22 States Raising Minimum Wages as the Federal Rate Stays at $7.25

A person hands a stack of cash to a woman sitting at a desk with files, a laptop, and office shelves in the background. — Image Credit: DepositPhotos

Minimum wage increases are still moving across the country, even as the federal minimum wage remains stuck at $7.25 an hour. States are now setting their own pay floors through scheduled raises, inflation adjustments, and voter-approved measures.

According to the Economic Policy Institute, 19 states raised their minimum wages on January 1, 2026, giving more than 8.3 million workers a raise. The U.S. Department of Labor also lists many states with rates above the federal minimum as of 2026.

Some increases are already in effect, while others take effect later in the year in states like Alaska, Florida, and Oregon. The debate is still the same: workers want pay that keeps up with living costs, while many businesses worry about higher payroll expenses.

In this article, we’ll look at 22 states raising minimum wages, the new rates, when they take effect, and why the wage debate is still far from over. You’ll also see how each state is handling the issue and what these changes could mean for workers and businesses.

Through this exploration, we hope to provide a clearer picture of the ongoing minimum wage debate in the United States.

Overview of Minimum Wage in the U.S.

Two men stand facing each other; one in a blue cap and overalls with a lanyard, smiling, while the other, dressed in a plaid shirt, holds and shows photographs or documents to him.

The minimum wage sets the lowest hourly pay most covered workers can legally earn. It is meant to create a wage floor, but the actual rate now depends heavily on the state where someone works.

The federal minimum wage is still $7.25 an hour in 2026, according to the U.S. Department of Labor. When a state has a higher minimum wage than the federal rate, workers generally get the higher rate.

That is why minimum wage laws look very different across the country. Some states still follow the federal rate, while others have moved above $15 an hour through scheduled increases, inflation adjustments, or voter-approved laws.

How Much You Need To Live Comfortably in Your State (According To New Study)

Arizona

Arizona raised its minimum wage to $15.15 an hour on January 1, 2026. That is up from $14.70 in 2025, according to the Industrial Commission of Arizona and the U.S. Department of Labor.

The increase is tied to inflation, which means the state does not need a new law every year to adjust the rate. As prices rise, Arizona’s minimum wage can move up with them.

Supporters say the increase helps workers keep up with living costs. Some businesses worry about higher payroll costs and pressure to raise prices.

How to Ask for a Raise: The Ultimate Guide To Get What You’re Worth

We’ve turned our best tips into quick-read books, and we’re publishing new ones every week. See the full collection here: amazon.com/author/chachingqueen.

California

California raised its statewide minimum wage to $16.90 an hour on January 1, 2026. That is up from $16.50 in 2025, according to the California Department of Industrial Relations.

The statewide rate applies to most workers, but California also has higher minimum wages for some industries. Fast-food workers at covered restaurants have a $20 minimum wage, and some health care workers have higher required rates.

Supporters say higher wages are needed because California has some of the highest living costs in the country. Business owners, especially in restaurants and service industries, worry that higher labor costs can lead to higher prices, fewer hours, or slower hiring.

Should California Break Away? 31 Reasons California Feels Like It Is A Different Country

Colorado

Aerial view of an urban downtown area with various buildings and streets, set against a backdrop of mountains, showcasing one of the most comfortable cities to live in the US.

Colorado’s minimum wage increased to $15.16 an hour on January 1, 2026. That is up from $14.81 in 2025, according to the Colorado Department of Labor and Employment and the U.S. Department of Labor.

The state also raised its tipped minimum wage to $12.14 an hour in 2026. Some cities and counties set higher local rates, including Denver, where the minimum wage increased to $19.29 an hour.

Supporters say the increase helps paychecks keep pace with Colorado’s cost of living. Employers argue that higher wage floors can add pressure to payroll, pricing, and staffing decisions.

26 Places You’re Tipping But Don’t Really Need To

Connecticut

Aerial view of a city with historic buildings, churches, and green spaces on a sunny day.

Connecticut’s minimum wage moved up to $16.94 an hour on January 1, 2026. The increase came through the state’s annual adjustment system, which is tied to the federal Employment Cost Index.

That indexing system means Connecticut’s rate can rise with broader wage and labor cost changes. It also keeps the minimum wage moving without requiring lawmakers to pass a new increase every year.

Supporters say this helps lower-wage workers keep more stability in a high-cost state. Some employers argue that automatic increases can make it harder to plan budgets, especially for small businesses with tight margins.

