Minimum Wage Increases Take Effect As 2026 Begins

American workers at the bottom rung of the pay scale will get a pay bump in much of the country in 2026, with minimum wage hikes taking effect in 19 states on New Year’s Day and additional increases scheduled later in the year in three more states.

While 20 states are sticking with the federal minimum wage of $7.25 an hour, most states have gone their own way, setting higher floors that are often tied to inflation or updated under state labor laws.

Supporters say higher minimum wages give low-income workers a needed boost as everyday costs climb. Critics counter that the increases drive up costs for businesses, squeeze small employers and encourage automation that can replace entry-level jobs.

Here’s where minimum wages are rising in 2026 and when the changes kick in.

Minimum wage increases effective Jan. 1:

Arizona will move to $15.15 an hour, though local rates may be higher.

California’s minimum wage rises to $16.90 an hour.

Colorado will increase to $15.16 an hour, with some local variation.

Connecticut jumps to $16.94 an hour.

Hawaii moves to $16 an hour.

Maine increases to $15.10 an hour.

Michigan’s rate rises to $13.73 an hour.

Minnesota goes to $11.41 an hour, with higher local rates in some areas.

Missouri reaches $15 an hour.

Montana increases to $10.85 an hour.

Nebraska moves to $15 an hour.

New Jersey’s rate rises to $15.92 an hour for employers with six or more workers. Seasonal workers or businesses with fewer than six employees will pay $15.23. Agricultural workers move to $14.20, while direct care workers at long-term care facilities jump to $18.92.

New York’s minimum wage climbs to $17 an hour in New York City, Long Island and Westchester County, and $16 an hour in the rest of the state. Home care aides may be subject to different rates.

Ohio increases to $11 an hour, though some small businesses that meet income thresholds may still pay the federal minimum.

Rhode Island moves to $16 an hour.

South Dakota rises to $11.85 an hour.

Vermont increases to $14.42 an hour.

Virginia goes to $12.77 an hour.

Washington state raises its minimum wage to $17.13 an hour, with higher local rates in some cities.

Minimum wage increases later in 2026:

Alaska’s minimum wage rises from $13 to $14 an hour on July 1.

Florida’s voter-approved hike pushes the state minimum wage to $15 an hour on Sept. 30.

Oregon will adjust its minimum wage on July 1 based on inflation. The standard rate is currently $15.05 an hour, with a higher $16.30 rate in the Portland metro area and a lower $14.05 rate in nonurban counties.

As wage floors climb, business groups warn of tighter margins and tougher hiring decisions, while worker advocates argue the increases are overdue relief in a high-cost economy. Either way, millions of paychecks across the country are set to get a noticeable boost in 2026.

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