Key Takeaways
\nNineteen states will raise their minimum wage on Jan. 1, 2026, including Hawaii ($16), Michigan ($13.73), and Nebraska ($15). Florida’s increase to $15 takes effect Sept. 30, 2026.The federal minimum wage has remained at $7.25 an hour for more than a decade and a half, though states can boost the floor for their own workers above that.<\/p>\n
In the U.S., the federal minimum wage was established in 1938 as part of the Fair Labor Standards Act (FLSA). It was intended to guarantee that workers would earn at least a basic living wage. Today, the federal minimum wage<\/a> is $7.25 per hour for employees covered under the FLSA, where it has stood for more than 15 years.\n<\/p>\n Many states mandate higher minimum wages due to the local cost of living<\/a>. When an employee is covered by both state and federal minimum wage laws, they are entitled to be paid the higher of the two wages.\n<\/p>\n States Increasing Minimum Wage in 2026 <\/p>\n In 2026, at least 22 states and Washington D.C. will raise their minimum wage. Nineteen states will see increases take effect on Jan. 1, 2026, with additional states following later in the year..\n<\/p>\n<\/p>\n Minimum Wage vs. Cost of Living <\/p>\n In 2026, Washington state will have the highest state minimum wage at $17.13 per hour. This is more than double the federal minimum wage of $7.25. (Washington D.C., at $17.95, has the highest rate overall but is not a state.)\n<\/p>\n What does this actually mean for workers?\n<\/p>\n For someone working 40 hours per week and taking two weeks of time off per year for vacation, sick days, or to care for family members, $17.13 per hour provides an income of $34,260 per year.\n<\/p>\n A wage of $7.25, by contrast, provides an annual income of $14,500, which is below the federal poverty level<\/a> for a household of one ($15,650).\n<\/p>\n While an annual income of $34,260 looks significantly better, it is still only slightly above the federal poverty level for a family of four ($32,150). And Washington state, where you can earn that wage, is one of the most expensive places to live in the United States.\n<\/p>\n A report from\u00a0doxoINSIGHTS analyzing bill payments in the U.S. found that Washington residents pay, on average, $2,453 in monthly bills, or $29,436 per year. On a $34,260 annual income, that would leave only $4,824 for every other household expense.\n<\/p>\n Annual Income at Minimum Wage vs. Annual Bills in the 5 Most Expensive U.S. States<\/p>\n Minimum Wage (2026) California Hawaii New Jersey Massachusetts Maryland Sources: National Conference of State Legislatures, doxoINSIGHTS<\/p>\n West Virginia had the lowest monthly bills of all 50 states, at $1,149 per month or $13,788 per year. The current minimum wage<\/a> in West Virginia is $8.75 per hour, slightly higher than the federal minimum wage. However, a full-time worker earning this wage and taking two weeks off work per year would have an annual income of only $17,500.\n<\/p>\n Annual Income at Minimum Wage vs. Annual Bills in the 5 Least Expensive U.S. States<\/p>\n Minimum Wage (2026) West Virginia Mississippi Arkansas Oklahoma New Mexico Sources: National Conference of State Legislatures, doxoINSIGHTS<\/p>\n The Bottom Line <\/p>\n The minimum wage is increasing nationwide. In 30 states, the minimum wage is higher than the federal minimum of $7.25 an hour, and at least 22 states, plus Washington D.C., will raise their minimum wage in 2026, with 19 of those increases taking effect on Jan. 1.\n<\/p>\n
\nAnnual Income @ Minimum Wage
\nAvg. Annual Bills<\/p>\n
\n$16.90
\n$33,800
\n$34,248<\/p>\n
\n$16.00
\n$32,000
\n$32,544<\/p>\n
\n$15.49
\n$30,980
\n$31,452<\/p>\n
\n$15.00
\n$30,000
\n$31,368<\/p>\n
\n$15.00
\n$30,000
\n$30,060<\/p>\n
\nAnnual Income @ Minimum Wage
\nAvg. Annual Bills<\/p>\n
\n$8.75
\n$17,500
\n$13,788<\/p>\n
\n$7.25
\n$14,500
\n$18,024<\/p>\n
\n$11.00
\n$22,000
\n$18,468<\/p>\n
\n$7.25
\n$14,500
\n$18,516<\/p>\n
\n$12.00
\n$24,000
\n$18,972<\/p>\n