Minimum Wage 2027 — Every Increase Already Scheduled
Federal law is frozen, but five states have already locked in a higher 2027 minimum wage — some by statute, one by voter ballot measure, and one by an inflation certification the state published in July 2026. This page lists only rates an official source has actually released, with the tipped cash wage for each. States that set their rate by an inflation formula are listed separately as pending, because their 2027 number does not exist yet.
How this page is sourced. Every figure below is cited to a state statute or an official agency release and was retrieved 2026-09-24. Nothing is projected. Where a 2027 rate has not been published, we say so instead of estimating it.
Federal minimum wage in 2027
The federal minimum wage remains $7.25 per hour in 2027. The federal minimum wage has been $7.25 per hour since 2009 and no increase is scheduled for 2027. Under the Fair Labor Standards Act an employer may count up to $5.12 per hour of tips toward the $7.25 floor, leaving a federal tipped cash wage of $2.13 — but a higher state or local rate controls wherever one applies. For tipped workers this is the floor that applies only where no higher state or local rate controls — which, in 2027, is a shrinking group of states.
$7.25
Federal minimum wage
Unchanged since 2009
$2.13
Federal tipped cash wage
Maximum tip credit $5.12
$15080.00
Full-time annual gross
40 hrs × 52 weeks
2027 rates already confirmed
These five states have a 2027 minimum wage that is already written into law or officially certified. The tipped column shows what a tipped worker must actually be paid in cash per hour under the cited source.
| State | 2026 | 2027 | Effective | Tipped cash 2027 | Source |
|---|---|---|---|---|---|
| California (CA) | $16.90 | $17.40 | January 1, 2027 | $17.40 | California Department of Industrial Relations |
| Rhode Island (RI) | $16.00 | $17.00 | January 1, 2027 | $3.89 | Rhode Island Department of Labor and Training |
| Michigan (MI) | $13.73 | $15.00 | January 1, 2027 | $6.30 | Michigan Legislature |
| Virginia (VA) | $12.77 | $13.75 | January 1, 2027 | Not set in cited source | Code of Virginia § 40.1-28.10 |
| Alaska (AK) | $14.00 | $15.00 | July 1, 2027 | $15.00 | Alaska Department of Labor and Workforce Development |
What each increase means for tipped workers
California: $16.90 → $17.40 on January 1, 2027
California does not allow a tip credit. A tipped employee must be paid the full $17.40 per hour in cash before tips, and tips are paid on top of that wage. The state's annual inflation adjustment therefore moves the tipped cash wage by the full amount each year.
Basis: The Department of Finance certified the 2027 inflation adjustment on July 31, 2026, and the Labor Commissioner's Office published the rate. California law adjusts the statewide minimum wage annually for inflation. (Cal. Lab. Code § 1182.12 (annual inflation adjustment); DIR News Release 2026-66 (July 31, 2026))
Rhode Island: $16.00 → $17.00 on January 1, 2027
Rhode Island sets a tipped cash wage of $3.89 per hour and lets the employer claim the difference as a tip credit. Because the cash wage is fixed in the statute while the minimum rises, the entire 2027 increase lands on the credit — it grows from $12.11 to $13.11 per hour. Cash wage plus tips must still reach $17.00 for every hour worked, and the employer owes the difference when tips fall short.
Basis: The 2027 step is already written into the minimum-wage statute; Rhode Island does not index its rate to inflation. (R.I. Gen. Laws § 28-12-3 (rate schedule) and § 28-12-5 (gratuity allowance), as amended by P.L. 2025, ch. 222 and ch. 223)
Michigan: $13.73 → $15.00 on January 1, 2027
Michigan's tipped cash wage is set as a percentage of the standard minimum: 40% in 2026, rising to 42% on January 1, 2027. At the $15.00 minimum that is $6.30 per hour, up from $5.49. The percentage keeps climbing on a statutory schedule — 44% in 2028, 46% in 2029, 48% in 2030, and 50% from 2031.
Basis: The schedule is written into the Improved Workforce Opportunity Wage Act as amended by 2025 PA 1. Beginning October 2027 the rate is also adjusted annually for inflation. (MCL 408.934(1)(c) (2027 rate) and § 408.934d (tipped percentage schedule), as amended by 2025 PA 1)
Virginia: $12.77 → $13.75 on January 1, 2027
The Virginia statute that sets the 2027 rate does not establish a separate tipped cash wage, so tipped employees are generally paid under the federal tip-credit framework. Confirm the treatment with the Virginia Department of Labor and Industry before relying on it for payroll.
Basis: The 2027 figure is written directly into the Code of Virginia, which schedules $12.77 for 2026, $13.75 for 2027, and $15.00 for 2028 before switching to annual inflation adjustments in 2029. (Va. Code § 40.1-28.10(C) (rate effective January 1, 2027 until January 1, 2028))
Alaska: $14.00 → $15.00 on July 1, 2027
Alaska does not permit a tip credit. A tipped worker must receive the full state minimum in cash, and tips are paid on top. Alaska is also one of the states that triggers daily overtime after eight hours in a workday.
