Minimum Wage by State (2026)

Summary

• More than 20 states are raising their minimum wages in 2026, with many increases taking effect on January 1, 2026 and some scheduled later in the year as well.

• The federal minimum wage has stayed at $7.25/hour since 2009, but 30+ states and Washington, D.C. have minimum wages above the federal floor as of 2026.

• Because minimum wage rules vary by location and change over time, a reliable payroll system helps ensure accurate pay and compliance.

Employers in the United States are bound by different laws when it comes to minimum wage rates, depending on the state or even the city they’re in. The federal minimum wage rate is a fixed national rate set by the Fair Labor Standards Act (FLSA) and enforced by the U.S. Department of Labor (DOL).

As of 2026, the federal minimum wage remains $7.25 per hour, a rate that was last revised in 2009. At the same time, many states and local governments set minimum wages above the federal floor, meaning employers often need to follow state or city rules instead of the federal minimum.

When multiple minimum wage laws apply (for example, federal, state, and local), employers are generally required to pay the rate that provides the greatest benefit to the employee. In other words, the highest applicable minimum wage.

Several jurisdictions now have minimum wage rates far above the federal floor. As of January 1, 2026, Washington, D.C. has the highest rate in the country at $17.95 per hour. Washington State follows with a statewide minimum wage of $17.13 per hour, and New York’s Downstate regions (New York City, Long Island, and Westchester) have a minimum wage of $17.00 per hour, with the rest of New York at $16.00 per hour. Other states with relatively high rates include Connecticut at $16.94, California at $16.90, Hawaii at $16.00, and Maine at $15.10—all above the federal minimum of $7.25.

As an employer, it’s important to understand and stay current on all the laws and regulations regarding minimum wage increases or decreases. Using the right time tracking and payroll software ensures that you remain compliant with little effort.

Whitepaper: Complete Guide to Wage & Hour Compliance

State Minimum Wage Rates in 2026

Effective January 1, more than 19 states raised their minimum wage rates in response to inflation or according to previously enacted legislation. Four additional states are set to increase their minimum wage later in the year. 

Overall, 30 states, as well as DC, Puerto Rico, Guam, and the Virgin Islands, have a minimum wage higher than the federal rate. Fifteen states, as well as the Northern Mariana Islands, use the federal minimum wage rate of $7.25 per hour. Five states have not adopted their own minimum wage rate law and, therefore, default to the federal rate of $7.25.

View all state minimum wages in the table below.

Note: states that raised their minimum wage in 2026 are denoted by an asterisk (*)

As of January 1, 2026, D.C. has one of the highest minimum wage rates in the country at $17.95 per hour, with a further increase scheduled for July 1, 2026.. 

State minimum wage laws often include exemptions or special wage categories for certain jobs or sectors. These may apply to roles such as tipped workers, agricultural employees, seasonal workers, or employees of small employers. For example, New Jersey’s 2026 minimum wage rules differentiate between large and small or seasonal employers and set separate requirements for tipped and agricultural workers under state law.

Some states set subminimum rates for minors, students, or trainees. For example, in Rhode Island (standard minimum wage of $16.00 in 2026), full-time students under 19 working for certain nonprofit organizations may be paid 90% of the minimum wage, which is $14.40 per hour.

Minimum Wage in New York

New York’s minimum wage has increased steadily since the state began a multi-year phase-in process in 2016. As of January 1, 2026, minimum wage rates in New York vary by region rather than employer size or industry. The minimum wage is $17.00 per hour in New York City, Long Island (Nassau and Suffolk counties), and Westchester County, and $16.00 per hour in the remainder of New York State.

Under current state law, scheduled increases apply through 2026. Beginning in 2027, New York’s minimum wage will increase annually based on the three-year moving average of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the Northeast Region, subject to statutory conditions that allow the state to pause increases under certain economic circumstances.

In earlier years of the phase-in, minimum wage increases applied at different rates depending on employer size and location. By 2026, however, the primary distinction is geographic. New York also maintains separate wage rules for tipped workers, allowing employers in certain industries to apply a limited tip credit toward the minimum wage when specific legal requirements are met. These rules vary by occupation and work conditions and are governed by state labor regulations.

