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# Minimum Wage by State 2026: Every State's Rate and the January 2027 Increases
- URL: https://www.bestfirms.org/minimum-wage-by-state-2026/
- Published: 2026-09-28T06:19:30.000Z
- Updated: 2026-09-28T06:19:30.000Z
- Description: State-by-state minimum wage rates for 2026, plus confirmed January 1, 2027 increases in California, Michigan, Rhode Island, and Virginia. Sourced from U.S. DOL WHD (updated July 1, 2026) and state labor pages. Checked 28 September 2026.
- Author: Best Firms Editorial
- Tags: Business, Startups, Guides, 2026, HR Tech

Thirty states plus D.C. sit above the federal **$7.25** floor, and four of them already publish a hard **January 1, 2027** dollar step.

This guide lists every state's current minimum wage for 2026, the January 2027 rate when it is confirmed, and the indexation rule that applies when the next figure is still pending.

Checked 28 September 2026\. Next check 28 October 2026\. Current statewide rates come from the [U.S. DOL WHD State Minimum Wage Laws page](https://www.dol.gov/agencies/whd/minimum-wage/state?ref=bestfirms.org) (updated July 1, 2026).

## Key Takeaways

- Federal floor stays $7.25; many states pay more.
- California rises to $17.40 on January 1, 2027.
- Michigan jumps from $13.73 to $15.00 on January 1, 2027.
- Rhode Island hits $17.00; Virginia hits $13.75 that day.
- Florida reaches $15.00 on September 30, 2026, before January.

📌

Best Firms tip: treat the January 1, 2027 column as confirmed only when a state labor department or statute publishes the dollar figure. Indexed states without a certified 2027 number stay marked Indexed (rate TBD).

## How this minimum wage by state 2026 table works

The main table covers all 50 states and the District of Columbia.

Current rate is the statewide figure employers subject to that law must meet, with the federal **$7.25** floor filling gaps where a state has no law or a lower statutory rate.

- Current rate (2026): from DOL WHD as of July 1, 2026
- Jan 1, 2027 rate: confirmed dollars or Indexed (rate TBD)
- Indexation rule: statutory step, CPI formula, July cycle, or none

Cities and counties can set higher local floors. Tip credits, youth rates, and industry carve-outs are out of scope here.

## Confirmed January 1, 2027 increases

Four jurisdictions already published hard January 1, 2027 dollar steps as of the 28 September 2026 check.

| State        | Current (2026) | Jan 1, 2027 | Official source                                                                                                              |
| ------------ | -------------- | ----------- | ---------------------------------------------------------------------------------------------------------------------------- |
| California   | $16.90         | $17.40      | [CA DIR 2026-66](https://www.dir.ca.gov/DIRNews/2026/2026-66.html?ref=bestfirms.org)                                         |
| Michigan     | $13.73         | $15.00      | [MI LEO Wage & Hour](https://www.michigan.gov/leo/bureaus-agencies/ber/wage-and-hour/min-wage?ref=bestfirms.org)             |
| Rhode Island | $16.00         | $17.00      | [RI Gen. Laws §28-12-3](https://law.justia.com/codes/rhode-island/title-28/chapter-28-12/section-28-12-3/?ref=bestfirms.org) |
| Virginia     | $12.77         | $13.75      | [Va. Code §40.1-28.10](https://law.lis.virginia.gov/vacode/title40.1/chapter3/section40.1-28.10/?ref=bestfirms.org)          |

California's **$17.40** figure was certified by the Department of Finance and announced by [the California DIR on 13 August 2026](https://www.dir.ca.gov/DIRNews/2026/2026-66.html?ref=bestfirms.org).

Michigan's **$15.00** step is listed on the [Michigan LEO minimum wage page](https://www.michigan.gov/leo/bureaus-agencies/ber/wage-and-hour/min-wage?ref=bestfirms.org). Rhode Island's **$17.00** step is in [R.I. Gen. Laws §28-12-3](https://law.justia.com/codes/rhode-island/title-28/chapter-28-12/section-28-12-3/?ref=bestfirms.org). Virginia's **$13.75** step is in [Code of Virginia §40.1-28.10](https://law.lis.virginia.gov/vacode/title40.1/chapter3/section40.1-28.10/?ref=bestfirms.org).

