Minimum Wage by State (2026)
In 2026, 22 states raised their minimum wage, affecting millions of workers and reshaping the pay floor across the country. The federal minimum remains $7.25 per hour (unchanged since 2009), so state and local laws now decide the real wage most employees earn. Washington state ($17.13) and the District of Columbia ($17.95) sit at the top, while several states crossed the $15 mark for the first time, including Arizona, Colorado, Hawaii, Maine, Missouri, and Nebraska. This guide explains the 2026 rates, why they move on different dates, how tipped and youth wages work, and what a higher minimum actually means for your take-home pay.
2026 Minimum Wage — The Highest-Impact States
The table below covers the highest-impact states and a few low-floor states for contrast. Rates reflect the highest statewide applicable minimum; many cities set local floors above these numbers. Dollar figures are 2026 statewide rates published by state labor agencies.
| State | 2026 rate | How set | 2025 to 2026 change |
|---|---|---|---|
| Washington | $17.13 | Inflation adj. | +$0.47 |
| DC | $17.95 | Indexed | +$0.55 |
| New York (NYC/LI/Westchester) | $17.00 | Regional step | +$0.50 |
| California | $16.90 | Inflation adj. | +$0.40 |
| Connecticut | $16.94 | Inflation adj. | +$0.59 |
| Rhode Island | $16.00 | Legislation | +$1.00 |
| Hawaii | $16.00 | Step | +$2.00 |
| New Jersey | $15.92 | Inflation adj. | +$0.43 |
| Arizona | $15.15 | Inflation adj. | +$0.45 |
| Colorado | $15.16 | Inflation adj. | +$0.35 |
| Maine | $15.10 | Inflation adj. | +$0.45 |
| Missouri | $15.00 | Ballot | +$1.25 |
| Nebraska | $15.00 | Ballot | +$1.50 |
| Michigan | $13.73 | Step | +$1.25 |
| Virginia | $12.77 | Step | +$0.36 |
| Ohio | $11.00 | Inflation adj. | +$0.30 |
| South Dakota | $11.85 | Inflation adj. | +$0.35 |
| Federal floor | $7.25 | Unchanged | $0.00 |
States With No State Minimum
States with no state minimum, or a state minimum below $7.25 — such as Alabama, Georgia, Iowa, Louisiana, Mississippi, South Carolina, and Texas — default to the federal $7.25. A few states set a minimum below the federal floor (Georgia and Wyoming at $5.15), but the federal law still requires $7.25 for covered employers, so the effective rate is $7.25. The practical rule is simple: employers must pay the highest applicable rate among federal, state, and local law. That means a worker in a high-cost city inside a low-minimum state can still earn well above $7.25 because of a local ordinance. The Texas wage guide and other state guides note the local floor where it applies.
Local Minimums Above the State Rate
Many cities set their own floors above the state rate. Seattle ($20.76 for large employers in 2026), Denver, West Hollywood, and a growing list of California and Washington localities exceed both the state and federal minimums. In these places the local rate governs. Multi-state employers and remote workers should check both the state and the work-location city, because payroll must apply the correct local rate for each employee's physical work site. The California wage guide and the Washington guide track the local floors in those high-rate states.
What a Higher Minimum Means for Take-Home
A worker moving from $7.25 to $15.00 at 40 hours earns about $560 more per week in gross pay before taxes. After FICA (7.65% employee share) and any state income tax, the net gain is still substantial — roughly $450 to $500 per week, or $23,000 to $26,000 per year in additional take-home. Use the Net Pay Calculator to model your own rate and state, because state tax can trim the gain in higher-tax states. For someone transitioning off public assistance, the net improvement is often larger than the gross increase suggests once benefit phases are accounted for.
Why Rates Change on Different Dates
Most states adjust on January 1, but the effective dates are not uniform. Oregon moves July 1 using a CPI-based formula; Florida steps September 30 on a path to $15; Alaska adjusts January 1 but on a different CPI base. Inflation-indexed states recompute the rate from a prior-year CPI reading and announce it in the fall; legislative or ballot-approved states publish a multi-year step schedule years ahead so employers can plan. For payroll teams, this means tracking 50-plus effective dates and sometimes mid-year rate changes for the same employee.
Tipped Minimums
Many states set a lower tipped cash wage offset by tips. Examples include $12.15 in Arizona and $14.75 in Hawaii for tipped employees, versus their full minimums of $15.15 and $16.00. The federal tipped minimum is $2.13, but only if tips bring the employee to at least the full minimum — if tips plus the cash wage fall short, the employer must make up the difference. Notably, some states (California, for one) do not allow a tip credit and require the full minimum for tipped staff. The State Wage Comparison covers tipped rules by state.
Youth, Trainee, and Disabled Sub-Minimums
Federal law permits a few sub-minimum categories: a $4.25 youth minimum for workers under 20 during their first 90 days; a "learner" or "student learner" rate for certain trainees; and special certificates for workers with disabilities (a provision under active legal and political debate in 2026). Most states either prohibit these or apply them narrowly. If you are a student or young worker, confirm whether your rate is legal and temporary, and report suspected misclassification to your state labor agency.
Minimum Wage vs Living Wage
The legal minimum and the living wage are different numbers. Even after the 2026 increases, a full-time minimum-wage worker in a low-minimum state can still earn below a local living wage once rent is included. The living wage guide quantifies the gap by state and household size, and the cost of living comparison shows why the same nominal wage buys very different lives in different states.
