Minimum wage in Alabama
Alabama has no minimum wage above the federal level, so most workers are covered by the federal rate of $7.25 an hour. Full-time, that works out to $15,080 a year before taxes.
Last verified November 2, 2026. Sources: dol.gov.
$7.25Minimum wage per hour
$2.13Tipped cash wage
$10.88Overtime rate (1.5×)
—No change scheduled
Who gets which rate
No state minimum wage law; federal FLSA rate applies.
What the minimum wage pays in Alabama
| Period | Before taxes | After taxes (estimate) |
|---|---|---|
| Hour | $7.25 | $6.46 |
| Week (40 hours) | $290 | $258 |
| Month | $1,257 | $1,120 |
| Year (2,080 hours) | $15,080 | $13,437 |
After-tax figures assume a single filer with the standard deduction, tax year 2026. Run your own numbers.
Overtime
Non-exempt workers earn at least 1.5 times their regular rate for hours over 40 in a workweek, which is $10.88 an hour at the Alabama minimum.
How Alabama compares with its neighbors
| State | Minimum wage | Next change |
|---|---|---|
| Alabama | $7.25 | — |
| Florida | $15.00 | — |
| Georgia | $7.25 | — |
| Mississippi | $7.25 | — |
| Tennessee | $7.25 | — |
Frequently asked questions
- What is the minimum wage in Alabama?
- Alabama follows the federal minimum wage of $7.25 an hour.
- Is Alabama's minimum wage going up?
- No increase is scheduled right now. Wagevane checks for announcements and updates this page automatically.
- What is the tipped minimum wage in Alabama?
- Employers can pay tipped workers a cash wage of $2.13 as long as tips bring total pay to at least $7.25 an hour.
- How much is minimum wage a year in Alabama?
- About $15,080 before taxes for 40 hours a week, 52 weeks a year, or roughly $13,437 after federal and state taxes.