What is the minimum wage in the United States? State-by-state guide and comparison with Brazil

Many Brazilians planning to work, study, or move to the United States face a crucial question: what is the minimum wage in the United States? The answer is more complex than it seems because the American system doesn’t operate like Brazil’s. While Brazil has a single national minimum wage, the U.S. has a decentralized system where the minimum wage varies significantly from state to state, ranging from $5.15 to $17.50 per hour.

This regional disparity reflects the autonomy each state has to set its own labor rules, creating a very different scenario from Brazil’s uniform model. For those considering moving or working in the U.S., understanding this structure and knowing the minimum wage in your region of interest is absolutely essential for planning your budget.

Federal minimum wage versus state minimums

The federal minimum wage in the U.S. is $7.25 per hour — a rate that has remained frozen since 2009. However, this is only the national floor. Most states have established their own rates, often well above the federal level.

Approximately 30 states set rates between $11 and $17 per hour. Major cities — New York, Los Angeles, Seattle, San Francisco — reach $16.50 to $17.50 per hour, mainly because of their extremely high cost of living.

The practical result is that a worker earning the minimum in Washington D.C. will make nearly 2.5 times more per hour than someone in a state with the federal minimum of $7.25.

States with highest and lowest wages

The five states with the highest minimum wages:

• District of Columbia: $17.50/h
• Washington: $16.66/h
• California: $16.50/h
• New York: $15.50 to $16.50/h (varies by region)
• Massachusetts: $15/h

States with the lowest minimum wages:

• Georgia and Wyoming: $5.15/h (below federal)
• Florida: $6.98/h
• Idaho, Indiana, and Iowa: $7.25/h (adopt federal minimum)

It’s important to note that even in states where the legal minimum is below the federal rate, federal law prevails in practice — meaning employers must pay at least $7.25/h.

How much can you earn per month in the U.S.

American wages are based on hourly calculations, so the monthly income depends directly on the number of hours worked. Assuming a standard 40-hour workweek and 4 weeks per month:

Federal minimum wage:

• Weekly: $290 (40h × $7.25)
• Monthly: $1,160 ($290 × 4)

In Washington D.C. (highest state minimum):

• Weekly: $700 (40h × $17.50)
• Monthly: $2,800

This $1,640 monthly difference between the federal minimum and D.C.’s demonstrates why location is so important when deciding where to work in the U.S.

Converting to local currency: real purchasing power versus nominal value

Many ask: how much is the minimum wage in the U.S. worth in reais? Using an approximate exchange rate of $1 = R$5.20, the numbers look impressive at first glance:

• Federal minimum: $1,160/month ≈ R$6,032/month
• Washington D.C.: $2,800/month ≈ R$14,560/month

Compared to Brazil, where the minimum wage in 2025 was R$1,518, the direct conversion suggests the American minimum is four times higher. But this analysis is misleading.

What truly matters: real cost of living

The real question isn’t how much it’s worth in reais when converted, but how much of that salary remains after paying basic expenses in each country.

Average monthly costs in the U.S.:

• Rent (1 bedroom, central area): $1,300 to $1,800
• Groceries and food: $300 to $500
• Transportation: $100 to $200
• Utilities (water, electricity, internet): $200 to $300
• Various insurances: $150 to $300

Minimum total needed: $2,050 to $3,100 per month

Result: someone earning the federal minimum of $1,160 will face a deficit. Even in states with higher minimums like California ($16.50/h = $2,640/month), costs approach the salary dangerously.

In Brazil:

• Rent (1 bedroom, central): R$800 to R$1,500
• Groceries: R$400 to R$600
• Transportation: R$100 to R$200
• Utilities: R$200 to R$400

Total: R$1,500 to R$2,700 per month

A minimum wage of R$1,518 also doesn’t comfortably cover expenses, but the situation is less dire than earning $1,160 in the U.S.

How to calculate your hourly wage in specific states

The formula is simple. To find out how much you’ll earn monthly in any state:

Monthly salary = Hourly wage × 40 × 4

Practical examples:

• Washington State ($16.66/h): 16.66 × 40 × 4 = $2,664.80/month
• New York ($16.50/h): 16.50 × 40 × 4 = $2,640/month
• California ($16.50/h): 16.50 × 40 × 4 = $2,640/month

If working overtime (common in the U.S.), the pay can be 50% higher (time-and-a-half) or double (double time).

Who actually earns the minimum wage

Not all workers earn only the minimum. The rule mainly applies to:

• Restaurant and fast-food employees
• Cashiers in stores
• Stock helpers
• Cleaning staff
• Teenagers in their first jobs (from age 14)

An important note: waiters and employees receiving tips can have a lower base wage (in some states, as low as $2.13/h), with the expectation that tips will make up the difference. This is legal in the U.S., unlike in Brazil.

Why the U.S. federal minimum wage hasn’t increased in so long

The federal minimum wage ($7.25) has been frozen since 2009 — 16 years without adjustment. This isn’t accidental: ongoing political tensions surround the issue. Republicans argue that increases harm small businesses, while Democrats support periodic raises.

As a result, many states have taken independent action. California, Massachusetts, New York, and others have implemented annual increases to keep pace with inflation. However, this fragmentation creates significant regional inequality.

Conclusion: Is it feasible to live on minimum wage in the U.S.?

The straightforward answer is: it depends heavily on the location. In states like Washington D.C., California, or New York, even with state minimum wages, living alone without additional income is challenging. In states with the federal minimum of $7.25, it’s nearly impossible without social benefits or supplementary income.

For those considering moving to the U.S., researching not only the minimum wage in the specific region but also the local cost of living is absolutely critical. The salary that seems high when converted to reais may be insufficient in practical American terms.