WASHINGTON — (2025-12-31 21:53:00) — Nearly 20 states across the country will raise their minimum wages on Jan. 1, potentially improving the incomes of millions of Americans as state and local governments adjust wages to account for inflation.
Nearly 8.3 million Americans are expected to see their wages increase as a result of these changes, according to estimates from the Economic Policy Institute.
- Nineteen states will increase their minimum wage on January 1st.
- Washington state will have the highest minimum wage in the nation at $17.13 per hour in 2026.
- Approximately 8.3 million Americans are projected to benefit from the wage increases.
- Twenty states currently have a minimum wage that matches or does not exceed the federal minimum wage of $7.25 per hour.
On New Year’s Day, the wage hikes will take effect in 19 states. The increases range from $10.85 per hour in Montana to $17.13 per hour in Washington, according to state labor departments.
State-by-State Increases
The states increasing their minimum wages by 2026 are: Arizona ($15.15), California ($16.90), Colorado ($15.16), Connecticut ($16.94), Hawaii ($16.00), Maine ($15.10), Michigan ($13.73), Minnesota ($11.41), Missouri ($15.00), Montana ($10.85), Nebraska ($15.00), New Jersey ($15.92), New York ($17.00 in New York City, Long Island and Westchester; $16 for the rest of the state), Ohio ($11.00), Rhode Island ($16.00), South Dakota ($11.85), Vermont ($14.42), Virginia ($12.77), and Washington ($17.13).
Alaska, Florida, and Oregon will implement further increases later in 2026. Alaska’s minimum wage will rise from $13 to $14 per hour on July 1, 2026. Florida’s will increase to $15 per hour on September 30, 2026. Oregon’s standard rate of $15.05 per hour will be adjusted based on CPI inflation data on July 1, with rates varying by county.
Why It Matters
These increases reflect a broader trend of states and cities taking action to address income inequality and the rising cost of living. While the federal minimum wage has remained stagnant at $7.25 per hour since 2009, many states have opted to set their own, higher standards. This creates a patchwork of minimum wage laws across the country, with significant implications for workers and businesses alike. The changes are intended to boost the earnings of low-wage workers, potentially stimulating local economies, but also raise concerns about potential impacts on employment and business costs.
Currently, twenty states have no set minimum wage or offer one that does not exceed the federal minimum wage of $7.25 per hour. Those states are: Alabama, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, New Hampshire, North Carolina, North Dakota, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, Wisconsin, and Wyoming.
