NC Minimum Wage 2026: $7.25 an Hour, and What It Pays

The NC minimum wage for 2026 is $7.25 an hour. State law sets it at $6.15 or the federal minimum wage, whichever is higher, and the federal rate is $7.25, so $7.25 is the floor for nearly every job in North Carolina (G.S. 95-25.3, NC Department of Labor).

No raise has passed: three bills to raise it were filed in the General Assembly’s 2025–26 session, and none has moved past committee. Tipped employees can be paid $2.13 an hour in cash if their tips bring them up to $7.25. For a full-time worker, $7.25 an hour comes to $290 a week and $15,080 a year before tax.

What is the minimum wage in North Carolina in 2026?

It is $7.25 an hour, the same as the federal minimum wage. North Carolina’s Wage and Hour Act tells every employer to pay at least “six dollars and fifteen cents ($6.15) per hour or the minimum wage set forth in paragraph 1 of section 6(a) of the Fair Labor Standards Act,” the federal law, “whichever is higher” (G.S. 95-25.3; G.S. stands for the North Carolina General Statutes). The federal rate is $7.25, so that is the state rate too.

The NC Department of Labor (NCDOL) puts it plainly: “The minimum wage in North Carolina is currently $7.25 an hour.” The rate applies to private employers and also to the State of North Carolina, counties, cities and other government bodies. Agricultural and domestic workers come under the federal minimum wage instead, which is also $7.25 (NCDOL, Minimum Wage in N.C.). The US Department of Labor’s table of state minimum wage laws lists North Carolina’s basic rate as $7.25 as well.

Because the state law follows the federal rate “as that wage may change from time to time,” North Carolina’s minimum wage would rise by itself if Congress raised the federal one. The $6.15 in the statute is a floor that would matter only if the federal rate were ever lower than that.

Is the NC minimum wage going up in 2026 or 2027?

No increase has been enacted for 2026 or 2027. Three bills to raise the minimum wage were filed in the 2025–26 session of the General Assembly, and the last action on each was a referral to the Rules committee:

• House Bill 353, the “Fair Minimum Wage Act”: referred to the Rules committee on March 11, 2025.
• Senate Bill 525, the “Living Wage Guarantee Act”: referred to the Rules committee on March 26, 2025.
• House Bill 1059, the “Fair Minimum Wage Act”: passed first reading on April 27, 2026 and was referred to the Rules committee on April 28, 2026.

The minimum wage section of the statute was last changed in 2017, and none of the 2026 laws changed it, the state budget included (G.S. 95-25.3). Nothing in North Carolina law schedules a raise, so a higher NC minimum wage would take a new state law or a higher federal rate.

Who is covered by the state law, and who by the federal one?

Both laws set the same $7.25 minimum and the same overtime rule, time and a half after 40 hours in a workweek, so the pay floor is the same either way. What differs is which law applies and which agency enforces it. North Carolina’s Wage and Hour Act steps aside for workers at businesses covered by the federal Fair Labor Standards Act (FLSA): its minimum wage, overtime and youth rules “do not apply to … Any person employed in an enterprise engaged in commerce or in the production of goods for commerce as defined in the Fair Labor Standards Act,” with some exceptions (G.S. 95-25.14).

In practice, NCDOL’s test is the employer’s size. If a private employer’s gross sales or receipts are less than $500,000 a year, if you don’t know them, or if the employer is a private nonprofit, NCDOL handles minimum wage and overtime questions. The US Department of Labor handles the rest: employers at or above $500,000, chains of three or more units or with 30 or more employees, hospitals, schools, nursing homes, group homes and day care centers, and domestic, agricultural and government employers (NCDOL, Overtime Pay, Salary and Comp Time). The state’s payday rules, on when you are paid, final pay, deductions and notices, cover almost every employer: “Only governmental employers are exempt from the wage payment provisions.” The North Carolina payday laws guide explains them.

