**2025 Minimum Wage by State (Complete Guide)**: **Federal minimum wage remains $7.25/hour** (unchanged since 2009), but **30 states + DC** have higher minimums. **Top 10 Highest Minimum Wages (2025)**: **1.

Washington DC**: **$17.00/hour** (highest in nation, up from $16.50 in 2024).

Annual full-time: **$35,360**. **2.

Washington State**: **$16.28/hour** (indexed to CPI, increases annually).

Annual: **$33,862**. **3.

California**: **$16.00/hour** statewide (fast food workers: $20.00/hour under AB 1228, healthcare workers: $23.00/hour phase-in starting 2024).

Annual: **$33,280** (general), **$41,600** (fast food). **4.

Massachusetts**: **$15.00/hour**.

Annual: **$31,200**. **5.

New York**: **$15.00/hour** (NYC/Long Island/Westchester), **$14.20/hour** (rest of state in 2024, rising to $15.00 in 2025).

Annual: **$31,200** (NYC). **6.

Connecticut**: **$15.69/hour** (indexed to Employment Cost Index).

Annual: **$32,635**. **7.

Oregon**: **$14.20/hour** (standard), **$15.45/hour** (Portland metro), **$13.20/hour** (rural counties - tiered system unique to Oregon).

Annual: **$29,536-32,136**. **8.

Arizona**: **$14.35/hour** (indexed to CPI).

Annual: **$29,848**. **9.

Colorado**: **$14.42/hour** (indexed to CPI, Denver: $18.29/hour local minimum).

Annual: **$29,994** (state), **$38,043** (Denver). **10.

Maine**: **$14.15/hour** (indexed to CPI).

Annual: **$29,432**. **States Still Using Federal Minimum ($7.25/hour)**: **20 states**: Alabama, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, New Hampshire, North Carolina, North Dakota, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Wisconsin, Wyoming. **Note**: Some cities/counties in these states have local minimums (e.g., Austin TX considering $15/hour).

Annual at $7.25: **$15,080** (below federal poverty line of $15,060 for 1 person in 2025). **Tipped Minimum Wage**: **Federal tipped minimum**: **$2.13/hour** (employer must make up difference if tips don't reach $7.25/hour total). **7 states require full minimum wage for tipped workers** (no tip credit): Alaska ($11.73), California ($16.00), Minnesota ($10.85 small employers / $10.85 large), Montana ($10.30), Nevada ($12.00), Oregon ($14.20), Washington ($16.28). **Highest tipped minimums** (with tip credit): DC $8.00 (vs $17.00 regular), Massachusetts $6.75 (vs $15.00), Connecticut $6.38 (vs $15.69). **Lowest tipped minimums**: 17 states use federal $2.13 (including Texas, Florida, Pennsylvania, Virginia). **Scheduled Increases in 2025**: **Florida**: Rising to **$13.00/hour** (Sept 2025, on path to $15.00 by 2026). **Illinois**: Rising to **$15.00/hour** (Jan 2025, completing phase-in from $8.25 in 2019). **Nevada**: Rising to **$12.00/hour** (July 2025, eliminating two-tier system). **Maryland**: Rising to **$15.00/hour** (Jan 2025 for large employers 15+, 2026 for small employers). **New Jersey**: Rising to **$15.00/hour** (Jan 2025 for most employers, seasonal/small farm exceptions). **Virginia**: Rising to **$12.00/hour** (Jan 2025). **Local Minimums (City/County Higher Than State)**: **New York City**: $16.50/hour (2025, above state $15.00). **San Francisco**: **$18.07/hour** (highest in US, indexed to CPI). **Seattle**: $18.69/hour (large employers 501+), $16.66/hour (small employers, with tip credit allowed). **Los Angeles**: $16.78/hour (city), separate from CA state $16.00. **Chicago**: $15.80/hour (large employers 21+), $15.00 (small employers 4-20). **Denver**: $18.29/hour (2025, well above CO state $14.42). **Minneapolis**: $15.57/hour (large employers 100+), $14.25 (small employers). **Comparison to Living Wage**: **MIT Living Wage Calculator** estimates **$17.65/hour** needed for single adult to meet basic needs nationally (2025 average, varies by location: $14.50 in rural Mississippi, $25.00+ in San Francisco/NYC). **Only 3 jurisdictions** meet average living wage: DC ($17.00), Seattle ($18.69), San Francisco ($18.07). **Wage gap**: At federal $7.25, worker earns **$10.40/hour LESS** than living wage = **$21,632/year shortfall**. **Federal Minimum Wage Proposals**: **Raise the Wage Act** (reintroduced 2023, not passed): Would increase to $17/hour by 2028 ($9.50 in 2024, +$1.50/year). **Fair Minimum Wage Act**: Proposes $15/hour immediately, then indexed to median wage growth. **CBO estimates**: $15 federal minimum would lift 900,000 out of poverty, but cost 1.3M jobs (mainly youth/low-skill). **State Indexing**: **18 states** automatically adjust minimum wage to inflation (CPI or similar index): Alaska, Arizona, California (indirect via legislation), Colorado, Maine, Minnesota, Missouri, Montana, Nebraska, New Jersey, New York, Ohio, Oregon, South Dakota, Vermont, Washington. **Formula example** (Washington): 2025 rate = 2024 rate × (CPI-W Sept 2024 / CPI-W Sept 2023). 2024 $16.28 × 1.035 (3.5% inflation) = **$16.85** (hypothetical 2026 rate). **Youth/Training Wage**: Federal law allows **$4.25/hour** for workers under 20 during first 90 days.

