Minimum Wage in Chicago, IL (2026)
Chicago sets its own local minimum wage of $16.20/hour in 2026, which is higher than the Illinois state rate of $14.00/hour. Employers must pay the higher local rate for work performed in Chicago.
By The TipFig Editorial Team · 2026-10-15 · reviewed against primary tipping and tax sources
Applicable minimum wage in Chicago (2026)
$16.20/hr
Local rate — higher than the Illinois state rate of $14.00/hr.
Federal, State & Local Layers
Federal Min
$7.25/hr
IL State Min
$14.00/hr
Local (City) Min
$16.20/hr
Tipped Cash Wage
$8.40/hr
State Effective
January 1, 2026
Tip Credit?
Yes
Chicago's minimum wage is $16.20/hour for standard employees. Under the 'One Fair Wage' municipal ordinance, Chicago is progressively phasing out the subminimum tipped wage; tipped workers earn $11.02/hr base cash wage with full phaseout scheduled.
How the Layers Interact
Three levels of government can set a minimum wage: the federal floor (Fair Labor Standards Act, $7.25/hour in 2026), the state rate, and any local (city or county) ordinance. By law, an employer must pay the highest rate that applies to the worker. When a state or city sets a rate above the federal floor, the higher rate governs; the federal rate is the backstop.
Chicago has its own local ordinance of $16.20/hour, which exceeds the Illinois state rate of $14.00/hour — so the local rate governs. Tipped employees may be paid a lower direct cash wage only where state law allows a tip credit; California and other no-tip-credit states require tipped workers to receive the full minimum wage before tips.
Related TipFig Tools
Turn the minimum wage into take-home pay and compare hourly vs. salary with our calculators.
Frequently Asked Questions
What is the minimum wage in Chicago, Illinois in 2026?
As of 2026-10-15, Chicago sets its own local minimum wage of $16.20/hour in 2026, above the Illinois state rate of $14.00/hour. Employers must pay the higher local rate for work performed in Chicago. Source: City of Chicago — Department of Business Affairs and Consumer Protection.
Does Chicago have its own minimum wage or follow Illinois state law?
Chicago sets its own local minimum wage ($16.20/hour in 2026), which is higher than the Illinois state rate of $14.00/hour.
What is the tipped minimum wage in Chicago?
In Illinois, tipped employees may be paid a cash wage of $8.40/hour, with a tip credit making up the difference to the full $14.00/hour minimum. If tips don't bring total pay to the minimum, the employer must make up the shortfall.
Where can I verify the Chicago minimum wage?
The authoritative figures are published by City of Chicago — Department of Business Affairs and Consumer Protection (https://www.chicago.gov/) and the U.S. Department of Labor Consolidated Minimum Wage Table. Minimum wages change frequently; always confirm the current rate with the official agency before making wage or payroll decisions.
Other Minimum-Wage City Pages
Minimum-wage figures are compiled from public government sources for informational use and may change; verify with the official agency before making wage or payroll decisions. State minimum-wage source: City of Chicago — Department of Business Affairs and Consumer Protection (retrieved 2026-10-15). Federal minimum wage: U.S. Department of Labor — Wage and Hour Division: Consolidated Minimum Wage Table (retrieved 2026-10-15). This page is not legal advice. See TipFig's Disclaimer.