Many states require higher direct wage amounts for tipped employees than the federal requirement

Tipped workers in ‘$2.13 states’ experience an estimated 18.5% poverty rates

In so-called “equal treatment states,” where tipped workers are subject to the normal federal minimum wage or higher rather than the tipped minimum wage, the poverty rate is 11.1%.

US tipped employees receive the 'subminimum wage' of $2.13, unchanged since 1991

Tipped employees (anyone who makes $30+ per month in tips) are not federally entitled to a traditional minimum wage. Customers determine their earnings. The National Restaurant Association believes that if restaurant owners are forced to pay above the subminimum wage for tipped workers, restaurants could be forced to close.

The first federal minimum wage wasn't set until 1938, when it was 25 cents per hour.

When a state's minimum wage differs from the federal minimum wage, the higher number wins out.

The Fair Labor Standards Act established a minimum wage—but it didn't cover everyone

A 1966 amendment created the “tip credit,” which allowed restaurants to pay below minimum wage if tips compensated the difference. However, this federal tipped minimum wage has remained frozen at $2.13 per hour since 1991, whereas the regular minimum wage has increased multiple times since then.

The federal minimum wage in the US has been $7.25 per hour since 2009—making this the longest the US has gone without a minimum wage increase since 1938.

An animation of how the minimum wage changed every year from 1968 to 2018

In the United States, both the federal and state minimum wages have changed a lot over the years. See how—both in each state and at the federal level.

After emancipation, many slaves went from working for free to working for tips.

At just over $1K, Mississippi has the lowest average weekly wage in the country.

See every time the minimum wage has been raised.

Living wage calculator

Some people who work low-wage jobs don't make enough money to pay for the cost of basic needs (like housing or child care) in their area of the country. Curious to see whether or not you make what's considered a "living wage" for your city or state? To find out, plug your locale into this Living Wage Calculator.

Advocate estimate roughly 27% of Black service workers live below the poverty line

That’s significantly higher than the rate for restaurant workers overall. Approximately 37% of tipped workers are mothers, nearly half being single moms struggling with income volatility. This article includes more statistics about what the average tipped worker looks like and offers a peek inside their lives.

The way the minimum wage is set in other countries often differs from US methods

Unlike the US, some countries set the minimum wage by industry through collective bargaining agreements. In Luxembourg, the minimum wage translates to roughly $19.50 per hour, currently making it the country with the highest minimum wage in the world.

Since its inception in 1938, Congress has raised the federal minimum wage 22 times

If you want all the details about when and why these rate increases happened check out this resource from the US Department of Labor.

In the Netherlands, the minimum wage amounts to a full-time salary of roughly $34,192 per year

The US minimum wage, however, only amounts to roughly $15K per year. This map shows how much minimum wage workers in countries around the world earn on an annual basis in US dollars.

The average salary for full-time gig workers is roughly $60K a year in the US

High-earners can make more than six figures, while close to 15% make less than the federal minimum hour wage. Most gig workers in the United States still have to file a tax return every year.

See the average income in every US state

DC residents make an average of $108K a year, but residents of nearby state West Virginia earn the country's lowest average annual income of just $55K.

Women tend to tip more often than men

For instance, among people who visit hair salons or barber shops, 62% of female respondents said they always tipped. Only 45% of men said the same. This article includes more takeaways and stats about how Americans tip, and who receives them.

The income needed to be middle class in every US state

Depending on the US state you live in, the household income needed to be considered "middle class" can vary from only $36K per year to $200K per year. It's more expensive to be considered middle class in states like Massachusetts and New Jersey than it is in West Virginia or Mississippi. See these numbers in a data visualization here.

The US had roughly 1.6 million minimum wage workers as of 2021

Typically, minimum wage workers are young. They’re not only more likely to be a woman than a man, but also more likely to be single than married.

Pros and cons of minimum wage

The federal minimum wage hasn’t been raised since 2009. Over the past decade or so, proponents of significantly raising the minimum wage have argued that doing so could reduce reliance on government financial assistance programs and increase consumer spending. But opponents say higher labor costs could lead to job cuts.

Does minimum wage hurt workers?

Many economists traditionally believed raising the minimum wage hurt workers more than helped them. They argued that doing so would lead to job losses believing that if something is more expensive (like labor), people (like business owners) would want to buy less of it. However, recent research suggests otherwise.

Read a breakdown of each state's pay transparency laws.

Pay transparency laws in the US are evolving quickly, as some states introduce them for the first time and others update existing legislation. This resource has an updated list of key pay transparency legislation in states across the country, as well as general explainers about what each of those laws dictate. Check it out here.

The impact of knowing your coworker’s salary

In 2025, five more states enacted pay transparency laws, requiring employers to disclose salaries in job postings. The goal? Reduce wage gaps and promote fairness. But despite these laws, 42% of job listings still hide pay details.

Read about potential changes to pay transparency laws at the federal level, as well as key aspects of states' transparency laws.

While many US states have pay transparency laws, no similar legislation has been passed at a federal level. However, the Salary Transparency Act was introduced in Congress in March 2023. For details about what that legislation would mandate and its status in the US House and Senate, click here.

Read why some states are considering imposing a flat tax rate that isn't adjusted by income

Wisconsin was the first US state to impose a state income tax, close in time to when the federal income tax went into effect. Many states followed suit, but nine states to this day still don't levy wage-related taxes.

Unemployment benefits are calculated as a percentage of a worker's average weekly wages over a recent base period.

27 states have right-to-work laws

That means employees in those states can choose whether or not to join a union at their workplace. Right-to-work laws also make it optional for employees in unionized workplaces to pay fees associated with union membership.