Live Here, Save Big: 21 States Offering the Best Tax Breaks

Hawaii

Aerial view of a cityscape with tall buildings near the coast, featuring a marina, sandy beach, and turquoise ocean waters against a backdrop of green mountains.

Hawaii’s minimum wage increased to $16.00 an hour on January 1, 2026. The state’s Department of Labor says the rate is scheduled to rise again to $18.00 an hour on January 1, 2028.

This increase is part of a step-by-step schedule approved in 2022. It moved the state from $14.00 in 2024 to $16.00 in 2026, with one more increase still ahead.

For workers, the higher rate can help cover more of Hawaii’s steep living costs. For employers, it can add pressure in a state where rent, shipping, supplies, and everyday operating costs are already expensive.

23 Breathtaking Natural Wonders in the U.S. You Need to See to Believe

Maine

Scenic coastal village with houses, greenery, and a small bay. Rocky island and ocean visible in the background under a partly cloudy sky.

Maine’s minimum wage rose to $15.10 an hour on January 1, 2026. That is up from $14.65 in 2025, according to the Maine Department of Labor.

The state adjusts its minimum wage each year using a cost-of-living formula. In 2026, the increase also applies to agricultural workers, which expands coverage to more workers across the state.

For many workers, the higher wage can help with everyday costs like housing, food, and transportation. For employers, especially small businesses and seasonal operations, the increase can make labor planning more difficult.

Big Bills Ahead: 20 States With the Highest Cost of Living

Michigan

Aerial view of downtown Detroit at dusk, featuring illuminated skyscrapers, city buildings, and the round structure of the Joe Louis Arena in the foreground.

Michigan’s minimum wage increased to $13.73 an hour on January 1, 2026. That is up from $12.48, according to the Michigan Department of Labor and Economic Opportunity.

The state is also scheduled to raise the rate again to $15.00 an hour on January 1, 2027. After that, future increases will be adjusted each year based on a set formula.

The higher rate gives many low-wage workers a bigger paycheck, but it also creates new costs for employers. Restaurants and other tipped-wage businesses are watching the changes closely because Michigan also has separate rules for tipped employees.

Why Americans Are Ditching These States, And Where They’re Headed Instead

Minnesota

Aerial view of a riverside city showcasing a mix of tree-lined streets, buildings, and a marina with docked boats, set against a backdrop of a broad waterway and a bridge.

Minnesota’s minimum wage increased to $11.41 an hour on January 1, 2026. The rate applies to all employers in the state, according to the Minnesota Department of Labor and Industry.

The state adjusts its minimum wage each year for inflation. Minnesota also raised its 90-day training wage for workers under age 20 to $9.31 an hour.

The statewide rate is still lower than many other states on this list, but some cities go higher. Minneapolis, for example, increased its local minimum wage to $16.37 an hour in 2026.

What Time Of Year Do Most Car Accidents Happen In Minnesota?

Missouri

The St. Louis skyline at dusk featuring the Gateway Arch, with the buildings and arch reflected in the calm waters of the Mississippi River, represents one of the most comfortable places to live in the US.

Missouri’s minimum wage reached $15.00 an hour on January 1, 2026. The Missouri Department of Labor says tipped employees must be paid at least $7.50 an hour, plus tips that bring their total pay to at least $15.00.

The increase followed a voter-approved measure, but state lawmakers later changed parts of the law. The $15 wage still took effect in 2026, while the automatic inflation adjustments tied to the original measure were removed.

Missouri is an important example because it shows higher minimum wages are not just a coastal-state issue. At the same time, the back-and-forth over the law shows how wage increases can remain politically contested even after voters approve them.

Fritz’s Adventure In Branson, Missouri: Full Of Family Fun!

Montana

A quiet street in a small town featuring old brick buildings in the foreground, with a picturesque view of snow-capped mountains in the background under a colorful sky, reminiscent of the most comfortable cities to live in within the US.

Montana’s minimum wage increased to $10.85 an hour on January 1, 2026. That is up from $10.55 in 2025, according to the Montana Department of Labor and Industry.

The rate is adjusted each year based on the Consumer Price Index. Montana law says the state minimum wage must be the greater of the federal rate or the current state rate.

This is a smaller wage floor than many states on this list, but it still gives workers a higher baseline than the federal rate. For smaller businesses, even a modest annual increase can affect payroll planning and hiring decisions.

🙋‍♀️If you like what you are reading, then click like and subscribe to my newsletter. We share tips to waste less time and money.

Nebraska

Nebraska’s minimum wage increased to $15.00 an hour on January 1, 2026. The increase was part of a voter-approved measure passed in 2022.

