Minimum wage rates are on the rise in a significant portion of the United States this year, with states, cities, and counties implementing scheduled increases that will affect millions of workers. According to a December 2025 report from the National Employment Law Project (NELP), at least 22 states and dozens of local jurisdictions are slated to raise their minimum wages in 2026, driven by inflation adjustments or previously approved legislation.
These changes come as workers across the country continue to feel the pinch of rising living costs, and as lawmakers and advocacy groups push for wages that better reflect current economic realities.
Wage Increases Already in Effect
On January 1, 2026, many states and localities kicked off the year by implementing new minimum wage standards. Those increases reflect a mix of legislated annual adjustments and efforts to keep wages in line with inflation. In total, 19 states and 49 cities or counties brought new wage levels into effect at the start of this year.
Several states recorded notable statewide increases. For example:
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California raised its minimum wage from $15.50 to $16.50.
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Washington boosted its rate from $16.28 to $17.13.
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Arizona jumped from $12.00 to $15.15.
In New York, the minimum wage rose across the state, with New York City, Long Island, and Westchester County reaching $17 per hour, and the rest of the state increasing to $16.
Local governments are also driving wage floors higher than their states’ minimums, particularly in parts of California and Washington. For instance, in the Bay Area, cities such as Palo Alto, Mountain View, and Redwood City now require minimum pay rates of between $18.65 and $19.50 per hour, depending on location and employer size.
In Seattle, minimum wages climbed to $20.97, with neighboring areas including Renton, Everett, and King County following suit with local increases.
What’s Coming Later in 2026
The year is far from over, and more wage increases are scheduled for later months:
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Alaska’s minimum wage will rise from $11.73 to $14.00 on July 1.
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Florida will boost its wage floor from $13.00 to $15.00 on September 30.
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Oregon will implement cost-of-living adjustments starting July 1.
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In California, health care workers will receive midyear raises, with minimum wages ranging from $20 to $25 an hour, depending on facility type.
These staged increases reflect ongoing efforts at both the state and local levels to account for inflation and ensure basic wage standards keep pace with economic conditions.
Areas With No Change in 2026
Despite the widespread increases, several states will not adjust their minimum wages this year. In most cases, these states already have minimum wage rates above the federal minimum, and their laws do not include automatic cost-of-living adjustments:
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Arkansas – current minimum wage $11.00 (last increase in 2021).
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Delaware – current minimum wage $15.00 (last increase in 2025).
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Illinois – current minimum wage $15.00 (last increase in 2025).
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Maryland – current minimum wage $15.00 (last increase in 2024).
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Massachusetts – current minimum wage $15.00 (last increase in 2023).
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Nevada – current minimum wage $12.00 (last increase in 2024).
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New Mexico – current minimum wage $12.00 (last increase in 2023).
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West Virginia – current minimum wage $8.75 (last increase in 2016).
States Still at the Federal Minimum
A significant number of states will continue to default to the federal minimum wage of $7.25 per hour in 2026 because they either lack their own wage laws or have state standards that match or fall below the federal threshold. These states are predominantly in the South and Midwest and include:
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Alabama
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Georgia
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Idaho
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Indiana
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Iowa
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Kansas
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Kentucky
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Louisiana
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Mississippi
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New Hampshire
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North Carolina
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North Dakota
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Oklahoma
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Pennsylvania
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South Carolina
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Tennessee
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Texas
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Utah
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Wisconsin
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Wyoming
NELP’s report notes that while minimum wages rise in much of the country, many regions will still see little to no change this year, underscoring the uneven landscape of wage policy in the United States.
Why Wage Increases Matter
Supporters of the minimum wage hikes argue that rising pay floors help workers keep up with the cost of essentials such as housing, food, healthcare, and transportation — all of which have seen significant price increases in recent years.
According to the NELP report, the rising cost of living makes higher wages critical for workers to maintain purchasing power and support local economies. Cities and states that have pursued higher minimum wages often point to studies showing benefits such as increased consumer spending and reduced reliance on social safety nets.
Critics, however, caution that rapid wage increases can have unintended consequences, such as higher labor costs for small businesses and potential reductions in hiring. Some economists argue that while wage growth helps certain segments of the workforce, it must be balanced against broader economic conditions like productivity and regional cost differences.
Key State-by-State Changes on Jan. 1, 2026
Here is a snapshot of states that raised minimum wages at the start of the year, along with the new rates:
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Arizona: from $12.00 to $15.15
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California: from $15.50 to $16.50
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Colorado: from $12.00 to $15.16
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Connecticut: from $15.00 to $16.94
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Hawaii: from $14.00 to $16.00
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Maine: from $12.75 to $15.10
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Michigan: from $12.48 to $13.73
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Minnesota: from $11.13 to $11.75
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Missouri: from $11.30 to $13.00
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Montana: from $10.55 to $10.85
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New Jersey: from $15.13 to $15.60
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New York: NYC, Long Island, and Westchester (from $16.00 to $17.00); the rest of the state (from $15.00 to $16.00)
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Ohio: from $10.45 to $11.00
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Rhode Island: from $14.00 to $16.00
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South Dakota: from $11.20 to $11.48
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Vermont: from $13.67 to $14.42
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Virginia: from $12.41 to $12.77
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Washington: from $16.28 to $17.13
Looking Forward
By the end of 2026, many of the scheduled increases and automatic adjustments will mean that 79 jurisdictions nationwide will offer minimum wages of at least $15 per hour, and 57 will reach or exceed $17 per hour, according to NELP’s projections.
As states and local governments continue to refine their wage policies, workers and employers alike will be watching closely to see how these changes affect labor markets, consumer spending, business operations, and broader economic activity.
For now, the patchwork of wage laws across the country reflects both regional priorities and the ongoing debate over how best to balance fair pay with economic growth in a rapidly changing labor landscape.
Emily Johnson is a critically acclaimed essayist and novelist known for her thought-provoking works centered on feminism, women’s rights, and modern relationships. Born and raised in Portland, Oregon, Emily grew up with a deep love of books, often spending her afternoons at her local library. She went on to study literature and gender studies at UCLA, where she became deeply involved in activism and began publishing essays in campus journals. Her debut essay collection, Voices Unbound, struck a chord with readers nationwide for its fearless exploration of gender dynamics, identity, and the challenges faced by women in contemporary society. Emily later transitioned into fiction, writing novels that balance compelling storytelling with social commentary. Her protagonists are often strong, multidimensional women navigating love, ambition, and the struggles of everyday life, making her a favorite among readers who crave authentic, relatable narratives. Critics praise her ability to merge personal intimacy with universal themes. Off the page, Emily is an advocate for women in publishing, leading workshops that encourage young female writers to embrace their voices. She lives in Seattle with her partner and two rescue cats, where she continues to write, teach, and inspire a new generation of storytellers.