⚠️

Near-term note: Florida is still $14.00 through September 29, 2026, then rises to $15.00 on September 30, 2026 under Amendment 2\. That means Florida's January 1, 2027 column already shows $15.00 even though the step lands a day after this article's publish window.

Florida schedule confirmed via [FloridaJobs.org minimum wage guidance](https://codes.findlaw.com/fl/florida-constitution1968-revision/fl-const-art-10-sect-24/?ref=bestfirms.org) and the state constitution's Amendment 2 ladder.

[Browse Best Firms hire guides](https://www.bestfirms.org/hire/)

If payroll compliance is pushing a new ops or people hire, start from the [Best Firms hire library](https://www.bestfirms.org/hire/).

## Minimum wage by state 2026: full table

Sort or scan by your operating states. Rates below are statewide; verify local ordinances before locking payroll.

| State / DC           | Current rate (2026)      | Jan 1, 2027         | Indexation / rule                                                       |
| -------------------- | ------------------------ | ------------------- | ----------------------------------------------------------------------- |
| Alabama              | $7.25                    | $7.25               | No state increase scheduled; federal floor                              |
| Alaska               | $14.00                   | Indexed / see note  | CPI-indexed; next statutory step may apply mid-year (verify Alaska DOL) |
| Arizona              | $15.15                   | Indexed (rate TBD)  | Annual CPI index; Jan 2027 figure set by state later                    |
| Arkansas             | $11.00                   | $11.00              | No increase scheduled                                                   |
| California           | $16.90                   | $17.40              | DIR certified inflation increase effective Jan 1, 2027                  |
| Colorado             | $15.16                   | Indexed (rate TBD)  | Annual CPI index; rate set later                                        |
| Connecticut          | $16.94                   | Indexed (rate TBD)  | Annual formula; rate set later                                          |
| Delaware             | $15.00                   | $15.00              | No increase scheduled; adopts federal if higher                         |
| District of Columbia | $18.40                   | Indexed (Jul cycle) | Adjusts annually on July 1 by formula                                   |
| Florida              | $14.00                   | $15.00              | Rises to $15.00 on Sep 30, 2026; then CPI path from 2027                |
| Georgia              | $7.25                    | $7.25               | No increase scheduled                                                   |
| Hawaii               | $16.00                   | $16.00              | Next statutory step $18.00 on Jan 1, 2028                               |
| Idaho                | $7.25                    | $7.25               | No increase scheduled                                                   |
| Illinois             | $15.00                   | $15.00              | No increase scheduled                                                   |
| Indiana              | $7.25                    | $7.25               | No increase scheduled                                                   |
| Iowa                 | $7.25                    | $7.25               | No increase scheduled                                                   |
| Kansas               | $7.25                    | $7.25               | No increase scheduled                                                   |
| Kentucky             | $7.25                    | $7.25               | No increase scheduled                                                   |
| Louisiana            | $7.25                    | $7.25               | No state increase scheduled                                             |
| Maine                | $15.10                   | Indexed (rate TBD)  | Annual formula; rate set later                                          |
| Maryland             | $15.00                   | $15.00              | No increase scheduled                                                   |
| Massachusetts        | $15.00                   | $15.00              | No increase scheduled                                                   |
| Michigan             | $13.73                   | $15.00              | Statutory step to $15.00 on Jan 1, 2027; then indexed                   |
| Minnesota            | $11.41                   | Indexed (rate TBD)  | Annual formula; rate set later                                          |
| Mississippi          | $7.25                    | $7.25               | No state increase scheduled                                             |
| Missouri             | $15.00                   | Indexed (rate TBD)  | Annual formula; rate set later                                          |
| Montana              | $10.85                   | Indexed (rate TBD)  | Annual formula; rate set later                                          |
| Nebraska             | $15.00                   | $15.00              | No confirmed Jan 2027 step published on DOL page                        |
| Nevada               | $12.00                   | $12.00              | No increase scheduled                                                   |
| New Hampshire        | $7.25                    | $7.25               | No increase scheduled                                                   |
| New Jersey           | $15.92                   | Indexed (rate TBD)  | Annual formula; rate set later                                          |
| New Mexico           | $12.00                   | $12.00              | No increase scheduled                                                   |
| New York             | $17.00 / $16.00          | Indexed (rate TBD)  | Annual formula; regional split continues                                |
| North Carolina       | $7.25                    | $7.25               | No increase scheduled                                                   |
| North Dakota         | $7.25                    | $7.25               | No increase scheduled                                                   |
| Ohio                 | $11.00                   | Indexed (rate TBD)  | Annual formula; rate set later                                          |
| Oklahoma             | $7.25                    | $7.25               | No increase scheduled                                                   |
| Oregon               | $15.55 / $16.80 / $14.55 | Indexed (Jul cycle) | Adjusts annually on July 1 by formula                                   |
| Pennsylvania         | $7.25                    | $7.25               | No increase scheduled                                                   |
| Rhode Island         | $16.00                   | $17.00              | RI Gen. Laws §28-12-3: $17.00 commencing Jan 1, 2027                    |
| South Carolina       | $7.25                    | $7.25               | No state increase scheduled                                             |
| South Dakota         | $11.85                   | Indexed (rate TBD)  | Annual formula; rate set later                                          |
| Tennessee            | $7.25                    | $7.25               | No state increase scheduled                                             |
| Texas                | $7.25                    | $7.25               | No increase scheduled                                                   |
| Utah                 | $7.25                    | $7.25               | No increase scheduled                                                   |
| Vermont              | $14.42                   | Indexed (rate TBD)  | Annual formula; rate set later                                          |
| Virginia             | $12.77                   | $13.75              | Statutory step to $13.75 on Jan 1, 2027; $15.00 on Jan 1, 2028          |
| Washington           | $17.13                   | Indexed (rate TBD)  | Annual formula; rate set later                                          |
| West Virginia        | $8.75                    | $8.75               | No increase scheduled                                                   |
| Wisconsin            | $7.25                    | $7.25               | No increase scheduled                                                   |
| Wyoming              | $7.25                    | $7.25               | No increase scheduled                                                   |

