State Minimum Wage 2026: Hourly Rates & Annual Salary Comparison
📑 In this guide
Why state minimum wage matters more than federal
The federal minimum wage has been $7.25/hour since 2009 under the Fair Labor Standards Act (29 U.S.C. § 206). It applies to covered workers, but states are free to set their own minimum wage above the federal floor — and about half of states do. When state and federal minimum wages differ, the higher rate applies for non-exempt hourly workers in that state.
For 2026, the gap between the federal floor and the highest state rate is over $9/hour, which compounds to roughly $19,000 per year for a full-time worker. That is the practical reason a state-by-state comparison matters, even though the federal number itself has not moved.
Disclaimer. Educational information only, not legal or payroll advice. State minimum wages update throughout the year; confirm with your state labor department before relying on any figure for compliance, budgeting, or hiring decisions.
The 2026 snapshot: hourly + annual at 2,080 hours
Annual figures below assume the standard 40-hour workweek (52 weeks × 40 hours = 2,080 hours/year) — the FLSA benchmark. Your actual annual take-home depends on hours worked, overtime, deductions, and tips.
| State | 2026 hourly | 2026 annual | vs federal | Notes |
|---|---|---|---|---|
| Federal (default) | $7.25 | $15,080 | — | 29 U.S.C. § 206; covers non-exempt workers in states without a higher minimum |
| California | $16.00 | $33,280 | +$18,200 | California Department of Industrial Relations |
| Washington | $16.66 | $34,653 | +$19,573 | Washington State Department of Labor & Industries (highest 2026 state rate) |
| New York City & select areas | $16.50 | $34,320 | +$19,240 | NY Department of Labor; rate varies by region (see below) |
| New York (Long Island & Westchester) | $16.50 | $34,320 | +$19,240 | NY Department of Labor |
| New York (rest of state) | $15.50 | $32,240 | +$17,160 | NY Department of Labor |
| Florida | $13.00 | $27,040 | +$11,960 | Florida Department of Economic Opportunity; indexed to inflation since 2021 |
| Texas | $7.25 | $15,080 | $0 | No state minimum wage above federal; covers most non-exempt hourly workers |
For tipped employees the rules are different in every state — federal allows $2.13/hour direct wage with tips making up the difference to $7.25; California requires the full minimum wage for tipped workers; Florida pays a separate $9.00/hour direct wage for tipped workers. This table does not include those rules. Confirm tipped-wage rules with your state labor department.
Reading the annual column
The annual column is useful for budget planning but does not equal take-home pay. For an actual paycheck, subtract:
- Federal income tax withholding (depends on filing status and W-4 elections)
- Social Security (6.2%) and Medicare (1.45%) — FICA
- State income tax (some states have none)
- Health insurance, retirement contributions, and other pre-tax deductions
For example, $16.00/hour in California is $33,280 gross at 2,080 hours. After federal and state income tax, FICA, and typical withholdings, the net annual take-home is closer to $25,000-$28,000 depending on filing status and deductions. Use the hourly to salary calculator for weekly and monthly equivalents, and the biweekly pay calculator for paycheck math.
How state minimum wage increases happen
There are three common mechanisms states use:
- Statute-based annual increases (California, Washington, several others). The minimum wage is set to rise each year on a published schedule, often indexed to inflation (CPI-U). California’s $16.00/hour in 2026 is on this schedule.
- Constitutional amendment indexed to inflation (Florida). Florida’s 2020 amendment requires the rate to rise each year based on CPI, posted by September 30.
- Legislative adjustment (New York, others). Rates change by statute; some regions re-evaluate annually while others set a multi-year schedule.
For all three, the state labor department website is the authoritative source. This page cites the agencies and effective dates; verify current numbers before any payroll decision.
Common miscalculations
- Forgetting overtime. The federal overtime threshold (29 CFR 778.108) applies regardless of state — non-exempt workers earn 1.5x for hours over 40/week. Some states add daily overtime (California past 8 hours/day, Colorado past 12 hours/day). State minimum wage × 1.5 is the minimum overtime rate.
- Using 2,080 for part-year work. A worker employed for only 6 months at $16.00/hour earns about $16,640, not $33,280. Use the actual hours worked, not the standard work year.
- Counting tips as minimum wage. Federal allows tips to make up the difference (up to $5.12/hour). Many states require the full minimum wage for tipped workers regardless of tips.
- Forgetting local minimums. Cities like San Francisco ($18.67/hour in 2026), SeaTac (Washington, ~$20/hour for hospitality), and Denver have higher rates than their states. Always check the city, not just the state.
A useful budget lens
A $9/hour difference between the federal minimum wage and the highest state minimum wage is roughly $18,000/year in gross income at 2,080 hours. That single figure explains a meaningful share of the household budget gap between a minimum-wage worker in Texas or Georgia and one in California or Washington.
For budget planning, the simplest rule of thumb is to treat minimum wage annual income as a floor, not a target. Living-wage calculators (MIT, Economic Policy Institute) typically place a single adult’s living wage 50-100% above minimum wage, depending on the cost of living in the area.
Compliance & disclaimer
State minimum wage figures in this article are the 2026 values published by each state’s labor agency as of early 2026. Confirm current numbers directly with your state labor department — most update their pages annually with effective dates and exemption rules. Tipped wage rules, youth minimum wages, and city-level minimums are not covered here. AllMoneyCalc provides educational information only; this is not legal, payroll, or tax advice. For compliance questions, consult a licensed employment attorney or your state’s labor department.
Related guides
- Hourly to Salary Calculator — convert any hourly wage to weekly, monthly, and annual.
- Biweekly Pay Calculator — figure out your paycheck at any minimum wage.
- Part-Time Salary Estimator — what part-time hours at minimum wage really pay annually.
- California Overtime Calculator — California daily OT past 8 hours at 1.5x, past 12 at 2x.
- Texas Overtime Calculator — Texas follows federal FLSA (no state daily OT, no state double time).