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Tennessee · 2026

Tennessee Minimum Wage 2026

$7.25/hour

Effective July 24, 2009 · Updated 2026-07-08

Uses federal floor
Hourly rate
$7.25
Annual (FT)
$15,080

2,080 hrs/year

Vs. federal
$7.25

Uses floor

Next change
TBD

No scheduled

🧮 Annual calculation
$7.25 × 40 hrs × 52 wks = $15,080 gross/year

Overtime at 1.5× minimum is $10.88/hr. Estimate take-home with our hourly to salary calculator or Tennessee tax calculator.

How Tennessee's minimum wage is determined
Legislative process, indexing mechanisms, and rulemaking

Legislative authority

Tennessee's minimum wage is set by state law, typically enacted by the state legislature or approved by voters through ballot measures. TheTennessee Department of Labor (or equivalent agency) administers and enforces the wage floor. Federal law sets a floor of $7.25/hour — states cannot set rates lower than this under the Fair Labor Standards Act (FLSA), though states routinely exceed the federal minimum.

Tennessee does NOT use automatic indexing

Unlike some states (Washington, Oregon, California), Tennessee requires the state legislature to vote on each minimum wage increase. This means the rate is only raised when lawmakers pass new legislation — a process that can take years and often lags inflation. As a result, the real purchasing power of the minimum wage erodes over time unless political will aligns to pass a new law.

Current status: No state minimum wage law.

How rates are set in practice

  1. Proposed legislation: A legislator introduces a bill (or voters petition for a ballot measure) to raise the minimum wage.
  2. Committee review: The bill is debated in labor or commerce committees. Business groups, worker advocates, and economists testify about economic impacts.
  3. Floor vote: The full legislature votes. In some states, the governor must sign; in others (ballot measures), voter approval is final.
  4. Effective date: Once approved, the rate typically takes effect on January 1 of the following year, though some states phase in increases over multiple years or use mid-year (July 1) implementation dates.

Why federal minimum hasn't moved since 2009

The federal minimum wage (FLSA §206) is $7.25/hour — unchanged since July 24, 2009. Congress has not passed a raise despite inflation eroding its value by ~30% in real terms. This is why states have taken the lead: Tennessee and 31 other states + DC now set minimums above $7.25. States and cities use various triggers (indexing, ballot measures, or legislative action) rather than waiting for federal action.

For workers and employers: Understanding how your state's minimum wage is determined helps you anticipate future changes and plan payroll budgets. States with indexing tend to have more stable, predictable rates; states without indexing are vulnerable to political cycles and inflation lag.

Frequently asked questions
Common questions about Tennessee minimum wage, tipped rates, and compliance

The Tennessee minimum wage is $7.25 per hour in 2026, effective July 24, 2009. Full-time (40 hrs/week, 52 weeks) equals about $15,080/year before taxes.

Yes. Tennessee uses the federal minimum wage of $7.25/hour for covered employees under the FLSA. No state minimum wage law.

At $7.25/hour working 40 hours per week for 52 weeks, an employee earns $15,080 gross per year before federal income tax, state taxes (if any), Social Security, and Medicare (FICA). Actual take-home depends on tax filing status and deductions.

The most recent increase was to $7.25/hour on July 24, 2009. No increase is currently scheduled.

At $7.25/hour for 40 hours per week, 52 weeks per year (2,080 hours), gross annual pay is $15,080 before federal, state, and FICA taxes.

Tennessee has no tip credit — tipped employees receive the full minimum wage of $7.25/hour plus tips, not a lower base.

Tennessee does not automatically index its minimum wage to inflation, meaning the real purchasing power declines each year unless lawmakers vote to raise it.

Some workers may be exempt depending on job duties, employer size, or industry. Exempt categories typically include outside salespeople, certain agricultural workers, and some domestic workers. Always verify whether a specific position qualifies for exemption with your state labor department or a lawyer.

Contact your state's Department of Labor or equivalent wage and hour enforcement agency. Many allow online complaint forms. The U.S. Department of Labor also accepts complaints: visit www.dol.gov or call 1-866-4-USDOL. Retaliation against workers who report violations is illegal.

The MIT Living Wage Calculator estimates that a single adult needs $24.00-$30.00/hour (varies by state) to afford housing, food, childcare, healthcare, and transportation without government assistance. Tennessee's minimum wage of $7.25 is typically below this threshold, which is why many minimum wage workers receive SNAP, Medicaid, or housing assistance.
References & official sources
Where we get Tennessee minimum wage data

Tennessee official source

Primary: U.S. Department of Labor — State minimum wage laws

Effective July 24, 2009. We cite this agency's official rates and update immediately when laws change.

Federal context

  • Fair Labor Standards Act (FLSA) § 206: Federal floor is $7.25/hour (unchanged since 2009)
  • U.S. Department of Labor: State Minimum Wage Laws
  • Employers must pay the highest applicable rate: federal, state, or local.

How we keep this accurate

We monitor state legislative updates, Department of Labor releases, and city ordinances. When rates change effective January 1, July 1, or any other date, we update this page immediately — not weeks or months later.

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