North Carolina minimum wage in 2026 (and 2027)

What the North Carolina rate covers

North Carolina's state rate is the same $7.25 as federal law, so there is no separate state rate to track. Tipped workers can be paid $2.13 in cash, with tips counted toward the rest of the $7.25. If a week's tips fall short, you pay the gap.

North Carolina has its own overtime rule. The U.S. Department of Labor state table lists 1.5 times the regular rate after 40 hours a week, like federal law, but a 45-hour threshold for seasonal amusement and recreation businesses. A seasonal amusement park can schedule 45 hours in a week before overtime begins.

Workers who can earn less than $7.25

Federal rules let three groups be paid below the standard hourly rate. Check with the North Carolina Department of Labor for any state difference before you rely on them:

• Tipped staff at $2.13 in cash, as long as tips close the gap to $7.25 every workweek.
• Workers under 20 at a youth wage of $4.25 an hour for their first 90 consecutive calendar days on the job. After day 90, or on their 20th birthday if sooner, the full $7.25 applies.
• Salaried exempt staff in executive, administrative or professional roles who pass the duties tests and earn at least $684 a week ($35,568 a year). They are paid a salary, not an hourly minimum, and do not earn overtime.

Job title alone does not make someone exempt. An assistant manager paid $700 a week clears the salary test but still has to pass the duties tests, or overtime is owed.

$7.25 an hour in weekly, monthly and yearly pay

Weekly pay at the minimum is $290.00, monthly pay $1,256.67 and yearly pay $15,080.00, assuming 2,080 hours. Overtime at the minimum is $10.88 an hour ($7.25 x 1.5). A seasonal amusement worker on a 45-hour week earns $326.25 at straight time before any overtime is due.

Employer cost: North Carolina's low UI rate on a high wage base

North Carolina's taxable wage base of $34,200 is more than double a full-time minimum wage salary, so every dollar of a $7.25 worker's pay is taxed for unemployment. The 1.0% rate keeps the bill small anyway. North Carolina also withholds a state income tax. Registration steps are in the North Carolina payroll tax guide.

Running North Carolina payroll

One choice is Gusto Simple, at $49 a month and $6 per person on payroll (checked October 16, 2026). Stack it against others in the payroll software rankings and on payroll pricing by team size.

Nearby: Virginia is $12.77 and rising, South Carolina uses the federal rate, and Georgia effectively does too. All states are in the minimum wage by state table.