2025 Minimum Wage: Preparing for Increases in 21 States
While the federal minimum wage has not increased since 2009, many states will see minimum wage rate increases in 2025 - most of which occur January...
2026 Minimum Wage Rates by State
More than 20 states will have minimum wage increases that take effect in 2026, most on January 1st. See the comprehensive list here.
Natalie Soltero, SHRM-CP, Stratus HR Consultant
Dec 19, 2025
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Minimum wage requirements continue to shift across the country, and 2026 will bring notable changes for employers in more than 20 states. To stay compliant, employers should review upcoming increases, evaluate their pay structures, and ensure payroll systems are ready for new rates taking effect - many of which are tied to cost-of-living adjustments or phased-in legislative changes.
States with scheduled minimum wage increases in 2026 include: Alaska, Arizona, California, Colorado, Connecticut, the District of Columbia, Florida, Hawaii, Maine, Michigan, Minnesota, Missouri, Montana, Nebraska, New Jersey, New York, Ohio, Oregon, Rhode Island, South Dakota, Vermont, Virginia, and Washington. However, not all of them take effect January 1st.
As always, employers should remember that some cities and counties have minimum wage rates higher than their state requirements. Employees in those states must be paid the higher minimum wage requirement.
In addition to minimum wage compliance, federal and state wage and hour laws require employers to pay non-exempt employees overtime at 1.5 times their regular rate of pay. Employees in executive, administrative, and professional roles may be exempt from overtime only if they meet all exemption tests, including salary threshold requirements.
Below is a reference guide to help employers prepare for 2026 with state-by-state minimum wage rates, tipping minimum wage rates, and effective dates.
Minimum Wage by State in 2026
(All listed increases reflect changes scheduled to take effect in 2026 unless otherwise noted.)
Alabama Minimum Wage 2026
Rate: $7.25 per hour (federal rate); no state minimum wage
Effective: Already in effect
Tipped rate: $2.13 tipped rate under federal law
Alaska Minimum Wage 2026
Rate: $13.00 per hour; scheduled to increase to $14 per hour as of July 1, 2026
Effective: Already in effect
Tipped rate: No tip credit permitted; tipped employees have the same minimum wage requirements
Arizona Minimum Wage 2026
Rate: $15.15 per hour (local rates may vary)
Effective: Jan. 1, 2026
Tipped rate: $3 below minimum wage
Arkansas Minimum Wage 2026
Rate: $11.00 per hour
Effective: Already in effect
Tipped rate: $2.63 per hour (for employers with 4+ employees)
California Minimum Wage 2026
Rate: $16.90 per hour (many cities/counties have higher rates)
Effective: Jan. 1, 2026
-
- Healthcare employers must follow SB-525 phased increases
Tipped rate: no tip credit allowed (i.e. tipped employees have the same minimum wage)
Note: California also has a minimum salary threshold of $70,304/year for exempt employees
Colorado Minimum Wage 2026
Rate: $15.16 per hour (certain areas of the state may differ)
Effective: Jan. 1, 2026
Tipped rate: $12.14 per hour (effective Jan. 1, 2026)
Note: Colorado also has a minimum salary threshold of $57,783.96/year for exempt employees
Connecticut Minimum Wage 2026
Rate: $16.94 per hour
Effective: Jan. 1, 2026
Tipped hotel/restaurant workers: $6.38 per hour
Tipped bartenders: $8.23 per hour
Delaware Minimum Wage 2026
Rate: $15.00 per hour
Effective: Already in effect
Tipped rate: $2.23 per hour
District of Columbia Minimum Wage 2026
Rate: $17.95 per hour; annual inflation increase is scheduled for July 1, 2026
Effective: Already in effect
Tipped rate: $10.05 per hour, which is 56% of regular minimum wage (effective July 1, 2026)
-
- Tipped base wage increases will occur every two years until they reach 75% of regular minimum wage by 2034 (60% as of 2028; 65% as of 2030; 70% as of 2032; 75% as of 2034)
Florida Minimum Wage 2026
Rate: $14.00 per hour
Effective: Already in effect
Tipped rate: $10.98 per hour
Notes:
-
- State minimum wage is scheduled to increase to $15 per hour (and $11.98per hour tipped) on Sept. 30, 2026
- Annual inflation adjustments for state minimum wage begin in 2027
Georgia Minimum Wage 2026
Rate: $7.25 per hour
Effective: Already in effect
-
- State’s $5.15 per hour minimum applies only to workers not covered by FLSA
Hawaii Minimum Wage 2026
Rate: $16.00 per hour
Effective: Jan. 1, 2026
