Minimum Wage by State 2026: Every State Rate, Tipped Wage, and Scheduled Increase

The federal minimum wage is $7.25 an hour and has not changed since July 2009. As of July 1, 2026, 30 states plus the District of Columbia set a higher rate, and 20 states use the federal floor. The highest minimum wage in the country is $18.40 in Washington DC, followed by Washington state at $17.13, New York at $17.00 in the downstate region, Connecticut at $16.94, and California at $16.90. The lowest lawful rate anywhere is $7.25.

This guide lists the 2026 minimum wage for every state, the cash wage employers can pay tipped workers, which states adjust their rate for inflation every year, and every increase already scheduled through 2028. Each state name links to a dedicated page with local ordinances, tiered rates, and the state's own source.

Minimum Wage by State in 2026

One rule governs everything below: when federal, state, and local minimum wages differ, the employee is entitled to the highest rate that applies to them. The table lists the standard statewide rate for non-tipped adult employees. Where a state has tiers for small employers, regions, or youth workers, the tier that covers most employers is shown and the state page explains the rest.

The tipped cash wage is the lowest hourly wage an employer may pay a tipped employee directly. The employer takes a tip credit for the difference between that cash wage and the full minimum wage, and must make up any shortfall if tips do not cover it. Where the table says "no tip credit," tipped employees receive the full minimum wage plus their tips.

States Ranked From Highest to Lowest

Thirty-one jurisdictions, meaning 30 states plus DC, pay more than the federal $7.25. The top 15 are all at $15.00 or above.

Below the top 15, the remaining above-federal states are Massachusetts, Missouri, and Nebraska at $15.00; Vermont at $14.42; Alaska and Florida at $14.00; Michigan at $13.73; Virginia at $12.77; Nevada and New Mexico at $12.00; South Dakota at $11.85; Minnesota at $11.41; Arkansas and Ohio at $11.00; Montana at $10.85; and West Virginia at $8.75.

The 20 states at the federal $7.25 are Alabama, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, New Hampshire, North Carolina, North Dakota, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Wisconsin, Wyoming.

States With No Minimum Wage Law

Five states have never enacted a state minimum wage: Alabama, Louisiana, Mississippi, South Carolina, and Tennessee. Employers in those states covered by the Fair Labor Standards Act pay the federal $7.25, and the federal tipped cash wage of $2.13 applies. Almost every employer with at least $500,000 in annual revenue, and any employee whose work involves interstate commerce, is covered by the FLSA, so the practical minimum in these states is $7.25 for nearly everyone.

States Below Federal on Paper

Georgia and Wyoming both keep a state minimum wage of $5.15 on the books. Because the federal rate is higher, the state figure only matters for the small set of employers and employees the FLSA does not cover. In Georgia the state rate also applies only to employers with six or more employees. For payroll purposes, treat both states as $7.25 states.

States That Index the Minimum Wage to Inflation

Twenty jurisdictions raise their minimum wage automatically based on a consumer price index, so the rate changes every year without new legislation. Most adjust on January 1. The District of Columbia and Oregon adjust on July 1, and Florida's schedule runs from September 30. Missouri and Arkansas are sometimes listed as indexed states, but Missouri repealed its indexing in 2025 and the Arkansas Department of Labor shows a flat $11.00 since 2021.

Three more states are on their way into this group. Nebraska's indexing begins January 1, 2027, after its statutory climb to $15.00. Virginia has fixed steps to $13.75 on January 1, 2027 and $15.00 on January 1, 2028 before indexing takes over. Alaska and Florida have fixed steps scheduled first (to $15.00 in 2027 and 2026 respectively) and then resume indexing in 2028. Michigan moves to annual adjustments after it reaches $15.00 on January 1, 2027.

The practical consequence for multi-state employers is that a payroll rate table set in January is out of date by July in DC and Oregon, and out of date again the following January almost everywhere else.

Scheduled Increases in 2026, 2027, and 2028

These are the fixed statutory increases already on the calendar, plus the indexed adjustments that states have already announced for January 1, 2027. Other indexed states announce their 2027 figure between September and December 2026.

On top of these, every indexed state will announce a new January 1, 2027 rate in the autumn of 2026. Washington, California, Colorado, Arizona, New Jersey, and Connecticut announce theirs between September and November.

Tipped Minimum Wage by State

Federal law lets an employer pay a tipped employee a cash wage of $2.13 an hour and count up to $5.12 an hour in tips toward the $7.25 minimum. Most states set a higher cash wage, a smaller tip credit, or both. Seven states prohibit the tip credit entirely: Alaska, California, Minnesota, Montana, Nevada, Oregon, and Washington. In those states a server earns at least the full state minimum wage from the employer and keeps tips on top.

The tipped column in the main table shows each state's minimum cash wage. A few states deserve a closer look:

• Connecticut has different cash wages for hotel and restaurant staff ($6.38) and bartenders ($8.23).
• Hawaii allows a tip credit of only $1.25, and only when the employee's cash wage plus tips is at least $7.00 above the minimum wage.
• New York sets tipped cash wages by region and occupation, and the figures differ for food service workers and service employees.
• North Carolina requires written tip certification before the employer can take a credit.
• Ohio allows the tip credit only for businesses with $405,000 or more in annual gross receipts.

Whatever the cash wage, the employee's total of cash wages plus tips must reach the full minimum wage for every workweek, or the employer owes the difference. Accurate hour records are what make that reconciliation possible, which is why tipped payroll is one of the most common sources of wage claims.

