The minimum wage will increase in July 2026 for all workers in two states and for some in another.
Minimum wage levels in the United States continue to vary significantly, largely because of the gap between federal and state policies. The federal minimum wage remains set at $7.25 per hour under the Fair Labor Standards Act and has not been raised since 2009, despite years of inflation.
In response, many states and cities have adopted higher minimums that better reflect local economic conditions.
Which States Are Raising The Minimum Wage?
Only a limited number of states will see minimum wage increases on July 1. Alaska is set to raise its statewide minimum to $14.00 per hour, up from $13.00.
Oregon will also adjust its wage floor on the same date, following its established system that ties annual increases to inflation. This will put the state hourly rate up to $15.05. However, the exact rate will vary depending on location, with a $16.30 minimum applied in the Portland metro area, and $14.05 for nonurban counties.
In California, a July increase is also scheduled, but it will only apply to certain health care employees under a separate pay structure, leaving the broader statewide minimum wage unchanged for most workers. However, a broader minimum wage increase was delivered in January in the Golden State, pushing the floor up to $16.90.
Elsewhere, adjustments are either scheduled for later in the year or have already happened. Florida, for example, is planning its next increase for September 30, while the majority of states that update wages annually implemented their changes at the start of 2026. In total, 19 states, including Arizona, Colorado, New York and Washington, implemented increases in January.
Which State Has The Highest Minimum Wage?
As of 2026, The District of Columbia has the highest minimum wage at $17.95 per hour, followed by Washington, where the lowest wage workers are paid $17.13, then Connecticut with a $16.94 basic rate per hour, and California where workers are paid a minimum of $16.90.
Which State Has The Lowest Minimum Wage?
The lowest minimum wage is the federal floor of $7.25 per hour. This is in place in the following states, according to the U.S. Department of Labor:
- Alabama
- Idaho
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Mississippi
- New Hampshire
- North Carolina
- North Dakota
- Oklahoma
- Pennsylvania
- South Carolina
- Tennessee
- Texas
- Utah
- Wisconsin
In certain circumstances, employers can pay even lower than $7.25 per hour if they are not covered by the Fair Labor Standards Act. For example, in Montana, businesses with gross annual sales below $110,000 or less may pay employees $4.00 per hour.
Efforts To Increase The Federal Minimum Wage
Efforts to increase the federal minimum wage have been introduced in Congress in recent years but have yet to pass.
One proposal, the Original Living American Wage Act, introduced by Democratic Representative Al Green, would lift the federal rate to $10.59 starting in 2026 and then increase it by $4 annually through 2030. After that, future increases would be determined by the Department of Labor using a set formula every seven years.
Another measure, the Raise the Wage Act of 2025, introduced by Democratic Senator Bernie Sanders and Representative Robert C. Scott, aims to gradually raise the federal minimum to $17 per hour by 2030. The proposal also includes provisions to phase out lower wages for tipped workers and tie future increases to overall wage growth. Supporters say it could benefit around 22 million workers nationwide.
Meanwhile, a bipartisan proposal known as the Higher Wages for American Workers Act from Republican Senator Josh Hawley and Democrat Senator Peter Welch, would increase the federal minimum wage to $15, with additional annual adjustments linked to inflation.
