Minimum wage to annual salary
What does minimum wage look like as an annual salary in 2026?
At the federal minimum of $7.25 per hour, a full-time worker earns $15,080 per year (40 hours × 52 weeks). After the 2026 standard deduction of $16,100, this worker owes zero federal income tax — taxable income is negative. However, FICA (Social Security + Medicare at 7.65%) still applies, taking roughly $1,154 from the gross.
State minimum wages compared (2026)
| State / area | Hourly | Annual gross (40 hrs) |
|---|---|---|
| Federal | $7.25 | $15,080 |
| Florida | $14.00 | $29,120 |
| New York (NYC) | $16.50 | $34,320 |
| California | $16.50 | $34,320 |
| Washington | $16.66 | $34,653 |
| DC | $17.50 | $36,400 |
Rates as of January 2026. Some cities set local minimums above state level. Source: DOL Wage and Hour Division.
Working more than 40 hours
Minimum-wage workers are almost always non-exempt under the FLSA, meaning hours over 40 per week earn time-and-a-half. At $7.25, each overtime hour pays $10.88. Ten overtime hours per week add $5,657 per year in gross pay. Model it with our overtime pay calculator.
Can you live on minimum wage?
The federal minimum gross of $15,080 is below the 2026 federal poverty line for a single person (roughly $15,650). In high-cost cities, even $16.50/hour ($34,320) can fall short. Use our salary needed for cost of living calculator to compare your wage to the actual cost of living in your city.
Questions
Minimum wage salary calculator FAQ
How much does minimum wage pay per year?
At the federal minimum wage of $7.25 per hour, a full-time worker (40 hours per week, 52 weeks) earns $15,080 per year before taxes. After federal income tax and FICA, take-home pay is approximately $13,900. Many states have higher minimums — California's $16.50/hr yields $34,320 gross annually.
What is the federal minimum wage in 2026?
The federal minimum wage remains $7.25 per hour in 2026, unchanged since July 2009. However, 30 states and the District of Columbia have set their own minimum wages above the federal floor. Workers are entitled to the higher of the federal or state rate.
Which states have the highest minimum wage?
As of 2026, Washington state ($16.66), California ($16.50), New York ($16.50 in NYC), and Massachusetts ($15.75) have among the highest state minimums. The District of Columbia leads at $17.50. Several cities, including Seattle and San Francisco, set even higher local minimums.
Does a minimum wage worker owe federal income tax?
A single filer earning the federal minimum wage ($15,080 annually) has taxable income below zero after the $16,100 standard deduction in 2026, meaning zero federal income tax. However, FICA (7.65%) is still withheld — about $1,154 per year. The worker may also qualify for the earned income tax credit (EITC), which can result in a net refund.
How many hours is full-time for minimum wage?
There is no federal legal definition of full-time hours, but 40 hours per week is the standard used by the Department of Labor and most employers. The FLSA requires overtime pay (1.5x) for non-exempt workers who exceed 40 hours in a workweek. This calculator uses 40 hours as the default.
- Sources: DOL Wage and Hour Division (federal min $7.25, state rates) · IRS Rev. Proc. 2025-32 (2026 standard deduction $16,100) · SSA 2026 FICA rates.
- 🔄 Last updated July 25, 2026 · Tax year 2026
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