How to Calculate Your Effective Raise
A percentage-point increase in the minimum does not translate to the same percentage increase in your paycheck if you already earned above the old floor. A worker making $20 in a state that raised its minimum from $15 to $15.50 sees no change, because the new floor sits below their rate. Only workers at or near the old floor benefit directly. To estimate your own effective raise, compare your current hourly rate to the new applicable minimum: if you are at the floor, the dollar increase times your hours is your gross raise; if you are above it, the policy change affects you only indirectly through local prices and labor competition. The Net Pay Calculator turns the new hourly rate into a monthly and annual net figure you can compare with your current take-home.
Minimum Wage, Overtime, and Tipped Hours Together
For tipped and hourly staff, the minimum interacts with overtime and with the tip credit in ways that surprise new workers. Overtime is always calculated from the full minimum cash wage plus tips (the "regular rate"), not from a discounted tipped rate, once tips are counted. A tipped worker in a state without a tip credit (such as California) must receive the full state minimum for all hours, and overtime on top at 1.5 times that full rate. If your employer pays the sub-minimum tipped rate and your tips fall short, they owe the difference plus overtime computed on the corrected rate. The overtime guide walks the calculation, and the state comparison notes which states allow a tip credit.
How a Raise Flows to Take-Home
A worker at the new $15 Washington-state-equivalent minimum, 40 hours, earns $600/week gross. After FICA (7.65% employee, ~$45.90) and a modest state tax, net is roughly $525–$540/week, about $27,300–$28,000/year. Versus the federal $7.25 floor, that is roughly $16,000 more in gross and about $13,000 more net annually for a full-time worker — a life-changing difference the Net Pay Calculator models precisely.
Local Floors Above the State
Cities often exceed their state: Seattle $20.76 (large employers), Denver, West Hollywood, and many California and Washington localities top both state and federal floors. In those places the local rate governs and multi-state employers must apply the correct local rate per work site. The California and Washington guides track local floors so you are paid the right rate where you actually work.
Minimum Wage and Overtime Interact
For hourly and tipped staff, the minimum sets the regular rate that overtime builds on. A tipped worker in a no-tip-credit state must receive the full minimum for all hours, plus 1.5x overtime on top. If an employer pays the sub-minimum tipped rate and tips fall short, they owe the difference plus OT on the corrected rate. The overtime guide walks the calculation so you can verify your check.
What to Do If Underpaid
If your pay is below the applicable federal, state, or local minimum, document your hours and rate, then raise it with payroll and, if needed, your state labor agency or the federal DOL. Keep your own hour log — payroll errors favor the employer when unchallenged. The state comparison notes which states allow a tip credit so you know your baseline.
Two-Worker Households and the Floor
When both adults earn near the minimum, a household can still fall short of a family living wage because two $15 wages may not cover rent plus child care. The living wage guide quantifies the family gap; the cost of living guide shows why the same nominal wage buys different lives by state.
Students, Trainees, and the Youth Rate
The federal $4.25 youth minimum for workers under 20 in their first 90 days is legal but temporary; some states prohibit or narrow it. If your rate looks too low, confirm whether it is a lawful sub-minimum and report misclassification. The garnishment guide is unrelated but shows why written pay terms matter.
Minimum Wage and Benefits
A higher minimum with no benefits may net less than a slightly lower wage with health coverage and a 401(k) match. Compare total compensation, not the hourly floor. The 401(k) guide values the match; the Net Pay Calculator models take-home at any rate and state.
Tracking Mid-Year Changes
Because effective dates differ (Oregon July 1, Florida September 30), payroll must track 50-plus dates. If your pay does not rise on your state's date, ask why. The California and Washington guides note local floors; the state comparison maps tipped rules.
The 2026 State Landscape
In 2026, 22 states raised their minimums: Washington reaches $17.13, DC $17.95, California $16.90, New York $17/$16 by region, and the federal floor stays $7.25. Several states now index to inflation, so the gap between leaders and laggards widens yearly. The living wage guide shows why even the highest state minimum often still trails a real family budget.
Tipped Minimums and the Tip Credit
Many states let employers pay tipped workers a lower cash wage by taking a tip credit up to the federal $5.12; some states (California, for example) forbid the credit and require the full minimum for tipped hours. The state wage comparison maps the split; the overtime guide covers how tips interact with the regular rate.
Local Ordinances Above the State
Cities like Seattle, San Francisco, and Denver set minimums above their state's, so the governing rate is the highest that applies. A worker in a high-cost city may be owed far more than the state poster shows. The California guide and others note local floors; the cost of living guide explains why the city rate is justified.
Effective Dates Vary
Oregon changes July 1, Florida September 30, and many on January 1; payroll must track 50-plus dates. If your pay does not rise on your state's date, ask why. The garnishment guide is unrelated but shows why written pay terms matter; the Net Pay Calculator models take-home at any rate.
Sub-Minimum and Youth Rates
The federal $4.25 youth rate for workers under 20 in their first 90 days is legal but temporary; some states prohibit or narrow it. If your rate looks too low, confirm whether it is a lawful sub-minimum and report misclassification. The 1099 guide covers a different misclassification risk; both cost you pay you earned.
Minimum Wage Versus Total Compensation
A higher minimum with no benefits may net less than a slightly lower wage with health coverage and a 401(k) match. Compare total comp, not the hourly floor. The 401(k) guide values the match; the Part-Time Calculator turns any rate and hours into monthly take-home for an honest comparison.
Key Takeaways
In 2026 the highest statewide minimum is Washington at $17.13 (DC $17.95), while the federal floor is still $7.25. Because employers pay the highest applicable rate, your real minimum depends on state and city. Twenty-two states raised their floors this year, lifting take-home pay directly for millions. Model your own situation with the Net Pay Calculator, compare against the living wage, and check your local ordinance before you accept a role.
Frequently Asked Questions
Related Reading
Figures are 2026 estimates for guidance only. See the 50 State Wage Guides for local detail.