U.S. Minimum Wage Increase 2025 – Updated Hourly Pay Rates Start December 25

After years of waiting while prices for food and rent went up, millions of American workers are finally getting a raise. Starting December 25, 2025, many areas across the country will increase their minimum wage, providing much-needed help to people with lower incomes.

This isn’t just a one-time pay bump. New plans aim to keep raising these wages every year through 2030. These changes could bridge the gap for many families, making it easier for them to pay bills and plan for a better financial future.

Minimum Wage Landscape Heading Into 2026

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Across the country, states are bracing for another round of wage adjustments on January 1, 2026. Some states are inching forward; others are making more aggressive moves.

Here’s a snapshot of what’s changing:

2026 State Minimum Wages vs. Current Rates

The common denominator? Nearly every significant increase comes from states that already adopted policies tying wages to cost-of-living metrics something federal law hasn’t done since… well… ever.

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If you want to see how states calculate inflation-adjusted changes, the BLS CPI data and the U.S. Department of Labor’s wage policy summaries offer a clear window into how these numbers are derived.

Where 2026 Is Taking the Wage Movement

NELP, the National Employment Law Project, has been tracking wage momentum closely, and 2026 shapes up to be one of the most consequential years yet.

Come January 1, 19 states and 49 cities and counties will raise their wage floors. In 60 jurisdictions, the minimum wage hits or surpasses the symbolic $15 mark—an unofficial benchmark for “living wage” campaigns. And in several pockets of California, New York, and New Jersey, the local minimum climbs beyond $17, reflecting the brutal cost-of-living realities in dense metros.

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Later in the year, another wave of increases will roll out: 4 more states and 22 local jurisdictions are slated to raise their standards, bringing the 2026 total to 88 jurisdictions moving the wage needle.

That includes:

If you follow state policy tracking through official portals like the National Conference of State Legislatures or the U.S. Department of Labor’s WHD state laws page, you’ll find these changes reflected in real time.

What’s Driving the Political Push and Pushback

Supporters point to real-world data: wage hikes correlate with lower poverty, improved food security, and higher consumer spending something local businesses generally welcome once the dust settles. Critics warn of job losses, though repeated studies (including those archived through the Federal Reserve Bank’s research repositories) show minimal to no net employment declines.

Still, the politics are complicated. Missouri and Michigan serve as case studies in the pushback movement lawmakers rolling back inflation indexing, slowing down tipped wage reforms, or tying the hands of local governments. It’s a reminder that wage policy isn’t just an economic debate; it’s a political battlefield, and 2026 is shaping up to be a year of sharp contrasts.

U.S. States with the Highest Minimum Wage

Washington, D.C. leads the nation with $17.95 per hour (effective July 1, 2025).

The top 5 other states with the highest minimum wage include:

• New York: $17.00 (in NYC, Long Island, & Westchester), $16.00 (rest of state)
• Connecticut: $16.94
• California: $16.90
• Hawaii: $16.00
• Rhode Island: $16.00

What’s the Highest Minimum Wage in the United States?

As of 2026, the single highest locally mandated minimum wage in the United States is in Tukwila, Wash., where all covered employers must pay at least $21.65 per hour. Close behind are Burien, Wash., at $21.63 for large employers and Renton, Wash., at $21.57 for large employers (with midsize employers reaching the same rate mid-year).

Seattle now requires $21.30 for all employers, continuing its annual inflation-based adjustment. Among statewide or district-wide rates, the leader remains the District of Columbia at $17.95 per hour, effective July 1, 2025, which still exceeds every state but falls below Washington’s top local ordinances.

U.S. States with the Lowest Minimum Wages

The states with the lowest minimum wages are Georgia, Wyoming, and Oklahoma. Georgia and Wyoming both list $5.15 per hour as a minimum wage, but this only applies to employers not covered by the Fair Labor Standards Act (FLSA).

Similarly, Oklahoma’s state minimum wage is $2.00 for very small employers, though most businesses are also covered by the FLSA.

This means even though Georgia, Wyoming, and Oklahoma are the states with the lowest listed minimum wages, the federal minimum wage of $7.25 takes precedence for most workers.

Beyond these three states with the lowest listed minimum wages, there are others that either don’t set a statewide minimum wage at all or have set theirs at the federal level of $7.25 per hour.

States with no statewide minimum-wage law

• Alabama ($7.25)
• Louisiana ($7.25)
• Mississippi ($7.25)
• South Carolina ($7.25)
• Tennessee ($7.25)

States whose minimum wage equals the federal Minimum wage

• Idaho ($7.25)
• Indiana ($7.25)
• Iowa ($7.25)
• Kansas ($7.25)
• Kentucky ($7.25)
• New Hampshire ($7.25)
• North Carolina ($7.25)
• North Dakota ($7.25)
• Pennsylvania ($7.25)
• Texas ($7.25)
• Utah ($7.25)
• Wisconsin ($7.25)

Which State Has the Lowest Minimum Wage in the United States?

Technically, the answer is Oklahoma. The state allows very small employers (fewer than 10 full-time workers or less than $100,000 in annual sales) that aren’t covered by the Fair Labor Standards Act (FLSA) to pay as little as $2.00 an hour—the lowest statutory minimum wage in the nation. In practice, however, most Oklahoma employees are covered by the FLSA and therefore must still receive at least the federal $7.25 an hour.

Which States Are Increasing the Minimum Wage in 2026?

More than 23 states have announced minimum wage increases for 2026, as shown in the minimum wage by state map. These states are:

• Alaska
• Arizona
• California
• Colorado
• Connecticut
• Florida
• Hawaii
• Maine
• Michigan
• Minnesota
• Missouri
• Montana
• Nebraska
• New Jersey
• New York
• Ohio
• Oregon
• Rhode Island
• South Dakota
• Vermont
• Virginia
• Washington
• Washington, D.C.

In most of these states, the minimum wage is scheduled to increase on January 1, 2026.

Source

FAQ

Q1: Which states will have a $17 minimum wage in 2026?
Primarily high-cost states like New York, New Jersey, and portions of California. More than 50 cities and counties will join them.

Q2: Why are some states not increasing their minimum wage in 2026?
Many states—especially across the South—haven’t linked wage laws to inflation and continue to default to the federal $7.25 rate.

Q3: Do minimum wage hikes cause inflation?
Research consistently shows no measurable link between wage floors and broad inflation. Rising prices stem from supply chains, market concentration, energy costs, and global disruptions.

Q4: What’s the importance of the $15 minimum wage milestone?
It’s become a policy proxy for a “living wage,” first championed by the Fight for $15 movement. Dozens of states now hover near or above it.

Q5: How do higher wages affect local economies?
They boost consumer spending, reduce reliance on public assistance, and generally strengthen local business demand.