Tennessee Minimum Wage 2026
Tennessee'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 
Tennessee Assuming a standard 40-hour work week, the weekly minimum wage in Tennessee is $290. For full-time employees working 52 weeks per year, the annual minimum wage in Tennessee is $15.1K.
Based on $7.25/hr minimum
Based on $7.25/hr minimum
The minimum wage rate of Tennessee and its neighboring states ranges from $7.25 to $15, with an average of $8.89. Tennessee, at $7.25, has the lowest hourly minimum wage within this group of states. Missouri ($15) and Arkansas ($11) both have higher hourly rates than Tennessee. Alabama, Georgia, Kentucky, and Mississippi share the same $7.25 hourly rate as Tennessee.
Tennessee While the general minimum wage is $7.25 per hour in Tennessee, there are several exceptions where workers may legally receive less than this amount:
Managers earning at least $684 per week who have authority over hiring, firing, or directing other employees.
Employees in fields requiring advanced knowledge, such as attorneys, medical practitioners, or engineers, who are paid on a salary basis.
Sales personnel who complete most of their work outside the company's primary location and whose main responsibility is generating sales or contracts.
Farm laborers employed on small farms or those paid piece rates under specific conditions.
Workers receiving over $30 in monthly tips whose combined earnings (base wage plus tips) meet or exceed $7.25 per hour.
Tennessee's cost of living index for 2025 is 90.3, which places it as the 43rd most expensive state to live in the United States.
National 100
Tennessee 90.3
Assuming a standard 40-hour work week, the real wage in Tennessee, adjusted for the state’s cost of living index of 90.3, is approximately $8.03 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 Tennessee's lower cost of living expenses. For full-time employees, the real weekly earnings amount to roughly $321.15, translating to an annual purchasing power of $16,699.89 when working 52 weeks per year.
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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.
Tennessee’s minimum wage follows the federal baseline of $7.25 per hour, as the state has not established its own separate minimum wage or automatic adjustment system. There are no scheduled increases or inflation-based changes at the state level, meaning any future adjustments depend on federal legislation rather than state action.
