US Minimum Wage Rates increases 2026-27: Full State-by-State List, New Rates & What Workers Should Know

US Minimum Wage Rates increases 2026-27: 22 states raising pay, Washington leads at $17.13/hr. Full state list, city rates & federal $7.25 comparison inside. US Minimum Wage Increases 2026 are delivering real paycheck gains to millions of hourly workers this year, even as the federal minimum wage stays frozen at $7.25 per hour unchanged since 2009. Nineteen states raised their minimum wage on January 1, 2026, with three more states and Washington, D.C. following later in the year, bringing the total to 22 states and 66+ cities and counties implementing increases across 2026, according to the National Employment Law Project. The Economic Policy Institute estimates roughly 8.3 million workers will benefit from these changes, collectively gaining about $5 billion in additional wages. We’ll be updating this article monthly as more localities confirm their 2026 rates.

For the first time in U.S. history, more workers now live in a state with a $15+ minimum wage than in a state stuck at the $7.25 federal floor a milestone driven by states like Arizona, Colorado, Hawaii, Missouri, and Nebraska crossing the $15 threshold in 2026. Washington State holds the highest statewide minimum wage at $17.13/hour, while Washington, D.C. leads all jurisdictions nationally at $17.95/hour. This complete, fact-checked guide covers every confirmed 2026 minimum wage rate by state, the cities paying even more, and what it means for your paycheck.

US Minimum Wage Rates increases 2026-27 Highlights

Why Minimum Wages Are Rising in 2026

With the federal minimum wage frozen at $7.25 since 2009, inflation has eroded its real purchasing power by more than 30%. In the absence of federal action, a growing number of states have moved to index their minimum wage to inflation or follow pre-scheduled increases passed by ballot measure or legislation. This is why most 2026 increases are automatic — tied to the Consumer Price Index (CPI-W) or multi-year phase-in schedules approved years in advance — rather than new laws passed this year.

States Raising Minimum Wage on January 1, 2026

Nineteen states increased their minimum wage at the start of the year. Here is the full, verified list:

Six of these states — Arizona, Colorado, Hawaii, Maine, Missouri, and Nebraska — crossed the $15/hour threshold for the first time in 2026, bringing the total number of states (plus D.C.) at or above $15 to 17.

Minimum Wage Increases Later in 2026

A smaller group of states raise their wage floor later in the year rather than on January 1:

Oregon’s rate is unusual in that it has three separate tiers — a standard statewide rate, a higher rate for the Portland metro area, and a lower rate for nonurban counties — all adjusted annually based on CPI data released each July.

City and County Minimum Wages Higher Than the State Rate

Beyond statewide rates, dozens of individual cities and counties set their own, higher minimum wages in 2026 — some of the highest in the country:

• Tukwila, Washington — $21.65/hour, the highest local minimum wage in the nation
• West Hollywood, California — $20.25/hour
• Flagstaff, Arizona — as of January 1, 2026, Flagstaff completed a decade-long phase-out of its subminimum tipped wage; tipped workers now receive the full $18.35/hour minimum wage in cash, with tips paid entirely on top
• California fast-food workers (chains with 60+ locations nationwide) — a separate $20.00/hour minimum wage that has remained in effect since 2024

At least 29 California cities and 8 Washington localities implemented their own 2026 increases above the state minimum, reflecting how local cost-of-living pressures — especially in coastal metro areas — continue to push wage floors well above state averages.

States Where the Minimum Wage Is NOT Increasing in 2026

Several states already pay above the federal floor but have no scheduled increase for 2026:

States Still at the Federal Minimum ($7.25) or Without a State Law

Twenty states currently have no minimum wage law of their own above the federal $7.25 floor, meaning covered workers there are paid the federal rate:

Alabama, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, New Hampshire, North Carolina, North Dakota, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Wisconsin, Wyoming

Two of these — Georgia and Wyoming — technically have a lower state-listed minimum wage ($5.15), but federal law overrides this for any employer covered by the Fair Labor Standards Act, meaning covered employees in these states are still legally entitled to the $7.25 federal minimum.

How Much Does a Minimum Wage Job Actually Pay?

Here’s a simple breakdown of what a minimum wage worker earns at different hourly rates, assuming a standard 40-hour work week:

These figures are gross pay before taxes and don’t account for overtime, which most hourly workers are entitled to after 40 hours per week under federal law.

Federal Minimum Wage

Congress last raised the federal minimum wage in 2009 under the Fair Minimum Wage Act of 2007, a phased increase that brought the rate to its current $7.25/hour. Since then, inflation has eroded its real value by more than 30%, making it the longest stretch without a federal increase in the minimum wage’s history. Several congressional proposals to raise the federal floor — including to $15 or higher — have been introduced in recent sessions but have not passed, leaving the responsibility for wage increases almost entirely to individual states and cities.

Looking ahead, most analysts expect this pattern to continue: state and local governments — not Congress — will likely remain the primary drivers of minimum wage growth through the rest of the decade, particularly in states that have already tied their minimum wage to automatic inflation indexing.

What This Means for Workers and Employers

For hourly workers, these increases translate directly into a larger paycheck starting with pay periods on or after each effective date — no action is required to receive the raise if you already work for a covered employer. For employers, particularly small businesses operating near state lines or across multiple cities with different local minimums, staying compliant means tracking not just the state rate but any applicable city or county minimum that may be higher.

Workers in tipped occupations should also check their state’s specific tipped minimum wage rules, since some states (like Minnesota and California) require the full minimum wage regardless of tips, while others allow a tip credit similar to the federal $2.13/$5.12 structure.

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