Minnesota Minimum Wage 2026: $11.41, Rising to $11.87 on Jan 1, 2027
Minnesota minimum wage is $11.41 per hour in 2026 for every employer, rising to $11.87 on January 1, 2027. No tip credit, a $9.31 training wage, and higher city rates in Minneapolis and St. Paul.
The Minnesota minimum wage is $11.41 per hour for all employers as of January 1, 2026. It rises to $11.87 per hour on January 1, 2027 under the state's annual inflation adjustment. Minnesota does not allow a tip credit, so tipped workers earn the full minimum wage before tips, and the only lower rate is a $9.31 training wage for workers under 20 during their first 90 days. Employers in Minneapolis and St. Paul must pay the higher city rate of $16.37.
- Minnesota pays $11.41 per hour in 2026 and $11.87 from January 1, 2027, adjusted for inflation every January
- The old large-employer and small-employer split is gone; one rate applies to every business in the state
- Tips never count toward the minimum wage in Minnesota
- Minneapolis and St. Paul require $16.37 per hour for most employers, with a $14.25 micro-business rate in St. Paul
- Minnesota's own overtime law starts at 48 hours, but the federal 40-hour rule covers almost every employer
Current Minnesota Minimum Wage
The Minnesota Department of Labor and Industry sets the rate each year. For 2026 the state minimum wage is $11.41 per hour, and the 90-day training wage for employees under 20 is $9.31 per hour. The department has already announced the 2027 figures: $11.87 per hour for the standard rate and $9.68 for the training wage, effective January 1, 2027.
Until 2024 Minnesota had a two-tier system with a lower rate for small employers, defined by annual gross revenue. The legislature eliminated that distinction, and the department confirms that no large or small employer distinction exists today. Every employer in the state, regardless of size or revenue, pays the same rate.
The training wage is narrow. It applies only to workers under 20 years old and only for their first 90 consecutive days with an employer. After 90 days, or once the employee turns 20, the full rate applies.
Minnesota Minimum Wage vs Federal Minimum Wage
| Rate | Amount | Effective |
|---|---|---|
| Minnesota standard rate | $11.41 per hour | January 1, 2026 |
| Minnesota 2027 rate | $11.87 per hour | January 1, 2027 |
| Minnesota training wage (under 20, first 90 days) | $9.31 per hour | January 1, 2026 |
| Federal minimum wage | $7.25 per hour | July 24, 2009 |
| Federal youth wage (under 20, first 90 days) | $4.25 per hour | 1996 |
Minnesota's rate is $4.16 above the federal floor in 2026. When state and federal rules differ, the employer must follow the one that pays the employee more, so the Minnesota rate governs for essentially every worker in the state. See our minimum wage by state table for how Minnesota compares with its neighbors.
Tipped Minimum Wage in Minnesota
Minnesota is one of a handful of states, along with Alaska, California, Nevada, Oregon and Washington, that prohibit tip credits. The Department of Labor and Industry states plainly that no employer may take a tip credit against minimum wages in Minnesota. A server, bartender or delivery driver must be paid at least $11.41 per hour in wages, and tips are paid on top of that.
This matters for hospitality employers moving in from states that allow a $2.13 cash wage. In Minnesota the payroll cost of a tipped employee starts at the full minimum wage, and any mandatory service charge that the employer keeps cannot be counted as a tip.
Minnesota Minimum Wage Increase Schedule
Minnesota indexes its minimum wage to inflation every January 1 under Minnesota Statutes section 177.24, with the annual increase capped by statute. The rates below are as announced by the Department of Labor and Industry each year.
| Effective date | Large employer | Small employer | Training wage |
|---|---|---|---|
| January 1, 2021 | $10.08 | $8.21 | $8.21 |
| January 1, 2022 | $10.33 | $8.42 | $8.42 |
| January 1, 2023 | $10.59 | $8.63 | $8.63 |
| January 1, 2024 | $10.85 | $8.85 | $8.85 |
| January 1, 2025 | $11.13 (single rate) | $11.13 | $9.08 |
| January 1, 2026 | $11.41 | $11.41 | $9.31 |
| January 1, 2027 | $11.87 | $11.87 | $9.68 |
The 2027 increase of 46 cents is larger than recent years because the inflation adjustment formula changed when the tiers were unified. Employers should expect an announcement each late summer for the following January and update payroll rates, posters and offer letters before the new year.
Local Minimum Wages in Minnesota
Minnesota allows cities to set their own minimum wage, and two have done so.
| Jurisdiction | 2026 rate | Notes |
|---|---|---|
| Minneapolis, all employers | $16.37 per hour | Small and large employer rates merged on January 1, 2026; adjusted for inflation each January |
| St. Paul, macro, large and small businesses (6 or more employees) | $16.37 per hour | Adjusted each January 1 |
| St. Paul, micro businesses (5 or fewer employees) | $14.25 per hour | Rises to $15.00 on July 1, 2027, then joins the single city rate |
Coverage in both cities depends on where the employee physically works, not where the business is headquartered. A remote agent who lives in Minneapolis and works from home for a company based elsewhere is generally covered for the hours worked inside the city. Neither city allows tips to count toward the rate.
