United States · Indiana · Minimum wage
Indiana minimum wage 2027.
The Indiana minimum wage for 2027, whether it changes from 2026, and what it pays by the week, month and year.
Short answer: Indiana's minimum wage is $7.25 an hour, the federal rate, and no change for 2027 is published as of November 9, 2026. The U.S. Department of Labor state table lists the Indiana law as applying to employers of 2 or more employees, with overtime after 40 hours a week. Tipped employees have a $2.13 minimum cash wage and a $5.12 tip credit, so tips must bring the total to at least $7.25.
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Tipped worker top-up
The Indiana minimum wage in 2027
Indiana has no minimum wage above the federal floor. The U.S. Department of Labor state table, updated November 5, 2026, lists a basic minimum rate of $7.25 an hour for Indiana, notes that the law applies to employers of 2 or more employees, and shows premium pay after 40 hours a week. The federal minimum of $7.25 has not changed since July 2009, so most Indiana employers face the same number every year.
| Item | 2026 | 2027 |
|---|---|---|
| Basic minimum rate | $7.25 | $7.25 (no change published) |
| Tipped employees (cash wage) | $2.13 | $2.13 |
| Tip credit | $5.12 | $5.12 |
| Overtime | After 40 hours a week | After 40 hours a week |
What changed from 2026
Nothing is published for 2027. The Department of Labor table shows $7.25 with no scheduled step, and there is no indexing formula in the state listing. If Congress or the state changes the rate, the Department of Labor table is where the new figure will appear first, so check it before you set 2027 pay.
How tipped pay works in Indiana
The tipped-wage table lists Indiana with a minimum cash wage of $2.13, a tip credit of $5.12 and a monthly tip threshold of more than $30 for an employee to be treated as tipped. Tips plus the cash wage must reach $7.25 an hour, and if they fall short the employer makes up the difference. The state table says the rate covers employers of 2 or more employees; smaller employers covered by the federal Fair Labor Standards Act still owe the federal minimum.
Worked example (2027)
A full-time worker at $7.25 an hour, 40 hours a week, earns $290.00 a week, $580.00 every two weeks, $1,256.67 a month and $15,080.00 a year (2,080 hours) before tax. Part-time at 25 hours a week is $181.25 a week and $9,425.00 a year. For a tipped worker the direct cash wage is $2.13. With 30 hours a week and tips averaging $3.00 an hour, pay is $5.13 an hour against $7.25, so the employer owes a top-up of $2.12 an hour, $63.60 for the week.
Common mix-ups
- Indiana follows the federal floor. There is no separate higher state rate, so a figure quoted for a neighboring state does not apply.
- $2.13 is the tipped cash wage, not the minimum. Tips must bring each worker to $7.25 an hour.
- No 2027 increase is published. Pages that show a raise for Indiana in 2027 are not backed by the Department of Labor table.
- Local minimums can be higher. Some local governments set rates above their state minimum, and the Department of Labor table does not display them.
Method
The converter multiplies the hourly rate by your hours per week for weekly pay, doubles it for two weeks, multiplies by 52 weeks (2,080 hours at 40 a week) for annual pay and divides the annual figure by 12 for a month. It is gross pay before tax. The tipped-worker check adds the $2.13 cash wage and your average tips per hour and compares the total with $7.25. If it falls short, the shortfall times your hours is the weekly top-up. Everything runs in your browser and nothing you type is sent anywhere. Figures were read from the sources below on November 9, 2026.
What this does not cover
- Overtime beyond the 40-hour week and exemptions from it.
- Youth, training and sub-minimum wage certificates.
- Taxes and deductions: pay here is gross pay before tax.
- Local rules and employer-specific agreements that pay more than the minimum.
Figures read from the sources below on November 9, 2026. Last updated November 9, 2026.
Sources
- U.S. Department of Labor: State Minimum Wage Laws (updated November 5, 2026) (retrieved November 9, 2026)
- U.S. Department of Labor: Minimum Wages for Tipped Employees (retrieved November 9, 2026)
Frequently asked questions
What is the minimum wage in Indiana in 2027?
It is $7.25 an hour, the federal rate, and the U.S. Department of Labor state table shows no 2027 change as of November 9, 2026.
What is the Indiana tipped minimum wage?
$2.13 an hour in cash wage with a $5.12 tip credit, so cash wage plus tips must equal at least $7.25.
Will Indiana raise its minimum wage in 2027?
No increase is listed on the Department of Labor table, which was updated November 5, 2026.
How much is $7.25 an hour a year?
At 40 hours a week for 52 weeks it is $15,080.00 before tax, or $290.00 a week.
Does Indiana require overtime?
The Department of Labor table lists premium pay after 40 hours a week for Indiana.
Which employers does the Indiana law cover?
The table says employers of 2 or more employees. Employers covered by the federal law owe the federal minimum either way.
Where can I check the rate myself?
On the U.S. Department of Labor state minimum wage table, linked in the sources section.
Not legal advice
This page is general information from an unofficial guide, not legal, payroll or tax advice. Wage laws change and exemptions apply to some workers. Confirm the rate with the state labor agency before you set pay. Nothing you type is sent anywhere.