Michigan Minimum Wage 2026: $13.73 Now, $15.00 on January 1, 2027
Michigan minimum wage is $13.73 per hour in 2026 and rises to $15.00 on January 1, 2027; the tipped rate is $5.49 (40 percent of the minimum) in 2026 and $6.30 in 2027, minors aged 16 and 17 may be paid $11.67, and the rate is indexed to inflation from 2028.
The Michigan minimum wage is $13.73 per hour, effective January 1, 2026, and it rises to $15.00 per hour on January 1, 2027. The tipped cash wage is $5.49 in 2026, which is 40 percent of the minimum, and increases to $6.30 in 2027 as the tipped percentage steps up. Minors aged 16 and 17 may be paid 85 percent of the minimum, or $11.67, and a training wage of $4.25 applies for the first 90 days for workers under 20. After 2027 the rate is adjusted for inflation each year. Michigan has no local minimum wages. See how Michigan compares in our minimum wage by state guide.
Current Michigan Minimum Wage
Michigan's rate is set by the Improved Workforce Opportunity Wage Act as amended in February 2025, after the Michigan Supreme Court's 2024 decision reinstated a voter-initiated wage law and the Legislature rewrote the schedule. The Michigan Department of Labor and Economic Opportunity announced the 2026 rate of $13.73 in December 2025, and the US Department of Labor's state table lists the same figure as of July 1, 2026. The act covers employers with two or more employees aged 16 or older.
Michigan runs four rates in 2026:
| Employee group | 2026 rate | Basis |
|---|---|---|
| Standard minimum wage | $13.73 | Set by statute |
| Tipped employees (cash wage) | $5.49 | 40 percent of the minimum wage |
| Minors aged 16 and 17 | $11.67 | 85 percent of the minimum wage |
| Training wage (under 20, first 90 calendar days) | $4.25 | Fixed |
The 2026 figure of $13.73 was a jump of $1.25 from the $12.48 rate that applied from February 21, 2025, the largest single increase in the state's history.
Michigan Minimum Wage vs Federal Minimum Wage
| Rate | Amount | Notes |
|---|---|---|
| Federal minimum wage | $7.25 | Since 2009 |
| Michigan minimum wage (2026) | $13.73 | From January 1, 2026 |
| Michigan minimum wage (2027) | $15.00 | From January 1, 2027 |
| Local rates | None | State law preempts local minimum wages |
Michigan pays more than every neighboring state: Ohio $11.00, Indiana $7.25 and Wisconsin $7.25. Employers with staff in Toledo and Detroit face a $2.73 difference across the state line in 2026 and a $4.00 difference in 2027.
Tipped Minimum Wage in Michigan
Michigan sets the tipped cash wage as a percentage of the standard minimum wage, and the 2025 amendments froze that percentage at 38 percent for 2025, then step it up gradually rather than eliminating the tip credit as the original ballot initiative would have done. The tipped cash wage is $5.49 in 2026 (40 percent of $13.73) and rises to $6.30 in 2027 (42 percent of $15.00), then continues climbing two points a year until it reaches 50 percent of the minimum wage in 2031.
To take the credit, employers must show that tips plus the cash wage reach the full minimum wage for every hour worked in the pay period and must make up any shortfall. Employees must be told in writing that a tip credit is taken, and tips belong to the employee except through a valid tip pool.
Michigan Minimum Wage Increase Schedule
The current schedule was written into law in February 2025 and applies through 2027, after which annual inflation adjustments begin.
| Effective date | Minimum wage | Tipped cash wage | Tipped percentage |
|---|---|---|---|
| January 1, 2021 | $9.65 | $3.67 | 38 percent |
| January 1, 2022 | $9.87 | $3.75 | 38 percent |
| January 1, 2023 | $10.10 | $3.84 | 38 percent |
| January 1, 2024 | $10.33 | $3.93 | 38 percent |
| February 21, 2025 | $12.48 | $4.74 | 38 percent |
| January 1, 2026 | $13.73 | $5.49 | 40 percent |
| January 1, 2027 | $15.00 | $6.30 | 42 percent |
| January 1, 2028 | CPI adjustment | 44 percent of the new rate | 44 percent |
From 2028 the state treasurer calculates the increase each year using the consumer price index, with no adjustment in years when Michigan's unemployment rate is 8.5 percent or higher. The minor rate stays at 85 percent of whatever the adult rate is, so 16- and 17-year-olds will be owed $12.75 in 2027.
Local Minimum Wages in Michigan
Michigan has no local minimum wages. Public Act 105 of 2015, the Local Government Labor Regulatory Limitation Act, prohibits cities, townships and counties from setting a minimum wage above the state rate for private employers. Detroit, Grand Rapids, Ann Arbor and Lansing all use the statewide figure. Local governments can set pay for their own workers and for vendors on municipal contracts only.
