Indiana minimum wage 2026
The minimum wage in Indiana is $7.25 an hour in 2026. Indiana has its own minimum wage law with the same figure as federal law, but it reaches only employers with two or more employees that fall outside the federal Fair Labor Standards Act; most Indiana employers are under the federal act.
Contents12 sections
At a glance
| Minimum wage now | $7.25 an hour, since July 24, 2009157 |
|---|---|
| Next change | None scheduled. |
| Tipped employees | $2.13 cash wage, tip credit up to $5.1216 |
| Overtime | 1.5 times the regular rate after 40 hours a week15 · details |
| Full-time pay | $290 a week, $15,080 a year at 40 hours a week before taxes · calculate for your hours |
| Enforced by | Indiana Department of Labor, Wage and Hour Division, (317) 232-2655 |
What to know about the Indiana minimum wage
Indiana's minimum wage law dates from 1965, and its figure has been $7.25 since July 24, 2009, when the federal rate reached that level.5 The state law is a backstop rather than a separate standard. An employer covered by the federal Fair Labor Standards Act pays the federal minimum; the Indiana statute applies only to employers with at least two employees that federal law does not reach.
Federal coverage is broad. It reaches businesses with at least $500,000 in yearly sales, as well as hospitals, schools, care homes and government agencies, and it also protects individual employees whose work regularly crosses state lines, such as handling out-of-state orders or phone calls.8 The workers who rely on Indiana law are mostly those at small, purely local businesses. For them the result in 2026 is the same $7.25, along with a $2.13 cash wage for tipped staff and a $4.25 training wage for employees under 20 during their first 90 days.1
The Wage and Hour Division of the Indiana Department of Labor enforces the state minimum wage and overtime rules and accepts unpaid-wage claims through an online form.2 Under Indiana's wage payment law, an employer that fails to pay wages on time owes the wages plus attorney fees and court costs, and twice the amount due as liquidated damages if it acted in bad faith.2 Covered employers must display the Indiana Minimum Wage poster.
All 2026 rates
| Rate | Applies to | Per hour |
|---|---|---|
| State and federal minimum | Federally covered employers, and employers with two or more employees that the federal law does not cover | $7.25157 |
| Training wage, workers under 20 | May be paid for the first 90 consecutive calendar days after the employee is first hired. | $4.251 |
Tipped employees
| Tip credit | Allowed |
|---|---|
| Minimum cash wage | $2.13 an hour16 |
| Maximum tip credit | $5.12 an hour |
An employer claiming a tip credit must pay at least $2.13 an hour in cash in 2026.
An employer that takes a tip credit must make up the difference whenever wages plus tips fall short of the full minimum wage for the workweek. See the tipped minimum wage guide.
Overtime and salaried staff
| Weekly overtime | After 40 hours in a workweek, at 1.5 times the regular rate15 |
|---|---|
| Daily overtime | None in state law |
| Exempt salary | The federal level, $684 a week ($35,568 a year) |
Time and a half after 40 hours a week under the Indiana Minimum Wage Law, which covers employers of two or more employees and mainly reaches workers not covered by the federal FLSA; exceptions are listed in IC 22-2-2-3.
Overtime at the minimum wage of $7.25 is $10.875 an hour. Salaried managers, administrators and professionals are exempt from overtime only if they meet the duties tests and are paid at least the exempt salary. See overtime rules in every state or calculate pay with overtime.
How the rate changes
The rate is written into the statute and has matched the federal minimum since July 24, 2009. There is no inflation index; a change needs an act of the General Assembly.
Indexed to inflation: no. Not indexed; set in statute at the federal $7.25.5
Rate history
Who is covered
The state law covers employers with two or more employees in a workweek that are not subject to the federal minimum wage; every other employer pays the federal minimum. Overtime is one and a half times the regular rate after 40 hours, with many exceptions listed in IC 22-2-2-3.
Cities and counties
Cities, towns and counties may not require a minimum wage above the state or federal rate (IC 22-2-2-10.5). IC 22-2-16 also bars local rules on other employment benefits and terms.
Largest cities in Indiana
- IndianapolisFederal rate $7.25
Cities of Indiana among the 50 most populous in the US (U.S. Census Bureau, Vintage 2025 estimates for July 1, 2025). “Local” marks a city with its own minimum wage, “Regional” a state wage region, and “Federal rate” a city where the federal $7.25 is the rate that applies.
Neighboring states
If you live near a state line, the rate that applies is the one where you do the work, not where you live or where the employer is based.
| State | Per hour now |
|---|---|
| Illinois | $15.00 |
| Michigan | $13.73 |
| Ohio | $11.00 |
| Kentucky | $7.25 |
Compare every state on the ranked list and map.
Get help or file a claim
If you are paid less than the minimum wage that applies to your job, you can file a wage claim with the agency below. Federal law prohibits firing or otherwise retaliating against a worker for complaining about federal minimum wage rights.
| Agency | Indiana Department of Labor, Wage and Hour Division |
|---|---|
| Phone | (317) 232-2655 |
| The law | Indiana Minimum Wage Law of 1965, IC 22-2-2; IC 22-2-2-10.5 (local minimum wage preemption); Fair Labor Standards Act, 29 U.S.C. 206 |
| Federal | U.S. Department of Labor, Wage and Hour Division, 1-866-487-9243 |
Sources
- 1 Indiana Department of Labor, Indiana Minimum Wage Law poster Checked Oct 9, 2026 · Back to text ↑
- 2 Indiana Department of Labor, Wage and Hour Division Checked Oct 9, 2026 · Back to text ↑
- 3 FindLaw, Indiana Code 22-2-2-10.5 (text via FindLaw, cross-check only) Secondary reference · Checked Oct 9, 2026
- 4 FindLaw, Indiana Code 22-2-2-3 (text via FindLaw, cross-check only) Secondary reference · Checked Oct 9, 2026
- 5 U.S. Department of Labor, Wage and Hour Division, State Minimum Wage Laws Checked Oct 9, 2026 · Back to text ↑
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