Tipped workers
Employers must generally pay tipped employees at least $2.13 an hour if they claim a tip credit. If the employee's tips plus the hourly wage do not equal the minimum wage, the employer must make up the difference.
The Indiana minimum wage for 2026 and 2027, the tipped and youth rates, and how the rate is set each year. Every figure links to its official source below.
| Rate | 2026 (now) | 2027 |
|---|---|---|
| Standard minimum wage | $7.25 | $7.25 |
| Tipped employees (cash wage) If the employer claims a tip credit; tips must bring the total up to the full minimum wage. | $2.13 | $2.13 |
| Employees under 20, first 90 days (training wage) | $4.25 | $4.25 |
Current rate in effect since July 24, 2009; next statewide change: the rate stays at $7.25: Indiana's law sets the same $7.25 as the federal rate and lists no later step.
Employers must generally pay tipped employees at least $2.13 an hour if they claim a tip credit. If the employee's tips plus the hourly wage do not equal the minimum wage, the employer must make up the difference.
Indiana employers may pay $4.25 an hour to employees under 20 for the first 90 consecutive calendar days after the employee is first employed by the employer.
This page lists no city or county minimum wages for Indiana; the state rate is the one the Department of Labor publishes.
The Department of Labor's poster says the federal and Indiana minimum wages both rose from $6.55 to $7.25 on July 24, 2009, and shows no later step or inflation adjustment. Most Indiana employers fall under the federal law; the state law matters for those the federal law does not cover.
What does $7.25 an hour leave you after tax in Indiana? Run it through the paycheck calculator.
Open the paycheck calculator →Every state side by side: minimum wage by state 2026 and minimum wage by state 2027.
$16.90 now; tipped, youth and local rates.
$15.00 now; tipped, youth and local rates.
$11.00 now; tipped, youth and local rates.
$13.73 now; tipped, youth and local rates.
$15.15 now; tipped, youth and local rates.
$15.16 now; tipped, youth and local rates.
$17.13 now; tipped, youth and local rates.
$15.00 now; tipped, youth and local rates.
$17.00 now; tipped, youth and local rates.
$7.25 now; tipped, youth and local rates.
$16.94 now; tipped, youth and local rates.
$7.25 now; tipped, youth and local rates.
$15.92 now; tipped, youth and local rates.
$7.25 now; tipped, youth and local rates.
$7.25 now; tipped, youth and local rates.
$7.25 now; tipped, youth and local rates.
$7.25 now; tipped, youth and local rates.
$11.00 now; tipped, youth and local rates.
$12.77 now; tipped, youth and local rates.
$15.00 now; tipped, youth and local rates.
$15.00 now; tipped, youth and local rates.
Every 2026 state minimum wage vs the $7.25 federal floor, DOL-sourced, all 50 states + DC + territories
Every 2027 state minimum wage vs the $7.25 federal floor, official-source verified, all 50 states + DC + territories
Federal, state, FICA withholding, net take-home, W-4 alignment
Convert annual salary to hourly wage, part-time calculations