The state reached the $15 mark after several scheduled increases. Nebraska law also lists annual increases beginning in 2027, though recent changes have adjusted how those future increases are calculated.

Nebraska stands out because voters approved the wage increase directly. Still, the debate continues, especially around payroll costs, future indexing, and how wage rules should apply to younger workers and smaller employers.

29 Must-See Classic Roadside Attractions Across the United States

New Jersey

Aerial view of a city with numerous buildings surrounded by autumn-colored trees and a river in the background under a partly cloudy sky.

New Jersey’s minimum wage increased to $15.92 an hour for most employees on January 1, 2026. That is a 43-cent increase from the 2025 rate, according to the New Jersey Department of Labor and Workforce Development.

Not every worker falls under the same rate. Seasonal workers and employees of small employers moved to $15.23 an hour, while agricultural workers increased to $14.20 an hour.

New Jersey already passed the $15 mark for most workers, so the debate now centers on future adjustments and business costs. The state ties future increases to inflation, which can help wages keep moving but also adds pressure for employers trying to plan ahead.

12 States Trying To Ban New Gas Powered Cars (Even Though People Still Want Them)

New York

View of a city skyline with a prominent tall building in the center, surrounded by various skyscrapers, under a cloudy sky.

New York’s minimum wage increased on January 1, 2026, with different rates based on location. Workers in New York City, Long Island, and Westchester now have a $17.00 an hour minimum wage, while the rest of the state is at $16.00 an hour.

The split rate reflects the state’s higher-cost areas, especially around New York City. It also keeps the rest of the state on a slightly lower schedule instead of using one flat statewide rate.

New York is also expected to move to inflation-based adjustments after 2026. That means the wage floor can keep changing with economic conditions, which gives workers more protection but gives employers another payroll cost to track.

21 Hard Truths About the American Dream Today

Ohio

Ohio’s minimum wage rose to $11.00 an hour on January 1, 2026, for non-tipped workers at larger employers. Tipped workers at those employers moved to $5.50 an hour.

The increase was tied to inflation, which is how Ohio adjusts its rate each year. The 2026 rate generally applies to employers with annual gross receipts above $405,000, while smaller employers and workers under age 16 may still fall under the federal rate.

Ohio’s increase is smaller than the jumps in states moving to $15 or more, but it still raises the wage floor for many workers. Businesses that rely on hourly labor may need to adjust payroll budgets, especially when tipped and non-tipped roles are both affected.

Think Homes Are Out of Reach? 10 States Proving You Wrong on Price

Rhode Island

Rhode Island’s minimum wage increased to $16.00 an hour on January 1, 2026. The state is also scheduled to raise the rate again to $17.00 an hour on January 1, 2027.

The 2026 increase moved Rhode Island above the $15 mark and kept it among the higher minimum wage states in the country. The state also keeps separate rules for tipped workers, who must still make at least the full minimum wage once tips are included.

The next increase gives workers another raise already written into law. Businesses, especially restaurants and small employers, have more time to plan, but they still face pressure from higher payroll costs and pricing decisions.

The 25 Most Expensive Places to Live in the U.S.

South Dakota

A street with historic buildings and signage, including "Wild Bill Bar," lined with trees and hills in the background, under a partly cloudy sky. It's scenes like these that make some of America’s most comfortable cities to live in US so charming and desirable.

South Dakota’s minimum wage increased to $11.85 an hour on January 1, 2026. That is up from $11.50 in 2025, according to the South Dakota Department of Labor and Regulation.

The state adjusts its minimum wage each year based on cost-of-living changes. Tipped employees have a lower cash wage of $5.925 an hour, but employers must make sure their total pay with tips reaches at least the full minimum wage.

South Dakota’s increase is not as large as the $15 wage hikes in some states, but it still moves the baseline higher for hourly workers. Businesses get a predictable annual adjustment, though even small increases can matter for employers with tight payroll budgets.

Things to Do in Sturgis, South Dakota

Vermont

A well-lit pedestrian street lined with trees and buildings leads to a clock tower with a spire, under a deep blue evening sky in one of the most comfortable cities to live in the US.

Vermont’s minimum wage increased to $14.42 an hour on January 1, 2026. That is up from $14.01 in 2025, according to the Vermont Department of Labor.

The state updates its minimum wage each year using a set formula. Vermont also has a tipped wage of $7.21 an hour, but tips must bring workers up to at least the full minimum wage.

The increase gives hourly workers another small bump in pay as living costs remain high. At the same time, small employers may feel the pressure more because payroll costs can rise even when sales stay flat.

