Indiana Minimum Wage 2026: $7.25, Tied to the Federal Rate
Indiana’s minimum wage is $7.25 an hour in 2026, unchanged since July 24, 2009. The state law, IC 22-2-2-4, requires the federal minimum wage rather than setting its own figure, so Indiana moves only when the federal rate does. Tipped employees can be paid a $2.13 cash wage if tips bring them to $7.25. There are no city or county rates, and no increase is scheduled.
Indiana at a glance
| Current rate | $7.25 / hour |
|---|---|
| Effective | July 24, 2009 (federal rate, adopted by IC 22-2-2-4) |
| Tipped cash wage | $2.13 / hour ($5.12 maximum tip credit) |
| Next scheduled change | None; follows any change to the federal rate |
| Who the state law covers | Employers with 2+ employees not subject to the federal FLSA; FLSA-covered employers pay the federal $7.25 |
| Local rates | None; no Indiana city or county sets its own rate |
| Youth rate | $4.25 for under-20s in their first 90 days (federal); see exceptions below |
| Overtime | 1.5x after 40 hours a week; no daily overtime |
How the Indiana minimum wage is set
Indiana does not write a dollar figure into its minimum wage law any more. Since 2007, IC 22-2-2-4(c) has required employers with at least two employees to pay, for any workweek beginning on or after June 30, 2007, "wages of not less than the minimum wage payable under the federal Fair Labor Standards Act of 1938." The federal rate has been $7.25 since July 24, 2009, and the Indiana Department of Labor's minimum wage poster confirms that "both the federal and Indiana state minimum wage increased from $6.55 per hour to $7.25 per hour, effective July 24, 2009."
Because the state rate is tied to the federal rate by reference, there is no inflation index and no schedule of increases. The Indiana rate moves only if Congress raises the federal minimum or the General Assembly amends the statute.
Who the Indiana law covers
Most Indiana employers owe $7.25 because of federal law, not state law. IC 22-2-2-3 defines an "employer" as one with two or more employees in a workweek, but excludes "any employer who is subject to the minimum wage provisions of the federal Fair Labor Standards Act." The FLSA reaches every enterprise with at least $500,000 in annual sales, plus any worker individually engaged in interstate commerce (DOL Fact Sheet #14). The Indiana law fills in for smaller businesses the federal law does not reach. Either way the floor is $7.25.
Tipped employees
Indiana allows a tip credit. Under IC 22-2-2-4(d), an employer may pay a tipped employee a cash wage of $2.13 an hour and count tips toward the rest. If the cash wage plus tips comes to less than $7.25 for the hours worked, the employer pays the difference. The Department of Labor defines a tipped employee as one who "customarily and regularly receives more than $30 a month in tips." That matches the federal rule, where the maximum tip credit is $5.12 (DOL tipped wage table, updated July 1, 2026).
Local minimum wages in Indiana
There are none. Indianapolis, Fort Wayne, Evansville, South Bend and every other Indiana city use the state rate of $7.25. Indiana law also bars a city or county from requiring employers to provide any benefit, term of employment or working condition beyond what state or federal law requires (IC 22-2-16-3), so local paid sick leave or scheduling mandates are also off the table.
Exceptions: youth, students and overtime
- Youth opportunity wage. Federal law allows $4.25 an hour for workers under 20 during their first 90 consecutive calendar days with an employer. The Indiana Department of Labor's poster describes a matching state "training wage," but one of the department's own online answers says the state provision was repealed in 2020. If you plan to use it, confirm with the department first.
- Minors. Apart from that, teen workers are owed the full minimum wage. The hours limits for 14- and 15-year-olds are covered on our Indiana labor laws page.
- Certificates. Full-time students, student-learners and some workers with disabilities can be paid less only under a federal certificate.
- Overtime. Indiana's overtime rule matches the federal one: 1.5 times the regular rate after 40 hours in a workweek, with no daily overtime.
What this means for hiring
$7.25 is a legal floor, not a hiring wage, for almost any frontline job in Indiana. The rate you have to beat is set by the warehouse, hospital or plant down the road, not the statute. The number worth watching is the federal minimum, since Indiana would follow any increase automatically. For pay transparency, Indiana has no law requiring a range in the posting, but candidates filter by pay anyway, so an ad that leads with the hourly rate gets read. To see what an Indiana hire costs at the wage you actually pay, including payroll taxes, use our employee cost calculator, and for breaks, overtime, final pay and hiring rules see Indiana labor laws.
Frequently asked questions
What is the minimum wage in Indiana in 2026?
$7.25 an hour, the same as the federal minimum wage. Indiana's statute, IC 22-2-2-4, requires the federal FLSA rate rather than naming its own figure, and the rate has been $7.25 since July 24, 2009. Tipped employees can be paid a $2.13 cash wage if tips bring them to $7.25. There are no higher city or county rates anywhere in Indiana.
Is Indiana raising its minimum wage?
No increase is scheduled. Because Indiana's law adopts the federal minimum wage by reference, the state rate changes only if Congress raises the federal rate, in which case Indiana would follow automatically, or if the General Assembly amends the statute. No such change had been enacted as of September 24, 2026. Plan around $7.25, and $2.13 cash wage for tipped staff.
What is the tipped minimum wage in Indiana?
$2.13 an hour in cash wages, with tips making up the rest of the $7.25 minimum. If the cash wage plus tips falls short of $7.25 for the hours worked, the employer must pay the difference. The Indiana Department of Labor defines a tipped employee as one who customarily and regularly receives more than $30 a month in tips, the same threshold as federal law.
Can Indianapolis set a higher minimum wage?
No. Indianapolis and other Indiana cities use the state rate of $7.25, which is tied to the federal rate. Indiana law also bars local governments from requiring employers to provide benefits, working conditions or leave and scheduling policies beyond state and federal law (IC 22-2-16-3), so there are no local sick leave or scheduling ordinances either.
Can Indiana employers pay teenagers less than minimum wage?
Generally no. Federal law allows a youth opportunity wage of $4.25 an hour for workers under 20 during their first 90 consecutive calendar days with an employer, and the Indiana Department of Labor's poster describes a matching state training wage. One of the department's online answers says the state version was repealed in 2020, so confirm with the department before relying on it. After 90 days, the full $7.25 applies.
Hiring hourly workers in Indiana?
We write and run Facebook and Instagram job ads that lead with the pay and shift, so your openings reach people who will apply.
Book a DemoPart of Boostpoint’s minimum wage by state series.