Tipped rate: $14.75 per hour as of Jan. 1, 2026
Idaho Minimum Wage 2026
Rate: $7.25 per hour
Effective: Already in effect
Tipped rate: $3.35 per hour
Illinois Minimum Wage 2026
Rate: $15.00 per hour (local minimum wages may be higher)
Effective: Already in effect
Tipped rate: $9 per hour (tip credit capped at 40% of state minimum wage)
Indiana Minimum Wage 2026
Rate: $7.25 per hour
Effective: Already in effect
Tipped rate: $2.13 per hour
Iowa Minimum Wage 2026
Rate: $7.25 per hour
Effective: Already in effect
Tipped rate: $4.35 per hour
Kansas Minimum Wage 2026
Rate: $7.25 per hour
Effective: Already in effect
Tipped rate: $2.13 per hour
Kentucky Minimum Wage 2026
Rate: $7.25 per hour
Effective: Already in effect
Tipped rate: $2.13 per hour
Louisiana Minimum Wage 2026
Rate: $7.25 per hour
Effective: Already in effect
Tipped rate: $2.13 per hour
Maine Minimum Wage 2026
Rate: $15.10 per hour
Effective: Jan. 1, 2026
Tipped rate: $7.55 per hour, effective Jan. 1, 2026
Notes:
-
- State minimum wage rate will have annual cost-of-living adjustments
- Some municipalities may have higher rates
Note: Maine also has a minimum salary threshold of $45,300/year for exempt employees
Maryland Minimum Wage 2026
Rate: $15.00 per hour (some counties have different rates)
Effective: Already in effect
Tipped rate: $3.63 per hour
Massachusetts Minimum Wage 2026
Rate: $15.00 per hour
Effective: Already in effect
Tipped rate: $6.75 per hour for those who make more than $20/month in tips
Michigan Minimum Wage 2026
Rate: $13.73 per hour (scheduled to increase to $15 per hour on Jan. 1, 2027); annual inflation adjustments begin in 2028
Effective: Jan. 1, 2026
Tipped rate: $5.49 per hour as of Jan. 1, 2026 (40% of minimum wage); tipped percentage increases 2% annually until reaching 50% of minimum wage by 2023
Minnesota Minimum Wage 2026
Rate: $11.41 per hour (local rates may vary); annual rate is set to increase due to inflation
Effective: Jan. 1, 2026
Tipped rate: no tip credit allowed (i.e. tipped employees have the same minimum wage)
Mississippi Minimum Wage 2026
Rate: $7.25 per hour
Effective: Already in effect
Tipped rate: $2.13 per hour
Missouri Minimum Wage 2026
Rate: $15.00 per hour
Effective: Jan. 1, 2026
Tipped rate: $7.50 per hour (50% of minimum wage), effective January 1, 2026
Montana Minimum Wage 2026
Rate: $10.85 per hour (subject to annual cost-of-living adjustments)
Effective: Jan. 1, 2026
Tipped rate: no tip, meal, or training credit allowed
Nebraska Minimum Wage 2026
Rate: $15.00 per hour (annual inflation adjustments begin in 2027)
Effective: Jan. 1, 2026
Tipped rate: $2.13 per hour
Nevada Minimum Wage 2026
Rate: $12.00 per hour
Effective: Already in effect
Tipped rate: no tip credit; minimum wage applies to all employees
New Hampshire Minimum Wage 2026
Rate: $7.25 per hour
Effective: Already in effect
Tipped rate: $3.27 per hour, which is 45% of minimum wage
New Jersey Minimum Wage 2026
Rate:
-
- $15.92 per hour for 6+ employees
- $15.23 per hour for seasonal or fewer than 6 employees
- $14.20 per hour for agricultural
- $18.92 per hour for long-term care facility direct care staff members
Effective: Jan. 1, 2026
Tipped rate: $6.05 per hour (effective Jan. 1, 2026)
New Mexico Minimum Wage 2026
Rate: $12.00 per hour; some localities differ
Effective: Already in effect
Tipped rate: $3.00 per hour
New York Minimum Wage 2026
Rate: (may vary by location and industry)
-
- $17.00 per hour (NYC, Long Island, Westchester)
- $16.00 per hour (remainder of state)
- Home care aides have different minimum wage rates
Effective: Jan. 1, 2026
Tipped rate:
-
- NYC, Long Island, and Westchester (as of Jan. 1, 2026):
- $14.15 per hour for service employees
- $11.35 per hour for food service workers
- Remainder of NY state (as of Jan. 1, 2026):
- $13.50 per hour for service employees
- $10.70 per hour for food service workers
Note: New York also has a minimum salary threshold for exempt employees:
-
- New York City, Nassau, Suffolk, and Westchester Counties: $66,300/year
- Other areas of NY: $62,353.20/year
North Carolina Minimum Wage 2026
Rate: $7.25 per hour
Effective: Already in effect
Tipped rate: $2.13 per hour
North Dakota Minimum Wage 2026
Rate: $7.25 per hour
Effective: Already in effect
Tipped rate: $4.86 per hour
Ohio Minimum Wage 2026
Rate: $11.00 per hour (small employers that gross less than $405,000 can pay federal minimum wage rate)
Effective: Jan. 1, 2026
Tipped rate: $5.50 per hour (50% of minimum wage) as of Jan. 1, 2026
Oklahoma Minimum Wage 2026
Rate:
-
