Minimum wage increases in 2027: what you'll actually take home
12 states raise their minimum wage on January 1, 2027, and Alaska later in the year. A raise in the hourly rate isn't a raise in take-home pay of the same size: after federal income tax, Social Security, Medicare and state taxes, a full-time worker keeps about 77% of it on average. The biggest gain is in Michigan: $13.73 to $15 an hour adds $2,642 of pay a year and about $2,010 of take-home.
Raises on January 1, 2027
Full time (40 hours a week, 2,080 hours a year), paid every two weeks, single filer with a standard W-4 and the state's default withholding choices. "Kept" is the share of the extra pay that reaches the paycheck. Sorted by extra take-home.
| State | Hourly rate | Extra take-home a year | Kept | Extra per paycheck | Extra pay a year |
|---|---|---|---|---|---|
| Michigan | $13.73 to $15 | $2,010 | 76% | $77.32 | $2,642 |
| Rhode Island | $16 to $17 | $1,570 | 76% | $60.40 | $2,080 |
| Virginia | $12.77 to $13.75 | $1,561 | 77% | $60.03 | $2,038 |
| Washington | $17.13 to $17.73 | $985 | 79% | $37.89 | $1,248 |
| Maine | $15.10 to $15.70 | $945 | 76% | $36.34 | $1,248 |
| New Jersey | $15.92 to $16.48 | $903 | 78% | $34.74 | $1,165 |
| Colorado | $15.16 to $15.71 | $864 | 76% | $33.24 | $1,144 |
| Connecticut | $16.94 to $17.48 | $811 | 72% | $31.19 | $1,123 |
| California | $16.90 to $17.40 | $776 | 75% | $29.86 | $1,040 |
| Minnesota | $11.41 to $11.87 | $732 | 77% | $28.17 | $957 |
| Ohio | $11 to $11.40 | $672 | 81% | $25.85 | $832 |
| Nebraska | $15 to $15.26 | $412 | 76% | $15.84 | $541 |
Take-home is worked out with the 2026 federal and state withholding rules, the latest published. The IRS publishes the 2027 withholding tables in December; this page is updated then, and the figures usually change by a few dollars a year. The highest new state rate is Washington's $17.73. Download the data (CSV).
Later in 2027
| State | Date | Hourly rate | Extra take-home a year | Kept | Extra per paycheck | Extra pay a year |
|---|---|---|---|---|---|---|
| Alaska | July 1, 2027 | $14 to $15 | $1,661 | 80% | $63.88 | $2,080 |
Why you keep less than the raise
Take Michigan: the raise adds $2,642 of pay a year. Social Security and Medicare take $202 of it, federal income tax $317 and Michigan taxes $112, leaving $2,010. How much is kept depends mostly on the state: in Ohio a full-time worker keeps 81% of the raise, in Connecticut 72%.
Tipped workers
Where employers can pay tipped workers a lower cash wage, that rises too: Michigan $5.49 to $6.30 · Maine $7.55 to $7.85 · New Jersey $6.05 to $6.61 · Colorado $12.14 to $12.69 · Ohio $5.50 to $5.70. Tips reported to the employer are taxed like wages, so a tipped worker's take-home depends on the tips.
No raise on January 1
New York. There is no increase on January 1, 2027: one of the law's off-ramp conditions was met, so the rate stays $17.00 in New York City, Long Island and Westchester and $16.00 in the rest of the state. Home care aides rise to $20.00 and $19.00.
Still at the federal $7.25: Alabama, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, New Hampshire, North Carolina, North Dakota, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Wisconsin, Wyoming (20 states). What $7.25 an hour pays after tax is in the minimum wage after taxes table.
Not announced yet
These states raise their minimum with inflation and haven't published the next rate. This page adds each one when the state does (last checked October 1, 2026).
- Arizona: It rises each January 1 with the cost of living; the Industrial Commission usually announces the new rate in the fall.
- District of Columbia: It rises each July 1 with inflation; the 2027 rate hasn't been announced.
- Florida: From 2027 it rises each year with inflation; the first adjusted rate hasn't been announced.
- Montana: It's adjusted each January 1 for inflation; the 2027 rate hasn't been published yet.
- Oregon: It's adjusted each July 1 for inflation; the July 2027 rates are usually announced in spring.
- South Dakota: It rises each January 1 with inflation; the 2027 rate is announced by October 15.
