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    Home»Resources»Which States Are Raising Rates and Who Stays at $7.25
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    Which States Are Raising Rates and Who Stays at $7.25

    Money MechanicsBy Money MechanicsFebruary 12, 2026No Comments3 Mins Read
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    Which States Are Raising Rates and Who Stays at .25
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    Key Takeaways

    • In 2026, 19 states will raise their minimum wage on January 1, and three others will make an increase later in the year.
    • Eight states already have a higher minimum wage and won’t raise pay in 2026, after reaching earlier targets or tying increases to inflation.
    • Twenty states—half of them in the South—are still at the federal $7.25 minimum wage, which has not increased since 2009.

    States Raising the Minimum Wage in 2026

    For workers in many states, 2026 will bring a higher minimum wage, though the timing isn’t the same everywhere. Most of the states making changes will boost pay beginning New Year’s Day, while a smaller group has increases scheduled for later in the year.

    In total, 19 states are set to raise their minimum wage on January 1, reflecting either scheduled increases or inflation-based adjustments. California stands out for making two changes in 2026, with an increase at the start of the year followed by another on July 1. Three other states—Alaska, Florida, and Oregon—will raise their minimum wages later in the year, with increases taking effect on either July 1 or Sept. 1.

    Why This Matters

    Where you live still plays a major role in how much you’re paid at the lowest end of the labor market. Our map shows whether your state is set to raise pay in 2026, already has higher wages, or remains at the federal $7.25 floor.

    States That Already Have Higher Minimum Wages

    Some states won’t see minimum wage changes in 2026 because they already raised pay in earlier years. In many cases, those increases were the result of multiyear schedules approved by lawmakers or voters, designed to lift wages gradually rather than all at once.

    Four of those states—California, Illinois, Maryland, and Massachusetts—already require employers to pay at least $15 an hour statewide, putting them among the highest minimum-wage states in the country. Each reached that level through phased increases over several years, with some states adjusting pay in line with inflation.

    Cities and Counties Are Also Raising Pay

    State minimum wages are only part of the picture. In 2026, dozens of cities and counties will raise their own minimum wages, creating a patchwork of local pay floors across the country. See the 2026 report from the National Employment Law Project (NELP) for a list of specific areas that are raising their local minimum wages.

    States Still at the Federal $7.25 Minimum Wage

    In a sizable part of the country, minimum wage won’t change at all in 2026. Twenty states continue to rely on the federal minimum wage of $7.25 an hour, which has been in place since 2009 and applies by default in states that have not set a higher floor.

    Half of these states are concentrated in the South, where minimum wage policy has remained largely unchanged for years. Without state laws scheduling increases or tying wages to inflation, pay levels in these states stay frozen unless Congress acts—leaving workers at the same federal minimum more than a decade later.



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