(NewsNation) — Americans are feeling the strain of rising living costs, but millions of workers will start the new year with some relief as higher minimum wages take effect.
Workers in 19 states and 49 cities and counties will see the minimum wage increase Jan. 1, according to a new report from the National Employment Law Project, a nonprofit worker advocacy group. Another four states and 22 localities are set to raise their wage floors later in the year.
“Policies increasing the minimum wage have been a lifeline for underpaid workers who have been the most impacted by a growing affordability crisis,” Yannet Lathrop, a senior researcher and policy analyst at NELP, wrote in the report.
The federal minimum wage has been stuck at $7.25 an hour since 2009 — an extended freeze that has pushed states and cities to set their own standards.
As of this year, 30 states plus Washington, D.C., have minimum wages above the federal level, including Democratic strongholds like California, Oregon and Washington and traditionally conservative states like Arkansas, Nebraska and South Dakota.
In total, 88 jurisdictions — 22 states and 66 cities and counties — will raise their wage floor at some point in 2026, NELP found.
Which states are raising the minimum wage in 2026?
Workers in 19 states will see higher minimum wages Jan. 1, though the size and structure of the increases vary. Some states automatically adjust their wage floors based on inflation, while others follow multiyear schedules set by legislation or ballot initiatives.
In Nebraska, for instance, the minimum wage will rise to $15 an hour — up from $13.50 under a voter-approved plan that adds $1.50 annually through 2026 before switching to inflation-adjusted bumps in 2027.
Other states have region or industry-specific rules. In New York, the minimum wage is increasing to $17 an hour in New York City and Long Island but only $16 in upstate regions.
In California, the statewide minimum rises to $16.90 for most, but fast food employees at chains with more than 60 locations nationwide earn at least $20 an hour. Health care workers also have separate minimums.
Meanwhile, Alaska, Florida and Oregon are set to hike their minimum wage later in 2026.
States with minimum wage increases effective Jan. 1, 2026, according to the National Employment Law Project:
(Dollar figures per hour)
- Arizona: $15.15
- California: $16.90
- Colorado: $15.16
- Connecticut: $16.94
- Hawaii: $16.00
- Maine: $15.10
- Michigan: $13.73
- Minnesota: $11.41
- Missouri: $15.00
- Montana: $10.85
- Nebraska: $15.00
- New Jersey: $15.92
- New York:
- $17.00 in NYC and Long Island
- $16.00 upstate
- Ohio: $11.00
- Rhode Island: $16.00
- South Dakota: $11.85
- Vermont: $14.42
- Virginia: $12.77
- Washington: $17.13
States raising minimum wages later in 2026, according to the National Employment Law Project:
- Alaska: $14.00 (Jul. 1, 2026)
- California (health care workers): $19.28 to $25.00, depending on facility type (Jul. 1, 2026)
- Florida: $15.00 (Sept. 30, 2026)
- Oregon: TBD based on inflation (Jul. 1, 2026)
Which cities are raising the minimum wage in 2026?
At the local level, 49 cities and counties will raise their minimum wages Jan. 1, most of them clustered near high-cost areas of California, NELP’s report shows.
In San Jose, the minimum wage will rise to $18.45 per hour, above the statewide rate of $16.90. West Hollywood’s will rise to $20.25 and San Diego’s to $17.75.
Outside California, several metros are also seeing bumps. Flagstaff, Arizona’s, minimum will increase to $18.35 an hour, while Tucson’s goes to $15.45. In Colorado, workers in Denver ($19.29) and Boulder ($16.82) will see increases as well.
Minneapolis moves to $16.37 on Jan. 1. Portland, Maine, will go to $16.75, and Seattle will hit $21.30.
Santa Fe, New Mexico, is another standout. The city is raising its minimum wage to $17.50 by 2027, with future adjustments tied to overall inflation and rental costs — making it the first city in the nation to directly link wages to housing affordability.
Los Angeles, San Francisco and Washington, D.C. adjust minimum wages midyear based on inflation.
Where is the minimum wage $15 or higher?
More than a decade after the “Fight for $15” movement began, 20 states have reached, surpassed or are on track to reach a $15 minimum wage, according to NELP.
Those states include Alaska, Arizona, California, Colorado, Connecticut, Delaware, Florida, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Missouri, Nebraska, New Jersey, New York, Oregon, Rhode Island and Washington.
Earlier this year, Senator Bernie Sanders, I-Vt., introduced legislation to gradually raise the federal minimum wage to $17 by 2030, but the bill has not advanced.