Minimum Wage vs Inflation Calculator
The federal minimum wage has been $7.25 an hour since July 24, 2009 – the longest stretch without an increase since the Fair Labor Standards Act created a federal minimum in 1938. It is not indexed to inflation, so every year it stays flat, it quietly buys less. This calculator shows exactly how much less, and lets you compare your own pay.
Compare your pay to the inflation-adjusted minimum
The inflation-adjusted benchmark uses $11.24/hour – what $7.25 from July 2009 is worth in July 2026 dollars per official BLS CPI-U data.
Why $7.25 buys so much less now
In July 2009, when the federal minimum last changed, the BLS All-Urban CPI stood at 215.351. By July 2026 it had reached 333.918 – a cumulative increase of about 55%. Applying that same increase to $7.25 gives $11.24. Because the minimum wage itself never moved, the gap between the legal floor and its own 2009 purchasing power has widened every single year since.
How the real value of $7.25 has eroded, year by year
| Year | What $7.25 (2009) is worth |
|---|---|
| 2009 (set) | $7.25 |
| 2019 | $8.62 |
| 2020 | $8.68 |
| 2021 | $9.15 |
| 2022 | $9.97 |
| 2023 | $10.27 |
| 2024 | $10.58 |
| 2025 | $10.86 |
| 2026 (July) | $11.24 |
Where the federal floor still applies
As of 2026, roughly 20 states default to the federal $7.25 minimum because they have no state minimum wage law of their own or one set at or below the federal rate. The rest set their own floor, ranging up to $17.13 in Washington state and $17.95 in Washington, D.C. Employers covered by the Fair Labor Standards Act must always pay at least the higher of the applicable federal or state rate.
Frequently asked questions
Is the federal minimum wage still $7.25 in 2026?
Yes. It has not changed since July 24, 2009, and no federal legislation has raised it since.
Why doesn’t the minimum wage rise automatically with inflation?
Unlike Social Security, the federal minimum wage is not indexed to any price index. Raising it requires an act of Congress, which is why long freezes like this one can happen.
Do all states use $7.25?
No. About 20 states default to the federal floor; the other 30-plus states and Washington, D.C. have set their own higher minimums.
How is the inflation adjustment calculated?
By multiplying $7.25 by the ratio of the CPI-U index in the comparison month to the CPI-U index in July 2009 (215.351), using official BLS data – the same method used across this site’s other calculators.