Who Is Covered and Who Is Exempt
The Improved Workforce Opportunity Wage Act applies to employers with two or more employees aged 16 or older at any time during the calendar year. Excluded groups include:
- Exempt executive, administrative and professional employees under the federal duties tests and the $684 weekly salary floor; Michigan has no higher state threshold. See exempt vs non-exempt employees.
- Employees under 16, who are covered by federal law and Michigan's youth employment standards rather than the state minimum wage act.
- Workers under 20 during their first 90 calendar days, who may be paid the $4.25 training wage.
- Employees of amusement or recreational establishments open fewer than seven months a year, and certain agricultural workers, are exempt from parts of the act.
- Employers covered by the FLSA follow the federal act where it provides a higher standard, but the Michigan rate is always the higher of the two for minimum wage purposes.
Overtime and the Minimum Wage
Michigan requires 1.5 times the regular rate for hours over 40 in a workweek. There is no daily overtime. Employees of businesses with fewer than two employees follow the FLSA. See overtime pay laws in the US for the full rules.
A minimum wage employee working 45 hours in 2026 earns:
| Hours | Rate | Pay |
|---|---|---|
| 40 regular hours | $13.73 | $549.20 |
| 5 overtime hours | $20.595 | $102.98 |
| Weekly gross pay | $652.18 |
At $15.00 in 2027 the same week is $600.00 plus $112.50, or $712.50. The overtime calculator covers both years.
What a Minimum Wage Worker Earns in Michigan
| Period | Hours | 2026 ($13.73) | 2027 ($15.00) |
|---|---|---|---|
| Week | 40 | $549.20 | $600.00 |
| Month (average) | 173.33 | $2,379.82 | $2,599.95 |
| Year | 2,080 | $28,558.40 | $31,200.00 |
Michigan levies a flat state income tax and many cities, including Detroit, add a city income tax, so take-home pay is lower than gross. See gross pay vs net pay for the deductions, and the salary to hourly calculator to compare salaried offers.
Employer Compliance Checklist
- Post the current Michigan minimum wage poster from LEO and replace it before January 1, 2027.
- Pay $13.73 for every hour worked in 2026 and schedule the $15.00 change for January 1, 2027, splitting any pay period that straddles the date.
- Apply the 40 percent tipped cash wage of $5.49 now and $6.30 in 2027, with written tip credit notice and weekly reconciliation.
- Pay 16- and 17-year-olds at least $11.67 and follow Michigan's minor work-hour and work-permit rules.
- Use the $4.25 training wage only for workers under 20 and only for the first 90 calendar days.
- Keep time records for at least three years; a time card calculator helps verify weekly totals.
- Review the Michigan labor law guide for the Earned Sick Time Act, which took effect alongside the 2025 wage amendments.
Frequently Asked Questions
What is the minimum wage in Michigan in 2026?
$13.73 per hour, effective January 1, 2026. Tipped employees receive a $5.49 cash wage plus tips, and minors aged 16 and 17 may be paid $11.67.
When does Michigan minimum wage go up to $15?
January 1, 2027. After that the rate is adjusted for inflation each year.
What is the tipped minimum wage in Michigan?
$5.49 per hour in 2026, which is 40 percent of the minimum wage. It rises to $6.30 in 2027 and the percentage increases two points a year until it reaches 50 percent in 2031.
Does Detroit have a higher minimum wage?
No. Michigan law prohibits local minimum wages, so Detroit and every other city use the state rate.
Is there a youth minimum wage in Michigan?
Yes. Employees aged 16 and 17 may be paid 85 percent of the minimum wage, which is $11.67 in 2026 and $12.75 in 2027.
What is the Michigan training wage?
$4.25 per hour for employees under 20 during their first 90 calendar days of employment. After 90 days, or once the employee turns 20, the full applicable rate applies.
Why did Michigan minimum wage jump in 2025 and 2026?
The Michigan Supreme Court ruled in 2024 that the Legislature had improperly amended a 2018 voter initiative, which reinstated a faster schedule. The Legislature then adopted a compromise in February 2025 that reaches $15.00 by 2027 and keeps a reduced tip credit.
Will Michigan minimum wage keep rising after 2027?
Yes. Starting in 2028 the rate is adjusted each year for inflation using the consumer price index, unless state unemployment is 8.5 percent or higher.
Sources
- Michigan LEO: Minimum Wage
- Michigan LEO: Michigan's Minimum Wage Set to Increase on Jan. 1, 2026
- US Department of Labor: State Minimum Wage Laws
- US Department of Labor: Minimum Wages for Tipped Employees
- NCSL: State Minimum Wages
Reviewed September 2026
Michigan's rate changes on January 1, 2027 and moves to inflation indexing in 2028. Confirm the current figures with the Michigan Department of Labor and Economic Opportunity before setting pay rates.
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