Basis: Ballot Measure 1, approved by voters in November 2024, set a three-step schedule: $13.00 on July 1, 2025; $14.00 on July 1, 2026; $15.00 on July 1, 2027, with annual CPI indexing from January 1, 2028. (AS 23.10.065, as amended by Ballot Measure 1 (2024))
States still waiting on their inflation adjustment
These states raise their minimum wage every January 1 by a statutory formula rather than a fixed schedule. The 2027 figure is certified in the preceding autumn, so no official number exists yet. The rate shown is the most recent published one, from the U.S. Department of Labor state minimum wage table, retrieved 2026-09-24.
AZ
Arizona
$15.15
2026 rate · 2027 pending
CO
Colorado
$15.16
2026 rate · 2027 pending
CT
Connecticut
$16.94
2026 rate · 2027 pending
ME
Maine
$15.10
2026 rate · 2027 pending
MN
Minnesota
$11.41
2026 rate · 2027 pending
MO
Missouri
$15.00
2026 rate · 2027 pending
MT
Montana
$10.85
2026 rate · 2027 pending
NE
Nebraska
$15.00
2026 rate · 2027 pending
NJ
New Jersey
$15.92
2026 rate · 2027 pending
NY
New York
$17.00
2026 rate · 2027 pending
OH
Ohio
$11.00
2026 rate · 2027 pending
OR
Oregon
$15.55
2026 rate · 2027 pending
SD
South Dakota
$11.85
2026 rate · 2027 pending
VT
Vermont
$14.42
2026 rate · 2027 pending
WA
Washington
$17.13
2026 rate · 2027 pending
How to prepare
- Pay whichever rate is highest. Federal, state, and local layers stack, and the employer owes the highest applicable one. A city ordinance can exceed the state rate even where the state rate is going up.
- Budget the tip credit separately from the cash wage. In Michigan the tipped cash wage is a percentage of the minimum, so it rises automatically. In Rhode Island it is a fixed dollar amount, so the whole increase lands on the credit. In California and Alaska there is no credit at all.
- Watch the salary threshold. Several states tie the exempt salary floor to a multiple of the minimum wage. California's rises to $72,384 a year and Alaska's to $1,200 a week ($62,400 a year) alongside their 2027 increases.
- Update postings on the effective date. Alaska's change lands mid-year on July 1 rather than January 1, which is the most commonly missed deadline on this list.
Minimum wage 2027: common questions
What is the minimum wage in 2027?
The federal minimum wage stays at $7.25 in 2027 — no federal increase is scheduled. Five states already have a 2027 rate written into law or officially certified: California $17.40, Rhode Island $17.00, Michigan $15.00, Alaska $15.00 (from July 1), and Virginia $13.75. Roughly fifteen more states index their rate to inflation and publish their 2027 figure late in 2026.
Is the federal minimum wage going up in 2027?
No. The federal minimum wage has been $7.25 per hour since 2009 and no increase is scheduled for 2027. The federal minimum wage has been $7.25 per hour since 2009 and no increase is scheduled for 2027. Under the Fair Labor Standards Act an employer may count up to $5.12 per hour of tips toward the $7.25 floor, leaving a federal tipped cash wage of $2.13 — but a higher state or local rate controls wherever one applies.
What is the tipped minimum wage in 2027?
There is no single national answer. Federally the tipped cash wage stays at $2.13 with a maximum tip credit of $5.12. California and Alaska prohibit a tip credit entirely, so tipped workers there must be paid the full state minimum in cash — $17.40 and $15.00 respectively in 2027. Michigan's tipped cash wage rises to $6.30 (42% of the $15.00 minimum), and Rhode Island keeps its $3.89 cash wage while the allowable tip credit grows to $13.11.
When do the 2027 minimum wage increases take effect?
Most take effect on January 1, 2027. Alaska is the exception in this list: its step to $15.00 lands on July 1, 2027. States that adjust for inflation also move on January 1, though they announce the exact figure in the preceding autumn.
Why can't you list a 2027 rate for every state?
Because many states set the rate by an inflation formula rather than a fixed schedule, and the figure is not known until the state certifies it — usually in October or November of the preceding year. TipFig lists those states with their most recent published rate and marks the 2027 figure as pending rather than publishing a number no agency has released.
Related TipFig pages
- Minimum wage by city (2026) — the federal, state, and local layers for each city
- No tax on tips under the 2026 OBBBA — how the federal deduction interacts with tipped wages
- Tip tax and withholding
- Tip pooling rules
- Tip calculators
By The TipFig Editorial Team · independent editorial research project
Compiled from public government sources for informational use and retrieved 2026-09-24. Rates change when legislatures act or inflation adjustments are certified, so verify against the official agency linked on each row before making payroll decisions. Not legal advice. See TipFig's Disclaimer.