Source for current rates: [U.S. Department of Labor, WHD, State Minimum Wage Laws](https://www.dol.gov/agencies/whd/minimum-wage/state?ref=bestfirms.org) (updated July 1, 2026). January 2027 confirmed dollars also cite the state sources linked in the section above. Indexed (rate TBD) means the state uses a CPI or statutory formula but had not published the 2027 dollar amount as of this check.

## Federal floor vs state floors

The federal minimum wage has been **$7.25** an hour since 2009\. Congress has not scheduled a further increase.

Alabama, Louisiana, Mississippi, South Carolina, and Tennessee have no state minimum wage law, so FLSA-covered employers pay the federal **$7.25** floor per the [DOL WHD state page](https://www.dol.gov/agencies/whd/minimum-wage/state?ref=bestfirms.org).

Georgia and Wyoming publish lower statutory rates ($5.15), but FLSA-covered employers still owe **$7.25** per the [DOL WHD state minimum wage laws page](https://www.dol.gov/agencies/whd/minimum-wage/state?ref=bestfirms.org).

## States that index annually

A large block of states recalculate each year with a CPI or statutory formula. Best Firms lists those January 2027 cells as Indexed (rate TBD) unless the state already certified a number.

California is the exception in this cycle: DIR already certified **$17.40** for January 1, 2027 ([DIR release 2026-66](https://www.dir.ca.gov/DIRNews/2026/2026-66.html?ref=bestfirms.org)).

Oregon and D.C. adjust on a July 1 cycle, not January 1\. Washington, New Jersey, New York, Arizona, Colorado, Connecticut, Maine, Minnesota, Missouri, Montana, Ohio, South Dakota, and Vermont also index; watch each labor department in late 2026 for the certified figure.

## What multi-state employers should do before January 2027

- Map every worksite and remote-employee state to the table above.
- Patch payroll calendars for Florida's September 30, 2026 $15.00 step first.
- Queue California $17.40; Michigan $15.00; Rhode Island $17.00; Virginia $13.75 for January 1, 2027.
- Re-check indexed states in November and December 2026 when certifications land.
- Update workplace posters and pay-stub rates before the effective date.

If your finance stack is changing with headcount, compare options in [largest payroll companies in the U.S.](https://www.bestfirms.org/largest-payroll-companies-us/) and [best accounting software for small businesses](https://www.bestfirms.org/best-accounting-software-for-small-businesses/).

Entity choice still matters for how wages hit the P&L. See [LLC vs S Corp in 2026](https://www.bestfirms.org/llc-vs-s-corp-2026/) when you are weighing payroll taxes against liability shields.

