Payroll

Minimum Wage Changes Taking Effect in 2027

By Staff Report

Nov. 13, 2026

Minimum wage rates are set to increase in several states on January 1, 2027. Some increases are part of scheduled changes under state law, while others reflect annual inflation adjustments.

For the full state-by-state rules currently in effect, see our Minimum Wage by State Guide and Compliance Hub.

States increasing their minimum wage in 2027

The following statewide minimum wage increases take effect on January 1, 2027:

State2026 rate2027 rate
Arizona$15.15$15.65
California$16.90$17.40
Colorado$15.16$15.71
Connecticut$16.94$17.48
Maine$15.10$15.70
Michigan$13.73$15
Minnesota$11.41$11.87
Montana$10.85$11.20
Nebraska$15$15.26
New Jersey$15.92$16.48
Ohio$11$11.40
Rhode Island$16$17
South Dakota$11.85$12.30
Vermont$14.42$14.91
Virginia$12.77$13.75
Washington$17.13$17.73

States to watch

New York

New York’s general minimum wage will remain unchanged on January 1, 2027. An exception in the state’s inflation-adjustment formula, known as an “off-ramp,” was triggered, preventing the scheduled annual adjustment.

Rates will remain at $17.00 in New York City, Long Island, and Westchester County, and $16.00 in the rest of the state.

However, Governor Kathy Hochul has proposed changes that would allow an inflation-based increase to take effect on March 1, 2027, subject to legislative approval.

Separately, minimum wages for home care aides are scheduled to increase on January 1, 2027.

Alaska

Alaska’s minimum wage will increase from $14.00 to $15.00 per hour on July 1, 2027, under the schedule established by Ballot Measure 1.

What to do now: 

  • Check each location’s rate against the list above, including local ordinances.
  • Update payroll settings ahead of the first January pay period.
  • Replace workplace posters where your state requires new ones.

This article is for general information and isn’t legal advice. Confirm rates with your state labor department.

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