Minimum wage rate by state may vary from state to state and city to city. But the federal minimum wage rate is $7.25 per hour in the United States. As a business owner or hiring manager, you should pay attention to pay rates for relevance and accuracy in 2026.
That’s why you should read this article to explore all the US states’ current pay rates per hour, amendments in 2026, and practices to make informed decisions.
So, stay tuned!
Key Takeaways:
- The federal minimum wage rate is $7.25 per hour for all employees in the United States.
- But many states set higher minimum wage rates in their areas to increase their people’s salaries for better living.
- A total of 22 states are raising their minimum wage rate in 2026.
What is the Federal Minimum Wage?
The government sets the lowest hourly pay rate that employers have to pay to employees, called the federal minimum wage. You can notice that it can vary in various cities, states, and countries.
In the United States, the Fair Labor Standards Act (FLSA) requires that employees be paid a minimum wage of $7.25 per hour.
Also, tipped employees should get $2.13 per hour. But here is the catch! The tip they received plus $2.13 per hour must be equal to $7.25 per hour. If the amount is lower than the minimum wage rate by state, an employer should pay the rest.
In many cases, the state government is not satisfied with the standard minimum wage rate, so it sets high hourly pay rates to encourage employees’ rights.
For example, Washington has $17.13 per hour, Columbia has $17.95 per hour, and Connecticut has $16.94 per hour. These states offer you the highest minimum wage to decrease poverty.
Note:
The Government of the District of Columbia announces that the minimum wage rate by state will increase from $17.95 to $18.40 per hour on July 1, 2026.
Minimum Wage Rate By State in 2026
Even though the US has a federal minimum wage law, each state government updates its minimum wage law whenever it’s necessary. This helps employees get fair pay and keep up with inflation.
Here, I’ve mentioned all the states’ minimum wage, tipped minimum wage, and actual tip credits to increase your understanding.
| Areas | Minimum Wage | Tipped Minimum Wage | Actual Tip Credits |
| Alabama (no state minimum wage law) | $7.25 | $2.13 | $5.12 |
| Alaska | $13.00 | Not permitted | Not permitted |
| Arizona | $15.15 | $12.15 | $3.00 |
| Arkansas | $11.00 | $2.63 | $8.37 |
| California | $16.90 | $16.90 | Not permitted |
| Colorado | $15.16 | $12.14 | $3.02 |
| Connecticut | $16.94 | $10.56 | $6.38 |
| Delaware | $15.00 | $2.23 | $12.77 |
| District of Columbia | $17.95 | $10.00 | $7.95 |
| Florida | $14.00 | $10.98 | $3.02 |
| Georgia (lower minimum wage laws, so it uses FLSA laws) | $5.15 | Not permitted | Not permitted |
| Hawaii | $16.00 | $14.75 | $1.25 |
| Idaho | $7.25 | $3.35 | $3.90 |
| Illinois | $15.00 | $9.00 | $6.00 |
| Indiana | $7.25 | $2.13 | $5.12 |
| Iowa | $7.25 | $4.35 | $2.90 |
| Kansas | $7.25 | $2.13 | $5.12 |
| Kentucky | $7.25 | $2.13 | $5.12 |
| Louisiana (no state minimum wage law) | $7.25 | $2.13 | $5.12 |
| Maine | $15.10 | $7.55 | $7.55 |
| Maryland | $15.00 | $3.63 | $11.37 |
| Massachusetts | $15.00 | $6.75 | $8.25 |
| Michigan | $13.73 | $5.49 | $8.24 |
| Minnesota | $11.41 | Not permitted | Not permitted |
| Mississippi (no state minimum wage law) | $7.25 | $2.13 | $5.12 |
| Missouri | $15.00 | $7.50 | $7.50 |
| Montana | $10.85 | Not permitted | Not permitted |
| Nebraska | $15.00 | $2.13 | $12.87 |
| Nevada | $12.00 | Not permitted | Not permitted |
| New Hampshire | $7.25 | $3.26 | $3.99 |
| New Jersey | $15.92 | $6.05 | $9.87 |
| New Mexico | $12.00 | $3.00 | $9.00 |
| New York | $16.00 | $13.30 | $2.70 |
| North Carolina | $7.25 | $2.13 | $5.12 |
| North Dakota | $7.25 | $4.86 | $2.39 |
| Ohio (lower minimum wage laws, so it uses FLSA laws) | $11.00 | $5.50 | $5.50 |
| Oklahoma | $7.25 | $3.625 | $3.625 |
| Oregon | $15.05 | Not permitted | Not permitted |
| Pennsylvania | $7.25 | $2.83 | $4.42 |
| Rhode Island | $16.00 | $3.89 | $12.11 |
| South Carolina (no state minimum wage law) | $7.25 | $2.13 | $5.12 |
| South Dakota | $11.85 | $5.95 | $5.90 |
| Tennessee (no state minimum wage law) | $7.25 | $2.13 | $5.12 |
| Texas | $7.25 | $2.13 | $5.12 |
| Utah | $7.25 | $2.13 | $5.12 |
| Vermont | $14.42 | $7.21 | $7.21 |
| Virginia | $12.77 | $2.13 | $10.64 |
| Washington | $17.13 | Not permitted | Not permitted |
| West Virginia | $8.75 | $2.62 | $6.13 |
| Wisconsin | $7.25 | $2.33 | $4.92 |
| Wyoming (lower state minimum laws, but uses the FLSA law) | $5.15 | $2.13 | $3.02 |
How Often Does the Federal Minimum Wage Increase?
The federal minimum wage doesn’t increase automatically. When Congress passes the bill that is signed by the President, it comes into existence.
