Minimum wage in Kentucky, 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.
- Overtime
Premium pay after 40 hours a week1
As the U.S. DOL summarizes it: Weekly - 40, 7th day
The Kentucky minimum wage rose from $5.15 in 2000 to $7.25 in 2010, still the rate in 2026
Line chart of the Kentucky 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 Kentucky
At $7.25 an hour for 40 hours a week, a new employer with 10 staff pays $15,080 in wages and $1,634 on top (10.8%) in payroll taxes and workers' comp.
- Wages (2,080 paid hours a year)
- $15,080
- Social Security (employer share)6.2%4 of $15,080
- $935
- Medicare (employer share)1.45%5 of $15,080
- $219
- Workers' compensation (benchmark index rate)$0.76 per $100 of payroll8
- $115
- Total a year
- $16,714
If you also offer single health coverage, the average employer here pays about $6,989 more a year: a $8,936 average premium9 less $1,947 paid by the employee9.
Frequently asked questions
What is the minimum wage for tipped employees in Kentucky?
$2.13 an hour in cash, with up to $5.12 of tips counted toward Kentucky's $7.25.
How much does a minimum-wage employee cost an employer in Kentucky?
About $16,714 a year full time at $7.25: $15,080 of pay plus $1,634 on top, $1,520 in payroll taxes and $115 in workers' comp, before any health coverage.
When do Kentucky employers have to pay overtime?
The U.S. DOL lists Kentucky's premium pay as «Weekly - 40, 7th day», at one and one-half times the regular rate unless otherwise specified.
More minimum wage and employer cost pages
Employer costs in Kentucky
States with a similar minimum wage
Data and rules for every state
Sources
The 9 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
- U.S. Department of Labor, Wage and Hour Division dol.gov/agencies/whd/minimum-wage/state“Kentucky Basic Minimum Rate (per hour): $7.25” “Kentucky … Basic Minimum Rate (per hour): $7.25 … Premium Pay After Designated Hours 1 : Weekly - 40, 7th day … 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 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.) … Kentucky $7.25 $5.12 $2.13 More than $30”
- 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“Kentucky .65 - .75(b) .65 - .75(b) .65 - .75(b) 1.60 2.00 2.15 2.15 … Kentucky 3.35 3.80 4.25 4.25 4.25 4.25 4.25 … Kentucky 5.15 5.15 5.15 5.15 5.15 5.15 5.15 … Kentucky 5.15 5.85 6.55 7.25 7.25 7.25 7.25 … Kentucky 7.25 7.25 7.25 7.25 7.25 7.25 … Kentucky 7.25 7.25 7.25 7.25 7.25” “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” “For the years indicated, the laws in Arizona, Arkansas, California, Colorado, Kentucky, Minnesota, Ohio, Utah, and Wisconsin applied only to women and minors.”
- 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. … KY … 2.70%” “KY … $12,000”
- Oregon Department of Consumer and Business Services oregon.gov/dcbs/reports/cost/Pages/premium-index-rates.aspx“Premium index rate: $0.75-$1.00 … State Index rate Percent of study median … 41 46 Kentucky 0.76 70%”
- 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 … Kentucky 8,936 -- 9,375 9,388 9,136 8,573 9,644 8,810” “Table II.C.2 Average total employee contribution (in dollars) per enrolled employee for single coverage … Division and State Total … Kentucky 1,947 -- -- 1,212 1,750 1,980 2,306 * 1,884”