Minimum wage in Indiana
Indiana 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
Applies to employers with 2+ employees.
What the minimum wage pays in Indiana
| Period | Before taxes | After taxes (estimate) |
|---|---|---|
| Hour | $7.25 | $6.50 |
| Week (40 hours) | $290 | $260 |
| Month | $1,257 | $1,126 |
| Year (2,080 hours) | $15,080 | $13,511 |
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 Indiana minimum.
How Indiana compares with its neighbors
| State | Minimum wage | Next change |
|---|---|---|
| Indiana | $7.25 | — |
| Illinois | $15.00 | — |
| Kentucky | $7.25 | — |
| Michigan | $13.73 | $15.00 on January 1, 2027 |
| Ohio | $11.00 | $11.40 on January 1, 2027 |
Frequently asked questions
- What is the minimum wage in Indiana?
- Indiana follows the federal minimum wage of $7.25 an hour.
- Is Indiana'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 Indiana?
- 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 Indiana?
- About $15,080 before taxes for 40 hours a week, 52 weeks a year, or roughly $13,511 after federal and state taxes.