17 states raise their minimum wage on January 1

Seventeen states index their minimum wage to inflation. Every January 1, the rate moves without anyone voting on it.

Confirmed 2027 rates

State	2027 rate
Washington	$17.13
New York	$17.00
Rhode Island	$17.00
California	$16.90
Connecticut	$16.94
New Jersey	$15.92
Oregon	$15.55
Colorado	$15.16
Arizona	$15.15
Maine	$15.10
Michigan	$15.00
Missouri	$15.00
Nebraska	$15.00
Vermont	$14.42
Virginia	$12.77
South Dakota	$11.85
Minnesota	$11.41
Ohio	$11.00
Montana	$10.85

Michigan reaches $15.00 on January 1, 2027 and moves to a formula after that.

Three states are on a different clock

Alaska, Oregon and Washington, D.C. adjust on July 1, not January 1. If you work in one of those, the January headlines do not apply to your paycheck.

What an indexed increase actually does

Indexing keeps the wage flat in real terms. It is not a raise in purchasing power — it is a mechanism that stops the wage falling behind prices while nobody is looking.

Whether that is the right policy is an argument. That it happens automatically in these states, on this date, is not.

Questions people ask

Does my employer have to tell me?

States generally require employers to post the current minimum wage. The increase applies automatically to hours worked on or after the effective date.

What if my city has a higher rate?

Where a city or county sets a higher minimum than the state, the higher rate generally applies.