- Vermont: It rises each January 1 with inflation; the 2027 rate is usually announced in early October.
Already set for later years: Hawaii $18 on January 1, 2028.
How it's worked out
Each new rate comes from the state's own announcement, statute or labor department page (listed below). Take-home is run through the same calculator as every state page on this site - federal withholding from IRS Publication 15-T, each state's own withholding method and employee payroll premiums - for 40 hours a week at the current and the new rate, and the difference is shown. Cities and counties with their own higher minimums (for example in California, Washington and Colorado) aren't included. For your own hours, tips or a W-4 that isn't standard, use your state's hourly paycheck calculator.
Sources
- Michigan LEO - Minimum wage and overtime - effective January 1, 2027, $15.00 per hour; tipped rate 42% of the minimum in 2027 (checked Sep 29, 2026)
- Alaska DOLWD - News release 25-11, minimum wage - $14.00 on July 1, 2026 and $15.00 on July 1, 2027; indexed for inflation from January 1, 2028; no tip credit (checked Sep 29, 2026)
- R.I. Gen. Laws § 28-12-3 - commencing January 1, 2027, the minimum wage is $17.00 per hour (checked Sep 29, 2026)
- Office of the Governor of Virginia - Bills signed to raise the state minimum wage (April 2026) - $13.75 per hour on January 1, 2027, then $15.00 on January 1, 2028 (checked Sep 29, 2026)
- Washington L&I - Washington's minimum wage rises to $17.73 an hour in 2027 (September 30, 2026) - $17.73 from January 1, 2027 (from $17.13); 14- and 15-year-olds $15.07; no tip credit; some cities set higher rates (checked Oct 1, 2026)
- Maine DOL - Minimum wage increase for 2027 - from $15.10 to $15.70 per hour; service employees from $7.55 to $7.85 (checked Sep 29, 2026)
- NJ Department of Labor - Minimum wage to increase January 1, 2027 (September 29, 2026) - most employees $16.48 (up $0.56); seasonal and small employers (fewer than 6) $16.25; agricultural $15.00; long-term care direct care staff $19.48; tipped cash wage $6.61, maximum tip credit $9.87 (checked Oct 1, 2026)
- Colorado CDLE - Colorado minimum wage will increase to $15.71/hour in 2027 - $15.71 per hour in 2027, and $12.69 for tipped workers (checked Sep 29, 2026)
- Office of Governor Lamont - Minimum wage will increase (August 2026) - $17.48 per hour beginning January 1, 2027; tipped cash wage for 2027 not stated (checked Sep 29, 2026)
- California DIR - News release 2026-66 - beginning January 1, 2027, the statewide minimum wage will increase to $17.40 per hour; no tip credit (checked Sep 29, 2026)
- Minnesota DLI - Minimum wage rate adjusted for inflation Jan. 1, 2027 - $11.87 an hour for all employers; no tip credit (checked Sep 29, 2026)
- Ohio Department of Commerce - Department of Commerce Announces 2027 Ohio Minimum Wage - $11.40 per hour for non-tipped employees and $5.70 for tipped employees from January 1, 2027, a 3.5% increase (checked Oct 1, 2026)
- Nebraska DOL - State of Nebraska minimum wage (updated 7/31/2026) - January 1, 2027 $15.26; tipped employees at least $2.13 an hour (checked Sep 29, 2026)
- New York State - New York State Minimum Wage for 2027 - one of the off-ramp conditions has been met for 2027, so the minimum wage will not receive an inflation-based increase; $17.00 NYC, Long Island and Westchester, $16.00 rest of state (checked Oct 7, 2026)
- IRS Publication 15-T (2026), Federal Income Tax Withholding Methods - Worksheet 1A and the annual percentage-method tables
Questions
Which states raise the minimum wage on January 1, 2027?
California ($17.40), Colorado ($15.71), Connecticut ($17.48), Maine ($15.70), Michigan ($15), Minnesota ($11.87), Nebraska ($15.26), New Jersey ($16.48), Ohio ($11.40), Rhode Island ($17), Virginia ($13.75) and Washington ($17.73), as announced by each state so far.
Which state has the biggest minimum wage raise in take-home pay?
Michigan: about $2,010 more a year after tax for a full-time worker, from a $1.27-an-hour raise.
How much of a minimum wage raise do you keep after taxes?
About 77% on average across the states raising in 2027, from 72% to 81%, for a full-time single worker with a standard W-4.