ALFollows the federal floor

Alabama minimum wage 2026

The Alabama minimum wage is $7.25 per hour as of 2009-07-24. The tipped cash wage is $2.13 with a tip credit of $5.12. [AL labor dept.][DOL WHD]

Standard minimum

$7.25

Effective 2009-07-24.

Verified 2026-06-24

Tipped cash wage

$2.13

Tip credit ceiling $5.12.

Verified 2026-06-24

vs federal $7.25

matches

State mirrors the FLSA federal floor.

Verified 2009-07-24

Next scheduled step

None

No further increase scheduled in statute.

Verified 2026-06-24

Tip-credit split

Cash $2.13Credit $5.12Combined $7.25

Estimated take-home at $7.25 per hour

20 hours/week

$145.00

~$128/wk after tax

$7,540 annual gross

30 hours/week

$217.50

~$192/wk after tax

$11,310 annual gross

40 hours/week

$290.00

~$256/wk after tax

$15,080 annual gross

Estimate uses 2026 federal brackets (single filer), FICA 7.65 percent, and a flat state effective rate. Actual withholding varies by W-4 and credits.

No state minimum-wage statute. FLSA federal floor of $7.25 controls. Tipped cash wage and tip credit follow FLSA section 3(m).