Indiana’s minimum wage in 2026 is 7.25 dollars per hour , the same as the federal minimum wage, and the base cash wage for tipped employees remains 2.13 dollars per hour , as long as tips bring them up to at least 7.25 dollars per hour overall.

Quick Scoop: Indiana’s Minimum Wage (2026)

  • Standard minimum wage: 7.25 dollars per hour for most covered workers.
  • Tipped employees (like servers): 2.13 dollars per hour in direct wages, but employers must ensure tips + cash wage ≥ 7.25 dollars per hour; if not, the employer has to make up the difference.
  • No 2026 increase: Indiana has not scheduled a state-level increase for 2026 and continues to track the federal rate, unlike many neighboring states that have raised theirs.
  • How long it’s been stuck: The rate has been at 7.25 dollars since 2009, meaning Hoosier workers are entering a 16th year with the same base minimum wage.

“Indiana holds minimum wage at 7.25 for 16th year, as 19 other states increase wages” captured the frustration in local discussions at the start of 2026, especially when workers compare pay to states like Illinois or Michigan that now sit near or at 15 dollars per hour.

Attempts to Raise It (That Failed)

Several bills tried to move Indiana off 7.25 dollars but did not pass:

  1. Senate Bill 106 (2021) – Proposed:
    • 10 dollars per hour after June 2022,
    • 13 dollars per hour after June 2023,
    • 15 dollars per hour after June 2024,
    • then automatic annual increases tied to inflation (CPI).
  1. House Bill 1345 (2021) – Proposed:
    • 8.20 dollars per hour after June 2022,
    • 9.15 dollars per hour after December 2022,
    • then yearly increases up to 2025, followed by CPI-based adjustments.
  1. Senate Bill 366 (2023) – Proposed a jump straight from 7.25 to 13 dollars per hour starting July 2023.

All three measures stalled in the legislature, so none of these higher rates ever took effect.

How Indiana Compares Right Now

Many states have moved well above the federal floor, especially going into 2026. Indiana is in the group that still uses the federal 7.25 dollars rate.

[4][9][1] [3][1] [3][1] [7][3]
Location Minimum wage (2026) Notes
Indiana 7.25 dollars/hr Matches federal minimum; unchanged since 2009
Illinois (neighbor) About 15.00 dollars/hr State has phased in increases and now sits around 15 dollars
Michigan (neighbor) Above 10 dollars/hr Higher than federal; continues gradual increases
States raising wages in 2026 Often 14–17 dollars/hr Many coastal and some Midwestern states scheduled 2026 hikes

“Latest News” and Forum Vibe

  • News angle: Local coverage and commentary early in 2026 highlights that Indiana is not joining the wave of 19 states boosting wages this year, which fuels debates about competitiveness and cost of living.
  • Forum discussions: Indiana-centric forums and comment sections often split between:
    • Workers arguing 7.25 dollars is impossible to live on given rent, groceries, and gas in 2025–2026.
    • Small business owners who worry that sudden jumps to 13–15 dollars could squeeze already-thin margins in restaurants and retail, especially outside big cities.

One recurring example: servers in Indianapolis comparing tipped income in Indiana (2.13 dollars base pay) to friends in Chicago who get both higher state minimums and strong tipping, making Indiana’s pay feel stuck in an earlier era.

Key Takeaway

  • If you work a non-tipped job in Indiana in 2026, you should expect at least 7.25 dollars per hour.
  • If you are tipped, your employer can pay 2.13 dollars per hour in cash but must ensure your tips bring you up to at least 7.25 dollars per hour for every hour worked; otherwise, they are legally required to cover the gap.

TL;DR: Indiana’s minimum wage is still 7.25 dollars per hour in 2026, with no approved increase on the books, even as many other states push toward 14–15 dollars or more.

Information gathered from public forums or data available on the internet and portrayed here.