US Minimum Wage & Compliance Calculator (2026)
Under the Fair Labor Standards Act (FLSA), the federal minimum wage stands at $7.25 per hour. However, under the FLSA Supremacy Clause (29 U.S.C. § 218(a)), employers are legally mandated to pay the highest wage standard applicable between federal, state, and municipal statutes. Over 30 US states and dozens of municipalities enforce significantly higher wage baselines for 2026—ranging from $14.00 to $17.50+ per hour. This calculator benchmarks your earnings across all 50 states and DC, audits legal compliance, computes tipped employee credits, and calculates overtime minimum wages.
US Minimum Wage Calculator (2026)
Federal FLSA & 50-State Statutory Rates · Tipped Credits & Wage Audit
Calculation Breakdown
Tip credit prohibited under CA Labor Code § 351 (Fast food: $20, Healthcare: $23)
Statutory minimum for hours worked over 40/week
Social Security (6.2%) + Medicare (1.45%)
Estimated withholding on entry-level wage bracket
Net deposit in bank account
•Under FLSA § 18(a) (29 U.S.C. § 218), whenever both federal and state laws apply, the employee is legally entitled to the higher of the two minimum wages. In California, the statutory rate is $16.50/hr.
FLSA Supremacy Clause & State Law Protection
Under federal law (29 U.S.C. § 218(a)), federal minimum wage does not preempt higher state or municipal minimum wages. If your city, county, or state mandates a higher wage rate than the federal $7.25 per hour, your employer is legally bound to pay the higher local wage.
How Your US Minimum Wage Was Evaluated
Statutory comparison under FLSA Section 6 (29 U.S.C. § 206) and California Department of Labor standards.
Identify Statutory Minimum Wage Benchmark
$16.50/hrUnder 29 U.S.C. § 218(a), when federal and state minimum wage standards differ, employers must strictly pay the higher rate. California's state rate is $9.25/hr higher than the federal $7.25 minimum.
Evaluate Tipped Employee Wage & Tip Credit Legality
$16.50/hrEmployee receives standard non-tipped wages subject to full minimum wage protections.
Statutory Compliance Audit
COMPLIANTYour pay rate complies with statutory minimum wage requirements under federal and state labor standards.
Project Full-Time Earnings & Overtime Benchmark
$34,320.00/yrA full-time employee working 2,080 hours per year at California's minimum wage earns $34,320.00 gross per year. Overtime must be compensated at least $24.75/hr (1.5×).
How this calculator works
How it works
- 01FLSA vs State Supremacy: The calculator compares federal statutory baselines against state labor department rates and selects the legally enforceable rate for your jurisdiction.
- 02Tipped Employee Tip Credits: Under FLSA § 3(m), employers may pay a reduced cash wage (federal $2.13/hr) and claim a tip credit up to $5.12/hr, provided tips make up the difference. Seven states completely ban tip credits.
- 03Compliance Audit: Automatically verifies whether your hourly wage satisfies statutory thresholds and flags wage theft deficits per hour, per week, and annually.
- 04Overtime Minimum Wage: Non-exempt workers are entitled to 1.5× the statutory minimum wage for hours worked over 40 in a workweek.
- 05Income Projections: Computes gross earnings across 40-hour weekly, bi-weekly, monthly, and 2,080-hour annual work schedules alongside estimated payroll tax deductions.
Tax rules that apply
- •Under FLSA Section 18(a), when federal and state laws conflict, the standard that provides the greater protection or higher pay to the employee always prevails.
- •Tip Credit Notice: Employers who fail to provide advance written notice of tip credit rules forfeit the credit entirely and must pay the full non-tipped minimum wage in cash.
- •States prohibiting tip credits: California, Washington, Oregon, Nevada, Minnesota, Montana, and Alaska require employers to pay full minimum wage before tips.
- •FLSA Statute of Limitations: Employees can recover unpaid minimum wages up to 2 years back for standard violations, or up to 3 years for willful violations, plus mandatory liquidated damages.
