Minimum Wage 2027: 15 States Are Raising Pay
Every minimum wage increase scheduled for 2027, with 2026 and 2027 rates side by side — plus what a higher base rate does to your overtime rate.
Every scheduled 2027 increase
| State | 2026 rate | 2027 rate | Change | From |
|---|---|---|---|---|
| Washington | $17.13 | $17.73 | +$0.60 | 1 Jan 27 |
| Connecticut | $16.94 | $17.48 | +$0.54 | 1 Jan 27 |
| California | $16.90 | $17.40 | +$0.50 | 1 Jan 27 |
| Rhode Island | $16.00 | $17.00 | +$1.00 | 1 Jan 27 |
| New Jersey | $15.92 | $16.48 | +$0.56 | 1 Jan 27 |
| Colorado | $15.16 | $15.71 | +$0.55 | 1 Jan 27 |
| Maine | $15.10 | $15.70 | +$0.60 | 1 Jan 27 |
| Nebraska | $15.00 | $15.26 | +$0.26 | 1 Jan 27 |
| Michigan | $13.73 | $15.00 | +$1.27 | 1 Jan 27 |
| Vermont | $14.42 | $14.91 | +$0.49 | 1 Jan 27 |
| Virginia | $12.77 | $13.75 | +$0.98 | 1 Jan 27 |
| South Dakota | $11.85 | $12.30 | +$0.45 | 1 Jan 27 |
| Minnesota | $11.41 | $11.87 | +$0.46 | 1 Jan 27 |
| Ohio | $11.00 | $11.40 | +$0.40 | 1 Jan 27 |
| Montana | $10.85 | $11.20 | +$0.35 | 1 Jan 27 |
| Arizona | $15.15 | $15.65 | +$0.50 | 1 Jan 27 |
| Alaska | $14.00 | $15.00 | +$1.00 | 1 Jul 27 |
No change: New York's general rate stays at $17.00 (downstate) and $16.00 (upstate) — the state has confirmed no inflation increase on 1 January 2027, although the home care aide minimum rises to $20.00 downstate and $19.00 upstate.
Still to be published: A handful of inflation-indexed states had not posted a 2027 rate at the time of writing. Check your state labour department before relying on a number.
Biggest jump: Michigan, up $1.27
Michigan's rise from $13.73 to $15.00 is a $1.27 increase — the largest dollar jump of any state this year. It moves Michigan from well below the national middle to roughly on par with the $15 states. The 2027 figure is set in state law rather than by an inflation formula, which is why it is so much bigger than the others.
If you are a Michigan employer with staff on or near the minimum, this is a 9.2% pay increase for those workers before you count employer payroll taxes.
Rhode Island and Alaska: a full dollar each
Rhode Island's move to $17.00 was set by legislation rather than indexation, which is why it is a clean dollar instead of 30-odd cents. Oregon-style inflation formulas usually produce small annual bumps — this is not one of those.
Alaska is different again: its increase lands on 1 July 2027, not 1 January. So Alaskan employers have six extra months at $14.00.
⚠️ Do not forget your overtime rate
This is the part workers miss. Your overtime rate is based on your regular rate of pay, which is the minimum wage if you are paid at the minimum. When the minimum goes up, your overtime goes up too — even if your base rate was already correct.
Washington, 2027: $17.73 base, so time-and-a-half is $26.60/hour and double time is $35.46/hour. On just five overtime hours a week that is $133 of overtime pay, up from $128 at the 2026 rate.
⚠️ Tipped workers
Several states raise the tipped cash wage at the same time:
- Maine: tipped cash wage rises to $7.85, maximum tip credit $7.85
- Ohio: tipped rate rises to $5.70 plus tips
- South Dakota: tipped cash wage rises to $6.15
- Colorado: tipped rate $12.69
If tips plus the cash wage do not reach the new full minimum, the employer has to make up the difference on every hour worked — not just on average across the month.
What this means for employers
- Reprice the whole pay ladder, not just the minimum. A supervisor on $17.50 in Michigan stays legal at $15.00 but is now only $2.50 above the floor — expect pressure to move them too.
- Recheck salary sacrifice and deductions. Pension salary sacrifice, uniform costs and accommodation charges can pull someone below the new floor.
- Budget the employer taxes. A $1.27 Michigan increase is a 9.2% wage rise for minimum-wage staff, plus employer FICA, FUTA and any state unemployment tax on top.
- Update the posters. Most states issue a revised mandatory workplace notice with the new rate — several already have for 2027.
And the federal minimum?
Still $7.25 an hour, last raised on 24 July 2009. Twenty states have no higher state rate and rely on the federal floor; five of those (Alabama, Louisiana, Mississippi, South Carolina, Tennessee) have no state minimum wage law at all. In those states the federal $7.25 is the rate.