Several US states will raise their minimum wages on January 1, 2027. Washington will have the highest state rate at $17.73 an hour, up 60 cents, Fox News reported on October 6. Connecticut moves to $17.48 and California to $17.40. The federal minimum wage stays at $7.25, where it has been since 2009.
Key takeaways
- Washington: $17.13 to $17.73.
- Connecticut: $16.94 to $17.48. California: $16.90 to $17.40.
- New Jersey: up 56 cents to $16.48 for most workers.
- Michigan: $13.73 to $15.00, one of the largest jumps.
- Montana: $10.85 to $11.20, confirmed on October 7.
What is changing?
Many of these increases are automatic. States such as Washington, California, Connecticut and Montana adjust their rates each year for inflation, so the new figures are announced in the autumn. Others, such as Michigan and Nebraska, follow schedules set in law. Nebraska rises from $15.00 to $15.26.
Montana's Department of Labor and Industry confirmed its new $11.20 rate in an October 7 letter, according to Bloomberg Law. Some small Montana businesses not covered by federal wage law can pay a lower rate.
Why do these rates differ so much?
Congress has not raised the federal minimum since 2009, so states set their own floors. Where a state rate is higher, employers must pay it. Inflation-linked states announce rates late each year because the figure depends on price data. Tipped workers can be paid a lower cash wage in many states, with tips making up the rest, while Washington and California do not allow a tip credit at all.
Are cities going higher?
Yes. City rates can be well above state minimums. Seattle's minimum is set to rise to $22.14 an hour in 2027, according to Fox News. Many California cities also set their own higher rates, so check your local rule.
Who is affected?
Hourly workers in retail, food service, warehouses, care work and other entry-level jobs benefit most. Workers earning a little above the minimum can also see raises as employers keep pay gaps between roles. Some states, including Florida and Missouri, are already at $15 and are not changing on January 1. Others have no state minimum above the federal rate.
What should workers do now?
- Check your state labour department website for the official 2027 rate, including tipped and youth rates.
- Check your first January payslip to make sure the new rate has been applied.
- If you are job hunting, compare offers to the new minimum, not the old one.
- Use our guide to answering salary expectation questions and see the latest real earnings data.
What happens next?
A few states, including Vermont, had not yet posted their 2027 rate at the time of writing. Oregon and the District of Columbia adjust in July. We will update this page as official figures are released. For seasonal roles, see our warehouse jobs guide.
Sources: Fox News, 6 October 2026; Bloomberg Law, 8 October 2026.
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