Federal Minimum Wage Take-Home Pay: How Much Do You Actually Earn? (2026)

The federal minimum wage is $7.25 per hour. The US Department of Labor minimum-wage history is the primary source for that federal floor. Many states and cities require higher minimum wages.

Federal Minimum Wage After Taxes in Texas

A full-time schedule of 2,080 hours per year at $7.25 per hour produces $15,080 in gross annual wages. The table compares engine-derived Texas estimates for a single filer paid biweekly with a standard W-4 and no pre-tax deductions.

Hourly rate	Annual gross	Annual take-home	Biweekly take-home
$7.25/hr federal minimum wage	$15,080	$13,926	$536
$15/hr	$31,200	$27,249	$1,048
$20/hr	$41,600	$35,606	$1,369

Why Your Actual Paycheck May Differ

Your state, local taxes, schedule, W-4 elections, and workplace deductions can change take-home pay. Texas is used here as a simple comparison because it does not levy wage-based state personal income-tax withholding.

Minimum wage and gross pay

Federal minimum wage is $7.25 per hour for covered non-exempt workers; many states and cities set higher minimums. Full-time at $7.25 for 40 hours per week and 52 weeks produces $15,080 annual gross before taxes. A $15/hour minimum — common in several states — yields $31,200 annual gross at full-time hours.

Use the $15/hour calculator and $20/hour page to see gross annual equivalents and modeled take-home in benchmark states.

Tax burden on low wages

Federal income tax on low wages may be small or zero after standard deduction effects in annual tax, but paycheck withholding still applies based on W-4 and pay frequency. FICA applies to every dollar of wages — Social Security at 6.2% and Medicare at 1.45% — which is a meaningful share of income at minimum wage levels.

State supplements and local rules

States with no income tax on wages simplify pay stubs for minimum-wage workers. States with flat or progressive income tax withhold additional amounts. Some cities mandate higher minimum wages than state law — gross pay rises, and withholding scales with it.

Part-time and variable hours

Many minimum-wage jobs are part-time. Annual gross is hourly rate × hours worked, not necessarily 2,080. Budget using your actual hours; the engine calculators accept any annual salary equivalent you enter.

Related hourly guides

• $20 an hour annual salary
• $25 an hour annually
• Browse all hourly rates

Tipped wages

Tipped employees may receive a cash wage below minimum with tip credit applied by employers where state law allows. Withholding applies to total wages including reported tips. Tip income can push total wages above minimum wage equivalents on an annual basis.

Youth and training wages

Some states allow lower minimum wages for young workers or trainees for limited periods. Gross pay and withholding scale with the legal wage rate in effect for your category.

Public assistance interaction

Take-home pay affects eligibility for some benefit programs with income tests. This guide does not address benefit calculations — only paycheck withholding mechanics.

Using ExactTakeHome for your situation

Every example in this guide uses engine-computed withholding from official 2026 tax tables — IRS Publication 15-T for federal income tax and state employer withholding schedules where state income tax applies. Open the paycheck calculator, select your state, enter your annual salary or hourly equivalent, and adjust filing status, pay frequency, and pre-tax deductions to match your pay stub inputs.

Salary band pages at /salary/ provide quick benchmarks at common amounts. Hourly routes at /hourly/ convert hourly rates to annual gross using 2,080 full-time hours. City guides at /city-salary/ add local wage tax when your work city levies one. Compare pairs at /compare/ when evaluating two states side by side.

Figures here are estimates for planning — not tax advice. Payroll rounding, mid-year law changes, and employer-specific benefit elections can shift your actual stub by small amounts. Consult a qualified tax professional for filing decisions and complex multi-state situations.

Frequently Asked Questions

Figures and methods are based on official-source data encoded in the calculator. Not tax advice. Review the methodology and consult a qualified professional for your situation.