Minimum Wage Increases 2027: New Rates by State

Last updated November 9, 2026

At least 15 states will raise their minimum wage on January 1, 2027. Vermont will likely follow once it sets its new rate. Washington will have the highest state rate at $17.73 an hour, followed by Connecticut at $17.48 and California at $17.40.

The federal minimum wage stays at $7.25 an hour. This guide lists every confirmed 2027 increase, explains why rates change and shows what it means for workers and employers.

Key Takeaways

• Fifteen states have confirmed minimum wage increases for January 1, 2027.
• Michigan has the biggest jump, rising $1.27 to $15.00 an hour.
• Alaska rises to $15.00 on July 1, 2027.
• Many increases come from automatic inflation adjustments.
• The federal minimum wage remains $7.25 an hour.

Inside this guide

1. State minimum wage increases on January 1, 2027
2. Later 2027 changes
3. Why minimum wages change
4. The federal minimum wage
5. City and county rates
6. What it means for workers
7. What it means for employers
8. Frequently asked questions

State Minimum Wage Increases on January 1, 2027

These rates come from StartBusinessByState, updated November 5, 2026. They match figures in Experian’s 2027 employer guide where both list a rate.

Vermont also adjusts its rate each January. However, the state had not announced the 2027 amount when we updated this guide. Check the state labor department for the final figure.

Later 2027 Changes

• Alaska rises from $14.00 to $15.00 on July 1, 2027.
• Oregon updates its rate for inflation on July 1, 2027, with the amount still to be set.
• Washington, D.C., also adjusts for inflation on July 1, 2027.
• Florida stays at $15.00 through 2027 after its September 2026 increase.

Some bigger changes arrive in 2028. Virginia is set to reach $15.00 and Hawaii $18.00 on January 1, 2028, according to the same source.

Why Minimum Wages Change

States raise minimum wages in a few different ways.

Inflation adjustments

Many states tie the minimum wage to the cost of living. The rate rises automatically each year based on an inflation measure.

Scheduled step increases

Some states pass laws that raise wages in set steps over several years. Michigan and Rhode Island are examples of states with planned increases.

Ballot measures

Voters in some states approve minimum wage increases directly. These measures often include future inflation adjustments too.

The Federal Minimum Wage

The federal minimum wage is $7.25 an hour and has not changed since 2009. When a state rate is higher, employers must pay the higher rate.

About 20 states still use the federal $7.25 rate or have no state minimum wage. The Department of Labor keeps a state-by-state minimum wage map.

Congress would need to pass a law to change the federal rate.

City and County Rates

Many cities and counties set their own minimum wages above state levels. Large cities on the West Coast and in the Northeast often have the highest rates.

Experian notes, for example, that Saint Paul, Minnesota, raises rates for small and micro employers on July 1, 2027. Always check local rules where you work.

States With No Increase in 2027

Not every state with a high minimum wage raises it every year. New York stays at $17.00 in New York City, Long Island and Westchester, and $16.00 elsewhere, according to StartBusinessByState.

Hawaii holds steady in 2027 before a larger step in 2028. Florida keeps its $15.00 rate through the end of 2027.

States that follow the federal minimum wage also see no change, since the federal rate is not rising.

Biggest and Smallest Increases

Michigan and Rhode Island are moving to round numbers under planned schedules. Smaller increases usually come from yearly inflation adjustments.

Regional Patterns

The West Coast and the Northeast continue to lead on minimum wages. Washington, California, Connecticut, Rhode Island and New Jersey all sit above $16.00 an hour in 2027.

Midwestern and Plains states such as Ohio, Minnesota, South Dakota and Montana have lower rates but adjust them each year. Many Southern states still follow the federal $7.25 rate.

Inflation and Real Wages

A raise does not always mean more buying power. If prices rise faster than wages, workers can still fall behind.

That is why many states link the minimum wage to inflation. The goal is to keep the wage from losing value as everyday costs climb.

Rent, food and transportation costs vary a lot by region. The same wage stretches further in some places than others.

