EMPLOYMENT LAW NEWS
2026 Minimum Wage Rates by State
By Dana Holle, GovDocs Counsel and Manager 
Up to 19 states will update their minimum wage rates Jan. 1, 2026. In this blog, we provide a comprehensive rundown of the changes.
By Dana Holle, GovDocs Counsel and Manager Which states are updating their minimum wage rates in 2026?
19 states will update their minimum wage rates on Jan. 1, 2026. 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, 2026. 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 2026
Effective Jan. 1, 2026, Arizona’s minimum wage increases as follows:
- $15.15 per hour
- $12.15 per hour (tipped)
Arizona’s Proposition 138, which was on the 2024 General Election ballot, did not pass. Therefore, the tipped base wage remains at $3 less than the minimum wage, or $12.15.
There are also local minimum wage rates increasing on Jan. 1 – Flagstaff and Tucson.
California Minimum Wage 2026
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, 2026, California has announced that its minimum wage will increase to:
- $16.90 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, 2026. While industry specific wages are not updating, over 20 local jurisdictions, including Palo Alto, San Diego, and West Hollywood, are on Jan. 1, 2026.
Colorado Minimum Wage 2026
Effective Jan. 1, 2026, Colorado’s minimum wage is as follows:
- $15.16 per hour
- $12.14 per hour (tipped)
In addition to the state increase, Denver, Edgewater, Boulder, and unincorporated Boulder County are local jurisdictions updating on Jan. 1.
Connecticut Minimum Wage 2026
Connecticut’s minimum wage increases have bounced around the calendar in recent years.
But in 2026, they go up on Jan. 1, with the standard rate at:
- $16.94 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.
Hawaii Minimum Wage 2026
Hawaii is back on the list this year with a minimum wage update for 2026, increasing the minimum wage by $2 from the previous rate in effect since 2024.
Effective Jan. 1, 2026, the state wage rates will increase to:
- $16.00 per hour
- $14.75 per hour (tipped)
Maine Minimum Wage 2026
For the last several years, Maine’s minimum wage has increased based on the CPI-W for the Northeast Region.
Effective Jan. 1, 2026, the state wage rates will increase to:
- $15.10 per hour
- $7.55 per hour (tipped)
Maine also has local rates in Portland and Rockland.
Michigan Minimum Wage 2026
What may finally be the end to a multi-year employment law saga in Michigan, Senate Bill 8 was passed on Feb. 21, 2025, making last minute revisions to the state’s minimum wage laws set to take effect that same day. Senate Bill 8 revised both the minimum wage and tipped wage schedule. For tipped wages specifically, the law no longer gradually eliminates the tipped credit over several years. Instead, the tipped wage will increase each year by a percentage until it reaches 50% of the standard wage in 2031.
Effective Jan. 1, 2026, the Michigan minimum wage will be:
- $13.73 per hour
- $5.49 per hour (tipped)
Minnesota Minimum Wage 2026
Minnesota’s minimum wage will increase on Jan. 1, 2026, to:
- $11.41 per hour
Minnesota prohibits employers from taking a tipped credit, so there is no separate rate for tipped workers. Employers should also note that St. Paul and Minneapolis both have their own minimum wage ordinances.
Missouri Minimum Wage 2026
On January 1, 2026, employers will be required to pay Missouri employees a minimum wage of $15.00 per hour.
Missouri will stay at the $15.00 dollar mark indefinitely.
Montana Minimum Wage 2026
With a relatively modest increase in store, Montana’s minimum wage, effective Jan. 1, 2026, is:
- $10.85 per hour
Montana has no separate rate for tipped employees.
Nebraska Minimum Wage 2026
Following a successful 2022 minimum wage ballot measure, Nebraska is another state that has moved toward a $15 minimum wage.
Effective Jan. 1, 2026, the rate increases to:
- $15.00 per hour
While Nebraska’s minimum wage hits $15 in 2026, the tipped employee wage remains at the federal level, or $2.13.
New Jersey Minimum Wage 2026
New Jersey is another state that has surpassed the $15 threshold and is now indexing.
Effective Jan. 1, 2026, the wage rates increase to:
- $15.92 per hour (large)
- $6.05 per hour (large – tipped)
Notably, there are no local jurisdictions in New Jersey with their own minimum wage rate, though the state does have a specific rate for employees at long-term care facilities.
New York State Minimum Wage 2026
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.
Effective Jan. 1, 2026, the minimum wage in the remainder of New York State (excluding NYC and the above counties) is:
- $16.00 per hour
Also, there are industry-specific tipped employee rates. In the remainder of New York State:
- $13.30 per hour (tipped resort/general service workers)
- $10.70 per hour (tipped food service workers)
Ohio Minimum Wage 2026
The Buckeye State has been indexing its minimum wage for several years.
Accordingly, Ohio’s wage rates will adjust on Jan. 1, 2026, as follows:
- $11.00 per hour
- $5.50 per hour (tipped)
Rhode Island Minimum Wage 2026
Rhode Island is another state that hit the $15.00 threshold last year.
Effective Jan. 1, 2026, the minimum wage becomes:
- $16.00 per hour
The tipped employee wage also remains at $3.89.
South Dakota Minimum Wage 2026
Effective Jan. 1, 2026, the minimum wage rates increase to:
- $11.85 per hour
- $5.925 per hour (tipped)
Yes, the tipped employee rate is accurate at half the minimum wage and isn’t rounded under the state’s minimum wage law (unfortunately).
Virgina Minimum Wage 2026
The minimum wage in Virginia updates on Jan. 1, 2026, to:
- $12.77 per hour
Virginia follows the federal tipped employee wage. Therefore, it will remain at $2.13 per hour.
Vermont Minimum Wage 2026
Effective Jan. 1, 2026, the wage rates will be updated as follows:
- $14.42 per hour
- $7.21 per hour (tipped)
Washington State Minimum Wage 2026
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, 2026, the state minimum wage will be:
- $17.13
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 King County Unincorporated.
Conclusion – State Minimum Wage Rates 2026
Employers that operate across the U.S. know minimum wage rate management is a major challenge.
And the 2026 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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