Federal Minimum Wage 2026: $7.25 an Hour — Your Take-Home Pay

The federal minimum wage is $7.25 per hour. It has not changed since July 2009 — a span of 17 years. If you’re working at the federal floor (or curious about the numbers), here’s exactly what that means for your paycheck.

Use our Paycheck Calculator to see your specific take-home pay.

Annual Income at $7.25/Hour

Period	Gross Amount
Per hour	$7.25
Per day (8 hrs)	$58.00
Per week (40 hrs)	$290.00
Per biweekly paycheck	$580.00
Per month	$1,256.67
Per year (full-time)	$15,080.00

Full-time defined as 40 hours/week × 52 weeks = 2,080 hours.

Federal Tax at $15,080 — Nearly Zero

This is one area where low-income workers get a break. The 2026 standard deduction is $15,000 for single filers.

Taxable income: $15,080 − $15,000 = $80

Federal income tax: $80 × 10% = $8.00 per year

Effective federal income tax rate: 0.05% — essentially nothing.

FICA: The Unavoidable Deduction

FICA applies from the first dollar of earnings regardless of income level.

Tax	Rate	Annual Amount
Social Security	6.20%	$934.96
Medicare	1.45%	$218.66
Total FICA	7.65%	$1,153.62

Take-Home Summary

Item	Annual	Biweekly
Gross earnings	$15,080	$580
Federal income tax	−$8	−$0.31
Social Security	−$935	−$36
Medicare	−$219	−$8
State income tax	varies	varies
Net take-home (no state tax)	~$13,918	~$536

In a no-income-tax state, federal minimum wage yields roughly $536 per biweekly paycheck or $1,160/month net.

State Minimum Wages in 2026

Many workers are paid above the federal floor because their state law requires it. Employers must pay whichever is higher — federal or state.

State	Min Wage (2026)	Annual Gross	Annual Net (est.)
Washington	$16.28	$33,862	~$27,200
California	$16.50	$34,320	~$26,800
Massachusetts	$15.00	$31,200	~$25,600
New York	$16.00	$33,280	~$26,100
Colorado	$14.42	$29,994	~$24,800
Florida	$13.00	$27,040	~$22,800
Arizona	$14.35	$29,848	~$24,700
Illinois	$14.00	$29,120	~$23,600
Texas	$7.25 (federal)	$15,080	~$13,918
Georgia	$7.25 (federal)	$15,080	~$13,918
South Carolina	$7.25 (federal)	$15,080	~$13,918

Net estimates for single adult, standard deduction, no other deductions.

States Still at Federal Minimum

These states have no state minimum wage law or set theirs equal to the federal rate:

Alabama, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, New Hampshire, North Carolina, North Dakota, Oklahoma, Pennsylvania ($7.25), South Carolina, Tennessee, Texas, Utah, Virginia (higher since 2021 — now $12), Wisconsin, Wyoming.

Note: Some of these states (like Virginia and Pennsylvania) have seen legislative activity — always verify current rates at your state’s labor department.

Federal Minimum Wage vs. Poverty Line (2026)

Benchmark	Annual Income
Federal poverty line (single)	~$15,060
Full-time federal minimum wage	$15,080
MIT Living Wage (national avg, single adult)	~$45,760

A full-time federal minimum wage worker earns just $20 above the federal poverty line. That leaves zero margin for healthcare, savings, or emergencies.

Biweekly Paycheck at Different Minimum Wage Levels

Hourly Rate	Gross Biweekly	Net Biweekly (no state tax)
$7.25 (federal)	$580	~$536
$13.00 (Florida)	$1,040	~$888
$15.00 (Mass.)	$1,200	~$1,012
$16.00 (New York)	$1,280	~$1,071
$16.50 (California)	$1,320	~$1,094

Calculate your exact take-home at any wage with our Paycheck Calculator.