Indiana Minimum Wage 2026
Last updated: · Source: Indiana Department of Labor
Indiana · Minimum Wage 2026
Effective 2009-07-24
Data last verified: 2026-07-09
Tipped Rate
$2.13/hr
Tip Credit
$5.12/hr
Exempt Salary
$684/wk
Effective Date
2009-07-24
Indiana Wage Calculator
Current Indiana Minimum Wage
The minimum wage in Indiana is $7.25 per hour in 2026, effective 2009-07-24. Indiana follows the federal minimum wage set by the Fair Labor Standards Act (FLSA), which has remained at $7.25/hr since 2009. See the federal minimum wage page for how the FLSA floor applies nationwide.
Under the Fair Labor Standards Act, employers must pay the highest minimum wage that legally applies to a work location, whether set federally, by the state, or by a city or county ordinance.
Indiana Tipped Minimum Wage
In Indiana, tipped employees may be paid a direct cash wage of $2.13/hr. Employers may claim a tip credit of up to $5.12/hr, but the employee's total hourly earnings (direct wages + tips) must equal at least the full minimum wage of $7.25/hr. If tips fall short, the employer must make up the difference.
| Component | Rate | Notes |
|---|---|---|
| Direct cash wage | $2.13/hr | Minimum employer must pay directly |
| Tip credit | $5.12/hr | Maximum credit employer may claim |
| Total required | $7.25/hr | Wages + tips must reach this floor |
Indiana Exempt Employee Salary Threshold (2026)
An "exempt" employee is a salaried worker who, by law, isn't entitled to overtime pay (time-and-a-half) for hours worked beyond 40 in a week. Whether a salaried employee actually qualifies as exempt depends on both their pay and their job duties. Indiana follows the federal FLSA salary threshold. To qualify for the white-collar (executive, administrative, or professional) overtime exemption, salaried employees must earn at least $684/week ($35,568/year) in 2026.
City & County Minimum Wages in Indiana
Indiana Code § 22-2-2-10.5 preempts local governments from enacting minimum wage ordinances that differ from the state/federal rate.
| City / County | 2026 Rate | Notes |
|---|---|---|
| Indianapolis | $7.25/hr (state rate) | Follows Indiana state/federal rate; local ordinances are preempted. |
| Fort Wayne | $7.25/hr (state rate) | Follows Indiana state/federal rate; local ordinances are preempted. |
| Evansville | $7.25/hr (state rate) | Follows Indiana state/federal rate; local ordinances are preempted. |
| South Bend | $7.25/hr (state rate) | Follows Indiana state/federal rate; local ordinances are preempted. |
Indiana Minimum Wage History
The following table shows minimum wage rates in Indiana over the past several years.
| Year | Minimum Wage | Effective Date | Notes |
|---|---|---|---|
| 2009 | $7.25/hr | 2009-07-24 |
Frequently Asked Questions
The minimum wage in Indiana is $7.25 per hour in 2026, effective 2009-07-24. Tipped employees may be paid $2.13 per hour provided tips bring total earnings to at least $7.25/hr.
Indiana's minimum wage remains at the federal rate of $7.25/hr in 2026, unchanged since 2009, with no legislation advancing to raise it.
In Indiana, tipped employees must be paid at least $2.13 per hour directly. Employers may claim a tip credit of up to $5.12/hr, but total compensation including tips must reach $7.25/hr.
Indiana follows the federal FLSA salary threshold. Salaried exempt employees must earn at least $684/week ($35,568/year) to qualify for the white-collar overtime exemption in 2026.
Indiana Code § 22-2-2-10.5 preempts local governments from enacting minimum wage ordinances that differ from the state/federal rate.