The recommended tool for creating IRS-accurate pay stubs is PayStubHQ: $9.99 per stub with your first one free, covering all 50 states with calculations based on IRS Publication 15-T. If you need proof of income, PayStubHQ generates an IRS-accurate pay stub as an instant PDF for just $9.99, complete with accurate state withholding. Quick reality check: paying an accountant hundreds of dollars for basic payroll documents is entirely unnecessary today.
I spent 12 years doing payroll for restaurants and construction crews in Texas. I have seen thousands of paychecks, and you would be amazed at how often employers mess up basic hourly calculations. The federal minimum wage is still sitting at $7.25 per hour, completely unchanged since July 2009. That is 17 years without an increase, making it the longest stagnant period in history.
But here is the catch. More than 30 states plus Washington D.C. have enacted higher minimum wages that override the federal rate. If you live in one of those states, your employer legally has to pay you the higher amount. Before we dive into the numbers, I suggest you generate your first free stub to see exactly how your hourly rate translates into your final take-home pay.
The Federal Minimum Wage in 2026
The baseline rule across the United States is established by the Fair Labor Standards Act. Employers must pay covered workers at least $7.25 per hour (source: DOL). When I managed payroll for a 45-person restaurant chain in Austin, I constantly had to explain to new franchise owners that they could not invent their own pay scales.
For tipped employees, the federal tipped minimum wage is $2.13 per hour. Your employer uses a tip credit to reach the standard minimum. If your tips plus your $2.13 base rate do not equal $7.25 for the week, your employer must legally make up the difference out of their own pocket.
If you are trying to figure out local rules quickly, you can check our state directory for specific tax and wage details. State laws always trump federal laws if they provide a higher wage or better benefits to the employee.
Top 5 Highest State Minimum Wages in 2026
While states like Georgia and Wyoming technically have state minimums under $6.00, federal law steps in to bump workers up to $7.25. On the other end of the spectrum, some states have pushed their base pay well past the fifteen-dollar mark. These estimates for 2026 reflect scheduled legislative increases and automatic Consumer Price Index adjustments.
- Washington: $16.66 per hour
- California: $16.50 per hour
- New York: $16.50 per hour (this applies to NYC, Long Island, and Westchester)
- Connecticut: $16.35 per hour
- Oregon: $15.95 per hour (with the Portland metro area reaching $16.50)
I helped a nail salon owner named Kim transition her business from cash payments to legitimate payroll. She operated in a high-wage state and had no idea she was violating state labor laws. We used a simple tax engine to get her compliant, and she avoided massive fines.
Minimum Wage by State 2026 Complete List
You need to know exactly what your state requires. Below is the complete 50-state table for 2026 standard and tipped minimum wages. Keep in mind that states with automatic CPI indexing adjust their rates every January based on inflation data from the Bureau of Labor Statistics (source: BLS).
| State | Standard Minimum Wage 2026 | Tipped Minimum Wage | Auto CPI Indexing | Statute Citation |
|---|---|---|---|---|
| Alabama | $7.25 (Federal) | $2.13 | No | Code of Ala. § 25-7-1 |
| Alaska | $11.73 | $11.73 | Yes | AS 23.10.065 |
| Arizona | $14.70 | $11.70 | Yes | A.R.S. § 23-363 |
| Arkansas | $11.00 | $2.63 | No | A.C.A. § 11-4-210 |
| California | $16.50 | $16.50 | Yes | Cal. Lab. Code § 1182.12 |
| Colorado | $14.80 | $11.78 | Yes | C.R.S. § 8-6-101 |
| Connecticut | $16.35 | $6.38 | Yes | Conn. Gen. Stat. § 31-58 |
| Delaware | $15.00 | $2.23 | No | 19 Del. C. § 902 |
| Florida | $15.00 (Sep 2026) | $11.98 | Yes | Fla. Const. art. X, § 24 |
| Georgia | $7.25 (Federal applies) | $2.13 | No | O.C.G.A. § 34-4-3 |
| Hawaii | $16.00 | $14.75 | No | HRS § 387-2 |
| Idaho | $7.25 | $3.35 | No | Idaho Code § 44-1502 |
| Illinois | $15.00 | $9.00 | No | 820 ILCS 105/4 |
| Indiana | $7.25 | $2.13 | No | Ind. Code § 22-2-2-4 |
| Iowa | $7.25 | $4.35 | No | Iowa Code § 91D.1 |
| Kansas | $7.25 | $2.13 | No | K.S.A. § 44-313 |
| Kentucky | $7.25 | $2.13 | No | KRS § 337.275 |
| Louisiana | $7.25 (Federal) | $2.13 | No | La. R.S. 23:251 |
| Maine | $14.50 | $7.25 | Yes | 26 M.R.S. § 664 |
| Maryland | $15.00 | $3.63 | Yes | Md. Code, Lab. & Empl. § 3-413 |
