $7.25 | $2.13 | $5.12 | Yes |
| Wisconsin | $7.25 | $2.33 | $4.92 | Yes |
| Wyoming | $7.25 | $2.13 | $5.12 | Yes |
Most of these states simply use the federal tipped cash wage of $2.13/hr. A handful set theirs slightly higher: North Dakota ($4.86/hr) and Iowa ($4.35/hr) require the biggest direct cash payment to tipped workers among the 20, followed by New Hampshire ($3.27/hr), Idaho ($3.35/hr), and Pennsylvania ($2.83/hr). In every case, the employer still has to make up the difference if tips don't bring the worker's total pay to at least $7.25/hr.
A Clear Regional Pattern
Most of these 20 states cluster in the South (Alabama, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee) and parts of the Midwest and Mountain West (Idaho, Indiana, Iowa, Kansas, North Dakota, Oklahoma, Utah, Wyoming, Wisconsin), plus Pennsylvania and New Hampshire in the Northeast. Notably, every state on the West Coast has a minimum wage well above $16/hr, while every state bordering the Gulf of Mexico remains at the federal floor.
The Widest Gap in the Country
The contrast between the lowest and highest state minimum wages is stark: a full-time worker in Washington State, at $17.13/hr, earns more than double the $7.25/hr rate paid in these 20 states, a gap of $9.88/hr. Over a standard 2,080-hour work year, that's a difference of roughly $20,550 in pay for the same full-time job.
Why Are These States Still at $7.25/hr?
Setting a state minimum wage above the federal floor requires state legislative action (or, in some states, a ballot initiative, the way Florida did in 2020). In these 20 states, no such increase has been enacted, so the federal rate remains the effective floor.
One state stands out for a different reason: Georgia's own statute actually sets a minimum wage of $5.15/hr, but since federal law overrides state law whenever the federal rate is higher for employers covered by the FLSA, workers there are still entitled to $7.25/hr in practice.
State Preemption Laws Block Local Increases
What sets these 20 states apart isn't just inaction at the state level — every single one has also passed a law, or seen a court rule, that stops cities and counties from setting their own, higher local minimum wage. That's a big reason the list of states with the lowest minimum wage has stayed so stable: even in states with large, higher-cost cities, local governments have no legal path to raise pay on their own. A few examples:
- Texas law prohibits cities and counties from setting minimum wages above the state/federal floor — Dallas, Houston, Austin, and San Antonio cannot legally set higher local rates.
- Pennsylvania preempts local minimum wage ordinances outright; Philadelphia and Pittsburgh cannot set higher local rates.
- Kentucky's Supreme Court ruled in 2016 (Kentucky Restaurant Association v. Louisville/Jefferson County Metro Government) that local governments lack authority to set their own minimum wage, invalidating Louisville's and Lexington's local ordinances.
- Alabama's Uniform Minimum Wage and Right-to-Work Act (2016) blocked Birmingham's local minimum wage ordinance.
- Iowa Code § 331.301(6), enacted in 2017, nullified prior local increases in Johnson, Linn, and Wapello counties.
- Mississippi Code Section 17-1-51 prohibits counties and municipalities from setting a minimum wage above the federal rate.
New Hampshire and Wyoming take a related but slightly different route: both are "Dillon's Rule" states, meaning municipalities only have the powers the state explicitly grants them, and neither state has granted its cities or towns the power to set their own minimum wage. For the complete, official state-by-state legal picture, the US Department of Labor's state minimum wage laws page is the authoritative source.
Are Any of These States Close to Raising Their Rate?
Not currently. None of the 20 states at the federal floor has a scheduled future increase written into law right now. That's a meaningful contrast with some of the states just above them: Florida is on a legislated path from $14.00/hr up to $15.00/hr by September 30, 2026, and Rhode Island is set to rise from $16.00/hr to $17.00/hr on January 1, 2027. Absent new legislation or a successful ballot initiative, workers in the 20 lowest-wage states have no built-in raise coming.
What's the Annual Salary at $7.25/hr?
At a standard 40-hour week (2,080 hours/year), $7.25/hr breaks down to:
| Period | Pay at $7.25/hr |
|---|---|
| Daily (8 hours) | $58 |
| Weekly (40 hours) | $290 |
| Biweekly (80 hours) | $580 |
| Monthly | $1,257 |
| Annually | $15,080 |
That's below the federal poverty line for a family of two. A worker earning $7.25/hr in one of these 20 states who wants to reach even Washington's $17.13/hr would need a raise of $9.88 an hour — a 136% increase — just to match the highest state minimum wage in the country.
Frequently Asked Questions
How many states have the $7.25 federal minimum wage?
20 states currently have no state minimum wage above the federal $7.25/hr rate.
When was the federal minimum wage last increased?
July 24, 2009, over 15 years ago and the longest stretch without an increase in US history.
Can cities in these states set a higher minimum wage?
No. All 20 states with the lowest minimum wage have a state preemption law, or a court ruling, that blocks cities and counties from setting a local minimum wage above the state/federal rate. See the state preemption section above for specific examples, including Texas, Pennsylvania, Kentucky, and Alabama.
Which state has the biggest gap compared to Washington's $17.13/hr?
Any of the 20 states at $7.25/hr. The gap works out to $9.88/hr, or roughly $20,550 a year for a full-time, 2,080-hour work year.
Is there a regional pattern to which states pay the least?
Yes. The majority are in the South, with a smaller cluster in the Midwest and Mountain West.
What's the tipped minimum wage in these 20 states?
Most use the federal tipped cash wage of $2.13/hr with a $5.12/hr tip credit. A few require a higher direct cash wage, including North Dakota ($4.86/hr) and Iowa ($4.35/hr). For the official federal rules, see the US Department of Labor's tipped employee guidance.
Are any of these 20 states planning to raise their minimum wage soon?
Not based on current law. None of the 20 states at the federal floor has a scheduled future increase on the books, unlike Florida (rising to $15.00/hr by September 2026) or Rhode Island (rising to $17.00/hr by 2027).
Is there a difference between the state and federal minimum wage in these states?
Not in practice. For FLSA-covered employers, both the state and federal minimum wage work out to $7.25/hr in all 20 states, since none has enacted a state rate above the federal floor. Georgia is a partial exception on paper — its own statute sets $5.15/hr — but federal law still requires $7.25/hr for covered employers.
See the full current rate for every state on our state-by-state minimum wage page, or read about why the federal rate hasn't moved since 2009.