Few states use this (most apply regular minimum wage to all ages). **Enforcement**: **Department of Labor Wage and Hour Division** enforces FLSA. **Violations**: Back pay + liquidated damages (double back pay) + fines up to $1,000/violation. **Employee rights**: Can file complaint anonymously, employer retaliation illegal (FLSA Section 15(a)(3)).

**Minimum Wage Net Pay Calculation (2025 Tax Withholding Guide)**: **Step 1: Calculate Gross Pay**: **Hourly workers**: Hours worked × hourly rate.

Example: 40 hours/week × $15.00/hour = **$600/week gross** ($31,200/year). **Step 2: FICA Taxes (Mandatory Federal Payroll Taxes)**: **Social Security**: **6.2%** of gross wages (employer matches 6.2%, total 12.4%).

Maximum wage base: $168,600 (2025).

Minimum wage workers never hit cap.

Calculation: $31,200 × 6.2% = **$1,934/year** ($37.20/week). **Medicare**: **1.45%** of all wages (no cap, employer matches 1.45%).

Additional 0.9% Medicare tax applies to wages >$200k (single) / >$250k (married) - not applicable to minimum wage workers.

Calculation: $31,200 × 1.45% = **$452/year** ($8.70/week). **Total FICA**: 6.2% + 1.45% = **7.65%** = **$2,386/year** ($45.90/week). **Example**: $600 weekly gross - $45.90 FICA = **$554.10 net after FICA**. **Step 3: Federal Income Tax Withholding**: **Based on W-4 form** (2020 version uses standard deduction, dependents, other income). **2025 Federal tax brackets** (single filer): **10%** on income $0-$11,600. **12%** on income $11,601-$47,150. **2025 Standard deduction**: **$14,600** (single), **$29,200** (married filing jointly). **Minimum wage worker calculation** ($15/hour × 2,080 hours = $31,200 annual): Gross income: $31,200.

Standard deduction: -$14,600. **Taxable income**: **$16,600**.