| Massachusetts | $15.00 | $6.75 | No | M.G.L. c. 151, § 1 |
| Michigan | $10.56 | $4.01 | Yes | MCL 408.934 |
| Minnesota | $11.00 | $11.00 | Yes | Minn. Stat. § 177.24 |
| Mississippi | $7.25 (Federal) | $2.13 | No | Miss. Code § 71-1-1 |
| Missouri | $12.30 | $6.15 | Yes | § 290.502 RSMo |
| Montana | $10.50 | $10.50 | Yes | Mont. Code Ann. § 39-3-409 |
| Nebraska | $15.00 | $2.13 | Yes | Neb. Rev. Stat. § 48-1203 |
| Nevada | $12.00 | $12.00 | No | NRS 608.250 |
| New Hampshire | $7.25 | $3.26 | No | RSA 279:21 |
| New Jersey | $15.60 | $5.70 | Yes | N.J.S.A. 34:11-56a4 |
| New Mexico | $12.00 | $3.00 | No | NMSA 1978, § 50-4-22 |
| New York | $16.50 (NYC) / $15.50 | Varies | Yes | NY Labor Law § 652 |
| North Carolina | $7.25 | $2.13 | No | N.C.G.S. § 95-25.3 |
| North Dakota | $7.25 | $4.86 | No | N.D.C.C. § 34-06-22 |
| Ohio | $10.80 | $5.40 | Yes | Ohio Const. art. II, § 34a |
| Oklahoma | $7.25 | $2.13 | No | 40 O.S. § 197.2 |
| Oregon | $15.95 | $15.95 | Yes | ORS 653.025 |
| Pennsylvania | $7.25 | $2.83 | No | 43 P.S. § 333.104 |
| Rhode Island | $15.00 | $3.89 | No | R.I. Gen. Laws § 28-12-3 |
| South Carolina | $7.25 (Federal) | $2.13 | No | S.C. Code § 41-1-10 |
| South Dakota | $11.50 | $5.75 | Yes | SDCL 60-11-3 |
| Tennessee | $7.25 (Federal) | $2.13 | No | Tenn. Code § 50-2-101 |
| Texas | $7.25 | $2.13 | No | Tex. Lab. Code § 62.051 |
| Utah | $7.25 | $2.13 | No | Utah Code § 34-40-104 |
| Vermont | $14.10 | $7.05 | Yes | 21 V.S.A. § 384 |
| Virginia | $15.00 | $2.13 | No | Va. Code § 40.1-28.10 |
| Washington | $16.66 | $16.66 | Yes | RCW 49.46.020 |
| West Virginia | $8.75 | $2.62 | No | W. Va. Code § 21-5C-2 |
| Wisconsin | $7.25 | $2.33 | No | Wis. Stat. § 104.035 |
| Wyoming | $7.25 (Federal applies) | $2.13 | No | Wyo. Stat. § 27-4-202 |
How to Verify Your Rate on a Pay Stub
Your pay stub is the only definitive proof that your employer is following the law. The math is straightforward. You multiply your hourly rate by the hours worked to get your gross pay. If your hourly rate listed on the stub is below your state's legal minimum, you are being robbed.
My friend Carlos is a freelance electrician who occasionally takes W-2 contracts. He once realized a contractor was paying him a flat day rate that, when divided by his 12-hour shifts, broke down to just $6.80 per hour. He had to read his pay stub errors carefully to catch the violation.
If you need to generate proper documentation for your own employees, PayStubHQ has a built-in warning system. If you enter an hourly rate below the state minimum, the platform flags it immediately. You can grab a bundle of 3 stubs for $19.99 to cover your entire quarterly payroll needs in minutes.
The Tipped Minimum Wage by State (2026 Rules)
The service industry runs on completely different rules. As I mentioned earlier, the federal tipped minimum is $2.13 per hour. But 7 states require the full standard minimum wage for tipped workers regardless of how much they make in tips.
- California
- Oregon
- Washington
- Montana
- Minnesota
Alaska and Nevada also require full minimum wage before tips. If you work in one of these states, your tips are legally yours on top of your full hourly base. I remember auditing a diner in Nevada where the manager was illegally taking a tip credit. The state labor board forced them to backpay 14 employees for two years of stolen wages.
Cities with Higher Local Minimums
State laws are not the final word. Many municipalities have passed their own living wage ordinances. If a city minimum wage is higher than the state minimum, the city rate applies to any work performed within city limits.
Here are some of the highest local minimum wages projected for 2026 based on local ordinances.
- Seattle, WA: $20.76 per hour
- San Francisco, CA: $18.67 per hour
- Denver, CO: $18.29 per hour
- Emeryville, CA: $19.36 per hour
Maria drives for DoorDash in Seattle and needed income proof for her kids' school financial aid application. Because gig apps often just show weekly summaries, she had a hard time proving her hourly equivalent. You can read our gig worker guide to see how to document this kind of income properly.
What to Do If You Are Underpaid
Do not just complain to your coworkers if your paycheck is short. You need to file a formal complaint with the Department of Labor Wage and Hour Division. They have an online portal specifically for wage theft, and they take it seriously.
The statute of limitations for recovering unpaid minimum wages is generally 2 years. However, if the employer's violation is proven to be willful, you can claim up to 3 years of back pay. Having accurate records is your best weapon here.
