Estimated reading time: 3 minutes
As we head into a new year, many states across the country are preparing for minimum wage increases that take effect on January 1, 2026. If you employ staff, this is the time to review your payroll budgets, update your systems, and make sure you are ready for any required adjustments.
While the federal minimum wage remains at $7.25 per hour, a growing number of states have their own rates that are moving higher in 2026. In addition, many cities and counties set their own local minimum wages that exceed the state level. You do not need to track every local jurisdiction, but it is important to know that these local increases exist and may apply to you depending on where your employees work.
Here is a clear look at the statewide changes taking effect at the start of 2026.
Confirmed 2026 Minimum Wage Rates
State / Territory 2025 Rate 2026 Rate
Alaska $13.00 $14.00
Arizona $14.70 $15.15
California $16.50 $16.90
Colorado $14.81 $15.16
Connecticut $16.35 $16.94
Hawaii $14.00 $16.00
Maine $14.65 $15.10
Michigan $12.48 $13.73
Minnesota $11.13 $11.41
Missouri $13.75 $15.00
Montana $10.55 $10.85
Nebraska $13.50 $15.00
New Jersey $15.49 $15.92
New York $15.50 $17.00
Ohio $10.70 $11.00
Rhode Island $15.00 $16.00
South Dakota $11.50 $11.85
Vermont $14.01 $14.42
Virginia $12.41 $12.77
Washington $16.66 $17.13
2026 Rates Still TBD
State / Territory 2025 Rate 2026 Rate
Delaware $15.00 TBD
District of Columbia $17.95 TBD
Florida $14.00 TBD
Maryland $15.00 TBD
Nevada $12.00 TBD
New Mexico $12.00 TBD
Oregon $15.05 TBD
Puerto Rico $10.50 TBD
Local jurisdictions with higher wages
The rates listed above are for minimum wages at the state level. Remember that many cities and counties have their own local wage laws. Areas with local rates higher than the state rate include Arizona, California, Colorado, Illinois, Maryland, Maine, Minnesota, New Mexico, New York, Oregon, and Washington. These rates vary widely, so if you have employees working across different locations, be sure to check the local requirements to stay compliant.
What to do next
Now is the time to review your payroll processes and confirm the correct rates are determined for the new year. Verifying information now prevents payroll errors later and supports a smooth transition into 2026.
Remember, these are for hours worked starting January 1st, not dates paid. If wages paid to employees will include hours worked in both 2025 and 2026, be sure to alert your payroll processor how many hours are paid at the old rate and how many at the new rate when submitting hours.
If you need help processing payroll and staying compliant with wage changes, Affordable Bookkeeping and Payroll is here to support you. Reach out to us at 310-534-5577 or contact@abandp.com. My team and I are ready to assist you!
