Indiana's Minimum Wage in 2026
The minimum wage in Indiana 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 $13,226 a year, or $508.71 every two weeks.
What the Indiana 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 | $508.71 |
| Take-home per year | $13,226.46 |
Before taxes, except the take-home rows: after federal income tax, Social Security, Medicare and Indiana 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 $6,638 after taxes.
Indiana 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 | Indiana's minimum wage is $7.25 an hour, the same as the federal rate, for employers with 2 or more employees. Workers under 20 can be paid $4.25 for their first 90 days. No increase is scheduled. | Indiana Department of Labor, Minimum Wage poster |
| Tipped workers | If your employer claims a tip credit, it can pay you a cash wage of $2.13 an hour, but your tips plus that wage must reach at least $7.25 an hour. | Indiana Department of Labor, Minimum Wage poster |
| Overtime | Indiana requires overtime at 1.5 times your regular rate for hours over 40 in a workweek, with many exceptions. There is no daily overtime rule. | Indiana Department of Labor, Minimum Wage poster |
How Indiana's minimum wage compares
Indiana 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 Indiana earns $23.01 an hour, so the minimum wage is 32% of the median wage. 10% of Indiana workers earn less than $14.00 an hour and 25% less than $17.55 (BLS, May 2025, all 3,201,220 jobs). Source
The jobs with the lowest typical pay in Indiana, among those with at least 1,000 workers:
| Job | Median hourly | Jobs |
|---|---|---|
| Cooks, Short Order | $10.55 | 2,940 |
| Bartenders | $10.95 | 12,880 |
| Gambling Dealers | $11.61 | 2,410 |
| Hosts and Hostesses, Restaurant, Lounge, and Coffee Shop | $12.94 | 9,730 |
| Ushers, Lobby Attendants, and Ticket Takers | $13.19 | 1,930 |
| Amusement and Recreation Attendants | $13.31 | 6,740 |
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
Indiana minimum wage questions
What is the minimum wage in Indiana?
$7.25 an hour, the federal minimum wage, which applies because the state rate is not higher.
How much is the Indiana 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 $13,226.
How much is the Indiana minimum wage after taxes?
About $508.71 every two weeks for a full-time single filer, after federal income tax, Social Security and Medicare and Indiana taxes.
Is Indiana's minimum wage going up?
No increase has been scheduled as of Oct 25, 2026.
What is time and a half at the Indiana minimum wage?
$10.88 an hour for overtime hours.
States with a similar minimum wage
Alabama minimum wage ($7.25) · Georgia minimum wage ($7.25) · Idaho 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
Indiana 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.