DC Minimum Wage 2026: $18.40 as of July 1, Tipped Wage $10.30
The District of Columbia minimum wage rose to $18.40 per hour on July 1, 2026, the highest in the country. The tipped cash wage is $10.30 under the 2025 Council compromise that replaced the Initiative 82 schedule.
The District of Columbia minimum wage is $18.40 per hour as of July 1, 2026, up from $17.95. It applies to every employer in the District regardless of size and is the highest minimum wage in the United States. The tipped cash wage is $10.30 per hour, which is 56 percent of the full rate, under a 2025 Council law that replaced the Initiative 82 phase-out of the tip credit with a slower schedule. DC adjusts its rate for inflation every July 1.
- DC pays $18.40 per hour from July 1, 2026, adjusted each July 1 by the consumer price index
- The tipped cash wage is $10.30, set at 56 percent of the full minimum wage by D.C. Law 26-55
- The tipped rate rises to 60 percent on July 1, 2028 and then 5 points every two years, capped at 75 percent
- Tips must bring every tipped worker to at least $18.40 per hour or the employer makes up the difference
- The federal rate of $7.25 has no practical effect in the District
Current District of Columbia Minimum Wage
The DC Department of Employment Services (DOES) publishes an annual increase notice each spring. The 2026 notice states that beginning July 1, 2026 the minimum wage increases from $17.95 to $18.40 per hour for all workers, regardless of the size of the employer. The Fair Shot Minimum Wage Amendment Act of 2016 raised the rate to $15.00 by 2020 and requires an annual increase each July 1 tied to the Consumer Price Index for the Washington metropolitan area.
DC does not have a small business rate or a general training wage. Employers with a single employee in the District owe the full rate. The rate also applies to employees who regularly work in the District for more than half of their working time, or who are based in DC and do not spend more than half their time in any other jurisdiction, which matters for hybrid staff who split time with Maryland or Virginia.
District of Columbia Minimum Wage vs Federal Minimum Wage
| Rate | Amount | Effective |
|---|---|---|
| DC minimum wage | $18.40 per hour | July 1, 2026 |
| DC tipped cash wage | $10.30 per hour | July 1, 2026 |
| Federal minimum wage | $7.25 per hour | July 24, 2009 |
| Federal tipped cash wage | $2.13 per hour | 1991 |
DC's rate is $11.15 above the federal floor, the widest gap of any US jurisdiction. Neighboring Maryland pays $15.00 and Virginia $12.77 as of mid-2026, so employers with staff on both sides of the District line should apply rates by work location. Our minimum wage by state guide compares all three.
Tipped Minimum Wage in the District of Columbia
DC's tipped wage has changed course twice in four years. Initiative 82, approved by voters in November 2022, scheduled the tip credit to phase out entirely by 2027, with the tipped cash wage stepping up each July until it matched the full minimum wage. The Council paused that schedule in 2025 as part of the Fiscal Year 2026 Budget Support Act (D.C. Law 26-55), which was a compromise between the initiative and a mayoral proposal to repeal it outright.
The schedule now in law:
| Date | Tipped cash wage |
|---|---|
| Through June 30, 2026 | $10.00 (frozen) |
| July 1, 2026 | 56 percent of the minimum wage, which is $10.30 |
| July 1, 2028 | 60 percent of the minimum wage |
| Every two years after 2028 | Increases 5 percentage points, capped at 75 percent |
The tip credit rule itself is unchanged: if an employee's hourly tips, averaged over the week, plus the cash wage do not reach the full minimum wage, the employer pays the difference. DC also requires employers of tipped workers to use a third-party payroll provider or the District's certified system and to file quarterly wage reports, and it requires sexual harassment policy filings for tipped establishments.
District of Columbia Minimum Wage Increase Schedule
| Effective date | Minimum wage | Tipped cash wage |
|---|---|---|
| July 1, 2021 | $15.20 | $5.05 |
| July 1, 2022 | $16.10 | $5.35 |
| July 1, 2023 | $17.00 | $8.00 |
| July 1, 2024 | $17.50 | $10.00 |
| July 1, 2025 | $17.95 | $10.00 (frozen) |
| July 1, 2026 | $18.40 | $10.30 |
| July 1, 2027 | CPI adjustment, announced in spring 2027 | 56 percent of the new rate |
DOES announces each year's rate a few months before July 1. Employers should plan a mid-year payroll change every year, which is unusual; most states change rates on January 1.
Local Minimum Wages in the District of Columbia
The District is a single jurisdiction, so there are no city or county rates within it. Separate DC living wage requirements apply to government contractors and recipients of District assistance, and those rates are set on their own schedule and are typically higher than the general minimum wage.