Some workers are outside the state minimum wage and overtime rules altogether. G.S. 95-25.14 lists them, among others: bona fide executive, administrative, professional and outside sales employees as the FLSA defines them, some computer professionals, employees of summer camps and seasonal religious or nonprofit educational conference centers, people who catch or process seafood, and the employer’s own spouse, child or parent (G.S. 95-25.14). The mind map puts the state’s wage and hour rules side by side.

The NC Wage and Hour Act

• Minimum wage

  • $7.25 an hour
  • Tipped: $2.13 cash plus tips
  • Cities and counties cannot set their own

• Overtime

  • Time and a half after 40 hours
  • In a 168-hour workweek
  • Some jobs are exempt

• Paydays

  • Daily to monthly, on a regular payday
  • Bonuses and commissions: as set in advance

• Final pay

  • By the next regular payday
  • By trackable mail if you ask in writing

• Deductions

  • Required by law, or authorized in writing
  • Never from overtime pay for the employer’s benefit
  • An itemized statement each pay period

• Notices

  • Pay and payday in writing at hiring
  • A pay cut: one pay period’s notice

What is the minimum wage for tipped employees in NC?

A tipped employee can be paid as little as $2.13 an hour in cash, as long as tips make up the rest of the $7.25. NCDOL says an employer must pay at least $2.13 an hour to tipped employees “as long as each employee receives enough in tips to make up the difference between the wages paid and the minimum wage ($7.25).” The part covered by tips, called the tip credit, can be up to $5.12 an hour, which is $7.25 minus $2.13 (NCDOL, Minimum Wage in N.C., NCDOL, Overtime).

Under the state Act, a tipped employee is anyone who customarily receives more than $20 a month in tips (G.S. 95-25.2). The employer can count your tips toward the minimum wage only if you were told in advance, you keep all your tips, and the employer keeps accurate records of the tips you report each month or each pay period (G.S. 95-25.3).

If your tips fall short, your employer must make up the difference. NCDOL says employers must pay more than the $2.13 cash wage when a tipped employee earns less than the credit in tips, because “it is the employer’s responsibility to make sure that all tipped employees earn at least the minimum wage in cash wages and tips” (NCDOL). Tip pools are allowed among employees who customarily and regularly receive tips. At employers the state Act covers (NCDOL says: generally businesses with under $500,000 in gross sales), no employee’s tips may be reduced by more than 15%, so you keep at least 85% of your own tips (G.S. 95-25.3).

Overtime for a tipped employee is worked out on the full $7.25, not on $2.13; the overtime pay guide shows NCDOL’s example. The federal deduction for tips, for 2025 to 2028, lowers only federal income tax: North Carolina does not allow it on the state return, the NC Department of Revenue says in its answer for 2025 returns (NCDOR questions and answers on federal law).

Can anyone in North Carolina be paid less than $7.25?

Yes, in a few cases the law spells out (G.S. 95-25.3):

• Full-time students, learners, apprentices and messengers, as the FLSA defines them: 90% of the minimum wage, rounded down to the nickel, which is $6.50 an hour.
• People whose earning or productive capacity is impaired by age, physical or mental deficiency or injury: a lower rate the Commissioner of Labor may set by regulation.
• Long-term unemployed people and people receiving Work First assistance: a rate the Commissioner may set by regulation, not less than 85% of the minimum wage, for no more than 52 weeks.
• Employees of seasonal food service establishments: a rate the Commissioner may set by regulation, not less than 85% of the minimum wage.
• Tipped employees: the $2.13 cash wage, with tips making up the rest of the $7.25.

Outside those cases and the exempt groups above, $7.25 is the least an employer may pay for an hour of work. It is also the most the law asks for: NCDOL notes that an employer “is not required to pay its employees more in wages than is required by the minimum wage and overtime pay provisions.” Anything above $7.25 is a promise, and once made, a promised wage must be paid (NCDOL, Promised Wages).

Can a city or county in North Carolina set a higher minimum wage?

No. The Wage and Hour Act overrides any local ordinance, regulation or policy that “regulates or imposes any requirement upon an employer pertaining to compensation of employees, such as the wage levels of employees, hours of labor, payment of earned wages, benefits, leave, or well-being of minors in the workforce” (G.S. 95-25.1(d)). So the minimum wage in Charlotte, Raleigh, Durham, Greensboro and every other city and county is the state’s $7.25.