Buy American: 17 Iconic Products Still Made in the USA

Virginia

City skyline at dusk reflected on calm water, featuring multiple buildings, including a tall central building, with a colorful sky above.

Virginia’s minimum wage increased to $12.77 an hour on January 1, 2026. That is up from $12.41 in 2025, according to the Virginia Department of Labor and Industry.

The new rate came from an annual adjustment tied to the Consumer Price Index. Virginia’s labor department says this same calculation will continue to be used for future minimum wage adjustments.

Virginia also approved a new path toward higher wages, with future increases set to reach $13.75 in 2027 and $15.00 in 2028. That gives workers a clearer pay schedule, while employers have to plan ahead for rising labor costs.

29 Must-See Classic Roadside Attractions Across the United States

Washington

Seattle skyline with the Space Needle in the foreground and Mount Rainier visible in the background under a partly cloudy sky.

Washington’s minimum wage increased to $17.13 an hour on January 1, 2026. That is up from $16.66 in 2025, according to the Washington State Department of Labor & Industries.

The state adjusts its minimum wage each year based on inflation. Washington also has one of the highest statewide minimum wages in the country, and several cities set even higher local rates.

This gives hourly workers a stronger wage floor in an expensive state. Employers, especially in food service, retail, and small businesses, still have to balance higher pay with pricing, staffing, and customer demand.

Make America Healthy Again: How RFK Jr. Is Changing HHS

Alaska

City skyline with tall buildings, set against snow-capped mountains in the background and reflecting water in the foreground under a clear blue sky—one of the most comfortable cities to live in the US.

Alaska’s minimum wage is currently $13.00 an hour, but it will increase to $14.00 an hour on July 1, 2026. The Alaska Department of Labor confirms the scheduled increase.

The raise comes from Ballot Measure 1, which voters approved in 2024. The state is also scheduled to move to $15.00 an hour on July 1, 2027, then return to annual inflation adjustments after that.

Alaska is different from many states on this list because its increase happens midyear instead of January 1. That gives employers time to prepare, but it still means higher payroll costs for businesses with hourly workers.

Bucket List Alert: The Best Road Trip Routes in Every State

Florida

Skyline of a modern city with high-rise buildings at sunset, featuring a colorful sky and intersecting highways in the foreground.

Florida’s minimum wage is $14.00 an hour for most workers in 2026, but it is scheduled to rise to $15.00 an hour on September 30, 2026. Tipped workers are currently at $10.98 an hour, with that cash wage set to rise to $11.98 on the same date.

The increase comes from a constitutional amendment Florida voters approved in 2020. The state has been raising the rate by $1 each year until it reaches $15 in 2026, then future increases will be tied to inflation.

Florida’s change is a major one because it brings a large, fast-growing state to the $15 level. It may help hourly workers, but businesses in restaurants, tourism, retail, and hospitality will have to adjust payroll costs again in the fall.

12 Best Places to Visit in Florida for Vacation Planning Ideas

Oregon

A scenic view of a city nestled among lush green trees, with a mountain in the background under a clear blue sky.

Oregon’s minimum wage will increase on July 1, 2026, with three different rates based on location. The new rates will be $16.80 an hour in the Portland metro area, $15.55 in standard counties, and $14.55 in nonurban counties, according to Oregon’s Bureau of Labor and Industries.

The state uses a regional wage system instead of one statewide rate. Portland metro workers get the highest minimum wage, nonurban counties have the lowest, and the standard rate applies to many other parts of the state.

Oregon’s increase happens midyear, not on January 1 like many other states. That gives employers a different planning timeline, while workers in higher-cost areas still get a larger wage floor.

10 States Leading the Way in Financial Literacy (and the 10 Falling Behind)

Minimum Wage Increases Are Still Moving State by State

Minimum wage increases are no longer just a federal issue. Many states are setting their own rates, and some are using inflation adjustments so wages can keep changing each year.

For workers, these increases can mean more money for rent, groceries, gas, and other basic costs. For businesses, they can also mean tougher choices around payroll, prices, hours, and hiring.

The biggest takeaway is that minimum wage laws now look very different depending on where someone lives. Some states are moving well above $15 an hour, while others still follow the federal rate, making the wage gap across the country even wider.

We’ve turned our best tips into quick-read books, and we’re publishing new ones every week. See the full collection here: amazon.com/author/chachingqueen

🙋‍♀️If you like what you just read, then subscribe to my newsletter and follow us on YouTube.👈