Wagevane

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

PeriodBefore taxesAfter 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

StateMinimum wageNext 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.