Current minimum wage in Indiana
Indiana's minimum wage matches the federal rate of $7.25 an hour, and tipped workers can be paid $2.13 in cash wages. State law prevents cities such as Indianapolis from adopting a higher local minimum.
The rate rose from $6.55 (effective July 24, 2008) to $7.25 on July 24, 2009, an increase of $0.70 an hour or $1,456 a year for a full-time worker.
Next scheduled change
No increase is scheduled; the rate would change only if Congress raises the federal minimum wage.
Tipped minimum wage
Employers may pay tipped employees a cash wage of $2.13 an hour and count tips toward the rest, as long as total pay reaches $7.25 an hour. The federal tipped cash wage is $2.13. Employers may pay tipped workers $2.13 an hour in cash if tips bring total pay to at least $7.25; otherwise the employer must make up the difference.
What minimum wage pays in Indiana
| Hours per week | Weekly pay | Yearly pay |
|---|---|---|
| 20 hours | $145.00 | $7,540 |
| 25 hours | $181.25 | $9,425 |
| 30 hours | $217.50 | $11,310 |
| 35 hours | $253.75 | $13,195 |
| 40 hours | $290.00 | $15,080 |
After federal and Indiana taxes, a full-time minimum wage worker who files single keeps about $13,227 a year, or $509 per biweekly check. Run your own numbers with the Indiana paycheck calculator or see the full breakdown for $8 an hour.
Overtime rules
Follows the federal 40-hour weekly overtime rule.
City and county minimum wages
Local minimum wages are not allowed.
Exceptions and special rates
The state minimum wage law applies to employers with 2 or more employees, and federal law allows a $4.25 youth wage for workers under 20 during their first 90 days on the job.
How Indiana compares
Indiana ranks #32 of 51 for its minimum wage, tied with 19 other states at the same rate. The federal minimum wage is $7.25 an hour.
Frequently asked questions
What is the minimum wage in Indiana in 2026?
Indiana uses the federal minimum wage of $7.25 an hour for most workers.
What is the tipped minimum wage in Indiana?
Employers in Indiana may pay tipped workers a cash wage of $2.13 an hour, as long as tips bring total pay to at least $7.25. Employers may pay tipped workers $2.13 an hour in cash if tips bring total pay to at least $7.25; otherwise the employer must make up the difference.
When does the Indiana minimum wage go up next?
No increase is scheduled; the rate would change only if Congress raises the federal minimum wage.
How much is minimum wage in Indiana per year?
At $7.25 an hour, a 40-hour week pays $290 and a full year pays $15,080 before taxes. A single filer keeps about $13,227 after federal and Indiana taxes.
How does overtime work in Indiana?
Follows the federal 40-hour weekly overtime rule.