How to Check Your Exact Rate

• Visit your state labor department website.
• Look for city or county minimum wage rules where you work.
• Check whether special rates apply to your job, such as tipped work.
• Read the minimum wage poster at your workplace.

If rates differ, your employer must pay the highest one that applies to you. That could be a city, county, state or federal rate.

What It Means for Workers

• Check your first paycheck of 2027 to confirm the new rate.
• Ask your employer if your pay seems wrong.
• Remember that some raises may change tax withholding slightly.
• Contact your state labor department if you are not paid the legal minimum.

A higher hourly wage adds up over a year. For a full-time worker, a $1 raise is roughly $2,080 more before taxes, based on 40 hours a week.

Plan how to use extra income wisely. Avoid new debt traps, such as the risks of buy now, pay later plans.

Questions to Ask Your Employer

• When will the new rate show up on my paycheck?
• Will my schedule or hours change?
• Do raises apply to workers already above the minimum?
• Where can I see the updated wage poster?

Asking early helps avoid surprises in January. Keep copies of pay stubs in case questions come up later.

What It Means for Employers

• Update payroll systems before January 1.
• Post the new required minimum wage notices in the workplace.
• Review pay for workers just above the minimum, who may expect raises too.
• Check rules for tipped workers, overtime and salary thresholds.

Experian reminds employers that required workplace posters often change with new rates. Many states publish free printable posters.

How Minimum Wage Ties Into Other 2027 Changes

Minimum wage is one of several money changes in 2027. Retirees will see a new Social Security cost-of-living adjustment, and high earners face a higher Social Security tax cap.

Read our guides to the Social Security COLA for 2027 and the 2027 Social Security tax cap for details.

A Quick Look Back

State minimum wages have climbed steadily over the past decade. Several states that once sat near the federal rate now pay more than double it.

Meanwhile, the federal rate has stayed flat since 2009. That gap explains why so many states now set their own higher minimums.

Supporters say higher minimums help workers keep up with living costs. Critics argue they can raise prices or slow hiring at small businesses, and research on the effects continues.

Tipped Workers and Special Rates

Many states let employers pay tipped workers a lower cash wage. Tips must then bring total pay up to the full minimum. The rules vary widely from state to state.

Some states, such as California and Washington, require the full minimum wage before tips. Others allow a much lower cash wage.

Young workers, trainees and small businesses may also have special rates in some states. Check your state labor department for details.

Your 2027 Minimum Wage Checklist

• I know my state’s 2027 minimum wage
• I checked my city or county rate
• I will review my first 2027 paycheck
• Employers updated payroll and posters
• I know where to report unpaid wages

Test Yourself

Frequently Asked Questions

Which state has the highest minimum wage in 2027?

Washington, at $17.73 an hour starting January 1, 2027.

Is the federal minimum wage going up in 2027?

No. It remains $7.25 an hour unless Congress changes it.

Which state has the biggest increase?

Michigan, rising $1.27 to $15.00 an hour.

What if my employer does not pay the new rate?

Talk to your employer first, then contact your state labor department or the Department of Labor.

Conclusion

At least 15 states raise their minimum wage on January 1, 2027, led by Washington at $17.73. Alaska and Oregon follow with mid-year changes.

Check your state and local rates, review your paycheck and make sure employers update payroll on time.

Editor’s Note

This guide is accurate as of November 9, 2026. It draws on StartBusinessByState, Experian’s employer guide and the Department of Labor.

This article is general information, not legal or financial advice. Confirm rates with your state labor department.

Spot an error in this article? Please contact us at support@digieh.com or read our Corrections Policy.

D

Keep exploring

Your next read is waiting

Surprise me

1FashionHow to Waterproof Boots for Winter, Step by Step8 min read2Food & LifestyleDeep Fried Turkey Safety Tips to Prevent Fires8 min read3Fruits & VegetablesHow to Wash Fruits and Vegetables the Safe Way8 min read4Home & KitchenFrozen Pipes: What to Do When Pipes Freeze or Burst8 min read5HealthEczema in Winter: How to Calm Dry, Itchy Skin8 min read6MedicinesDo Antibiotics Cure Colds or Flu? What You Need to Know8 min read