A city or county can still set the pay of its own employees; that is one of the exceptions written into the law. The 2026 state budget, Session Law 2026-41, added to the rule from October 1, 2026: for contracts entered into or changed on or after that date, a local government cannot use a lease, contract, negotiation, council, task force or committee to set the wages or benefits a business pays.

How much does $7.25 an hour pay a week, a month and a year?

Full time at 40 hours a week, $7.25 an hour is $290 a week before tax ($7.25 × 40), $15,080 a year ($290 × 52 weeks), and $1,256.67 a month on average ($15,080 ÷ 12). The drawing shows the same steps, with the tipped wage beside them.

1. $7.25an hour
2. $290.00a 40-hour week
3. $1,256.67a month, on average
4. $15,080.00a year of 52 weeks

Tipped workers

$2.13+ up to $5.12 in tips

If tips fall short, the employer must make up the difference to $7.25 an hour.

Taxes then come out of that pay. Social Security takes 6.2% and Medicare 1.45% of every dollar (Publication 15), federal income tax is worked out from your Form W-4, and North Carolina income tax is withheld at 4.09% of your pay above a share of the standard deduction (Form NC-30). Here is a full-time minimum-wage paycheck, paid every two weeks, worked out by this site’s rules:

Example: $7.25 an hour for 40 hours a week, paid every two weeks, single on the W-4 and NC-4, no other entries. Each check: gross pay $580.00, federal income tax $0.00, Social Security $35.96, Medicare $8.41, North Carolina income tax $4.00. Take-home pay: $531.63 (91.7% of gross), $13,822.38 for the year.

The drawing below shows the same paycheck as a pay stub.

Earnings statement 2026

$7.25 an hour, 40 hours a week, paid every two weeks, single

• Gross pay$580.00
• Federal income tax−$0.00
• Social Security−$35.96
• Medicare−$8.41
• NC income tax−$4.00

Take-home pay$531.63

To try your own hours, pay schedule or W-4 and NC-4 entries, use the calculator below. It opens at $7.25 an hour for 40 hours a week and pays any hours over 40 at time and a half.

How you are paid

SalaryBy the hour

Salary before tax

$

That amount is

A yearEach paycheck

Hourly rate

$

Hours a week

Overtime: time and a half for hours over 40 in a weekUntick if you are not paid overtime.

How often you are paid

Weekly (52 paychecks a year)Every two weeks (26 paychecks a year)Twice a month (24 paychecks a year)Monthly (12 paychecks a year)

Filing status on your W-4

Singleor married filing separatelyMarriedfiling jointlyHead of household

Federal Form W-4: the other steps dependents, two jobs, extra

Step 2: I have two jobs at once, or I am married filing jointly and my spouse worksThe box in Step 2(c) is checked.

Children under 17 Step 3

Other dependents Step 3

Step 3 is $2,200 for each child under 17 and $500 for each other dependent, if your income is $200,000 or less ($400,000 married filing jointly).

Other income Step 4(a), a year

$

Deductions Step 4(b), a year

$

Extra withholding Step 4(c), each paycheck

$

Which Form W-4 is your employer using?

2020 or laterthe one with Steps 1–52019 or earlierwith allowances

Allowances on that old W-4

Each takes $4,300 a year off the pay that is taxed (Publication 15-T). Steps 2, 3, 4(a) and 4(b) above are not used; the extra withholding is (line 6 of the old form).

Married on that old W-4Withholding uses the married table.

North Carolina Form NC-4 allowances, extra

Filing status on your NC-4

Singleor married filing separatelyMarriedfiling jointly, or surviving spouseHead of household

Allowances NC-4 line 1

Each allowance takes $2,500 a year off the pay NC withholding is worked on (Form NC-30).

