Millions of workers across 16 US states are set to receive higher minimum wages from January 2027, with hourly rates rising by as much as $1.27 in some states. The increases will give some full-time minimum wage workers thousands of dollars more in annual gross pay.
16 States Will Raise Their Minimum Wages
The states introducing minimum wage increases on January 1, 2027, are:
- Washington
- Connecticut
- California
- Rhode Island
- New Jersey
- Colorado
- Maine
- Michigan
- Virginia
- Minnesota
- Ohio
- South Dakota
- Montana
- Nebraska
- Arizona
- Vermont
The changes come through a combination of state laws, inflation-linked adjustments and previously approved increases.
Michigan Workers Face The Biggest Increase
Workers in Michigan will see one of the largest increases. The state’s minimum wage will rise from $13.73 to $15 an hour, a 9.2% increase. For someone working 2,080 hours a year, the difference between the two rates is around $2,642 in gross annual pay.
Rhode Island will also see a major increase, with its minimum wage rising from $16 to $17 an hour. A full-time worker at the minimum rate could earn around $2,080 more per year before taxes.
Washington Will Have The Highest State Rate
Washington’s minimum wage will rise by 60 cents to $17.73 an hour. That will leave Washington with the highest state minimum wage among the states listed for the January increases.
Connecticut will reach $17.48 an hour, while California will rise to $17.40. Virginia’s minimum wage will increase by 98 cents to $13.75 an hour.
How Much More Could Workers Earn?
The annual difference for a full-time worker depends on the size of each state’s increase. Assuming 2,080 hours of work during the year, the additional gross pay could be:
| State | 2026 rate | 2027 rate | Approx. annual increase |
|---|---|---|---|
| Michigan | $13.73 | $15.00 | $2,642 |
| Rhode Island | $16.00 | $17.00 | $2,080 |
| Virginia | $12.77 | $13.75 | $2,038 |
| Washington | $17.13 | $17.73 | $1,248 |
| Maine | — | — | $1,248 |
| California | $16.90 | $17.40 | $1,040 |
| Arizona | — | — | $1,040 |
| South Dakota | — | — | $936 |
| Montana | — | — | $728 |
The figures are based on full-time work at the applicable minimum wage and do not account for taxes, unpaid leave or changes in working hours.
19 States And Washington DC Will Reach $15 Or More
By the start of 2027, 19 states plus Washington DC are expected to have minimum wages of at least $15 an hour. Alaska will also raise its minimum wage later in the year, moving from $14 to $15 an hour in July 2027, reports The Sun.
The higher state rates will apply instead of the federal minimum wage where state law requires employers to pay more.
Some States Will Keep The Federal $7.25 Rate
Not every state is raising its minimum wage in 2027. Around 20 states are expected to continue using the federal minimum wage of $7.25 an hour, which has not changed since 2009.
They include Texas, North Carolina, Georgia, Tennessee, Utah, Iowa and Pennsylvania. Workers in these states will therefore continue to face the same federal wage floor unless local or state rules provide a higher rate for particular workers.
New York And Other States Will Keep Their Current Rates
Some states will keep their existing minimum wage levels during 2027. New York is one example, with its statewide minimum wage set to remain at $16 an hour under current state law.
Missouri and Hawaii are also among the states not listed for a January 2027 increase. The different approaches mean minimum wage workers will continue to see wide differences in hourly pay depending on where they live and work.