Explore an interactive chart that shows peoples' annual salaries by occupation

The median salary for full-time workers in the United States was roughly $49.5K in 2024. An interactive chart details how salaries differ by occupation.

Generally speaking, pay transparency occurs when an employer provides compensation information.

Generally speaking, pay transparency occurs when an employer provides compensation information. But that idea can take many different forms in different states with different pay transparency laws depending on what each specific law dictates. To learn about more pay transparency basics like the ones above, read this article.

Visualize tipping norms around the world with this map that reveals the US tips more service providers and leaves larger amounts than anywhere else globally.

This is the longest the US has gone without a minimum wage increase since 1938

The US government hasn’t increased the federal minimum wage in more than a decade. Some people argue it's wrong that Congress needs to debate whether or not to raise the minimum wage—and that perhaps these raises should be tied to inflation.

Americans spend an average of nearly $500 per year on tipping at restaurants and bars

The habit runs contrary to economic rationality: Why pay more for a good or service you have already received when it isn’t mandatory? Researchers found that people tip, in part, to avoid the psychological pain of not fitting in.

Massachusetts is the state with the highest median household income for young Americans at $123.2K per year

Americans ages 25 through 44 make more in some states than others. While Massachusetts took the top billing, Mississippi came in last place out of all 50 states at $66K per year—a roughly 87% difference. However, it's important to remember that the cost of living in many of the highest-earning states in the US is significantly higher than the cost of living in the lowest-earning states.

The monthly minimum wage a full-time worker receives varies around the world

In Luxembourg, for instance, the monthly minimum was roughly $2,140 as of January 2023. But in Nigeria, it was just $68 a month. Of course, the cost of living varies by country too.

More than 5 states have enacted salary transparency laws, and at least 15 states are considering it.

Pay transparency is a relatively new legal phenomenon, so studies on its impact are limited. However, this article details a few early studies that suggest pay transparency legislation could help decrease the gender pay gap, increase labor participation rates, and reduce employer recruiting costs. Learn more here.

Police officer salaries vary dramatically depending on where officers serve

Officer pay varies significantly across states and cities, with the highest salaries in California, New Jersey, and Washington. Factors such as local funding, cost of living, and collective bargaining agreements influence compensation.

The most taxed states in America

Some states in the US have higher taxes than others. Hawaii, for instance, has the highest total tax burden in the country at 13.9%, whereas Alaska has the lowest overall tax burden at 4.9%. New York has the highest individual income tax burden; and eight states have no individual income tax. See a map of the most-taxed US states here.

More than 15 states have estate or inheritance taxes—but Maryland is the only state with both

Eighteen states, and Washington, DC, have estate or inheritance taxes in place. Tax rates and thresholds vary per state, but most are less than the federal estate tax rate and threshold. This means an estate doesn't have to be as lucrative to be subjected to the taxes.

States with the highest (and lowest) tax rates

WalletHub researchers evaluated not just income taxes but real estate, sales, and other levies in order to rank every state by its total effective local and state tax rate (not including federal). Alaska scored the lowest total tax rate and Illinois...

See which states contribute the most and least to the federal government.

Social Security trust funds are expected to be unable to pay full benefits by 2035

Most US workers have 6.2% of their gross paycheck taken out for Social Security. The government requires employers to match that 6.2% as well, for a total of 12.4%. This video dives into the specifics of how Social Security functions from a financial perspective.

Juror pay varies widely by state, and most employers are not required to cover it.

State court juror pay ranges from nothing in Illinois and South Carolina to $50 per day in six states, with a national average of around $22 per day. Only eight states and DC require employers to provide paid time off during jury service.

The value of a dollar differs from state to state

Did you know that $100 is worth 26% less in California than in Arkansas? The value of a dollar isn't consistent in every US state due to a multitude of factors, such as taxes and other varying cost-of-living differences.

In the 1920s, Prohibition helped cement tipping norms in the US

During Prohibition, restaurants lost significant revenue, given that they could no longer legally serve customers high-margin alcohol. As a result, many of these restaurants leaned more heavily on tips to ease the financial pressure of paying employees.

What America's 1% pays in taxes, by state

In the US, the top 1% of earners contribute 45% of all personal income taxes collected nationwide. But not all states are created equal when it comes to income tax. Some states are more dependent on the 1% than others for tax revenue. SmartAsset recently examined IRS tax return data to determine exactly how much the top 1% of earners in each state paid in taxes. Find your state here.

US teachers' earnings have declined since 2010

Although teachers are among the nation’s most educated workers, they earn far less on average than most other highly educated workers. More than 95% of elementary, middle and high school teachers have a bachelor’s degree or more. In 2019, the average earnings of elementary and middle school teachers with a bachelor’s degree or more who work full-time, year-round was $53,800. For high school teachers, it was $57,840.

Research shows that increased pay transparency could result in lower wage growth and a potential decrease in worker bargaining power.

Research on pay transparency's impacts has been limited given the short amount of time since American states began passing pay transparency legislation. However, this early study from researchers out of Brown and Harvard found that increasing pay transparency could have the potential to decrease worker bargaining power, resulting in lower average wages for employees. Read the research here.

Before the 16th Amendment, US tax law required direct taxes to be directly apportioned to a state's population

Due to these requirements, the federal government could not impose many direct taxes. Direct taxes include property and income taxes, whereas indirect taxes include duties and excises.

The income needed to raise a family by US state

This map shows the annual household income needed to raise a family of four in each US state. West Virginia is the least expensive state on the map at $82K per year. These numbers were calculated based on Bureau of Labor Statistics data which factored in how annual living expenses such as housing, transportation, and groceries differ from state to state. See the map here.