Minimum Wage in California

As of January 1, 2026, the statewide minimum wage in California is $16.90 per hour, which is significantly higher than the federal minimum of $7.25.

After reaching $15 through a phase-in process that began in 2017, California’s minimum wage is now adjusted annually based on inflation as measured by the Consumer Price Index.

California has enacted industry-specific minimum wage requirements for certain sectors. One notable example applies to quick-service (fast food) restaurants with at least 60 locations nationwide, which must pay a minimum wage of $20.00 per hour under state law.

Minimum Wage in Illinois

The minimum wage for the state of Illinois increased by $1 from $14 to $15 on January 1, 2025, which means it finally reached the threshold following a series of increases that began in 2019. 

Employers may pay tipped employees in Illinois a cash wage equal to 60% of the applicable minimum wage. Employees must still earn at least the full minimum wage after tips, and employers are required to make up any difference.

Rates are higher in Chicago, where the minimum wage is currently $16.60 per hour for employers with four or more employees. 

Chicago tipped workers have a minimum wage of $12.62. Similar to the state minimum wage conditions, employers must cover the difference for tipped workers if their wages plus tips do not equal at least the full minimum wage.

Minimum Wage in Florida

Effective September 30, 2025, Florida’s minimum wage is $14 per hour. This is part of a gradual increase of $1 per year that will lead to a $15 minimum wage rate in September 2026.

Minimum Wage in Texas

The state minimum wage in Texas is $7.25, equal to the federal rate. This has been in effect since January 24, 2009.

Employers can count tips, meals, and lodging toward the minimum wage with specified restrictions on how much can be allocated to them. 

State and federal law also allow subminimum wages or exemptions for certain categories of workers, including some agricultural, seasonal, domestic, and nonprofit employees, depending on the circumstances.

Coverage depends on both state and federal law, and employers must evaluate which rules apply to their workforce.

Minimum Wage in Nevada

Previously, Nevada had two minimum wage rates. In this two-tier system, employees who receive qualifying health insurance have a minimum wage rate of $10.25. However, if they do not receive qualifying health insurance, the minimum wage rate is $1 higher, at $11.25 per hour.

This long-standing two-tier system was eliminated in July 2024, where Nevada increased its minimum wage rate to $12.00 across the board for all employers, regardless of whether or not they offer health insurance. As of 2026, Nevada’s minimum wage remains $12.00 per hour, according to the U.S. Department of Labor.

Staying on top of minimum wage laws as an employer

With so many differences and exemptions that affect different states and even different cities within those states, it can be tricky for an employer to remain compliant with the law. 

Industries where workers earn tips can be particularly tricky, according to Workforce.com’s chief strategy officer Josh Cameron, “In hospitality or anything where you earn tips, you can pay the staff a minimum wage much lower than the normal one. So it would be $7.50 an hour if they’re not tipped, but it’s $2.50 if it’s tipped. As long as they get enough tips to get them over that—it’s called the tip credit—then they can receive the lower $2.50 per hour from their employer.”

Apart from the legal implications and the hefty fines, underpaying employees can be a PR nightmare for your business. Andrew Stirling, Workforce.com’s head of product compliance, argues, “An underpayment scandal can bring companies to their knees. Customers can decide to take their business elsewhere. People are less likely to visit a restaurant or shop that has been reported for underpaying their people.”

Workforce management software like Workforce.com takes state and local laws into account. Workforce’s labor compliance software allows you to pay your staff in accordance with federal, state, and regional wage laws. This includes exemptions and special situations, including tipped employees. 

The system remains up to date as laws change, and it also undergoes regular audits, ensuring you remain compliant and avoid unnecessary penalties.

Simplify compliance with Workforce.com

Workforce.com offers HR and payroll software that give you the resources you need to calculate pay and remain up to date in the ever-changing minimum wage landscape. You can apply new compliance rules to the system as new minimum wage rates are put in place and new legislation is passed.  

The system calculates correct pay for all your employees based on minimum wage, hours worked, and overtime, automatically creating highly accurate electronic timesheets. These timesheets can then be exported directly into your payroll system for processing. 

To learn more about how Workforce.com stays on top of minimum wages and pays staff accurately, book a call or start a free trial today.