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

$0$5$10200020052010201520202026$7.25

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.

Data: U.S. Department of Labor, Wage and Hour Division, as of Nov 2, 2026. CC BY 4.0 · LeadChange Group Hiring Cost Atlas. 2000–2024: each year's rate as the U.S. DOL table prints it (2025 is not in its table, so the lines break there). 2026: the rate in force when checked.
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The Indiana minimum wage rose from $5.15 in 2000 to $7.25 in 2010, still the rate in 2026. LeadChange Group Hiring Cost Atlas; Data: U.S. Department of Labor, Wage and Hour Division, as of Nov 2, 2026. CC BY 4.0. https://leadchangegroup.com/guides/minimum-wage-by-state/indiana/#minimum-wage-history

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Every year in the DOL table
The Indiana minimum wage rose from $5.15 in 2000 to $7.25 in 2010, still the rate in 2026: every year of the U.S. Department of Labor table
YearState rateFederal rate
19681.15$1.15 & $1.60
19701.25$1.30 & $1.60
19721.25$1.60
19761.25$2.20 & $2.30
19792.00$2.90
19802.00$3.10
19812.00$3.35
19882.00$3.35
19913.35$3.80
19923.35$4.25
19943.35$4.25
19963.35(e)$4.25
19973.35(e)$4.75
19983.35(e)$5.15
20005.15(e)$5.15
20015.15(e)$5.15
20025.15(e)$5.15
20035.15(e)$5.15
20045.15(e)$5.15
20055.15(e)$5.15
20065.15(e)5.15
20075.15(e)5.15
20085.85(e)5.85
20096.55(e)6.55
20107.25(e)7.25
20117.25(e)7.25
20127.25(e)7.25
20137.25(e)7.25
20147.25(e)7.25
20157.25(e)7.25
20167.25(e)7.25
20177.25(e)7.25
20187.25(e)7.25
20197.25(e)7.25
20207.25(e)7.25
20217.25(e)7.25
20227.25(e)7.25
20237.25(e)7.25
20247.25(e)7.25

As printed by the U.S. Department of Labor (“...” means no state rate applied). The table's key: (e) Rates applicable to employers of two or more.4

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
FUTA (federal unemployment tax)0.6% (after the full 5.4% state credit)7 of $7,0007
$42
State unemployment insurance (new employer)2.5%8 of $9,5008
$238
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.

Change the inputs in the Indiana employer cost calculator

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.

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
  1. 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.”
  2. 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”
  3. 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.”
  4. 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.”
  5. 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).”
  6. 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.”
  7. 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.”
  8. 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”
  9. 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%”
  10. 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”