Minimum wage in Tennessee, 2000–2026
- Minimum wage in 2026
$7.25 an hour (federal)
- Tipped employees
$2.13 an hour in cash1
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
No state minimum wage law. Employers subject to the Fair Labor Standards Act must pay the current Federal minimum wage of $7.25 per hour.2
- Overtime
Time and a half after 40 hours a week (federal FLSA)3
For covered employees who are not exempt.
Tennessee has no minimum wage of its own; the federal $7.25 applies
Line chart of the Tennessee minimum wage against the federal minimum. The federal minimum was $5.15 in 2000 and $7.25 in 2026.
What a full-time minimum-wage employee costs in Tennessee
At $7.25 an hour for 40 hours a week, a new employer with 10 staff pays $15,080 in wages and $1,505 on top (10.0%) 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)$0.80 per $100 of payroll9
- $121
- Total a year
- $16,585
If you also offer single health coverage, the average employer here pays about $7,022 more a year: a $8,667 average premium10 less $1,645 paid by the employee10.
Frequently asked questions
What is the minimum wage in Tennessee in 2026?
$7.25 an hour, the federal minimum: Tennessee has no minimum wage law.
What is the minimum wage for tipped employees in Tennessee?
$2.13 an hour in cash, with up to $5.12 of tips counted toward Tennessee's $7.25.
How much does a minimum-wage employee cost an employer in Tennessee?
About $16,585 a year full time at $7.25: $15,080 of pay plus $1,505 on top, $1,385 in payroll taxes and $121 in workers' comp, before any health coverage.
More minimum wage and employer cost pages
Employer costs in Tennessee
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
- 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.) … Tennessee 11 $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“Tennessee … No state minimum wage law. … Employers subject to the Fair Labor Standards Act must pay the current Federal minimum wage of $7.25 per hour.”
- U.S. Department of Labor, Wage and Hour Division Overtime Pay - US Department of Labor“Unless exempt, employees covered by the Act must receive overtime pay for hours worked over 40 in a workweek at a rate not less than time and one-half their regular rates of pay.”
- 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“Tennessee ... ... ... ... ... ... ... … Tennessee ... ... ... ... ... ... ... … Tennessee ... ... ... ... ... ... ... … Tennessee ... ... ... ... ... ... ... … Tennessee ... ... ... ... ... ... … Tennessee ... ... ... ... ...” “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”
- 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. … TN … 2.70%” “TN … $7,000”
- 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 … 39 34 Tennessee 0.80 73%”
- 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 … Tennessee 8,667 -- 8,293 7,522 8,274 8,906 8,365 8,712” “Table II.C.2 Average total employee contribution (in dollars) per enrolled employee for single coverage … Division and State Total … Tennessee 1,645 -- -- 1,169 1,596 1,823 986 1,743”