EMPLOYMENT LAW NEWS
2027 Minimum Wage Rates by State
Up to 16 states will update their minimum wage rates Jan. 1, 2027. In this blog, we provide a comprehensive rundown of the changes.
Which states are updating their minimum wage rates in 2027?
16 states will update their minimum wage rates on Jan. 1, 2027. In this blog, we provide a comprehensive rundown of the changes. Check out the table below for a breakdown of the new minimum wage rates by state, with additional details further down.
Please note: this blog only covers state minimum wage rates that are updated on Jan. 1, 2027. County and city rates are not included.
Your locations may also be required to pay a different wage, depending on factors such as:
- Industry/sub-industry
- Tipped wages
- Small-employer wages
- Number of employees
- Minimum/maximum company revenue
- Student/learner wages
- New employee wages
- Overtime
- Whether the employer provides health benefits
Struggling to keep up with minimum wage changes across multiple locations? Discover how GovDocs Minimum Wage can simplify compliance at the state, county, and city levels.
GovDocs followers should keep an eye out for the upcoming Minimum Wage Rate Guide, which will have rates for large employers in counties and cities. Subscribe to Employment Law News to stay updated.
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Arizona Minimum Wage 2027
Effective Jan. 1, 2027, Arizona’s minimum wage will increase as follows:
- $15.65 per hour
- $12.65 per hour (tipped employees)
There are also local minimum wage rates increasing on Jan. 1 – Flagstaff and Tucson.
California Minimum Wage 2027
In 2022, California became the first state to reach a $15 standard minimum wage for large employers, and it continues to increase each year based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
Effective Jan. 1, 2027, California has announced that its minimum wage will increase to:
- $17.40 per hour
California prohibits employers from taking a tipped credit, so there is no separate rate for tipped workers. The state also has separate fast food and health care worker minimum wage rates, but neither is updating on Jan. 1, 2027. There are, however, over 20 local jurisdictions, including Palo Alto, San Diego, and West Hollywood, that are increasing on Jan. 1, 2027.
Colorado Minimum Wage 2027
Effective Jan. 1, 2027, Colorado’s minimum wage is as follows:
- $15.71 per hour
- $12.69 per hour (tipped employees)
In addition to the state level minimum wage increase, Boulder, Boulder County Unincorporated, Denver, and Edgewater are local jurisdictions updating on Jan. 1, 2027.
Connecticut Minimum Wage 2027
Connecticut has now stuck to a Jan. 1 effective date for its minimum wage rates for a few years now, and its likely this will remain for the considerable future.
But in 2027, they go up on Jan. 1, with the standard rate at:
- $17.48 per hour
However, Connecticut’s tipped employee wages remain the same.
And as a reminder, Connecticut separates its tipped employee wages into two categories — bartenders at $8.23 and hotel/restaurant waitstaff at $6.38.
Maine Minimum Wage 2027
For the last several years, Maine’s minimum wage has increased based on the CPI-W for the Northeast Region.
Effective Jan. 1, 2027, the state wage rates will increase to:
- $15.70 per hour
- $7.85 per hour (tipped)
Maine also has local rates in Portland and Rockland. To see those, check out the City and County Minimum Wage Guide for Jan. 1, 2027.
Michigan Minimum Wage 2027
In 2025, Michigan passed a minimum wage bill to steadily increase the state’s minimum wage. As a result, this upcoming update was scheduled in that bill.
Effective Jan. 1, 2027, the Michigan minimum wage will be:
- $15.00 per hour
- $6.30 per hour (tipped)
Minnesota Minimum Wage 2027
Minnesota’s minimum wage will increase on Jan. 1, 2027, to:
- $11.87 per hour
Minnesota prohibits employers from taking a tipped credit, so there is no separate rate for tipped workers. Employers should also note that Minneapolis and St. Paul have their own minimum wage ordinances and rates.
Montana Minimum Wage 2027
With a relatively modest increase in store, Montana’s minimum wage effective Jan. 1, 2027, is:
- $11.20 per hour
Montana has no separate rate for tipped employees.
Nebraska Minimum Wage 2027
Following a successful 2022 minimum wage ballot measure, Nebraska is another state that has reached a minimum wage over $15 per hour.
Effective Jan. 1, 2027, the rate increases to:
- $15.26 per hour
While Nebraska’s minimum wage increases again, the tipped employee wage remains at the federal level, or $2.13. It is also worth noting that Nebraska increased the youth minimum wage this year, leading Lincoln and Omaha to pass their own minimum wage ordinances. We encourage customers to refer to the August 2026 edition of Your Compliance Questions Answered blog for more information.
New Jersey Minimum Wage 2027
New Jersey is another state that has surpassed the $15 an hour threshold and is now indexing.
Effective Jan. 1, 2027, the wage rates increase to:
- $16.48 per hour (large)
- $6.61 per hour (tipped)
There are no cities or counties in New Jersey that have their own local minimum wage, but the state does have different rates for smaller employers and employees who work in long-term care facilities.
New York State Minimum Wage 2027
As a refresher, New York State has three separate regional rates for New York City, then Nassau, Suffolk, and Westchester counties, and then the remainder of the state.
Due to the original legislation having several self-described “off ramps” built into the bill, one of these conditions was met, so the remainder of New York state minimum wage rate will remain at:
- $16.00 per hour
Also, there are industry-specific tipped employee rates that will remain at:
- $13.30 per hour (tipped resort/general service workers)
- $10.70 per hour (tipped food service workers)
New York City, Nassau, Suffolk and Westchester counties are remaining at their 2026 minimum wage rates as well.
Ohio Minimum Wage 2027
The Buckeye State has been indexing its minimum wage for several years.
Accordingly, Ohio’s wage rates will adjust on Jan. 1, 2027, as follows:
- $11.40 per hour
- $5.70 per hour (tipped)
Rhode Island Minimum Wage 2027
Rhode Island is another state that has been indexing its minimum wage for several years now.
Effective Jan. 1, 2027, the minimum wage becomes:
- $17.00 per hour
The tipped employee wage remains at $3.89.
South Dakota Minimum Wage 2027
Effective Jan. 1, 2027, the minimum wage rates increase to:
- $12.30 per hour
- $6.15 per hour (tipped)
Virginia Minimum Wage 2027
The minimum wage in Virginia updates on Jan. 1, 2027, to:
- $13.75 an hour
Virginia follows the federal tipped employee wage. Therefore, it will remain at $2.13 per hour.
Vermont Minimum Wage 2027
Effective Jan. 1, 2027, the wage rates in Vermont will be updated, but they have not been announced.
Washington State Minimum Wage 2027
Home to the highest state minimum wage in the U.S., Washington adjusts its minimum wage for inflation based on the CPI-W each year.
Effective Jan. 1, 2027, the state minimum wage will be:
- $17.73
Washington also prohibits employers from taking a tipped credit at the state level.
The Evergreen State is also home to some of the highest local minimum wage rates: Bellingham, Renton, Everett, SeaTac, Seattle, Burien, Tukwila, and King County Unincorporated.
Conclusion – State Minimum Wage Rates 2027
Employers that operate across the U.S. know minimum wage rate management is a major challenge. The 2027 state minimum wage rates are no exception.
In addition to state minimum wage tracking, multi-jurisdiction employers should also continue to monitor the activity at local levels of government for any new or updated minimum wage ordinances.
Looking to partner with an Employment Law & Compliance Platform? Check out GovDocs and its Minimum Wage Solution.
This Employment Law News blog is intended for market awareness only, it is not to be used for legal advice or counsel.
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