Alabama's Minimum Wage in 2026
The minimum wage in Alabama is $7.25 an hour, the same as the federal minimum wage. No increase is scheduled yet. Full time, that is $15,080 a year before taxes. Source
After federal and state taxes, a single full-time worker keeps about $13,437 a year, or $516.82 every two weeks.
What the Alabama minimum wage pays
| At $7.25 | |
|---|---|
| Per hour | $7.25 |
| Per 8-hour day | $58.00 |
| Per 40-hour week | $290.00 |
| Every two weeks | $580.00 |
| Per month | $1,256.67 |
| Per year (2,080 hours) | $15,080.00 |
| Take-home every two weeks | $516.82 |
| Take-home per year | $13,437.32 |
Before taxes, except the take-home rows: after federal income tax, Social Security, Medicare and Alabama income tax and payroll programs, single filer, 2026 Form W-4, no other deductions. Part time at 20 hours a week, the minimum wage is $7,540 a year and about $6,851 after taxes.
Alabama minimum wage rules
Each rule links to the official source. Checked Oct 25, 2026. The federal minimum of $7.25 applies wherever a state rate is lower. Source
| Topic | The rule | Official source |
|---|---|---|
| Minimum wage | Alabama has no state minimum wage law, so the federal minimum wage of $7.25 an hour applies to most jobs covered by federal law. No change has been announced. | U.S. DOL, State Minimum Wage Laws |
| Tipped workers | Tipped workers in Alabama can be paid a cash wage as low as $2.13 an hour under federal law, as long as tips bring total pay to at least $7.25 an hour. | U.S. DOL, Minimum Wages for Tipped Employees |
| Overtime | Alabama has no state overtime law. Federal law applies: most hourly workers get 1.5 times their regular rate for hours over 40 in a workweek, not for long single days. | Alabama Department of Labor, Wage and Hour Info |
How Alabama's minimum wage compares
Alabama is one of 20 states where the federal $7.25 is the minimum: Alabama, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, New Hampshire, North Carolina, North Dakota, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Wisconsin, Wyoming.
The typical (median) worker in Alabama earns $21.96 an hour, so the minimum wage is 33% of the median wage. 10% of Alabama workers earn less than $12.54 an hour and 25% less than $15.41 (BLS, May 2025, all 2,113,660 jobs). Source
The jobs with the lowest typical pay in Alabama, among those with at least 1,000 workers:
| Job | Median hourly | Jobs |
|---|---|---|
| Bus Drivers, School | $8.48 | 10,410 |
| Dining Room and Cafeteria Attendants and Bartender Helpers | $10.80 | 3,420 |
| Childcare Workers | $10.92 | 4,580 |
| Amusement and Recreation Attendants | $11.16 | 6,740 |
| Fast Food and Counter Workers | $11.40 | 41,460 |
| Substitute Teachers, Short-Term | $12.18 | 9,290 |
BLS figures are from May 2025, before some recent increases. Tipped jobs can show a median below the minimum wage where the law lets employers count tips toward it (see the tipped rules above).
Tax credits and rent on the minimum wage
A full-time minimum-wage worker earns $15,080 a year. At that income the 2026 Earned Income Tax Credit could be about:
| Qualifying children | Single or head of household | Married, one earner |
|---|---|---|
| 0 children | $341 | $664 |
| 1 child | $4,427 | $4,427 |
| 2 children | $6,032 | $6,032 |
| 3 children or more | $6,786 | $6,786 |
An estimate from the IRS 2026 amounts and phaseouts; the credit is paid when you file your return. Source
By the HUD guideline that housing should take no more than 30% of income, $15,080 a year covers rent and utilities up to about $377 a month; two minimum-wage earners up to $754. Source
Alabama minimum wage questions
What is the minimum wage in Alabama?
$7.25 an hour, the federal minimum wage, which applies because the state rate is not higher.
How much is the Alabama minimum wage a year?
$15,080 a year at 40 hours a week for 52 weeks, or $1,257 a month, before taxes. After taxes a single filer keeps about $13,437.
How much is the Alabama minimum wage after taxes?
About $516.82 every two weeks for a full-time single filer, after federal income tax, Social Security and Medicare and Alabama taxes.
Is Alabama's minimum wage going up?
No increase has been scheduled as of Oct 25, 2026.
What is time and a half at the Alabama minimum wage?
$10.88 an hour for overtime hours.
States with a similar minimum wage
Georgia minimum wage ($7.25) · Idaho minimum wage ($7.25) · Indiana minimum wage ($7.25) · Iowa minimum wage ($7.25) · Kansas minimum wage ($7.25) · Kentucky minimum wage ($7.25) · Louisiana minimum wage ($7.25) · Mississippi minimum wage ($7.25)
Related
Alabama paycheck calculator · Minimum wage in every state · Minimum wage increases in 2027 · Hourly paycheck at $7.25
Rates checked Oct 25, 2026. Wage data: BLS Occupational Employment and Wage Statistics, May 2025.