How much do you really earn with the US minimum wage? 2025 State-by-State Analysis

If you work in the United States or plan to move there, an inevitable question arises: can you live on the US minimum wage? The answer may surprise you—especially when compared to the Brazilian reality.

The US Decentralized System vs. Brazil

Unlike Brazil, which adopts a single national minimum wage, the United States operates with a complex hybrid model. There is a federal minimum of US$ 7.25 per hour (frozen since 2009), but each state, county, and even city can set their own rates—creating a huge disparity between regions.

In practice, this means workers can earn from US$ 7.25 up to US$ 17.50 per hour, depending exactly on where they work. This fragmentation makes the US minimum wage much more complex than it appears at first glance.

The Highest Minimum Wages per Hour

The District of Columbia leads with US$ 17.50/h, followed by:

• Washington: US$ 16.66/h
• California: US$ 16.50/h (with special rules for overtime—1.5x after 8 hours daily, 2x after 12h)
• New York: US$ 16.50/h in the city (US$ 15.50/h in the state)
• Massachusetts and Maryland: US$ 15/h

On the other hand, states like Georgia and Wyoming technically allow US$ 5.15/h, but the federal minimum of US$ 7.25 prevails in most cases.

Converting to Monthly Income: What Is It in Practice?

The calculation is straightforward: hourly wage × 40 hours × 4 weeks

At the federal minimum:

• Per hour: US$ 7.25 ≈ R$ 37.70 (2025 exchange rate: ~R$ 5.20)
• Monthly: US$ 1,160 ≈ R$ 6,032

In Washington DC:

• Monthly: US$ 2,800 ≈ R$ 14,560

US Minimum Wage vs. Brazil: Beyond Conversion

In gross numbers, the American minimum wage in reais (R$ 6,032) far exceeds the Brazilian minimum wage of R$ 1,518 in 2025. But this comparison is misleading.

The true metric is purchasing power. One dollar in the US buys fewer goods and services than R$ 5.20 buys in Brazil. Structural differences also matter: while Brazil has a single value nationwide, the decentralized US system creates huge regional disparities that must be considered.

The Financial Reality: Is It Possible to Live?

Here’s the real problem. In the US, even working 40 hours a week, the federal minimum wage is insufficient:

• Cost of living (excluding rent): US$ 1,185/month
• National average rent: US$ 1,626/month
• Minimum total needed: ~US$ 2,800/month

With only US$ 1,160 monthly at the federal minimum, it simply doesn’t add up. Cities with higher wages (California, DC, New York) offer better pay, but also have the most expensive rents in the country—creating a paradox where earning more doesn’t necessarily mean living better.

Who Earns the Minimum Wage in the US?

Typically, these are workers:

• Starting at age 14
• In entry-level operational roles (cashiers, stockers, cleaning aides)
• Without tips as the main income component
• Not apprentices or interns

An important exception: waiters and other professionals who receive tips can earn a significantly lower base, compensated by tips.

The US Minimum Wage as a Reference

For Brazilians considering a move, researching the specific minimum wage of the state is just the first step. The local cost of living, state taxes, benefits (or lack thereof), and career advancement opportunities should weigh much more in the decision. The American system, although offering higher floors than Brazil in many regions, also imposes serious financial challenges even for those earning above the minimum.