Minimum wage in Indiana, 2000–2026
- Minimum wage in 2026
$7.25 an hour (federal and state law)1
The same as the federal rate.
- Tipped employees
$2.13 an hour in cash2
The cash wage federal law requires; up to $5.12 of tips counted toward the minimum wage. Tipped: more than $30 a month in tips.
- Who it covers
Applicable to employers of 2 or more employees3
- Overtime
Premium pay after 40 hours a week3
The Indiana minimum wage rose from $5.15 in 2000 to $7.25 in 2010, still the rate in 2026
Line chart of the Indiana minimum wage against the federal minimum: $5.15 in 2000, $7.25 in 2010, $7.25 in 2020, and $7.25 in 2026. The federal minimum was $5.15 in 2000 and $7.25 in 2026.
What a full-time minimum-wage employee costs in Indiana
At $7.25 an hour for 40 hours a week, a new employer with 10 staff pays $15,080 in wages and $1,540 on top (10.2%) in payroll taxes and workers' comp.
- Wages (2,080 paid hours a year)
- $15,080
- Social Security (employer share)6.2%5 of $15,080
- $935
- Medicare (employer share)1.45%6 of $15,080
- $219
- Workers' compensation (benchmark index rate)$0.71 per $100 of payroll9
- $107
- Total a year
- $16,620
If you also offer single health coverage, the average employer here pays about $6,218 more a year: a $8,355 average premium10 less $2,137 paid by the employee10.
Frequently asked questions
What is the minimum wage in Indiana in 2026?
$7.25 an hour, the same as the federal rate.
What is the minimum wage for tipped employees in Indiana?
$2.13 an hour in cash, with up to $5.12 of tips counted toward Indiana's $7.25.
How much does a minimum-wage employee cost an employer in Indiana?
About $16,620 a year full time at $7.25: $15,080 of pay plus $1,540 on top, $1,433 in payroll taxes and $107 in workers' comp, before any health coverage.
Which employers must pay the Indiana minimum wage?
Applicable to employers of 2 or more employees.
More minimum wage and employer cost pages
Employer costs in Indiana
States with a similar minimum wage
Data and rules for every state
Sources
The 10 pages this page's facts come from, with the day we last checked each one. The numbers beside the figures above link here.
Quotes from the sources
- Indiana Department of Labor in.gov/dol/files/updated-pdfs-4-7-2026/Indiana2009MinimumWage.pdf“Both the federal and Indiana state minimum wage increased from $6.55 per hour to $7.25 per hour, effective July 24, 2009.”
- U.S. Department of Labor, Wage and Hour Division dol.gov/agencies/whd/state/minimum-wage/tipped“Definition of Tipped Employee by Minimum Tips received (monthly unless otherwise specified) … State minimum cash wage payment is the same as that required under the federal Fair Labor Standards Act ($2.13/hr.) … Indiana $7.25 $5.12 $2.13 More than $30”
- U.S. Department of Labor, Wage and Hour Division dol.gov/agencies/whd/minimum-wage/state“Indiana … Basic Minimum Rate (per hour): $7.25 … Applicable to employers of 2 or more employees … Premium Pay After Designated Hours 1 : Weekly - 40 … The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified.”
- U.S. Department of Labor, Wage and Hour Division Changes in Basic Minimum Wages in Non-Farm Employment Under State Law: Selected Years 1968 to 2024“Indiana 1.15 1.25 1.25 1.25 2.00 2.00 2.00 … Indiana 2.00 3.35 3.35 3.35 3.35(e) 3.35(e) 3.35(e) … Indiana 5.15(e) 5.15(e) 5.15(e) 5.15(e) 5.15(e) 5.15(e) 5.15(e) … Indiana 5.15(e) 5.85(e) 6.55(e) 7.25(e) 7.25(e) 7.25(e) 7.25(e) … Indiana 7.25(e) 7.25(e) 7.25(e) 7.25(e) 7.25(e) 7.25(e) … Indiana 7.25(e) 7.25(e) 7.25(e) 7.25(e) 7.25(e)” “Federal (FLSA) $1.15 & $1.60 $1.30 & $1.60 $1.60 $2.20 & $2.30 $2.90 $3.10 $3.35 … Federal (FLSA) $3.35 $3.80 $4.25 $4.25 $4.25 $4.75 $5.15 … Federal (FLSA) $5.15 $5.15 $5.15 $5.15 $5.15 $5.15 5.15 … Federal (FLSA) 5.15 5.85 6.55 7.25 7.25 7.25 7.25 … Federal (FLSA) 7.25 7.25 7.25 7.25 7.25 7.25 … Federal (FLSA) 7.25 7.25 7.25 7.25 7.25” “Rates applicable to employers of two or more.”
- Internal Revenue Service IRS Publication 15 (Circular E), Employer's Tax Guide“For 2026, the social security tax rate is 6.2% (amount withheld) each for the employer and employee (12.4% total).”
- Social Security Administration ssa.gov/oact/cola/cbb.html“Tax rates under the HI program are 1.45 percent for employees and employers, each, and 2.90 percent for self-employed persons.”
- Internal Revenue Service irs.gov/taxtopics/tc759“If you're entitled to the maximum 5.4% credit, the FUTA tax rate after credit is 0.6%.” “FUTA tax rate: The FUTA tax rate is 6.0%. The tax applies to the first $7,000 you paid to each employee as wages during the year.”
- U.S. Department of Labor, Employment and Training Administration oui.doleta.gov/unemploy/content/sigpros/2020-2029/January2026.pdf“New employer rate shown is the base rate. … IN … 2.50%” “IN … $9,500”
- Oregon Department of Consumer and Business Services oregon.gov/dcbs/reports/cost/Pages/premium-index-rates.aspx“Premium index rate: Less than $0.75 … State Index rate Percent of study median … 45 48 Indiana 0.71 65%”
- Agency for Healthcare Research and Quality (MEPS-IC) meps.ahrq.gov/mepsweb/data_stats/summ_tables/insr/state/series_2/2025/ic25_iia_f.pdf“Table II.C.1 Average total single premium (in dollars) per enrolled employee … Division and State Total … Indiana 8,355 -- -- 8,658 9,478 7,849 7,330 8,455” “Table II.C.2 Average total employee contribution (in dollars) per enrolled employee for single coverage … Division and State Total … Indiana 2,137 -- -- 3,075 2,348 1,807 1,920 2,158”