Millions of American workers will start 2026 with a higher wage as new minimum wage laws take effect across the country. These increases come as the federal minimum wage remains unchanged at $7.25 per hour, where it has stood since 2009. Rising costs for housing, food, childcare, and energy have intensified pressure on states to implement changes.
Although dozens of cities and counties will also raise their local minimum wages, the changes outlined below only apply to state minimum wages effective January 1. Many states have different rules for tipped workers, and some prohibit tip credits entirely.
State minimum wages for 2026 (effective January 1)
Here’s a breakdown of each state that will increase its minimum wage in early 2026, including details on tipped wages, where applicable.
Arizona
$15.15 per hour
Base wage for tipped workers: $12.15
California
$16.90 per hour
No tip credit allowed
Colorado
$15.16 per hour
Tipped wage: $12.14
Connecticut
$16.94 per hour
Tipped wage unchanged: $8.23 (bartenders), $6.38 (hotel and restaurant servers)
Hawaii
$16.00 per hour
Tipped wage $14.75
Maine
$15.10 per hour
Tipped wage: $7.55
Michigan
$13.73 per hour
Tipped wage: $5.49
Minnesota
$11.41 per hour
No tip credit allowed
Missouri
$15.00 per hour
Missouri will remain at $15 in the future
Montana
$10.85 per hour
No tip credit allowed
Nebraska
$15.00 per hour
Tipped wage remains at federal level: $2.13
New Jersey
$15.92 per hour (large businesses)
Tipped wage (large businesses): $6.05
New York
South (New York City, Long Island, Westchester): $17.00 per hour
Tipped wage: $5.65
North (rest of the state): $16.00 per hour
Tipped wage: $5.30
Ohio
$11.00 per hour
Tipped wage: $5.50
Rhode Island
$16.00 per hour
South Dakota
$11.85 per hour
Tipped wage: $5.93
Vermont
$14.42 per hour
Tipped wage: $7.21
Virginia
$12.77 per hour
Tipped wage follow the federal standard of $2.13
Washington
$17.13 per hour
No tip credit allowed
States that will increase the minimum wage on other dates in 2026
- Alaska will implement its increase on July 1 to $14 per hour.
- Florida will increase its minimum wage on September 30, 2026, by $1, reaching $15 per hour.
- Oregon will implement its increase on July 1. The amount has not yet been specified.
By early 2026, a growing number of states and local jurisdictions will reach or exceed the $15 per hour benchmark, with some surpassing $17. Washington continues to have the highest state minimum wage in the country, while California, Connecticut, Rhode Island, and New York are pushing wages upward through inflation indexing.
These increases are significant because millions of workers still earn wages well below what many economists consider a living wage. An estimated 26 million U.S. workers earn less than $17 per hour, and in 20 states, the minimum wage remains tied to the federal rate of $7.25.
Employers are required to comply with updated minimum wage laws and post revised labor law notices reflecting the new rates. Some states and cities have additional rules based on tipping status, company size, or industry. Workers should confirm whether higher local minimum wages apply in their city or county.
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