Alabama Minimum Wage 2026: $7.25/hr Calculator

How Alabama Minimum Wage Compares to the Federal Rate

Alabama's 2026 minimum wage of $7.25 per hour is equal to the $7.25 federal minimum. The federal minimum wage of $7.25 per hour has not changed since 2009, meaning workers in states like Alabama rely on state law for meaningful wage floors.

At $7.25/hr working full-time (40 hours/week, 52 weeks/year), a Alabama worker earns $15,080.00 gross annually. That equals $290.00 per week and roughly $1,256.67 per month.

These figures are gross (before taxes). Your take-home pay will be lower after federal income tax, Social Security (6.2%), and Medicare (1.45%) deductions. Use our Alabama Income Tax Calculator for a net-pay estimate.

Last updated: May 2026. Rates sourced from the Alabama Department of Labor and the U.S. Department of Labor Wage and Hour Division.

Tipped Workers in Alabama

The tipped minimum wage in Alabama is $2.13 per hour in 2026. Employers may pay tipped employees as little as $2.13/hr, but total compensation including tips must reach $7.25/hr. If tips fall short, the employer must make up the difference.

Tipped workers covered by Alabama law include restaurant servers, bartenders, valets, and other service workers who regularly receive tips. Always check your pay stub to ensure your employer is meeting the full minimum wage requirement.

Note: No state law, federal floor applies.

Alabama Wage Increase Schedule

The 2026 minimum wage for Alabama is $7.25/hr. Here is what workers and employers should know about upcoming changes: No state law, federal floor applies.

Employers must post the current Alabama minimum wage notice at their place of business. Violations can result in back-pay orders and civil penalties. Workers who believe they are being underpaid can file a complaint with the Alabama Department of Labor or the U.S. Department of Labor.

Bookmark this page — we update Alabama wage data each time the state announces a new rate, including CPI-indexed adjustments.