Check These State Minimum Wage Updates as 2026 Begins

Many states increased their minimum wage rates on January 1, 2026. Did you catch the changes needed to pay employees accurately?

When it comes to compliance, minimum wage is just one of many areas where you’ll find differences among states, with other areas including unemployment insurance taxable wage bases, pay transparency and child support withholding.

Ensure that your payroll system is current by reviewing the following list of states that raised their rates as of January 1, 2026:

• Arizona – $15.15 (was $14.70)
• California – $16.90 (was $16.50)
• Colorado – $15.16 (was $14.81)
• Connecticut – $16.94 (was $16.35)
• Hawaii – $16 (was $14)
• Maine – $15.10 (was $14.65)
• Michigan – $13.73 (was $12.48)
• Minnesota – $11.41 (was $11.13)
• Missouri – $15 (was $13.75)
• Montana – $10.85 (was $10.55)
• Nebraska – $15 (was $13.50)
• New Jersey – $15.92 (was $15.49)
• New York – $16 (was $15.50)
• Ohio – $11 (was $10.70)
• Rhode Island – $16 (was $15)
• South Dakota – $11.85 (was $11.50)
• Vermont – $14.42 (was $14.01)
• Virginia – $12.77 (was $12.41), and
• Washington – $17.13 (was $16.66)

In some states, rate changes occur mid-year, often on July 1. Indeed, several states and localities boosted their minimum wage rates when the second half of 2025 kicked off.

Here’s a quick summary of the rate updates that had a July 1, 2025, effective date.

Minimum Wage Changes

In Alaska, the floor for hourly wages increased from $11.91 to $13.00 at the halfway mark of 2025. The increase was due to Ballot Measure 1, which voters approved in the 2024 general election. Heads up: That measure also included the following future increases: $14.00 on July 1, 2026, and $15.00 on July 1, 2027. Then, at the beginning of 2028, the amount will be adjusted for inflation.

In California, many localities set their own rates that exceed the state rate. Locations making mid-year modifications to their hourly rates were:

• Alameda $17.46 (from $17)
• Berkeley $19.18 (from $18.67)
• Emeryville $19.90 (from $19.36)
• Fremont $17.75 (from $17.30)
• Los Angeles City $17.87 (from $17.28)
• Los Angeles County $17.87 (from $17.27)
• Milpitas $18.20 (from $17.70)
• Novato $17.27 (from $16.86)
• Pasadena $18.04 (from $17.50)
• San Francisco $19.18 (from $18.67), and
• Santa Monica $17.81 (from $17.27).

Note: Normally, Malibu would have been on the list of cities making mid-year changes. However, the city council voted to suspend the scheduled increase in 2025 due to the Palisades Fire.

In Illinois, Chicago decided to raise its hourly rate from $16.20 to $16.60 on July 1, 2025.

In Maryland, employers located in Montgomery County had to pay a higher minimum wage than they had been. The rate went up to $17.65 per hour (from $17.15) for large employers; $16 per hour (from $15.50) for mid-sized employers; and $15.50 per hour (from $15) for small employers.

In Oregon, a new minimum wage rate kicked in July 1, 2025. Employers subject to the standard minimum wage rate had to pay $15.05 per hour (up from $14.70). In nonurban counties, the new hourly rate was $14.05 (from $13.70). As for the Portland Metro Area, the hourly minimum wage rate was set at $16.30 (from $15.95).

In Washington, two cities raised their minimum wage rates in the middle of 2025:

• One city was Renton, where mid-size employers needed to start paying at least $19.90 per hour (up from $18.90). Note: For larger employers, the rate remained $20.90 per hour.
• The other city was Tukwila. There, large employers began paying at least $21.10 per hour at the start of 2025, and mid-size employers paid only $20.10 per hour. As of July 1, 2025, the mid-size employer rate got bumped up to the large employer rate.