Who Is Covered and Who Is Exempt
The DC Minimum Wage Revision Act covers almost every employee working in the District. Exemptions are narrow: bona fide executive, administrative and professional employees under the federal duties tests, certain outside sales staff, some students employed by their school, and a few others. Our guide to exempt vs non-exempt employees explains the tests, and our District of Columbia labor law guide covers leave, scheduling and other local rules.
Overtime and the Minimum Wage
DC requires time and a half after 40 hours in a workweek, the same as federal law, with no daily overtime rule. A minimum wage worker who works 45 hours earns 40 hours at $18.40 ($736.00) plus 5 overtime hours at $27.60 ($138.00), for $874.00 gross. Our overtime calculator handles any rate, and our guide to overtime pay laws by state covers the surrounding states.
What a Minimum Wage Worker Earns in the District of Columbia
| Period | Hours | Gross pay at $18.40 |
|---|---|---|
| Weekly | 40 | $736.00 |
| Biweekly | 80 | $1,472.00 |
| Monthly (average) | 173.33 | $3,189.27 |
| Annual | 2,080 | $38,272.00 |
These are gross figures; see our explainer on gross pay for deductions and the salary to hourly calculator for conversions.
Employer Compliance Checklist
- Pay at least $18.40 per hour for hours worked on or after July 1, 2026, and plan for a new CPI-adjusted rate every July 1
- Pay tipped employees at least $10.30 in cash wages and make up any shortfall to $18.40 each week
- Meet DC's tipped-employer obligations: third-party payroll or the certified system, quarterly wage reports, and the required policy filings
- Apply the DC rate to employees who spend more than half their working time in the District
- Post the current DOES minimum wage poster
- Keep precise hours and tip records; a time card calculator or automatic time tracking supports the weekly tip credit reconciliation
Reviewed September 2026
Rates on this page come from the DC Department of Employment Services 2026 minimum wage increase notice and the US Department of Labor tables as of July 1, 2026. The tipped wage schedule reflects D.C. Law 26-55 as reported in September 2026; the Council has revised this schedule before, so confirm the current tipped rate with DOES before each July 1.
Reconcile tips against $18.40 every week
HiveDesk captures hours automatically so DC employers can prove each tipped employee reached the full minimum wage. $5/user/month, 14-day free trial.
How District of Columbia Compares With Neighboring States
The District's rate is the highest in the region by a wide margin, and many employers have staff on both sides of the line.
| State | Minimum wage (July 1, 2026) | Notes |
|---|---|---|
| District of Columbia | $18.40 | Indexed each July 1; tipped $10.30 |
| Maryland | $15.00 | Statewide; Montgomery and Howard counties higher |
| Virginia | $12.77 | Indexed increases begin October 1, 2026 |
A contact center with sites in Washington, Silver Spring and Arlington manages three floors and three sets of tipped and overtime rules. Pay follows the location where the employee performs the work.
Common Minimum Wage Mistakes in District of Columbia
- Applying the old $17.95 rate after July 1, 2026
- Paying the $10.00 frozen tipped wage after it rose to $10.30
- Failing the weekly reconciliation that brings every tipped employee to $18.40
- Paying Maryland or Virginia rates to employees who spend more than half their time working in the District
- Missing the tipped-employer filing and payroll requirements that apply only in DC
Frequently Asked Questions
What is the minimum wage in DC in 2026?
$18.40 per hour for all employers, effective July 1, 2026.
What was the DC minimum wage before July 2026?
$17.95 per hour, from July 1, 2025 through June 30, 2026.
What is the tipped minimum wage in DC?
$10.30 per hour in cash wages as of July 1, 2026, which is 56 percent of the full minimum wage. Tips must bring the employee to at least $18.40.
Did DC repeal Initiative 82?
Not fully. The Council's 2025 budget law froze the tipped wage at $10.00 through June 2026 and replaced the phase-out with a slower schedule that caps the tipped wage at 75 percent of the full rate.
When does the DC minimum wage increase next?
July 1, 2027, by the change in the Washington-area consumer price index. DOES announces the figure in the spring.
Does the DC minimum wage apply to remote workers?
It applies to employees who perform more than half of their work in the District, or who are based in DC and do not spend more than half their time in any other single jurisdiction.
Is there a youth or training wage in DC?
DC does not have a general training wage. A limited exception exists for some students employed by their own school; confirm eligibility with DOES.
How does the DC minimum wage compare with Maryland and Virginia?
DC's $18.40 is higher than Maryland's $15.00 and Virginia's $12.77 as of mid-2026, so employers with staff in all three should pay by work location.