Alabama Minimum Wage Calculator 2026
Alabama minimum wage: $7.25/hr (tipped: $2.13/hr). Calculate annual salary, monthly income, and take-home pay at minimum wage.
How This Calculator Works
Calculation methodology and assumptions
This calculator computes annual, monthly, and weekly earnings at Alabama's minimum wage of $7.25/hr. For tipped employees, the base rate is $2.13/hr. The federal minimum wage is $7.25/hr — Alabama follows the federal rate. Calculations assume no overtime and consistent hours.
Key State Information
Alabama minimum wage: $7.25/hr. Tipped rate: $2.13/hr. Alabama allows a tip credit, meaning employers can pay tipped employees $2.13/hr as long as tips bring total compensation to at least $7.25/hr. Alabama follows the federal minimum wage of $7.25/hr.
Frequently Asked Questions
What is the minimum wage in Alabama in 2026?
Alabama's minimum wage is $7.25/hr as of 2026. For tipped employees, the minimum is $2.13/hr. Working 40 hours/week, 52 weeks/year, this equals approximately $15,080 gross annual income.
Is Alabama's minimum wage going up?
Many states have scheduled annual minimum wage increases tied to inflation (CPI). Check Alabama's Department of Labor for upcoming rate changes. Several states are gradually increasing toward $15/hr.
Can you live on minimum wage in Alabama?
Alabama's cost of living index is 88.1 (100 = national average). At $7.25/hr full time, you'd earn about $15,080/year before taxes. With below-average costs, this is modestly more feasible but still difficult.