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Minimum wages in 2026: See which states are raising pay, and who is stuck at $7.25

Last updated: December 26, 2025 6:50 pm
Published: 3 months ago
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US minimum wage 2026: For workers earning the lowest wages, 2026 will bring very different outcomes depending on where they live. In some states, pay will go up as soon as the new year begins. In others, increases won’t arrive until later in the year and in many parts of the country, nothing will change at all.

A total of 19 states are set to raise their minimum wage on January 1, either through scheduled increases or automatic adjustments tied to inflation, as per a report. California is the only state planning two increases in 2026, with one taking effect at the start of the year and another scheduled for July 1, as per an Investopedia report. Three more states, Alaska, Florida, and Oregon, have minimum wage hikes planned for later in the year, taking effect on July 1 or September 1.

The minimum wage you earn still depends heavily on your zip code. Some states are raising pay in 2026, others already require higher wages, and a large group remains at the federal minimum wage of $7.25 an hour, as per the Investopedia report.

Several states won’t change their minimum wage in 2026 because they increased pay in earlier years. In many cases, those changes were part of multiyear plans approved by lawmakers or voters to raise wages gradually over time.

Also read: Expecting a big raise in 2026? New forecasts say most workers will be disappointed

Four states, California, Illinois, Maryland, and Massachusetts, already require employers to pay at least $15 an hour statewide, as per the Investopedia report. Each reached that level through phased increases, with some states also adjusting wages based on inflation.

State minimum wages don’t tell the whole story. In 2026, dozens of cities and counties will raise their own local minimum wages, creating a patchwork of different pay floors across the country. The National Employment Law Project’s 2026 report outlines which local areas are planning increases.

Also read: BTC price prediction alert: Why $23 billion Bitcoin options expiry could trigger major BTC USD volatility tomorrow

In a significant portion of the country, minimum wages will not rise in 2026. Twenty states continue to rely on the federal minimum wage of $7.25 an hour, which has been unchanged since 2009 and applies in states that have not set a higher wage floor, as per the Investopedia report.

About half of those states are in the South, where minimum wage policy has seen little movement for years. Without state laws that schedule increases or link wages to inflation, workers in these states will continue earning the same federal minimum unless Congress acts.

How many states are raising minimum wages on January 1?

Nineteen states are set to raise pay at the start of the year.

Which state is raising its minimum wage twice in 2026?

California plans two increases in 2026.

Read more on Economic Times

This news is powered by Economic Times Economic Times

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