Current Tax Rates
| Tax / Deduction | Rate | Notes |
|---|---|---|
| Federal FLSA Minimum Wage | $7.25 / hr | Statutory baseline since July 2009 |
| Highest State Minimum Wage | $16.66 / hr | Washington State (CPI inflation indexed) |
| District of Columbia Rate | $17.50 / hr | Highest general statutory rate in the US |
| Federal Tipped Cash Minimum | $2.13 / hr | Max tip credit: $5.12/hr (requires total $7.25) |
| California State Minimum | $16.50 / hr | Tip credits prohibited; fast food $20/hr |
| New York State Minimum | $16.00 / hr | NYC, Long Island, Westchester: $16.50/hr |
What this calculator assumes
- Rates reflect official 2026 Department of Labor schedules and state statutory adjustments.
- Assumes non-exempt employee status subject to standard FLSA coverage.
- Does not model specific hyper-local municipal ordinances (e.g. Tukwila, WA or West Hollywood, CA) unless captured in state regional tiers.
- Tax withholding projections assume standard single filer FICA and basic income tax withholding.
Where our numbers come from
These calculators are based on official government tax rates and rules. We link directly to the source so you can verify everything yourself.
U.S. Department of Labor — Federal Minimum Wage (FLSA §6)
U.S. Department of Labor — Wage & Hour Division
U.S. Department of Labor — FLSA Overtime Rules (29 CFR Part 778)
U.S. Department of Labor — Wage & Hour Division
New York Labor Law Article 19 — Minimum Wage & Overtime
New York State Department of Labor
Texas Workforce Commission — Texas Labor Laws & Minimum Wage
Texas Workforce Commission
Frequently Asked Questions
Can an employer pay the federal $7.25 rate if the state minimum wage is higher?
No. Under 29 U.S.C. § 218(a) of the Fair Labor Standards Act, federal law explicitly gives supremacy to state and local laws that establish higher wage standards. If you work in a state with a higher minimum wage (such as California's $16.50, Florida's $14.00, or Illinois's $14.00), your employer must pay the higher state rate. Paying only $7.25 in these states is an unlawful wage violation.
How does the tipped minimum wage work in the United States?
Under FLSA Section 3(m), employers of tipped employees (who customarily receive more than $30/month in tips) may pay a lower direct cash wage of $2.13 per hour, claiming a 'tip credit' of up to $5.12 per hour against the $7.25 federal minimum wage. However, if the employee's actual tips combined with the direct cash wage do not equal at least the full minimum wage for all hours worked, the employer is legally obligated to make up the difference in cash.
Which US states have banned the sub-minimum tipped wage?
Seven US states have completely abolished the tipped sub-minimum wage: California, Washington, Oregon, Nevada, Minnesota, Montana, and Alaska. In these states, employers are legally required to pay tipped workers the full statutory state minimum wage in direct cash wages, and all tips received belong 100% to the employee as additional earnings.
What happens if an employer pays below the legal minimum wage?
Paying less than the statutory minimum wage constitutes illegal wage theft. Under Section 16(b) of the FLSA, employees can file a wage claim with the U.S. Department of Labor Wage & Hour Division (WHD) or file a federal civil lawsuit. Liable employers must pay all unpaid back wages, plus an equal amount in liquidated damages (double damages), pre-judgment interest, and mandatory attorney's fees.
What is the minimum wage for overtime hours worked?
Non-exempt employees must be paid 1.5 times their regular rate of pay for hours over 40. Therefore, the statutory minimum overtime wage is 1.5× the applicable minimum wage. At the federal level ($7.25), overtime cannot be less than $10.88/hr. In California ($16.50), minimum overtime is $24.75/hr. In Washington ($16.66), minimum overtime is $24.99/hr.
Are small businesses exempt from paying state minimum wage?
Generally no, although a few states have minor carve-outs. Under federal law, businesses with annual gross revenue of $500,000 or more, or those engaged in interstate commerce (including processing credit cards or out-of-state mail), are covered by the FLSA. Most state statutes apply to all employers regardless of enterprise revenue, with very limited exceptions for immediate family members or small agricultural operations.
