American workers at the bottom end of the pay scale are set to see the minimum wage rise in 19 states effective on New Year’s Day, while three other states are also planning minimum wage increases later in 2026.
While 20 states opt to leave their minimum wage at the federal minimum of $7.25 an hour, the majority of states have set higher minimums which may be periodically adjusted to account for inflation or to account for a change in state labor compensation laws.
The minimum wage helps to support workers at the lower end of the pay scale, though critics note that higher minimum wage levels increase costs for businesses and can suppress job growth as firms look to automate tasks that could otherwise be done by lower-wage workers.
Here’s a look at which states will be raising their minimum wages in 2026 and when those changes are set to occur.
US ECONOMY EXPECTED TO GROW FASTER IN 2026 DESPITE STAGNANT JOB MARKET: GOLDMAN SACHS
Minimum wage rising January 1
Arizona: $15.15 an hour, though local rates may vary.
California: $16.90 an hour.
Colorado: $15.16 an hour, local rates may vary.
Connecticut: $16.94 an hour.
Hawaii: $16 an hour.
Maine: $15.10 an hour.
Michigan: $13.73 an hour.
Minnesota: $11.41 an hour, local rates may vary.
Missouri: $15 an hour.
Montana: $10.85 an hour.
Nebraska: $15 an hour.
US ECONOMY GREW FASTER THAN EXPECTED IN THE THIRD QUARTER, DELAYED REPORT SHOWS
New Jersey: $15.92 an hour for firms with six or more employees; $15.23 for seasonal workers or firms with fewer than six employees; $14.20 for agricultural workers; $18.92 for long-term care facility direct care workers.
New York: $17 an hour in New York City, Long Island and Westchester; $16 for the remainder of the state; home care aides may have different minimum wage rates.
Ohio: $11 an hour, though small firms meeting income requirements may pay the federal minimum.
Rhode Island: $16 an hour.
South Dakota: $11.85 an hour.
Vermont: $14.42 an hour.
Virginia: $12.77 an hour.
Washington: $17.13 an hour, local rates may be higher.
SMALL BUSINESS OWNERS REMAIN ‘CAUTIOUSLY OPTIMISTIC’ HEADING INTO 2026 AMID RISING COSTS, LABOR CHALLENGES
Minimum wage rising later in 2026
Alaska: Rising from $13 to $14 an hour effective July 1.
Florida: Rising to $15 an hour on September 30.
Oregon: Standard rate of $15.05 per hour will adjust based on CPI inflation data on July 1; Portland metro rate is $16.30 an hour, while the nonurban county rate is $14.05 an hour.
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