Hence, the minimum wage rate has remained $7.25 per hour since 2009, despite inflation and a changing labor environment. Now, you understand that there is no automatic formula to increase the minimum wage based on employees’ needs and revenues.
That’s the reason each state government takes control and decides the minimum wage rate by state for the welfare of its laborers. It also prevents salary negotiation on the employer’s side.
Which States Increase the Minimum Wage in 2026?
A total of 22 states increased the minimum wage in 2026. The minimum wage rate by state is shown in the following section.
As of January 1, 2026:
| State | Minimum Wage Details |
| Arizona | Arizona minimum wage 2025 ($14.70) and Arizona minimum wage 2026 ($15.15) |
| California | California minimum wage 2025 ($16.50) and California minimum wage 2026 ($16.90) |
| Colorado | Colorado minimum wage 2025 ($14.81) and Colorado minimum wage 2026 ($15.16) |
| Connecticut | Connecticut minimum wage 2025 ($16.35) and Connecticut minimum wage 2026 ($16.94) |
| Hawaii | Hawaii minimum wage 2025 ($14.00) and Hawaii minimum wage 2026 ($16.00) |
| Maine | Maine minimum wage 2025 ($14.65) and Maine minimum wage 2026 ($16.00) |
| Michigan | Michigan minimum wage 2025 ($12.48) and Michigan minimum wage 2026 ($13.73) |
| Minnesota | Minnesota minimum wage 2025 ($11.13) and Minnesota minimum wage 2026 ($11.41) |
| Missouri | Missouri minimum wage 2025 ($13.75) and Missouri minimum wage 2026 ($15.00) |
| Montana | Montana minimum wage 2025 ($10.55) and Montana minimum wage 2026 ($10.85) |
| Nebraska | Nebraska minimum wage 2025 ($13.50) and Nebraska minimum wage 2026 ($15.00) |
| New Jersey | New Jersey minimum wage 2025 ($15.49) and New Jersey minimum wage 2026 ($15.92) |
| New York | New York minimum wage 2025 ($16.50 downstate and $15.50 upstate) and New York minimum wage 2026 ($17.00 in New York City, Long Island, and Westchester County and $16.00 in the rest of the areas) |
| Ohio | Ohio minimum wage 2025 ($10.70) and Ohio minimum wage 2026 ($11.00) |
| Rhode | Rhode Island minimum wage 2025 ($15.00) and Rhode Island minimum wage 2026 ($16.00) |
| South Dakota | South Dakota minimum wage 2025 ($11.50) and South Dakota minimum wage 2026 ($11.85) |
| Vermont | Vermont minimum wage 2025 ($14.01) and Vermont minimum wage 2026 ($14.42) |
| Virginia | Virginia minimum wage 2025 ($12.41) and Virginia minimum wage 2026 ($12.77) |
| Washington | Washington minimum wage 2025 ($16.66) and Washington minimum wage 2026 ($17.13) |
Effective Later in 2026:
| State | Minimum Wage Details |
| Alaska (July 1, 2026) | Alaska minimum wage 2025 ($13.00) and Alaska minimum wage 2026 ($14.00) |
| Oregon (July 1, 2026) | Oregon minimum wage 2025
Oregon minimum wage 2026
|
| Florida (September 30, 2026) | Florida minimum wage 2025 ($14.00) and Florida minimum wage ($15.00). |
Also Read: What is Dearness Allowance (DA)? Everything You Need To Know
Minimum Wage Practices for Hiring Managers
As a hiring manager, you should consider your local area laws, use an advanced payroll system, regularly audit your payroll system, and update your payroll posters.
Here, you can learn these practices in great detail to manage your employees’ payments.
1. Consider Your Local Area Laws
You should consider the minimum wage rate by state or city where your office is located. For example, if you are in New York, Long Island, you should select the pay rate of $17.00 per hour for your employees instead of the federal minimum wage rate.
2. Use an Advanced Payroll System
An advanced payroll system helps you record and track actual working hours and overtime pay and manage 10,000 employees at once. You can easily reduce human errors and your workload. It also makes sure that each employee is paid correctly for their hard work.
3. Regularly Audit Your Payroll System
Audits can resolve your mistakes and give you the best results. If your minimum wage varies due to different standards in your area, you should audit your payroll system. When you check errors, you can fix your problems and align with the Fair Labor Standards Act.
4. Update Your Payroll Posters
You should also stay updated with the changing minimum wage rate by state to avoid legal obligations. Also, you should display the posters on the state and federal minimum wage every time the amendment takes place. It keeps everyone informed about the minimum hourly rates.
Wrapping Up!
Overall, the federal minimum wage is $7.25 per hour in the US, and some states set their own minimum wage rate by state government for employees. As a hiring manager, you should also use an advanced payroll system to align with current FLSA rules.
It also simplifies your workflows and helps you make relevant payments to your workers. This way, you can achieve the loyalty of employees and gain more productivity.
Frequently Asked Questions
1. What’s the minimum wage in all 50 states?
Ans: The FLSA sets a $7.25 per hour minimum wage in all 50 states. But most states have a higher minimum wage rate than the FLSA.
2. What state has the lowest minimum wage?
Ans: Georgia and Wyoming have the lowest minimum wage rates, but these states follow the federal minimum wage rate of $7.25 per hour.
3. Is $70,000 per month a livable wage?
Ans: Yes, you can live a highly comfortable lifestyle with a $70,000 per month wage. But it also depends on your location, household size, and family members.
4. Who gets paid $20 per hour in California?
Ans: All food restaurant employees get paid $20 per hour in California under the minimum wage rate set by the state government.
5. How many states are raising their minimum wage in 2026?
Ans: There are a total of 22 states raising their minimum wage rate in 2026 to keep inflation and the living standards of their employees in mind.
- State Minimum Wage Laws – US Department of Labor
