Seven states have now officially announced their minimum wage for January 1, 2027, and the rates are higher in every one of them. California moves to $17.40 an hour, Washington to $17.73, Connecticut to $17.48 and Maine to $15.70, while Ohio, Minnesota and Montana land between $11.20 and $11.87. If you work in one of these states, or you run payroll there, here is what the new minimum wage 2027 rates are and how the raise reaches a paycheck.
This list covers only rates that state agencies have officially announced as of mid-October 2026. More states typically announce their January rates in the fall, so expect this page to grow. The federal minimum wage stays at $7.25 an hour, so the state rates below matter most for workers in these places.
Minimum wage by state: announced 2027 rates
The table below is a minimum wage by state snapshot of the rates that take effect on January 1, 2027, compared with the current rate.
| State | Jan. 1, 2027 rate | Current rate | Hourly increase |
|---|---|---|---|
| California | $17.40 | $16.90 | $0.50 |
| Washington | $17.73 | $17.13 | $0.60 |
| Connecticut | $17.48 | $16.94 | $0.54 |
| Maine | $15.70 | $15.10 | $0.60 |
| Minnesota | $11.87 | $11.41 | $0.46 |
| Ohio | $11.40 | $11.00 | $0.40 |
| Montana | $11.20 | $10.85 | $0.35 |
Each state gets to its number differently. Washington’s Department of Labor and Industries uses the change in the CPI-W from August to August, which produced a 3.5 percent increase. Ohio also uses a 3.5 percent CPI-W adjustment. Minnesota applied a 3.99 percent inflation adjustment. Connecticut ties its rate to the employment cost index, which rose 3.2 percent in the 12 months ending June 30, 2026, according to the governor’s office. California’s Department of Finance certified its adjustment on July 31, 2026.
California minimum wage 2027: $17.40 an hour
The California minimum wage 2027 will be $17.40 an hour, up from $16.90 in 2026. The California Department of Industrial Relations announced the change in a news release dated August 13, 2026, after the Department of Finance certified the adjustment on July 31.
Two details matter for California workers and employers:
- Local minimums can be higher. Some California cities and counties set their own minimum wages. Where a local rate is higher than the statewide rate, employers must pay the higher local rate.
- The exempt salary floor rises too. Exempt employees must earn at least $72,384 a year in 2027, which is $17.40 times 2 times 40 hours times 52 weeks. The 2026 threshold was $70,304.
For the state’s withholding rules and brackets, see our California tax table.
What the raise adds to a full-time paycheck
A full-time schedule is 2,080 hours a year, or 80 hours in a biweekly pay period. Multiply the hourly increase by those hours and you get the gross raise.
| State | Gross raise per biweekly check | Gross raise per year | Social Security and Medicare on the raise (7.65%) | Full-time gross pay at the 2027 rate |
|---|---|---|---|---|
| California | $40.00 | $1,040.00 | $79.56 | $36,192.00 |
| Washington | $48.00 | $1,248.00 | $95.47 | $36,878.40 |
| Connecticut | $43.20 | $1,123.20 | $85.92 | $36,358.40 |
| Maine | $48.00 | $1,248.00 | $95.47 | $32,656.00 |
| Minnesota | $36.80 | $956.80 | $73.20 | $24,689.60 |
| Ohio | $32.00 | $832.00 | $63.65 | $23,712.00 |
| Montana | $28.00 | $728.00 | $55.69 | $23,296.00 |
These are gross figures. They show the size of the raise before anything is withheld, which is the number your employer’s payroll system will add to your gross pay. What reaches your bank account is smaller.
Why the net increase is smaller than the gross increase
A minimum wage raise is ordinary wages, so it is taxed like the rest of your pay. Three things come out of it.
- Social Security and Medicare. The employee share is 6.2 percent plus 1.45 percent, or 7.65 percent, on every dollar of the raise. In California, that is $79.56 of the $1,040 annual increase.
- Federal income tax withholding. The extra pay increases your taxable wages, so more is withheld based on your Form W-4 and filing status.
- State income tax withholding. Six of the seven states (all but Washington, which has no state income tax on wages) also withhold state income tax on the extra pay. Our state income tax rates page shows how states differ.