Who Is Covered and Who Is Exempt
The Minnesota Fair Labor Standards Act covers nearly all employees in the state. Exemptions are narrow and include certain agricultural workers, some seasonal workers, and people who are exempt from the federal law's minimum wage provisions for reasons such as bona fide executive, administrative or professional duties. Being salaried does not by itself make someone exempt; the duties test still applies. Our guide to exempt vs non-exempt employees explains the tests.
Independent contractors are not covered, but Minnesota uses its own worker classification tests and misclassification is a common enforcement target.
Overtime and the Minimum Wage
Minnesota's state overtime law requires time and a half after 48 hours in a workweek. That is more generous to employers than the federal rule, but the federal Fair Labor Standards Act requires overtime after 40 hours and covers almost every employer with $500,000 or more in annual revenue or employees engaged in interstate commerce. In practice, the 40-hour federal rule applies to nearly every Minnesota workplace.
A minimum wage worker who puts in 45 hours in a week earns 40 hours at $11.41, or $456.40, plus 5 overtime hours at $17.12 (1.5 times $11.41), or $85.58, for a gross of $541.98. Our overtime calculator runs the numbers for any rate, and our guide to overtime pay laws by state covers the federal and state rules together.
What a Minimum Wage Worker Earns in Minnesota
| Period | Hours | Gross pay at $11.41 |
|---|---|---|
| Weekly | 40 | $456.40 |
| Biweekly | 80 | $912.80 |
| Monthly (average) | 173.33 | $1,977.70 |
| Annual | 2,080 | $23,732.80 |
At the $11.87 rate that starts in 2027, the annual figure rises to $24,689.60. These are gross figures before taxes and deductions; see our explainer on gross pay for what comes out of a paycheck, and the salary to hourly calculator to convert any rate to an annual equivalent.
Employer Compliance Checklist
- Pay at least $11.41 per hour now and update payroll to $11.87 for hours worked on or after January 1, 2027
- Pay $16.37 for hours worked inside Minneapolis or St. Paul, and $14.25 for St. Paul micro businesses, on top of tracking where remote staff work
- Do not take a tip credit; pay tipped staff the full minimum wage in wages
- Limit the training wage to workers under 20 and to their first 90 days
- Display the current Minnesota minimum wage poster from the Department of Labor and Industry
- Keep accurate time records for every hourly employee; a time card calculator or automatic time tracking makes the audit trail easier
- Review the broader rules in our Minnesota labor law guide, including the meal and rest break changes that took effect January 1, 2026
Reviewed September 2026
Rates on this page come from the Minnesota Department of Labor and Industry and the US Department of Labor state minimum wage tables as of July 1, 2026. Minnesota adjusts its rate every January and the cities adjust on their own schedules, so confirm the current figure with the department before setting pay rates.
Track hours across Minneapolis, St. Paul and the rest of Minnesota
HiveDesk records where and when each employee works, so you can apply the right city or state rate and prove it at audit time. $5/user/month, 14-day free trial.
How Minnesota Compares With Neighboring States
Minnesota's $11.41 sits in the middle of the Upper Midwest. It is well above the three neighbors that follow the federal rate but below South Dakota's indexed rate.
| State | Minimum wage (July 1, 2026) | Notes |
|---|---|---|
| Minnesota | $11.41 | Rises to $11.87 on January 1, 2027; no tip credit |
| North Dakota | $7.25 | Federal rate |
| South Dakota | $11.85 | Indexed each January |
| Iowa | $7.25 | Federal rate |
| Wisconsin | $7.25 | Federal rate |
An employer with staff in Minneapolis, Fargo and Sioux Falls therefore manages three very different floors, and remote workers who live across the state line are paid by where they work.
Common Minimum Wage Mistakes in Minnesota
- Taking a tip credit because the employee earns well above the minimum in tips; Minnesota forbids it regardless of tip income
- Paying the state rate to employees who physically work inside Minneapolis or St. Paul
- Keeping a former small employer rate on file after the tiers were unified
- Extending the $9.31 training wage past 90 days or to employees who are 20 or older
- Missing the January 1 adjustment because the announcement arrives months earlier
Frequently Asked Questions
What is the minimum wage in Minnesota in 2026?
$11.41 per hour for every employer, regardless of size. The training wage for workers under 20 in their first 90 days is $9.31.
What will the Minnesota minimum wage be in 2027?
$11.87 per hour, effective January 1, 2027, with a $9.68 training wage. The Department of Labor and Industry announced both figures in 2026.
Is there still a small employer rate in Minnesota?
No. The large and small employer tiers were eliminated, and a single statewide rate has applied since 2025.
Can Minnesota employers take a tip credit?
No. Minnesota prohibits tip credits entirely. Tipped employees must receive at least $11.41 per hour in wages plus their tips.
What is the minimum wage in Minneapolis?
$16.37 per hour for all employers in 2026. The city removed the small business rate on January 1, 2026 and adjusts the figure for inflation each January.
What is the minimum wage in St. Paul?
$16.37 per hour for businesses with six or more employees in 2026. Micro businesses with five or fewer employees pay $14.25, rising to $15.00 on July 1, 2027.
Does Minnesota have a youth minimum wage?
Only the 90-day training wage of $9.31 for workers under 20. There is no separate minor rate after the training period.
When does overtime start in Minnesota?
State law requires overtime after 48 hours in a week, but the federal 40-hour rule applies to nearly all employers and controls in practice.