Indiana Minimum Wage 2026
Figure basis: Official Indiana Department of LaborIndiana's minimum wage is $7.25 per hour in 2026, matching the federal minimum. This Indiana minimum wage calculator turns that hourly rate into the numbers that actually matter to you: weekly, monthly and yearly pay. At $7.25 an hour, someone working a full 40-hour week earns about $290.00 before tax, or roughly $15,080.00 across a full year. Enter your own hours per week and weeks worked to see your gross pay, and edit the rate if you are paid above the minimum. The minimum wage is a floor, not a ceiling: employers can pay more, and some cities in Indiana set their own higher local minimums. Tipped workers can be paid a lower cash wage as long as tips bring them up to the minimum; see the tipped calculator for that. The figure here is the state rate for 2026, sourced directly from the Indiana Department of Labor; the pay calculation is simply hours times the rate.
Indiana's 2026 minimum wage is $7.25 per hour. Full time (40 hrs/week) that is about $290.00 a week and $15,080.00 a year before tax.
How Indiana minimum wage pay is calculated
weekly pay = hourly rate x hours per week
annual pay = hourly rate x hours per week x weeks per year
overtime = hourly rate x 1.5 (hours over 40 in a week, FLSA)
These are gross figures before federal and Indiana income tax, Social Security and Medicare. Your take-home pay is lower; see our Indiana paycheck calculator for the after-tax amount.
Indiana matches the feds, but Illinois does not
Indiana's minimum wage is $7.25 an hour, the same as the federal rate and unchanged since 2009. A quirk of Indiana law is who it actually covers: the state minimum wage act applies to employers with two or more employees who are not already subject to the federal Fair Labor Standards Act, and since most are covered federally, the effective rate is simply $7.25 across the board. Full time that is roughly $15,080.00 a year before tax.
For tipped work, Indiana tracks the federal rules exactly. An employer can pay a cash wage of $2.13 an hour and take a tip credit of up to $5.12, provided the worker's tips bring total pay to at least $7.25. If they do not, the employer owes the difference.
The number that makes Indiana's rate feel low is next door. Illinois moved to $15.00 an hour on January 1, 2025, so on the Indiana side of the Chicago metro the legal floor is less than half of what it is a few miles away, and Ohio and Michigan also pay more. Indiana law preempts local minimum wages, so no Indiana city can close that gap on its own. Confirm the $7.25 rate with the Indiana Department of Labor before relying on it.
Indiana minimum wage: frequently asked questions
What is the minimum wage in Indiana in 2026?
Indiana's minimum wage is $7.25 per hour in 2026, matching the federal minimum. At $7.25 an hour, a full-time worker (40 hours a week) earns about $290.00 a week and $15,080.00 a year before tax. This rate took effect on July 24, 2009.
How much is full-time minimum wage in Indiana per year?
At Indiana's $7.25 minimum wage, 40 hours a week for 52 weeks is 2,080 hours, which comes to about $15,080.00 a year ($1,256.67 a month) in gross pay before tax and deductions. Part-time hours scale down from there; use the calculator to enter your own hours.
Is Indiana's minimum wage going up?
Indiana does not automatically index its minimum wage to inflation, so it changes only when the law changes. The figure here is the 2026 rate verified with the Indiana Department of Labor.
What is the tipped minimum wage in Indiana?
Indiana lets employers pay tipped workers a lower cash wage of $2.13 an hour and count up to $5.12 of tips toward the minimum (a "tip credit"). If cash wage plus tips does not reach $7.25 an hour, the employer must make up the difference. See our Indiana tipped minimum wage calculator for the full breakdown.
Is Indiana's minimum wage higher than the federal minimum wage?
No. The rate that applies in Indiana is the federal minimum of $7.25 an hour. Where a state and the federal rate differ, workers are entitled to the higher of the two.
Official sources
- Indiana 2026 minimum wage rate: Indiana Department of Labor, as at July 11, 2026.
- Federal minimum wage ($7.25) and overtime rules: US Department of Labor, Wage and Hour Division.
Reviewed by the CalculatorHub team, edited by James Graham, 11 July 2026. See our methodology. General information, not legal or financial advice. The state minimum wage is $7.25 per hour under the Indiana Minimum Wage Law, equal to the federal rate.