2025 Minimum Wage Rates by State

Alaska Minimum Wage 2025

Alaska’s Minimum will increase from $11.73 to $11.91 effective January 1st, 2025.

Alaska’s minimum wage adjusts annually based on the applicable consumer price index (also known as indexing), specifically the Consumer Price Index for All Urban Consumers (CPI-U) in the Anchorage metropolitan area.  

For updates on employment-related ballot measures impacting Alaska and several other states, check out the Ballot Measures Breakdown: Alaska and Nebraska blog.  

Arizona Minimum Wage 2025

Effective Jan. 1, 2025, Arizona’s minimum wage increases as follows: 

• $14.70 per hour 
• $11.70 per hour (tipped) 

Of note, Arizona’s tipped employee minimum wage may also be impacted by Proposition 138 on the Nov. 5th ballot, which would amend its state constitution so that employers may pay their tipped workers up to 25% less than the state minimum wage.   

There are also local minimum wage rates increasing on Jan. 1 in Flagstaff and Tucson.  

California Minimum Wage 2025

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, 2025, California has announced that its minimum wage will increase to: 

• $16.50 per hour 

California prohibits employers from taking a tipped credit, so there is no separate rate for tipped workers.  

With the above rates in mind, California has a minimum wage ballot measure poised for election day, or Proposition 32, which would increase the state minimum wage to $18.00 on Jan. 1, 2025, for large employers and $17.00 for small employers. If approved, this wage hike would have significant impact on the minimum wage landscape at the local level, as many cities increasing their minimum wage rates are still below that $18 threshold.  

Colorado Minimum Wage 2025

Effective Jan. 1, 2025, Colorado’s minimum wage is as follows: 

• $14.81 per hour 
• $11.79 per hour (tipped) 

In addition to the state increase, Denver, Edgewater, and unincorporated Boulder County are local jurisdictions that will update on Jan. 1.  

Connecticut Minimum Wage 2025

Connecticut’s minimum wage increases have bounced around the calendar in recent years.  

But in 2025, they go up on Jan. 1, with the standard rate at: 

• $16.35 per hour 

However, Connecticut’s tipped employee wages remain the same.  

As a reminder, Connecticut separates its tipped employee wages into two categories — bartenders at $8.23 and hotel/restaurant waitstaff at $6.38. 

Delaware Minimum Wage 2025

Delaware’s minimum wage will reach the $15 benchmark this year.  

On Jan. 1, 2025, the standard minimum wage in Delaware is: 

• $15.00 per hour 

Note that Delaware’s tipped employee wage will remain at $2.23.  

Illinois Minimum Wage 2025

Like Delaware, Illinois will also reach the $15 milestone in 2025 under its current minimum wage schedule.  

Effective Jan. 1, 2025, the wage rates in Illinois are:  

• $15.00 per hour 
• $9.00 per hour (tipped) 

Illinois’ minimum wage will now remain at $15.00 and $9.00 respectively, unless new legislation is passed.  

Chicago and Cook County also have their own minimum wage rates, but they increase on July 1 of each year.  

Maine Minimum Wage 2025 

For the last several years, Maine’s minimum wage has increased based on the CPI-W for the Northeast Region.   

Effective Jan. 1, 2025, the state wage rates will increase to: 

• $14.65 per hour 
• $7.33 per hour (tipped) 

Maine also has local rates in Portland and Rockland, which have yet to announce their increases for 2025. 

Maryland Minimum Wage 2025

Maryland minimum wage also hit the $15 mark in 2024. 

However, it does not have an updated rate for 2025. It is included here because it has updated on Jan.1 steadily over the last several years.

Maryland is another state with local rates to monitor: Montgomery and Howard counties. 

Michigan Minimum Wage 2025

Michigan’s minimum wage will increase twice in early 2025. The first increase takes effect on Jan. 1 as part of the standard annual adjustment. A second increase follows on Feb. 21, 2025, in response to Michigan Supreme Court issuing its long-awaited opinion related to the Improved Workforce Opportunity Wage Act (IWOWA).  

Minimum Wage Effective Jan. 1, through Feb. 20, 2025:  

• $10.56 per hour 
• $4.01 per hour (tipped) 

Minimum Wage Effective Feb. 21, 2025:  

• $12.48 per hour 
• $5.99 per hour (tipped) 

Minnesota Minimum Wage 2025

Minnesota’s minimum wage for all employers will increase on Jan. 1, 2025, to: 

• $11.13 per hour 

In August of this year, Governor Walz signed a bill (SF 3852), which eliminated Minnesota’s two tier system of minimum wage rates.