The gap between what you earn and what you keep is the difference between gross pay and net pay, and it is why a raise can feel smaller than expected. To see your own result, enter your hourly rate, hours and state in the PaycheckNet calculator rather than relying on a rule of thumb.
The less noticed effect: overtime-exempt salary thresholds
In some states the minimum salary an employee must earn to be treated as overtime-exempt is tied to the state minimum wage. When the minimum wage rises, the salary floor rises with it, automatically. A salaried employee who was exempt in 2026 can fall below the line on January 1.
An employer then has two choices: raise the salary to the new threshold, or reclassify the employee as non-exempt and pay overtime. Our guides to exempt vs non-exempt status and overtime pay and the regular rate explain what changes if that happens.
California
The exempt salary floor is two times the state minimum wage for full-time work: $72,384 a year in 2027, up from $70,304 in 2026.
Washington
Washington’s thresholds depend on employer size, according to Labor and Industries (release dated September 30, 2026):
| Employer size | Multiplier in 2027 | Weekly | Annual |
|---|---|---|---|
| 51 or more employees | 2.5 times the minimum wage (up from 2.25) | $1,773.00 | $92,196.00 |
| 50 or fewer employees | 2.25 times the minimum wage (2.5 in 2028) | $1,595.70 | $82,976.40 |
Hourly-paid computer professionals can be exempt at 3.5 times the minimum wage, which is $62.06 an hour in 2027.
Maine
Maine’s 2027 labor poster lists an exempt salary minimum of $905.79 per week.
Tipped, youth and training rates, and local minimums
The headline rate is not the only number that changes. These related rates are also set for 2027:
- Ohio: $11.40 for non-tipped employees and $5.70 for tipped employees, up from $11.00 and $5.50. The rate applies to employers with annual gross receipts above $419,000, up from $405,000. Smaller employers are tied to the federal $7.25.
- Maine: tipped service employees must receive a direct wage of at least $7.85 an hour.
- Washington: workers aged 14 and 15 may be paid 85 percent of the minimum wage, which is $15.07 (up from $14.56).
- Minnesota: the 90-day training wage for workers under 20 rises to $9.68. The $11.87 rate applies to all employers.
Local rules matter as well. In Minnesota, Minneapolis and St. Paul set higher local minimums. In California, some cities and counties do the same, and the higher rate applies. Always check whether your city or county has its own rate before assuming the state number is your floor.
What workers and employers should do now
- Workers: expect the first paycheck covering January 2027 hours to show the new rate, and confirm your stub reflects it. Check your W-4 if you want withholding adjusted.
- Salaried employees: compare your salary with the new exempt threshold in your state. If your salary falls below it, your employer must raise it or treat you as non-exempt and pay overtime.
- Employers: update payroll rates, tipped and youth rates, and exempt salary floors before the first January pay run, and check local minimums.
We will update this page as more states announce their January 2027 rates.
Common questions
What is the California minimum wage in 2027?
The California minimum wage rises to $17.40 an hour on January 1, 2027, up from $16.90 in 2026. Exempt employees must earn at least $72,384 a year. Cities and counties with higher local minimums still require the higher rate.
How much more will a full-time worker earn in gross pay?
For a 2,080-hour year, the gross raise is $1,040 in California, $1,248 in Washington, $1,123.20 in Connecticut, $832 in Ohio, $956.80 in Minnesota, $1,248 in Maine and $728 in Montana. That is before taxes are withheld.
Is a minimum wage increase taxed?
Yes. The raise is fully subject to Social Security and Medicare tax at 7.65 percent, plus federal income tax withholding and state income tax withholding where the state has one. That is why the net increase is smaller than the gross increase.
Does a higher minimum wage change who is overtime-exempt?
In some states it does. California ties its exempt salary floor to two times the minimum wage, Washington sets its thresholds as multiples of the state minimum wage, and Maine lists an exempt salary minimum of $905.79 a week for 2027. Salaried employees below the new threshold must get a raise or become eligible for overtime.
Is the federal minimum wage changing in 2027?
No. The federal minimum wage stays at $7.25 an hour. The higher rates in this article are state minimums, and a local city or county minimum can be higher still.
Leave a Reply