2026 Minimum Wage Increases: Every State Change

Complete 2026 State Minimum Wage Increase Table

The table below covers every state that changed its minimum wage in 2026, the prior rate, the new rate, and the effective date. States shown without a rate change did not raise wages in 2026 either because they are tied to the federal floor or because their scheduled increase falls outside 2026.

Data sourced from state Departments of Labor and official legislative records. Tipped worker rates differ from the rates shown. Rates shown are for non-tipped workers unless otherwise noted.

How CPI Indexing Works: The Mechanism Behind Automatic Increases

Fourteen states now use Consumer Price Index (CPI) indexing to automatically adjust minimum wages each year. Under this model, the state calculates the prior year's inflation rate and applies it to the current minimum wage. If inflation runs at 4%, a $15.00 minimum wage becomes $15.60 without any new legislation.

States using CPI indexing include Washington, Connecticut, Arizona, Colorado, Oregon, Maine, Vermont, Montana, Alaska, South Dakota, Ohio, the District of Columbia, and Minnesota. The practical effect is that workers in these states do not need to rely on legislative action to maintain the purchasing power of their wages.

The tradeoff is predictability. Employers in CPI-indexed states know wages will rise most years, which some argue makes long-range labor cost planning harder. Workers benefit from knowing their wage floor keeps pace with costs even when the legislature is not in session.

Why the Federal Minimum Wage Has Not Changed Since 2009

The federal minimum wage of $7.25 per hour has been unchanged since July 24, 2009. That is 17 years as of 2026. No other developed economy has gone as long without updating its national wage floor.

The stalemate reflects political division in Congress. Legislation to raise the federal rate to $15.00 passed the House in 2019 but died in the Senate. Subsequent proposals have not advanced. Because federal law sets a floor, not a ceiling, states are free to exceed $7.25. As of 2026, 30 states plus the District of Columbia have minimum wages above the federal rate.

Workers in the 20 states that rely on the federal floor earn $7.25 per hour, which equals $15,080 per year at 40 hours per week. After federal taxes, that drops to roughly $13,900, or about $1,158 per month. In most US cities, that falls far short of basic living costs.

Florida's September 30 Increase: The Unique Mid-Year Change

Florida stands out as the only state in 2026 with a minimum wage effective date of September 30. Every other state that raised its wage in 2026 did so on January 1. Florida's unusual date traces back to Amendment 2, the constitutional amendment voters approved in November 2020 by a 60.8% margin.

Amendment 2 set a specific schedule with a specific date: the wage would reach $15.00 by September 30, 2026. The $2.00 jump from $13.00 to $15.00 is the largest single-year increase of any state in 2026 in absolute dollar terms.

For Florida workers and employers, the September 30 effective date means wages changed mid-payroll cycle rather than at the start of a new calendar year. Employers needed to update payroll systems in the middle of Q3 rather than during the typical January 1 transition window when most HR systems handle annual adjustments.

Florida's tipped minimum wage also increased under Amendment 2, though tipped workers continue to receive a lower base rate with the expectation that tips bring them to or above the standard minimum.

OBBBA 2026: How Overtime Tax Changes Affect After-Tax Pay

The One Big Beautiful Bill Act (OBBBA) of 2026 introduced a federal income tax exemption on overtime premium pay. For minimum wage workers who regularly work more than 40 hours per week, this creates a meaningful difference in take-home pay.

Under OBBBA, the 0.5x overtime premium portion of pay is exempt from federal income tax up to $12,500 per year for single filers and $25,000 for joint filers. The base hourly rate continues to be taxed normally, and the overtime exemption does not apply to Social Security or Medicare taxes.

For a Florida worker earning $15.00 per hour who regularly works 50-hour weeks, the overtime premium on those 10 extra hours is $7.50 per hour. Under OBBBA, those overtime earnings are not counted as federal taxable income, which can add several hundred dollars to annual take-home pay depending on tax bracket and total hours worked.

Four states including Alabama, Colorado, DC, and New Mexico have not conformed to the federal OBBBA overtime exemption as of October 2026, meaning workers in those states still owe state income tax on overtime premiums even though the federal exemption applies.

Nebraska and Delaware: The Biggest Jumps from Ballot Action

Two states saw especially large increases in 2026 through mechanisms outside the normal legislative process.

Nebraska raised its minimum wage from $12.00 to $13.50 on January 1, 2026, a $1.50 increase driven by a voter-approved ballot measure. Nebraska voters passed the measure in the November 2024 election, continuing a trend of ballot-box minimum wage action in states where legislative action has stalled.

Delaware's increase from $13.25 to $15.00 represents a $1.75 jump, one of the larger scheduled increases of 2026. Delaware's path to $15 was set by legislation passed several years prior, with annual step increases building toward the current rate. Delaware now joins the group of states at the $15.00 floor alongside Illinois, Rhode Island, and Maryland.

Both Nebraska and Delaware demonstrate that the $15 national conversation has shifted wage floors significantly even in states that would not have reached these levels through legislative action alone.

What Happens to Tipped Workers in 2026?

Tipped minimum wages follow different rules. Under federal law, employers can pay tipped employees as little as $2.13 per hour as long as tips bring total compensation to at least $7.25. This is called the "tip credit." In many states with higher minimum wages, the tip credit rules are different or eliminated entirely.

Several states that raised their standard minimum wage in 2026 also adjusted tipped wages under the same legislation or schedule. California eliminated its tip credit years ago, meaning all workers regardless of tip income receive the full $17.00 minimum. Washington and Oregon similarly have no tip credit, so tipped workers receive the same base rate as non-tipped workers.

In states that still use the tip credit system, the increased standard minimum wage creates a higher floor that tips must cover. Where tips are insufficient, the employer must make up the difference to reach the standard minimum.