Extra NC withholding NC-4 line 2, each paycheck

$

Deductions from your pay 401(k), health insurance

401(k), 403(b) or 457(b) before tax

Counted as

% of each paycheck$ each paycheck

Health, dental and vision insurance before tax, each paycheck

$

HSA or FSA through a cafeteria plan before tax, each paycheck

$

An HSA paid by plain payroll deduction, outside a cafeteria plan, is taxed like pay: put it under after-tax deductions.

After-tax deductions each paycheck

$

A Roth 401(k), union dues, a wage garnishment: anything taken after tax.

Pay so far this year for high earners

Social Security and Medicare pay so far this year before this paycheck

$

On a pay stub, the year-to-date Social Security or Medicare wages: your gross pay so far less any health insurance or HSA taken before tax. It matters only above $184,500, where Social Security stops, and above $200,000, where 0.9% more Medicare starts. It changes this paycheck only; the year column counts a year of these paychecks from January.

Work it outThe answer changes as you type.

Earnings statement

Paid every two weeks · 2026

Your paycheck: this check and the whole year

Item	This check	Year
Gross pay	$580.00	$15,080.00
Federal income taxForm W-4	$0.00	$0.00
Social Security6.2% up to $184,500	$35.96	$934.96
Medicare1.45%, and 0.9% more above $200,000	$8.41	$218.66
North Carolina income taxForm NC-4, withheld at 4.09%	$4.00	$104.00

Take-home pay

$531.63

Five hundred thirty-one and 63/100 dollars

For the year: $13,822.38. Taxes take 8.3% of your gross pay.

Where each dollar of this check goes

• Take-home pay (91.7%)$531.63
• Federal income tax (0%)$0.00
• Social Security (6.2%)$35.96
• Medicare (1.5%)$8.41
• NC income tax (0.7%)$4.00

How this was worked out, line by line

Federal income tax: IRS Publication 15-T, Worksheet 1A

1. 1a. Pay on this check that federal income tax is worked on: $580.00
2. 1b. Pay periods a year: 26
3. 1c. 1a × 1b: $15,080.00
4. 1d. Other income a year (W-4 Step 4(a)): $0.00
5. 1e. 1c + 1d: $15,080.00
6. 1f. Deductions a year (W-4 Step 4(b)): $0.00
7. 1g. Step 2 box not checked: $8,600.00
8. 1h. 1f + 1g: $8,600.00
9. 1i. Adjusted Annual Wage Amount (1e − 1h): $6,480.00
10. 2b–2d. The row of the annual table it falls in: from $0.00, $0.00 plus 0% of the rest
11. 2e. The rest: $6,480.00 − $0.00 = $6,480.00
12. 2f. 0% of 2e: $0.00
13. 2g. 2c + 2f: $0.00
14. 2h. 2g ÷ 26: $0.00
15. 3a. Credits for dependents (W-4 Step 3): $0.00
16. 3b. 3a ÷ 26: $0.00
17. 3c. 2h − 3b (not below zero): $0.00
18. 4a. Extra withholding (W-4 Step 4(c)): $0.00
19. 4b. Federal income tax on this check (3c + 4a): $0.00

North Carolina income tax: Form NC-30, annualized method

1. 1. Pay on this check that NC income tax is worked on: $580.00
2. 2. Pay periods a year: 26
3. 3. Annualized pay (1 × 2): $15,080.00
4. 4. N.C. standard deduction in NC-30: $12,750.00
5. 5. NC-4 allowances: 0 × $2,500.00 = $0.00
6. 6. 4 + 5: $12,750.00
7. 7. Net annualized pay (3 − 6, not below zero): $2,330.00
8. 8. 4.09% of 7 (the 3.99% tax rate plus 0.1%): $95.30
9. 10. 8 ÷ 26, to the nearest whole dollar: $4.00

Social Security and Medicare

1. Social Security: 6.2% of $580.00 = $35.96
2. Medicare: 1.45% of $580.00 = $8.41

Sources: Publication 15-T (2026), Federal Income Tax Withholding Methods, IRS; Form W-4 (2026), Employee's Withholding Certificate, IRS; Publication 15 (2026), (Circular E), Employer's Tax Guide, IRS; Form NC-30, Income Tax Withholding Tables and Instructions for Employers (2026), NCDOR; Form NC-4, Employee's Withholding Allowance Certificate, NCDOR. Checked October 29, 2026.

