Federal vs. State Minimum Wage
The U.S. federal minimum wage has been $7.25/hour since 2009, but many states and cities set a significantly higher local minimum wage — when state/local and federal minimums differ, employers generally must pay the higher applicable rate.
Annual Earnings = Hourly Wage × Hours per Week × 52
Why Minimum Wage Varies So Much by Location
Cost of living varies dramatically across the US, and many state and local governments have raised their minimum wage well above the federal floor to better reflect local living costs — always check your specific state and city's current minimum wage rather than assuming the federal rate applies.
Tipped Minimum Wage
Many states allow a lower direct cash wage for tipped employees (like restaurant servers), provided tips bring their total earnings up to at least the standard minimum wage — this calculator assumes a standard, non-tipped hourly wage.