Statewide floor
Rhode Island $16.00/hr vs Alabama $7.25/hr
All minimum wage comparisons
vs
Rhode Island +$8.75/hr · 2026
vsRhode Island vs Alabama Minimum Wage 2026
In 2026, Rhode Island wins on the statewide minimum wage: $16.00/hour vs $7.25/hour in Alabama — a gap of $8.75/hour. At full-time (40 hrs/week), that is roughly $18,200.00 more gross income per year before taxes. This page compares floors, tip credits, local rates, and scheduled increases; use our hourly and tax calculators for take-home.
By Sammy S. · Founder · AuthorUpdated for 2026
$16.00Rhode Island
$7.25Alabama
$8.75Hourly gap
$18,200.00FT annual gap
Rhode Island wins · 2026
Gap: $8.75/hr · $18,200.00/yr FT ($1,516.67/mo)
Why Rhode Island wins
- Rhode Island's statewide minimum is $8.75/hr higher ($16.00 vs $7.25).
- At 40 hours/week, that is about $18,200.00 more gross pay per year ($1,516.67/month).
- Alabama still uses the federal $7.25 floor; Rhode Island sets its own higher rate.
- Rhode Island has scheduled or CPI-linked increases; Alabama does not list an automatic schedule.
Side-by-side metrics
| Metric | Rhode Island | Alabama |
|---|---|---|
| Statewide minimum | $16.00/hr | $7.25/hr |
| FT annual gross (40×52) | $33,280.00 | $15,080.00 |
| vs federal floor | Above federal | Uses federal |
| Tip credit | Yes ($3.89 cash) | Yes ($2.13 cash) |
| Local floors listed | 0 | 0 |
| Scheduled / indexed raises | Yes | None listed |
Pay by hours/week
Gross pay at each state's statewide minimum (before taxes).
| Hours | Rhode Island / wk | Alabama / wk | Rhode Island / yr | Alabama / yr |
|---|---|---|---|---|
| 20 hrs | $320.00 | $145.00 | $16,640.00 | $7,540.00 |
| 30 hrs | $480.00 | $217.50 | $24,960.00 | $11,310.00 |
| 40 hrs | $640.00 | $290.00 | $33,280.00 | $15,080.00 |
Rate history 2020–2026
Official January 1 rates from the U.S. Department of Labor for Rhode Island vs Alabama.
| Year | Rhode Island | Alabama | Gap |
|---|---|---|---|
| 2026 | $16.00 | $7.25 | -$8.75 |
| 2025 | $15.00 | $7.25 | -$7.75 |
| 2024 | $14.00 | $7.25 | -$6.75 |
| 2023 | $13.00 | $7.25 | -$5.75 |
| 2022 | $12.25 | $7.25 | -$5.00 |
| 2021 | $11.50 | $7.25 | -$4.25 |
| 2020 | $10.50 | $7.25 | -$3.25 |
- Alabama: No state minimum wage; federal FLSA $7.25 applies to covered employees.
Source: DOL WHD historical tables (Jan 1 rates).
Pros & caveats
Rhode Island
Pros
- Higher state floor ($16.00 vs $7.25)
- Above the federal $7.25 floor
- Scheduled / indexed increases on the books
Cons / caveats
- Tip credit allowed — cash wage can be as low as $3.89/hr if tips cover the gap
Alabama
Pros
Cons / caveats
- Lower state floor than Rhode Island ($7.25 vs $16.00)
- Still on the federal $7.25 floor (unchanged since 2009)
- Tip credit allowed — cash wage can be as low as $2.13/hr if tips cover the gap
Planning guide
How to read the Rhode Island vs Alabama minimum wage comparison
Rhode Island has the higher statewide minimum in 2026. Use tip credits, city floors, and take-home tools before deciding which corridor fits workers or payroll.
FT annual gap
$18,200.00/yr before taxes
Tip credits
Rhode Island: allowed · Alabama: allowed
Local floors
Rhode Island: 0 major · Alabama: 0 major
Before you use this Rhode Island vs Alabama wage gap
Confirm work location
Pay follows where hours are worked. City ordinances can exceed either statewide floor.
Separate tipped roles
Cash wages under a tip credit are not the full minimum until tips make up the difference.
Check effective dates
Rates are for 2026. Scheduled increases can change the gap mid-year.
Model take-home next
Convert hours with the hourly calculator, then compare state tax take-home for net pay.
Federal vs Rhode Island and Alabama
The federal FLSA floor is a nationwide baseline. Workers get the highest of federal, state, or local rates that apply to their hours. This duel ranks statewide floors; local ordinances and tip credits can change the cash wage for specific jobs.
Overview
In 2026, Rhode Island wins on the statewide minimum wage: $16.00/hour vs $7.25/hour in Alabama — a gap of $8.75/hour. At full-time (40 hrs/week), that is roughly $18,200.00 more gross income per year before taxes. This page compares floors, tip credits, local rates, and scheduled increases; use our hourly and tax calculators for take-home.
FAQ
Rhode Island is higher at $16.00/hour versus $7.25 in Alabama ($8.75/hr gap).
About $18,200.00 more gross per year at 40 hrs/week ($1,516.67/month), before taxes and overtime.
Rhode Island: yes — tipped cash wage around $3.89/hr. Alabama: yes — tipped cash wage around $2.13/hr. Tips must still bring workers to the applicable minimum.
Rhode Island lists 0 major local floors. Alabama lists 0. Employers must pay the highest applicable federal, state, or local rate.
Rhode Island went from $10.50/hr (Jan 1 2020) to $16.00/hr (Jan 1 2026) (+$5.50/hr). Alabama went from $7.25/hr to $7.25/hr (flat). Figures are official U.S. DOL January 1 rates.
Yes. Rates reflect our 2026 minimum wage tracker (last reviewed against DOL and state labor sources). Laws change on Jan 1 / Jul 1 often — verify with each state's labor agency before payroll changes.
Convert hours with our hourly salary calculator, then run the result through the US tax calculator (or each state's calculator) for federal, state, and FICA withholdings. Minimum wage figures here are gross floors, not net pay.
Not always. Rhode Island has the higher legal floor, but state income tax, FICA, and cost of living can narrow or erase the net advantage. Model both states at the same hours with the tax tools.
Employers must pay the highest applicable rate for the hours worked in that jurisdiction. Compare Rhode Island and Alabama state floors here, then check local ordinances on each state page.
The ladder shows weekly and annual gross at common hour counts using each state's statewide minimum. It helps translate the hourly gap into cash flow before taxes—overtime and tips are not included.
Use related links below, the reverse matchup (Alabama vs Rhode Island), or the minimum wage compare hub picker for any two states.
Compare take-home too
Wage floors are only half the story. See state tax take-home comparisons for federal + state + FICA at the same salary.
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