Alabama Minimum Wage 2026
Alabama's minimum wage of $7.25 in 2026 is below average in the United States, and it is the same as than the base federal minimum wage of $7.25 still used in 20 states.
Federal 
Alabama Assuming a standard 40-hour work week, the weekly minimum wage in Alabama is $290. For full-time employees working 52 weeks per year, the annual minimum wage in Alabama is $15.1K.
Based on $7.25/hr minimum
Based on $7.25/hr minimum
The minimum wage rate of Alabama and its neighboring states ranges from $7.25 to $15, with an average of $10. Alabama, at $7.25, has the lowest hourly minimum wage within this group of states. Florida ($15), Missouri ($15), and Arkansas ($11) all have higher hourly rates than Alabama. Georgia, Mississippi, and Tennessee share the same $7.25 hourly rate as Alabama.
Alabama Alabama's cost of living index for 2025 is 88.6, which places it as the 49th most expensive state to live in the United States.
National 100
Alabama 88.6
Assuming a standard 40-hour work week, the real wage in Alabama, adjusted for the state’s cost of living index of 88.6, is approximately $8.18 per hour. This means that while the nominal minimum wage is $7.25 per hour, the purchasing power of those earnings is higher due to Alabama's lower cost of living expenses. For full-time employees, the real weekly earnings amount to roughly $327.31, translating to an annual purchasing power of $17,020.32 when working 52 weeks per year.
Adjusted
Adjusted
Adjusted
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According to the most recent data, the median household income in the United States has seen a significant increase in 2023.
Alabama does not have its own state minimum wage. Employers in the state follow the federal minimum wage of $7.25 per hour under the Fair Labor Standards Act, as Alabama has not enacted a separate state minimum wage law or adjustment system.