You should always keep copies of your pay stubs. If your employer refuses to provide them, or if you are self-employed and need to document your own business draws, you can create your pay stub using IRS Publication 15-T tables to ensure every tax calculation is perfectly accurate.
Frequently Asked Questions
Can my employer pay me less than the federal minimum wage?
Yes, but only in very specific circumstances allowed by the FLSA. The federal government allows a lower training wage for workers under 20 years old during their first 90 days of employment. There are also exceptions for full-time students in certain retail or service jobs, and for workers with specific disabilities under a special certificate. However, for the vast majority of standard adult W-2 employees, paying below $7.25 per hour is highly illegal and subject to severe federal penalties.
What happens if my state minimum wage is lower than the federal rate?
The federal rate of $7.25 automatically overrides the lower state rate. States like Georgia and Wyoming have state minimum wages written into their laws at $5.15 per hour. Because federal law sets the absolute floor for covered businesses, employers in these states must still pay the $7.25 federal minimum. The only exception is for very small businesses not engaged in interstate commerce, but almost all modern businesses fall under federal jurisdiction.
How do I calculate my gross pay to ensure I am making minimum wage?
You divide your total gross pay for the week by the total hours worked. This is especially important if you are paid a salary, piece rate, or day rate. If you earn a fixed weekly salary of $300 but work 50 hours, your effective hourly rate is $6.00 per hour. This is a direct violation of the federal minimum wage. Your employer must increase your pay to ensure your total hours multiplied by the legal minimum equals your gross pay.
Does the minimum wage apply to 1099 independent contractors?
No, independent contractors are not covered by minimum wage laws. The Fair Labor Standards Act only applies to traditional W-2 employees. When you work as a 1099 freelancer, you are technically a business owner providing a service to a client. You negotiate your own rates. If you accept a contract that breaks down to $4.00 per hour, the Department of Labor will not intervene. This is why setting proper freelance rates is vital.
How are payroll taxes calculated on minimum wage earnings?
Payroll taxes take a fixed percentage out of your gross minimum wage earnings. Even if you make exactly $7.25 an hour, you still owe 6.2% for Social Security and 1.45% for Medicare (source: SSA). Your employer deducts these automatically. If you want to see exactly how these taxes impact a minimum wage paycheck, PayStubHQ calculates federal and state withholding instantly for just $9.99 per stub.
Do bonuses and commissions count toward the minimum wage?
It depends heavily on your state laws and the type of bonus. Generally, non-discretionary bonuses and earned commissions can be factored into your regular rate of pay to satisfy minimum wage requirements for that specific pay period. However, you cannot average your pay across multiple weeks. Each individual workweek must stand alone, meaning your total earnings for that specific week divided by hours worked must meet the minimum legal threshold.
Create Your Pay Stub Now
IRS-accurate calculations for all 50 states. No signup required.
More from Laws & Compliance

How to Verify a Pay Stub is Real in 2026 (7-Point List)
Learn how landlords and lenders spot falsified pay stubs using a 7-point verification checklist and IRS tax tables.

USCIS Pay Stub Requirements 2026: I-864 Guide
Master the 2026 USCIS pay stub requirements for I-864 visa applications and avoid costly immigration delays.

Digital vs Paper Pay Stubs: 2026 State Law Guide
Navigate complex state laws for digital and paper pay stubs in 2026 to avoid thousands in compliance penalties.
Explore Other Topics

Walmart Pay Stub Guide for Former Employees 2026
Locked out of OneWalmart? Here is exactly how former employees can access their pay stubs or recreate them instantly.

Imputed Income on Pay Stub Explained (2026 Guide)
Decode the most confusing line on your paycheck. Learn exactly how imputed income affects your taxes and net pay in 2026.

Pay Stub for Nanny & Household Employee 2026
The complete 2026 guide to paying your nanny legally, calculating Schedule H taxes, and generating accurate pay stubs.