---

## Best Firms' take

💬

Best Firms' take: the employers who get dinged in January are rarely the ones who missed a headline $15.00 step. They are the ones who assumed an indexed state would stay flat, or who ignored a September Florida change while planning only for New Year's Day. Build the calendar from the statute first, then refresh when DIR, LEO, or your state DOL posts the certified number.

This table is a planning tool, not legal advice. Local ordinances and tip-credit rules can raise what you owe above the statewide cell.

[See hire pages for growing teams](https://www.bestfirms.org/hire/)

## Related Best Firms reading

[Largest payroll companies in the U.S.Compare major payroll providers when minimum-wage changes force system updates.![](https://www.bestfirms.org/favicon.ico)Best Firms](https://www.bestfirms.org/largest-payroll-companies-us/)

[LLC vs S Corp in 2026How entity choice changes tax and payroll mechanics for small employers.![](https://www.bestfirms.org/favicon.ico)Best Firms](https://www.bestfirms.org/llc-vs-s-corp-2026/)

[Fortune 500 companies listScale context for how large employers staff multi-state workforces.![](https://www.bestfirms.org/favicon.ico)Best Firms](https://www.bestfirms.org/fortune-500-companies-list/)

[Best accounting software for small businessesBooks and payroll tooling that keeps state rate changes auditable.![](https://www.bestfirms.org/favicon.ico)Best Firms](https://www.bestfirms.org/best-accounting-software-for-small-businesses/)

---

## FAQ

#### What is the federal minimum wage in 2026?

The federal minimum wage is **$7.25** an hour. It has not changed since 2009, and no further federal increase is scheduled. Source: [U.S. DOL WHD](https://www.dol.gov/agencies/whd/minimum-wage/state?ref=bestfirms.org).

#### Which states raise the minimum wage on January 1, 2027?

Confirmed dollar steps on January 1, 2027 include California to **$17.40**, Michigan to **$15.00**, Rhode Island to **$17.00**, and Virginia to **$13.75**. Many indexed states will also adjust once they certify CPI figures. Sources: [CA DIR](https://www.dir.ca.gov/DIRNews/2026/2026-66.html?ref=bestfirms.org), [MI LEO](https://www.michigan.gov/leo/bureaus-agencies/ber/wage-and-hour/min-wage?ref=bestfirms.org), [RI statute](https://law.justia.com/codes/rhode-island/title-28/chapter-28-12/section-28-12-3/?ref=bestfirms.org), [Virginia code](https://law.lis.virginia.gov/vacode/title40.1/chapter3/section40.1-28.10/?ref=bestfirms.org).

#### What is California's minimum wage in 2027?

California's statewide minimum wage rises to **$17.40** per hour on January 1, 2027\. Some cities and counties set higher local rates. Source: [California DIR release 2026-66 (13 August 2026)](https://www.dir.ca.gov/DIRNews/2026/2026-66.html?ref=bestfirms.org).

#### When does Florida's minimum wage hit $15?

Florida rises to **$15.00** on September 30, 2026, the final $1 Amendment 2 step from the current **$14.00** rate. Source: [Florida Constitution Art. X §24](https://codes.findlaw.com/fl/florida-constitution1968-revision/fl-const-art-10-sect-24/?ref=bestfirms.org).

#### Do all states follow the federal $7.25 rate?

No. Most workers are covered by a higher state rate. States with no state law, or with a lower statutory rate, still require FLSA-covered employers to pay at least **$7.25**. Source: [DOL WHD state minimum wage laws](https://www.dol.gov/agencies/whd/minimum-wage/state?ref=bestfirms.org).

#### What does indexed minimum wage mean?

Indexed states recalculate the rate each year with a consumer price index or a formula in statute. The next dollar amount is usually published late in the prior year. Until that certification, Best Firms marks the January 2027 cell as Indexed (rate TBD) rather than guessing. See the [DOL WHD state page](https://www.dol.gov/agencies/whd/minimum-wage/state?ref=bestfirms.org) for which states note annual adjustments.

## What to do next

Pull your active employee states, mark the four confirmed January 1, 2027 steps, and put Florida's September 30, 2026 **$15.00** change on the calendar this week.

Then re-open the [DOL WHD state table](https://www.dol.gov/agencies/whd/minimum-wage/state?ref=bestfirms.org) and your state labor pages in late October when more 2027 certifications usually appear.

[Explore Best Firms hire guides](https://www.bestfirms.org/hire/)