Tax: $11,600 × 10% = $1,160. ($16,600 - $11,600) × 12% = $5,000 × 12% = $600. **Total federal income tax**: $1,160 + $600 = **$1,760/year** (**$33.85/week**). **Note**: Withholding may differ slightly from actual tax due to W-4 settings (claiming dependents, multiple jobs, etc.). **Earned Income Tax Credit (EITC)**: **Refundable credit** for low-income workers. 2025 maximum credit: **$632** (no children), **$4,213** (1 child), **$6,960** (2 children), **$7,830** (3+ children). **Income limits** (single filer): No children: $18,591 (phase-out starts $10,430). 1 child: $49,084 (phase-out starts $22,610). 2 children: $55,768 (phase-out starts $22,610). 3+ children: $59,899 (phase-out starts $22,610). **Minimum wage worker** ($31,200/year, 1 child) qualifies for partial EITC: **≈$2,800 refund** (reduces effective federal income tax to **-$1,040**, i.e., net refund). **Step 4: State Income Tax**: **9 states have NO income tax**: Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, Wyoming, New Hampshire (only taxes dividends/interest, not wages). **Minimum wage worker in these states**: **$0 state income tax**. **States with income tax** (examples): **California** (progressive 1-13.3%): $31,200 income → **$700-900/year** state tax (after standard deduction $5,363 single). **New York**: **$1,100-1,400/year** (4% bracket + NYC residents pay additional 3-4% city tax = **$1,900-2,200 total** for NYC residents). **Massachusetts** (flat 5%): $31,200 - $4,400 exemption = $26,800 × 5% = **$1,340/year**. **Oregon** (progressive 4.75-9.9%): **$1,200-1,500/year** (after standard deduction). **Step 5: Local Taxes** (if applicable): **Local income tax** in some cities/counties: **NYC**: 3.078-3.876% (on top of NY state tax). **Philadelphia**: 3.8398% wage tax (residents). **Detroit**: 2.4% (residents). **Example** (NYC resident, $15/hour minimum wage): State tax $1,400 + city tax $1,100 = **$2,500/year local+state**. **Step 6: Other Deductions**: **State Disability Insurance** (SDI): California: **1.1%** of wages (max $1,378/year). $31,200 × 1.1% = **$343/year**. **Paid Family Leave**: NY: **0.373%** ($31,200 × 0.373% = **$116/year**).

WA: **0.6%** ($31,200 × 0.6% = **$187/year**). **Total Net Pay Example** (Single filer, $15/hour, 40 hrs/week, 52 weeks, no EITC claimed): **Scenario 1: Texas (no state income tax)**: Gross: $31,200.

FICA: -$2,386.

Federal income tax: -$1,760. **Net annual pay**: **$27,054** (**70% take-home rate**).

Weekly net: **$520** (from $600 gross). **Scenario 2: California**: Gross: $31,200.

FICA: -$2,386.

Federal income tax: -$1,760.

CA state tax: -$800.

CA SDI: -$343. **Net annual pay**: **$25,911** (**67% take-home rate**).

Weekly net: **$498**. **Scenario 3: NYC**: Gross: $31,200.

FICA: -$2,386.

Federal income tax: -$1,760.

NY state tax: -$1,400.

NYC tax: -$1,100.

NY PFL: -$116. **Net annual pay**: **$24,438** (**63% take-home rate**).

Weekly net: **$470**. **Scenario 4: Federal minimum wage ($7.25/hour, Texas)**: Gross: $15,080/year.

FICA: -$1,154.

Federal income tax: **$0** (below standard deduction, $15,080 < $14,600). **Net annual pay**: **$13,926** (**92% take-home**, but extremely low absolute amount).

Weekly net: **$268** (from $290 gross). **With EITC**: $632 credit → **$14,558 net** (97% of gross). **Paycheck Frequency Impact**: **Weekly pay** (52 paychecks): Easier budgeting for low-income workers, but slightly higher administrative costs. **Bi-weekly** (26 paychecks): Most common, aligns with monthly bills (×2.17 to estimate monthly). **Semi-monthly** (24 paychecks): Exactly 2 per month, easier rent budgeting. **Tax withholding is same annually** regardless of frequency, but weekly paychecks have smaller per-check deductions. **Key Takeaway**: **Minimum wage workers keep 63-92% of gross pay** depending on state/local taxes. **EITC can add $600-$7,800** annually for workers with children, making filing taxes critical even if no withholding required.