Minimum Wage in the United States 2026: The Complete Guide to Values, Operations, and State Variations

Are you researching the minimum wage in the United States? If you plan to live, work, or study there, it’s essential to understand how this system works. The minimum wage in the U.S. operates very differently from Brazil—while our country adopts a single national rate, Americans use a decentralized and complex model that varies significantly from region to region.

How the U.S. Minimum Wage System Works

The American system is based on a hybrid model that can confuse those unfamiliar with it. There is a federal minimum, but states, counties, and even cities have the autonomy to set their own rates—as long as they are not below the federal minimum.

This structure creates a unique scenario: the same worker can earn completely different amounts depending solely on where they work. That’s why professionals in New York earn much more than in Mississippi, even performing the same job.

The calculation is always hourly, not monthly salary as in Brazil. Work is based on hours, and the total amount depends on the number of hours worked weekly multiplied by the regional minimum.

What is the Federal and State Minimum Wage in 2026

The federal minimum remains at US$ 7.25 per hour, a rate frozen since 2009. However, this number only represents the national minimum limit—most states already adopt significantly higher rates.

Variation of Rates in 2026:

Minimum wages vary considerably. While some states still adhere to only the federal rate (US$ 7.25), regions with high living costs have implemented minimums between US$ 11 and US$ 17.50 per hour.

The highest rates are in:

• District of Columbia: US$ 17.50/hr (the highest in the country)
• Washington: US$ 16.66/hr
• California: US$ 16.50/hr (with special rules for overtime)
• New York: average US$ 15.50/hr (up to US$ 16.50/hr in the city and metropolitan areas)

Lower rates are found in:

• Georgia and Wyoming: US$ 5.15/hr (but the federal US$ 7.25 prevails in most practical applications)

This disparity exists because states with higher living costs recognize that the federal minimum is completely inadequate to cover basic expenses.

Calculating Your Minimum Wage: From Hours to Monthly Income

The math is straightforward: multiply the hourly rate by weekly hours, then by months.

Basic Calculation with Federal Minimum (US$ 7.25/hr):

Assuming a standard 40-hour workweek:

• Weekly: US$ 7.25 × 40 = US$ 290
• Monthly (4 weeks): US$ 7.25 × 40 × 4 = US$ 1,160

Practical Examples in 2026:

In Washington D.C., with a minimum wage of US$ 17.50/hr:

• Monthly: US$ 17.50 × 40 × 4 = US$ 2,800

In California (US$ 16.50/hr):

• Monthly: US$ 16.50 × 40 × 4 = US$ 2,640

The difference is substantial: a worker in Washington D.C. earns more than double the federal minimum.

Note: these calculations assume 40 hours per week. Many workers earn less because they work part-time hours, while others earn more with overtime.

Comparing: Minimum Wage in the U.S. vs. Brazil

A direct comparison can be confusing, but clarifying the nuances is essential.

In Gross Numbers:

Converting to Brazilian Real (assuming approximately 1 USD = R$ 5.20 in 2026):

• U.S. (federal): US$ 1,160/month ≈ R$ 6,032
• Brazil: R$ 1,518/month (minimum wage 2025)

At first glance, the American earns about four times more. But this conclusion is misleading.

The Key Factor: Purchasing Power

One dollar in the U.S. buys fewer goods and services than the equivalent in reais in Brazil. This means that the percentage difference in currency does not translate into a proportional quality of life.

Meanwhile, Brazil has a single, nationwide minimum wage. The U.S. operates with a completely fragmented system, where location determines everything. A worker in São Paulo earns differently from one in Rio de Janeiro? No. A worker in Washington D.C. can earn 2.4 times more than in Mississippi? Yes.

Living Sustainability:

Both minimum wages face criticism:

• In the U.S.: US$ 1,160 per month is insufficient to cover basic costs in any large city
• In Brazil: R$ 1,518 does not adequately support a single person in São Paulo or Rio de Janeiro

The difference is that Americans in states with higher wages have some chance; Brazilians have fewer options.

Who Earns Minimum Wage in the U.S.

Not all workers are covered by the minimum wage. There are important exceptions.

The minimum wage applies to:

• Workers aged 14 and over
• Those hired for regular hours
• Who are not apprentices or interns
• Professionals whose pay does not mainly depend on tips

Most Common Professions:

• Cashiers
• Fast-food and restaurant attendants
• Stock clerks
• Cleaning aides
• Grocery store workers
• Entry-level operational roles

Important Exception: Tips

Waiters, baristas, and workers who rely on tips can earn a lower base salary (in some states as low as US$ 2-3/hr). The expectation is that tips will supplement income up to the federal minimum of US$ 7.25.

Is It Possible to Live on Minimum Wage in the U.S.

Honest answer: in most cases, definitely not.

Real Cost in 2026:

Average monthly expenses:

• Cost of living (food, transportation, utilities): ~US$ 1,185
• Average rent (a room): ~US$ 1,626
• Minimum total: ~US$ 2,811

With a federal minimum wage of only US$ 1,160, the shortfall is clear.

Even in states with higher minimums like California (US$ 2,640) or D.C. (US$ 2,800), the margin is minimal. These states also have the most expensive rents, negating the advantage of higher wages.

Practical Reality:

Most Americans earning minimum wage:

• Share rent with multiple people
• Work multiple jobs
• Depend on government assistance
• Live with a significantly reduced standard of living

The Future of the Minimum Wage in the U.S.

The federal minimum has been frozen since 2009, while inflation has accumulated over 40%. Many states recognize this reality and continue to implement their own increases to keep up with actual costs.

Democrats advocate for federal increases; Republicans argue that each state should decide. Meanwhile, regional disparities only grow.

For Brazilians considering moving to the U.S., the clear lesson is: research not only the minimum wage of the specific state but also the local cost of living before making any professional or educational decision.