Take-home pay $531.63 every two weeks from $580.00 gross: federal income tax $0.00, Social Security $35.96, Medicare $8.41, North Carolina income tax $4.00.

Your yearly return, not each paycheck, settles your income tax. The NC income tax calculator estimates your North Carolina tax for the year and whether your withholding covers it, and the hourly paycheck calculator works for any hourly rate.

What is overtime pay at minimum wage in NC?

It is $10.875 an hour: one and a half times $7.25, for each hour over 40 in a workweek (G.S. 95-25.4). North Carolina has no daily overtime, and each workweek stands on its own whatever the length of the pay period (NCDOL). For a 45-hour week at minimum wage, the pay is 40 × $7.25 plus 5 × $10.875. The overtime pay guide covers who is owed overtime and how it is taxed.

How do you report a minimum wage problem in North Carolina?

Which agency takes the complaint depends on your employer. NCDOL’s complaint page sends minimum wage, overtime and tip complaints to the US Department of Labor, and NCDOL’s overtime page asks you to call NCDOL first if your employer’s gross sales are under $500,000 a year, you don’t know them, or the employer is a private nonprofit.

NCDOL’s Wage and Hour Bureau takes complaints online for work done in North Carolina about unpaid wages (other than overtime), final paychecks, vacation pay, unauthorized deductions, cuts in pay and missing pay stubs. It will not take a complaint for wages due more than one year ago, or for less than $50 (NCDOL complaint page). Keep your own record of the hours you worked and the pay you received; it helps whoever takes the complaint.

The rates and rules on this page come from North Carolina’s Wage and Hour Act, NCDOL’s pages and the US Department of Labor’s table of state laws, each linked where it is used. Figures checked October 29, 2026. The worked paycheck is an estimate made the way how the calculators work describes. This page is general information, not legal or tax advice.

Questions people ask

What is the minimum wage in NC in 2026?

The North Carolina minimum wage in 2026 is $7.25 an hour, the same as the federal minimum wage. State law sets it at $6.15 or the federal rate, whichever is higher (G.S. 95-25.3, NCDOL).

Will the NC minimum wage go up in 2027?

No increase has been enacted. Three bills to raise North Carolina’s minimum wage (House Bills 353 and 1059 and Senate Bill 525) were referred to the Rules committee in 2025 and 2026 and had not moved since as of October 29, 2026, so the rate stays $7.25 unless a new law passes or the federal rate rises (House Bill 353, House Bill 1059, Senate Bill 525; the rate itself: G.S. 95-25.3).

What is the minimum wage for servers in NC?

Servers and other tipped employees in North Carolina can be paid $2.13 an hour in cash if their tips bring them to at least $7.25 an hour. If tips fall short, the employer must pay the difference (NCDOL, Minimum Wage in N.C.).

The tip credit can be up to $5.12 an hour, and in a tip pool no employee’s tips may be reduced by more than 15% (G.S. 95-25.3).

Is the minimum wage higher in Charlotte or Raleigh?

No. Cities and counties in North Carolina cannot set their own minimum wage for private employers, because state law preempts local wage rules (G.S. 95-25.1(d)). The minimum wage in Charlotte, Raleigh and every other city is the state’s $7.25 (NCDOL).

How much is $7.25 an hour a year?

At 40 hours a week for 52 weeks, $7.25 an hour is $15,080 a year before tax: $290 a week, or $1,256.67 a month on average. The North Carolina minimum wage is $7.25 for 2026 (NCDOL).

Can a student be paid less than minimum wage in NC?

Yes. Full-time students, learners, apprentices and messengers, as the federal Fair Labor Standards Act defines them, can be paid 90% of the minimum wage rounded down to the nickel, which is $6.50 an hour (G.S. 95-25.3).

Updated October 29, 2026