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19 States to Increase Minimum Wage on New Year’s Day 2026


American workers at the bottom end of the pay scale are set to see the minimum wage rise in 19 states effective on New Year’s Day, while three other states are also planning minimum wage increases later in 2026.

While 20 states have opted to maintain their minimum wage at the federal level of $7.25 an hour, the majority have established higher minimums. These rates may be periodically adjusted to account for inflation or changes in state labor compensation laws.

The minimum wage serves to support workers at the lower end of the pay scale. However, critics argue that higher minimum wage levels can increase costs for businesses and potentially suppress job growth, as firms may seek to automate tasks that could otherwise be performed by lower-wage workers.

Here’s a look at which states will be raising their minimum wages in 2026 and when those changes are set to occur.

US ECONOMY EXPECTED TO GROW FASTER IN 2026 DESPITE STAGNANT JOB MARKET: GOLDMAN SACHS

In-N-Out worker

The minimum wage will increase on New Year’s Day in 19 states, including California. (Robert Gauthier/Los Angeles Times via Getty Images / Getty Images)

Minimum Wage Rising January 1

Arizona: $15.15 an hour, though local rates may vary.

California: $16.90 an hour.

Colorado: $15.16 an hour, local rates may vary.

Connecticut: $16.94 an hour.

Hawaii: $16 an hour.

Maine: $15.10 an hour.

Michigan: $13.73 an hour.

Minnesota: $11.41 an hour, local rates may vary.

Missouri: $15 an hour.

Montana: $10.85 an hour.

Nebraska: $15 an hour.

US ECONOMY GREW FASTER THAN EXPECTED IN THE THIRD QUARTER, DELAYED REPORT SHOWS

New Jersey: $15.92 an hour for firms with six or more employees; $15.23 for seasonal workers or firms with fewer than six employees; $14.20 for agricultural workers; $18.92 for long-term care facility direct care workers.

New York: $17 an hour in New York City, Long Island, and Westchester; $16 for the remainder of the state; home care aides may have different minimum wage rates.

Ohio: $11 an hour, though small firms meeting income requirements may pay the federal minimum.

Rhode Island: $16 an hour.

South Dakota: $11.85 an hour.

Vermont: $14.42 an hour.

Virginia: $12.77 an hour.

Washington: $17.13 an hour, local rates may be higher.

The New York City skyline at sunrise

New York’s minimum wage regime has different minimums for different parts of the state, including New York City. (Gary Hershorn/Getty Images / Getty Images)

SMALL BUSINESS OWNERS REMAIN ‘CAUTIOUSLY OPTIMISTIC’ HEADING INTO 2026 AMID RISING COSTS, LABOR CHALLENGES

Minimum Wage Rising Later in 2026

Alaska: Rising from $13 to $14 an hour effective July 1.

Florida: Rising to $15 an hour on September 30.

Oregon: Standard rate of $15.05 per hour will adjust based on CPI inflation data on July 1; Portland metro rate is $16.30 an hour, while the nonurban county rate is $14.05 an hour.

luxury condo buildings on beach strip

Florida’s minimum wage will rise on September 30. (Jeffrey Greenberg/Education Images/Universal Images Group / Getty Images)

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American workers at the bottom end of the pay scale are set to see the minimum wage rise in 19 states effective on New Year’s Day, while three other states are also planning minimum wage increases later in 2026.

While 20 states have opted to maintain their minimum wage at the federal level of $7.25 an hour, the majority have established higher minimums. These rates may be periodically adjusted to account for inflation or changes in state labor compensation laws.

The minimum wage serves to support workers at the lower end of the pay scale. However, critics argue that higher minimum wage levels can increase costs for businesses and potentially suppress job growth, as firms may seek to automate tasks that could otherwise be performed by lower-wage workers.

Here’s a look at which states will be raising their minimum wages in 2026 and when those changes are set to occur.

US ECONOMY EXPECTED TO GROW FASTER IN 2026 DESPITE STAGNANT JOB MARKET: GOLDMAN SACHS

In-N-Out worker

The minimum wage will increase on New Year’s Day in 19 states, including California. (Robert Gauthier/Los Angeles Times via Getty Images / Getty Images)

Minimum Wage Rising January 1

Arizona: $15.15 an hour, though local rates may vary.

California: $16.90 an hour.

Colorado: $15.16 an hour, local rates may vary.

Connecticut: $16.94 an hour.

Hawaii: $16 an hour.

Maine: $15.10 an hour.

Michigan: $13.73 an hour.

Minnesota: $11.41 an hour, local rates may vary.

Missouri: $15 an hour.

Montana: $10.85 an hour.

Nebraska: $15 an hour.

US ECONOMY GREW FASTER THAN EXPECTED IN THE THIRD QUARTER, DELAYED REPORT SHOWS

New Jersey: $15.92 an hour for firms with six or more employees; $15.23 for seasonal workers or firms with fewer than six employees; $14.20 for agricultural workers; $18.92 for long-term care facility direct care workers.

New York: $17 an hour in New York City, Long Island, and Westchester; $16 for the remainder of the state; home care aides may have different minimum wage rates.

Ohio: $11 an hour, though small firms meeting income requirements may pay the federal minimum.

Rhode Island: $16 an hour.

South Dakota: $11.85 an hour.

Vermont: $14.42 an hour.

Virginia: $12.77 an hour.

Washington: $17.13 an hour, local rates may be higher.

The New York City skyline at sunrise

New York’s minimum wage regime has different minimums for different parts of the state, including New York City. (Gary Hershorn/Getty Images / Getty Images)

SMALL BUSINESS OWNERS REMAIN ‘CAUTIOUSLY OPTIMISTIC’ HEADING INTO 2026 AMID RISING COSTS, LABOR CHALLENGES

Minimum Wage Rising Later in 2026

Alaska: Rising from $13 to $14 an hour effective July 1.

Florida: Rising to $15 an hour on September 30.

Oregon: Standard rate of $15.05 per hour will adjust based on CPI inflation data on July 1; Portland metro rate is $16.30 an hour, while the nonurban county rate is $14.05 an hour.

luxury condo buildings on beach strip

Florida’s minimum wage will rise on September 30. (Jeffrey Greenberg/Education Images/Universal Images Group / Getty Images)

GET FOX BUSINESS ON THE GO BY CLICKING HERE