Local Minimum Wages

Cities and counties in a dozen states set rates above the state minimum, and employers must pay the local rate to employees who work inside the boundary. The largest local rates are in:

• California, where more than 30 cities and counties set their own rate, including Los Angeles, San Francisco, San Jose, Oakland, Berkeley, and West Hollywood, and where a separate statewide minimum applies to fast food and healthcare workers.
• Washington, where Seattle, SeaTac, Tukwila, and several other cities exceed the state rate.
• New York, where the state itself sets a higher rate for New York City, Long Island, and Westchester.
• Illinois, where Chicago and Cook County set higher rates.
• Colorado, where Denver and Boulder County exceed the state rate.
• Oregon, where the state sets three regional tiers, with the Portland metro area highest.
• New Mexico, where Santa Fe, Albuquerque, and Las Cruces exceed the state rate.
• Maryland, where Montgomery and Howard counties exceed the state rate.
• Arizona, where Flagstaff and Tucson exceed the state rate.
• Minnesota, where Minneapolis and St. Paul exceed the state rate.

About half the states, including Florida, Georgia, Texas, and most of the South and Mountain West, preempt local minimum wages, so a single statewide rate applies everywhere. The dedicated page for each state lists its local ordinances and whether preemption applies.

How to Stay Compliant Across States

Multi-state employers, and especially contact centers and BPOs with agents in several states, need a process rather than a spreadsheet. The steps that prevent most violations are:

1. Pay by work location, not by headquarters. An employee's minimum wage is set by where the work is performed. A remote agent in Seattle working for a Texas company is owed the Seattle rate.
2. Track hours to the minute. Minimum wage compliance is measured per workweek, so every hour worked, including short breaks and time before and after a shift, has to be recorded. Our time card calculator shows how hours and overtime combine into a pay period.
3. Reconcile tipped pay weekly. Compare cash wages plus tips against the full minimum wage for each tipped employee every workweek and top up any shortfall.
4. Calendar the changes. Put January 1, July 1, and the state-specific dates above on the payroll calendar, and subscribe to the state labor department announcements for every state where you have staff.
5. Update the pay rate table before the effective date. A rate that changes on January 1 has to be in the payroll system before the first pay period that includes January 1, not the first pay date after it.
6. Keep records for at least three years. The FLSA requires payroll records for three years and time records for two; several states require longer.

Overtime rules layer on top of the minimum wage. Non-exempt employees earn 1.5 times their regular rate after 40 hours in a workweek under federal law, and some states add daily thresholds. Our guide to overtime pay laws by state covers those, and the exempt vs non-exempt guide explains who qualifies for overtime in the first place.

What a Minimum Wage Means in Annual Pay

At 2,080 hours a year (40 hours a week for 52 weeks), the federal minimum wage of $7.25 is $15,080 a year before taxes. The $15.00 rate that 11 states now meet or exceed is $31,200. Washington DC's $18.40 is $38,272. A worker on the $15.00 rate who takes the standard 11 federal holidays unpaid works about 2,000 hours and earns $30,000. Use the salary to hourly calculator to convert any rate, and the gross pay guide to see how hours, overtime, and rate combine on a pay stub.

Frequently Asked Questions

What is the minimum wage by state in 2026?

It ranges from the federal $7.25 in 20 states to $18.40 in Washington DC. Thirty states plus DC set a rate above $7.25, and 11 jurisdictions are at $15.00 or higher. The full table above lists every state.

Which state has the highest minimum wage?

Washington DC has the highest minimum wage at $18.40 an hour as of July 1, 2026. Among the 50 states, Washington is highest at $17.13, followed by New York at $17.00 in the downstate region.

Which states have the lowest minimum wage?

Twenty states use the federal minimum of $7.25, which is the lowest lawful rate. Georgia and Wyoming list $5.15 in state law, but the federal $7.25 overrides it for almost all employees.

Which states are raising the minimum wage in 2026 and 2027?

Florida rises to $15.00 on September 30, 2026. Virginia begins inflation indexing on October 1, 2026. Michigan reaches $15.00 and Nebraska begins indexing on January 1, 2027, and every indexed state will publish a new January 1, 2027 rate. Alaska reaches $15.00 on July 1, 2027.

Is the federal minimum wage going up in 2026?

No. The federal minimum wage has been $7.25 since July 24, 2009, and no increase has been enacted as of September 2026. Congress would have to pass legislation to change it.

What is the tipped minimum wage?

Under federal law employers may pay tipped employees a cash wage of $2.13 an hour and count tips toward the rest of the $7.25 minimum. Most states set a higher cash wage, and seven states require the full minimum wage before tips. The table above lists each state's tipped cash wage.

Do I pay the state or the city minimum wage?

Whichever is higher. Employees are entitled to the highest applicable rate among federal, state, and local law, based on where they perform the work.

How often do state minimum wages change?

Twenty-two jurisdictions adjust every year, most on January 1 and a few on July 1. Other states change only when the legislature or voters act. Check the state page before each January and July payroll.

Sources

• US Department of Labor, State Minimum Wage Laws (as of July 1, 2026)
• US Department of Labor, Minimum Wages for Tipped Employees (as of July 1, 2026)
• US Department of Labor, Consolidated Minimum Wage Table (as of July 1, 2026)
• National Conference of State Legislatures, State Minimum Wages (updated July 1, 2026)