Across the U.S., the wage floor ranges from $7.25 an hour to more than $17 in some places. The federal minimum wage remains $7.25, while many states, territories and districts have set higher rates of their own.
At first glance, states with the highest minimum wages might seem like the best places for workers earning the least. But pay does not exist in a vacuum. Rent, groceries, utilities, transportation and other daily costs vary widely by state. A bigger hourly wage may not stretch far in a place where nearly everything costs more.
On paper, $15 looks like a clear advantage over states that still use $7.25. But people don’t live in a national average economy. They live and spend in local housing markets, grocery stores and gas stations. The same paycheck can feel very different depending on the state.
Low pay, low prices
Mississippi, Oklahoma, Louisiana, North Dakota, Iowa, Kansas and Alabama use the federal minimum wage of $7.25, but they also rank among the cheapest states to live in. A full-time worker earning $7.25 an hour makes about $15,080 a year before taxes, assuming 40 hours a week for 52 weeks.
Even in a lower-cost state, that leaves little room for rent, food, utilities, transportation, insurance, medical costs and savings.
High pay, high prices
California, Connecticut, Hawaii, New Jersey, New York, Washington, Massachusetts, Maryland and most of Oregon set minimum wages in the range of $15 to just over $17.
But workers also face some of the steepest everyday costs. In expensive states, the advantage of higher pay may be offset by higher rents, service costs and prices for basic goods.
Low pay, high prices
New Hampshire, Pennsylvania, Texas, Georgia, Utah and North Carolina sit at the federal minimum wage even though they are not among the cheapest places to live.
New Hampshire is the clearest example: It uses the federal minimum wage yet ranks among the highest-cost-of-living states, making it one of the sharpest mismatches in the data.
High pay, low prices
Arkansas, South Dakota, West Virginia, Montana, Nebraska and Missouri have minimum wages above the federal floor paired with relatively low living costs.
Nebraska and Missouri pair $15 minimum wages with cost-of-living rankings that remain far better than many coastal states, while Arkansas and South Dakota rely more on rock-bottom living costs to make paychecks go further.
The pay reality check
A higher hourly wage helps, but not much if it is swallowed by higher prices. A lower-cost state may look cheap on paper, but that does not mean it is cheap for someone living on $7.25 an hour.
That is why many households look for small ways to bring in extra cash during downtime. Apps such as FreeCash pay users to test apps, play games and take surveys, with many tasks taking five to 10 minutes. It can help turn spare time into $1,000 or more every month. See how it works.
State minimum wage and cost of living rank
Below is every state’s minimum wage, from highest to lowest, followed by its cost-of-living rank according to U.S. News in parentheses. A lower number means a lower cost of living. A higher number means a higher cost of living.
$17.13 (47) Washington
$17.00 (45) New York City, Nassau, Suffolk and Westchester counties
$16.94 (41) Connecticut
$16.90 (50) California
$16.00 (48) Hawaii
$16.00 (45) New York (rest of state)
$16.00 (38) Rhode Island
$15.92 (49) New Jersey
$15.55 (43) Oregon
$15.16 (37) Colorado
$15.15 (36) Arizona
$15.10 (29) Maine
$15.00 (34) Delaware
$15.00 (33) Illinois
$15.00 (42) Maryland
$15.00 (46) Massachusetts
$15.00 (17) Missouri
$15.00 (12) Nebraska
$14.42 (26) Vermont
$14.00 (39) Alaska
$14.00 (40) Florida
$13.73 (24) Michigan
$12.77 (35) Virginia
$12.00 (28) Nevada
$12.00 (13) New Mexico
$11.85 (3) South Dakota
$11.41 (32) Minnesota
$11.00 (1) Arkansas
$11.00 (18) Ohio
$10.85 (11) Montana
$8.75 (8) West Virginia
$7.25 (10) Alabama
$7.25 (27) Georgia
$7.25 (16) Idaho
$7.25 (19) Indiana
$7.25 (7) Iowa
$7.25 (9) Kansas
$7.25 (14) Kentucky
$7.25 (5) Louisiana
$7.25 (2) Mississippi
$7.25 (44) New Hampshire
$7.25 (23) North Carolina
$7.25 (6) North Dakota
$7.25 (4) Oklahoma
$7.25 (31) Pennsylvania
$7.25 (22) South Carolina
$7.25 (20) Tennessee
$7.25 (30) Texas
$7.25 (25) Utah
$7.25 (21) Wisconsin
$7.25 (15) Wyoming
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