- $7.25 per hour (10+ employees and employers with annual gross sales over $100,000
- $2.00 per hour (employees not covered by FLSA – very limited few)
Effective: Already in effect
Tipped rate: $2.13 per hour with crediting rules
Oregon Minimum Wage 2026
Rate:
-
- $15.05 per hour (standard)
- $16.30 per hour for Portland metro (+$1.25 of standard)
- $14.05 per hour nonurban counties (-$1.00 of standard)
Effective: Already in effect; standard state rate will adjust annually on July 1st based on CPI increase
Tipped rate: no tip credit; minimum wage applies to all employees
Pennsylvania Minimum Wage 2026
Rate: $7.25 per hour
Effective: Already in effect
Tipped rate: $2.83 per hour
Rhode Island Minimum Wage 2026
Rate: $16.00 per hour (schedule to increase to $17 in 2027)
Effective: Jan. 1, 2026
Tipped rate: $3.89 per hour
South Carolina Minimum Wage 2026
Rate: $7.25 per hour
Effective: Already in effect
Tipped rate: $2.13 per hour
South Dakota Minimum Wage 2026
Rate: $11.85 per hour
Effective: Jan. 1, 2026
Tipped rate: $5.93 per hour
Tennessee Minimum Wage 2026
Rate: $7.25 per hour
Effective: Already in effect
Tipped rate: $2.13 per hour
Texas Minimum Wage 2026
Rate: $7.25 per hour
Effective: Already in effect
Tipped rate: $2.13 per hour
Utah Minimum Wage 2026
Rate: $7.25 per hour
Effective: Already in effect
Tipped rate: $2.13 per hour
Vermont Minimum Wage 2026
Rate: $14.42 per hour (set to adjust annually for inflation)
Effective: Jan. 1, 2026
Tipped rate: $7.21 per hour (50% of state minimum wage) for service or tipped employees working at a hotel, motel, tourist place, or restaurant (effective Jan. 1, 2026)
Virginia Minimum Wage 2026
Rate: $12.77 per hour
Effective: Jan. 1, 2026
Tipped rate: $2.13 per hour
Washington Minimum Wage 2026
Rate: $17.13 per hour (local rates may be higher)
Effective: Jan. 1, 2026
Tipped rate: no tip credit; minimum wage applies to all employees
Note: Washington also has a minimum salary threshold of $80,168.40/year for exempt employees
West Virginia Minimum Wage 2026
Rate: $8.75 per hour for employers with 6+ nonexempt employees at one location
Effective: Already in effect
Tipped rate: $2.62 per hour (30% of state minimum wage)
Wisconsin Minimum Wage 2026
Rate: $7.25 per hour
Effective: Already in effect
Tipped rate: $2.33 per hour
Wyoming Minimum Wage 2026
Rate: $7.25 per hour ($5.15 per hour for workers not covered by FLSA)
Effective: Already in effect
Tipped rate: $2.13 per hour
What is a “Tipped Rate?”
A tipped rate is the wage a worker can be paid when they regularly receive more than $30 per month in tips (some states apply different criteria). In most states, employers may take a maximum tip credit and pay a lower hourly cash wage as long as the employee’s hourly pay plus tips equals or exceeds the applicable minimum wage.
When tips do not bring total earnings up to the required minimum, employers are legally obligated to cover the shortfall. Employers are also forbidden from keeping any portion of employee tips or permitting supervisors and managers to participate in tip sharing. These protections ensure gratuities remain with the employees who earn them.
Per the One Big Beautiful Bill, eligible employees may deduct tips and overtime earnings from federal taxable income for tax years 2025-2028. While this does not change pay rates, it affects employee take-home pay and payroll reporting. The deductions apply to workers earning up to $150,000 ($300,000 for joint filers) and allow up to $25,000 in tips.
Youth Training Wage
The Fair Labor Standards Act (FLSA) allows employers to pay employees under the age of 20 a reduced minimum cash wage as an introductory wage during their first 90 consecutive calendar days of employment. The federal youth wage is set at $4.25 per hour, although state laws may require a higher amount.
Maintaining Wage Law Compliance
Because state minimum wage laws and hour regulations are subject to change, employers must remain vigilant. Staying current on legal updates, reviewing payroll practices, and keeping compliance documentation up to date are essential to managing minimum wage obligations effectively. These efforts help create a workplace that is both fair and legally sound.
For questions about FLSA requirements, minimum wage changes, tipped employee pay, youth training wages, or other labor compliance issues, please reach out to your certified HR expert. Not a current Stratus HR client? Book a free consultation and our team will contact you shortly.
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