PayCalcHubBlog › Minimum Wage 2026

Minimum Wage by State 2026 — Complete US Guide

Wages & Pay January 2026 10 min read

The federal minimum wage has been $7.25/hour since 2009. But most US workers are covered by higher state or local minimums. This guide covers every state's 2026 minimum wage, the annual income it produces, and the states with the highest and lowest rates — with scheduled increases through 2027.

The Federal Minimum Wage in 2026

The federal minimum wage remains $7.25 per hour as of 2026 — unchanged since July 24, 2009. This equals $15,080 per year at 40 hours/week. After federal tax and FICA, a single worker earning the federal minimum takes home approximately $13,900/year, or about $1,158/month.

However, federal minimum wage is a floor, not a ceiling. When a state sets a higher minimum, employers in that state must pay the higher rate. Today, 30 states plus Washington DC, Guam, Puerto Rico, and the US Virgin Islands have minimum wages above the federal floor.

Highest Minimum Wages in 2026

Top 10 Highest State Minimum Wages (2026)
Washington$16.28/hr ($33,862/yr)
California (general)$16.50/hr ($34,320/yr)
California (fast food)$20.00/hr ($41,600/yr)
Connecticut$16.35/hr ($34,008/yr)
New Jersey$15.49/hr ($32,219/yr)
Massachusetts$15.00/hr ($31,200/yr)
New York (NYC metro)$16.50/hr ($34,320/yr)
Illinois$15.00/hr ($31,200/yr)
Delaware$15.00/hr ($31,200/yr)
Rhode Island$15.00/hr ($31,200/yr)

States Still at Federal Minimum ($7.25)

As of 2026, the following states have not enacted a minimum wage above the federal floor of $7.25/hour. Workers in these states are covered by federal law if their employer is subject to the FLSA:

Important: Many cities and counties have set their own minimum wages above the state rate. Seattle's minimum wage is $20.76/hour; Denver's is $18.81/hour; Chicago's is $16.20/hour. Always check local ordinances in addition to state law.

Minimum Wage vs. Living Wage

The minimum wage and the living wage are very different concepts. A living wage is the hourly rate a worker needs to cover basic expenses — food, housing, transport, healthcare — without public assistance. MIT's Living Wage Calculator estimates living wages for every US county, and the results are sobering:

This gap explains why many minimum-wage earners rely on government assistance programs: SNAP, Medicaid, CHIP, housing vouchers, and the EITC. A 2020 University of California study estimated that the cost of government assistance to support minimum-wage workers exceeded $100 billion annually — effectively a public subsidy of low-wage employers.

Scheduled Minimum Wage Increases

Several states have legislated scheduled increases through 2026 and beyond:

What Minimum Wage Workers Actually Take Home

Let's look at real after-tax take-home for minimum wage workers in a selection of states:

Minimum Wage — Annual Take-Home After Federal Tax (Single, No Dependents)
Federal minimum ($7.25) — Texas, Florida (2025)$13,904/yr · $1,159/mo
$12.00/hr — Nevada, Nebraska (early 2026)$20,222/yr · $1,685/mo
$15.00/hr — Massachusetts, Illinois, Delaware$27,108/yr · $2,259/mo
$16.00/hr — Colorado, Connecticut area$28,769/yr · $2,397/mo
$16.28/hr — Washington state$29,222/yr · $2,435/mo
$16.50/hr — California, NYC metro$29,604/yr · $2,467/mo
$20.00/hr — California fast food$35,308/yr · $2,942/mo

The Case For and Against a Federal $15 Minimum Wage

The debate over raising the federal minimum wage to $15/hour is ongoing. Here are the main arguments on both sides:

Arguments for:

Arguments against:

💡 Tip for workers: If you're earning minimum wage, check whether your city or county has a higher local minimum than your state — many do. Also check for tip credits: some states allow employers to pay tipped workers below minimum wage if tips make up the difference. Know your rights at dol.gov/agencies/whd.

How to Find Your Exact After-Tax Minimum Wage

State income tax significantly affects your take-home pay. A $15/hour worker in California pays roughly $1,500/year more in state income tax than the same worker in Texas — a meaningful difference at this income level. Use our State Salary Calculator to see your precise after-tax income in any state.

✎ Editor's Note — June 2026
The federal minimum wage remains $7.25/hr — unchanged since 2009 — but it's increasingly irrelevant: only a handful of states still use it as their actual floor. As of 2026, 30+ states have minimums above $10/hr, and California, Washington, and New York are at $17–$18+. The real floor for most full-time workers in practice is closer to $12–$15/hr once you account for state and local minimums and market wages. One trend to watch: several cities (Chicago, LA, Seattle) have minimum wages above their state minimums, creating a patchwork that affects multi-location employers.

Frequently Asked Questions

What is the federal minimum wage in 2026? +
The federal minimum wage remains $7.25/hour in 2026 — unchanged since 2009. However, many states and cities have set higher minimums. If your state minimum is higher than the federal rate, your employer must pay the higher amount.
Which state has the highest minimum wage in 2026? +
Washington state has one of the highest minimum wages at $16.28/hour in 2026, followed closely by California ($16.50/hour). Washington DC (not a state) has the highest rate in the country at $17.50/hour.
How much is minimum wage annually? +
At the federal minimum of $7.25/hour, full-time work (2,080 hours) yields $15,080/year before taxes. At $15/hour (common state minimum), full-time work yields $31,200/year. At $16.50/hour (California), full-time yields $34,320/year.
Is minimum wage enough to live on? +
The federal minimum wage of $7.25/hour ($15,080/year) falls significantly below the living wage in every US state. MIT's Living Wage Calculator estimates single adults need $44,000–$55,000/year on average to cover basic needs. Even at $15/hour ($31,200/year), finances are tight in most urban areas.
What is a Good Salary in 2026? Best States for Take-Home Pay 2026