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Alabama Minimum Wage

No state minimum wage law; the federal $7.25 applies.

Effective minimum wage in Alabama

$7.25/hr

Federal floor
$7.25
State average
$11.51
vs state average
$-4.26
Rank (highest = 1)
32 of 51
Full-time annual (40h × 52wk)
$15,080

Alabama compared with nearby-ranked states

RankStateMinimum wage
30Montana$10.85
31West Virginia$8.75
32Alabama$7.25
33Georgia$7.25
34Idaho$7.25

What Alabama's minimum wage means in practice

At $7.25 an hour, full-time work (40 hours a week, 52 weeks) pays about $15,080 a year before tax. Alabama has not set a rate above the federal $7.25 floor, which has been unchanged since 2009. Where a city or county sets a higher local minimum, that rate applies to work performed there.

Note: No state minimum wage law; the federal $7.25 applies.

Tipped workers, and in some states young or trainee workers, may be paid a lower base rate. See minimum wage changes in 2026for how and when rates move.

Source: aggregated 2026 state minimum-wage table; confirm the exact current rate and effective date with the Alabama labor department. See also the Alabama sales tax rate.

Nearby states

Frequently asked questions

What is the minimum wage in Alabama?
$7.25 per hour, which matches the federal minimum of $7.25 (the state sets no higher rate). Some cities in the state may set a higher local minimum.
How does Alabama compare nationally?
It ranks 32 of 51 states and DC, below the state average of about $11.51 by $4.26. The federal floor is $7.25.
What is $7.25 an hour as an annual salary?
About $15,080 a year at 40 hours a week for 52 weeks, before tax and before any overtime. Part-time or seasonal work earns proportionally less.
What is $7.25 an hour after tax in Alabama?
Roughly $1,106 a month take-home as a rough estimate, depending on filing status and deductions. Use a paycheck calculator for a precise figure.
Does this include tipped or youth wages?
No. Tipped minimum cash wages (as low as $2.13 federally, provided tips make up the difference) and training or youth rates are set separately and are often lower. Check the state labor department.
When does the minimum wage change?
Most increases take effect on January 1; a few states and cities use July 1, and some (like Florida) have their own dated schedule. States that index to inflation adjust automatically each year.

Last reviewed: September 2026. Figures and formulas are checked against their published sources; see the site's data notes.