Minimum Wage Increase 2027: Every State Raising Pay on January 1
Minimum wage increase 2027 list: Washington $17.73, Connecticut $17.48, California $17.40 and 11 more states, with dollar changes and annual pay.
The minimum wage increase 2027 takes effect in at least 14 states on January 1, with Washington staying highest at $17.73 an hour. Connecticut follows at $17.48, California at $17.40 and Rhode Island at $17.00. Michigan posts the biggest jump, rising $1.27 to $15.00. Alaska raises its rate later, to $15.00 on July 1, 2027. The federal minimum stays at $7.25.
Key takeaways
- Washington’s $17.73 is the highest statewide rate announced for 2027.
- Michigan’s $1.27 increase is the largest dollar change on the list.
- Ohio rises 40 cents to $11.40, and New Jersey rises 56 cents to $16.48.
- Hawaii holds at $16.00 for 2027 and moves to $18.00 on January 1, 2028.
- Several states, including Montana, Vermont and New York, had not finished announcing 2027 rates when we checked.
States raising the minimum wage on January 1, 2027
The table below lists the rates that state agencies or state laws have set. We compared them against 2026 rates. Check your state labor department before you update payroll, because a few announcements can still change.
| State | 2026 rate | 2027 rate | Change |
|---|---|---|---|
| Washington | $17.13 | $17.73 | +$0.60 |
| Connecticut | $16.94 | $17.48 | +$0.54 |
| California | $16.90 | $17.40 | +$0.50 |
| Rhode Island | $16.00 | $17.00 | +$1.00 |
| New Jersey | $15.92 | $16.48 | +$0.56 |
| Colorado | $15.16 | $15.71 | +$0.55 |
| Maine | $15.10 | $15.70 | +$0.60 |
| Arizona | $15.15 | $15.65 | +$0.50 |
| Nebraska | $15.00 | $15.26 | +$0.26 |
| Michigan | $13.73 | $15.00 | +$1.27 |
| Virginia | $12.77 | $13.75 | +$0.98 |
| South Dakota | $11.85 | $12.30 | +$0.45 (reported) |
| Minnesota | $11.41 | $11.87 | +$0.46 |
| Ohio | $11.00 | $11.40 | +$0.40 |
Alaska follows a different calendar. Its rate moves from $14.00 to $15.00 on July 1, 2027. Hawaii stays at $16.00 for all of 2027 and then steps up to $18.00 on January 1, 2028.
Why the rates rise
Inflation indexing
Many states tie their wage floor to the consumer price index. Arizona, Colorado, Connecticut, Maine, Minnesota, New Jersey, Ohio, Washington and others adjust each year. The state agency announces the figure in the fall, and the new rate starts January 1.
Scheduled steps
Other states legislated a path. Rhode Island’s law set $16 for 2026 and $17 for 2027. Michigan’s schedule reaches $15.00 in 2027. Virginia and Nebraska also follow rules written into law, and Nebraska now ties yearly increases to a fixed percentage under a 2026 change.
What the increase is worth
A full-time worker puts in about 2,080 hours a year. Multiply the raise by that number and you get the extra pay before taxes.
| State | Raise per hour | Extra pay for full-time work |
|---|---|---|
| Michigan | $1.27 | About $2,642 |
| Rhode Island | $1.00 | $2,080 |
| Virginia | $0.98 | About $2,038 |
| Washington | $0.60 | $1,248 |
| New Jersey | $0.56 | About $1,165 |
| California | $0.50 | $1,040 |
| Ohio | $0.40 | $832 |
| Nebraska | $0.26 | About $541 |
Use the hourly to salary calculator to estimate your own yearly pay at the new rate.
Local rates sit above the state rates
Cities and counties in several states set their own floors. In Arizona, Flagstaff announced $18.95 for January 1, 2027, and Tucson is also expected to raise its rate. Seattle and many California and Colorado cities issue their own posters. Denver’s local rate has been reported near $19.84. When a local rate is higher, the employer pays the higher one. Our guide to the minimum wage in Arizona explains how the state and city rates work together.