Now, both large and small employers will increase to $11.13 and continue with no separate rate for tipped employees.  

Employers should also note that St. Paul and Minneapolis both have their own minimum wage ordinances.  

Missouri Minimum Wage 2025

On January 1, 2025, employers will be required to pay Missouri employees a minimum wage of $13.75 per hour

Missouri will gradually increase the minimum wage to $15 as follows: 

• $13.75 per hour on Jan. 1, 2025 
• $15.00 per hour on Jan. 1, 2026, and indexed annually thereafter 

For more information on Missouri’s Proposition A, which includes changes to both minimum wage and paid sick leave, check out the following blog – Ballot Measures Breakdown: Missouri. 

Montana Minimum Wage 2025

With a relatively modest increase in store, Montana’s minimum wage, effective Jan. 1, 2025, is: 

• $10.55 per hour 

Montana has no separate rate for tipped employees.  

Nebraska Minimum Wage 2025

Following a successful 2022 minimum wage ballot measure, Nebraska is another state moving toward a $15 minimum wage.  

Effective Jan. 1, 2025, the rate increases to: 

• $13.50 per hour 

While Nebraska’s minimum wage is steadily increasing until it hits $15 in 2026, the tipped employee wage remains at the federal level, or $2.13.  

New Jersey Minimum Wage 2025

New Jersey is another state that has surpassed the $15 threshold and is now indexing.  

Effective Jan. 1, 2025, the wage rates increase to: 

• $15.49 per hour (large) 
• $5.62 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 2025

As a refresher, New York State has three separate rates for New York City, Nassau, Suffolk, and Westchester counties, and then the remainder of the state. 

During the summer of 2023, lawmakers passed legislation that sets the minimum wage schedule through 2026. (And moved the state off of its odd Dec. 31 schedule to Jan. 1.) 

Effective Jan. 1, 2025, the minimum wage in the remainder of New York State (excluding NYC and the above counties) is:  

• $15.50 per hour 

Also, there are industry-specific tipped employee rates. In the remainder of New York State: 

• $12.90 per hour (tipped resort/general service workers) 
• $10.35 per hour (tipped food service workers) 

Learn more about New York’s minimum wage. 

Ohio Minimum Wage 2025

The Buckeye State has been indexing its minimum wage for several years.  

Accordingly, Ohio’s wage rates will adjust on Jan. 1, 2025, as follows: 

• $10.70 per hour 
• $5.35 per hour (tipped) 

Rhode Island Minimum Wage 2025

Rhode Island is another state that hits the $15.00 threshold this year.  

Effective Jan. 1, 2025, the minimum wage becomes: 

• $15.00 per hour 

Rhode Island’s minimum wage will now remain at $15.00 unless new legislation is passed.  

The tipped employee wage also remains at $3.89.  

South Dakota Minimum Wage 2025

Effective Jan. 1, 2025, the minimum wage rates increase to:  

• $11.50 per hour 
• $5.75 per hour (tipped) 

South Dakota also announces its indexed increase each year.  

Virginia Minimum Wage 2025

The minimum wage in Virginia will update on Jan. 1, 2025, to: 

• $12.41 per hour 

Virginia follows the federal tipped employee wage. Therefore, it will remain at $2.13 per hour.  

Vermont Minimum Wage 2025

Effective Jan. 1, 2025, the wage rates will be updated as follows: 

• $14.01 per hour 
• $7.01 per hour (tipped) 

Washington State Minimum Wage 2025

Home to the highest state minimum wage in the U.S., Washington adjusts its minimum wage for inflation based on the CPI-W.  

Effective Jan. 1, 2025, the state minimum wage will be: 

• $16.66 

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, SeaTac, Seattle, and Tukwila as well as new minimum wage ordinances taking effect in unincorporated King County and Burien.  

Conclusion – State Minimum Wage Rates 2025

Employers that operate across the U.S. know minimum wage rate management is a major challenge.

And the 2025 state minimum wage rates are no exception.

Multi-jurisdiction employers should also continue to monitor the activity at local levels of government for any new or updated minimum wage ordinances.

Lastly, 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.