States that stay at the federal rate
About 20 states, counting a few that have no state law, remain at the federal $7.25. These include Georgia, Alabama, Tennessee, Mississippi, Louisiana, South Carolina, Idaho, Indiana, Iowa, Kansas, Kentucky, New Hampshire, North Carolina, North Dakota, Oklahoma, Pennsylvania, Texas, Utah, Wisconsin and Wyoming. Congress has not raised the federal rate since July 24, 2009. For more detail on one such state, see our explanation of the minimum wage in Georgia.
What employers should do now
- Confirm your state and local rates with the labor department before the first January payroll.
- Update tipped cash wages. Many states set them as a share of the full rate.
- Replace the wage poster. Most states require a new one each year.
- Review exempt salary thresholds, because some are tied to the minimum wage.
- Tell hourly staff about the change in writing before the new rate begins.
Employers in Ohio can read the details in our guide to minimum wage in Ohio, and New Jersey employers can use our minimum wage NJ article.
What workers should know
Your employer must pay the highest rate that applies where you work. That could be a federal, state, county or city rate. If your January paycheck looks lower than the new rate, ask your payroll department to review it, and keep your pay stubs. You can compare any state side by side in our minimum wage by state table.
How we built this list
We compared state labor department announcements, state laws and compliance charts. Where a source disagreed with another, we marked the figure as reported or left it out. Montana, Vermont and New York had not completed their 2027 announcements in the sources we reviewed, so we did not list them. We will refresh this page as the states publish final numbers.
Three workers, three outcomes
Consider a full-time worker paid the minimum in three states. In Michigan, weekly pay at 40 hours moves from $549.20 to $600.00 on January 1. In Washington, it moves from $685.20 to $709.20. In Ohio, it moves from $440.00 to $456.00. Michigan’s worker gains the most because the state is catching up to a $15.00 target. Washington’s worker still earns the most in absolute terms.
What a raise costs a small employer
Take a Connecticut shop with 10 part-time workers who each put in 30 hours a week. The 54-cent raise adds $16.20 per worker per week, or $162 for the team. Over 52 weeks, the added payroll comes to about $8,424 before payroll taxes. A shop that plans for this in the fall can adjust prices or schedules instead of reacting in January.
Why some states stand still
States that do not index their rates need a new law to raise them. That explains why Massachusetts, Delaware and Nevada keep their current rates for 2027 in the sources we reviewed, while neighbors with automatic formulas rise every January. A state without indexing can sit unchanged for years, and its real value slips as prices climb. Workers in those places should watch the legislature, not the calendar, for any change. Workers in indexed states can plan around the fall announcement instead.
Voters also play a role. Several states raised their wage floors through ballot measures, and those measures often include the indexing clause that now drives each January increase.
Frequently asked questions
Which states raise the minimum wage on January 1, 2027?
At least 14 states, including Washington, Connecticut, California, Rhode Island, New Jersey, Colorado, Maine, Arizona, Nebraska, Michigan, Virginia, Minnesota and Ohio.
Which state will have the highest minimum wage in 2027?
Washington, at $17.73 an hour, is the highest statewide rate announced. Connecticut follows at $17.48.
Which state has the biggest minimum wage increase?
Michigan’s rate rises $1.27, from $13.73 to $15.00, the largest dollar increase among the states we reviewed.
Is the federal minimum wage going up in 2027?
No increase is scheduled. The federal rate has been $7.25 since July 24, 2009.
When does Alaska’s increase start?
Alaska raises its minimum wage from $14.00 to $15.00 on July 1, 2027.
Do city minimum wages change too?
Yes. Cities such as Flagstaff announced higher rates for January 1, 2027, and employers must follow the highest rate that applies.
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