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Workers in 19 American states to get paid more in 2026 after a hike in minimum wages

More than 8.3 million workers will be paid more starting January 1, 2026, thanks to the rise in minimum wage.
PUBLISHED DEC 31, 2025
A worker on site (Cover Image Source: Pexels | Photo by Life Of Pix)
A worker on site (Cover Image Source: Pexels | Photo by Life Of Pix)

The past year has been difficult for people from lower and middle-income groups with salaries that can't match rising prices. But American workers with the lowest pay scale are set to get a boost in their pay as minimum wage is being hiked in 19 states in 2026. Additionally, three more states will increase the minimum wage later in the year, according to the Economic Policy Institute (EPI). More than 8.3 million workers will see a boost in earnings by a total of $5 billion, as per the left-leaning institute. The changes in minimum wage will take effect in 47 cities and counties, with states like Washington and New York paying out the highest minimum wage.

Image Source: People hold signs as they attend a press conference at City Hall Park on April 10, 2023 in New York City. New York Attorney General Letitia James was joined by labor union leaders calling on Gov. Kathy Hochul and lawmakers to raise the state's minimum wage to $21.25 from the current $14.20 | Photo by Michael M. Santiago | Getty Images
Representative image of people holding signs as they attend a press conference at City Hall Park (Image source: Getty Images/Photo by Michael M. Santiago)

As per ABC News, a mix of Republican- and Democrat-controlled states are raising the minimum wage as inflation-adjusted increases or as part of scheduled hikes that take effect at the beginning of each calendar year. The nineteen states include Arizona, Connecticut, California, Colorado, Hawaii, Minnesota, Missouri, Montana, Maine, Michigan, Nebraska, New York, New Jersey, Ohio, Rhode Island, South Dakota, Virginia, Vermont, and Washington. Starting next year, the number of workers living in a state with a $15 minimum wage will exceed the number of workers living in a state with the federal wage floor of $7.25 per hour, as per the EPI.

Image Source: A now hiring sign is posted in front of a U-Haul rental center on November 03, 2023 in San Rafael, California. According to a report by the Bureau of Labor Statistics, job growth slowed in October with a total of 150,000 new jobs added compared to analyst expectations of 180,000. The unemployment rate inched up to 3.9% from 3.8% | Photo by Justin Sullivan | Getty Images
Representative image of a now hiring sign (Image source: Getty Images/ Photo by Justin Sullivan)

Following the wage hikes, Washington will become the state with the highest average minimum wage of $17.13 per hour, and the Tukwila locality in the state will offer the country's highest wage floor of $21.65. Next would be New York, where workers will enjoy the second-highest average wage floor of $17 in New York City, Long Island, and Westchester. Apart from those areas in New York, workers will get at least $16 per hour. Moving forward, about 29 localities in California will see a pay hike, including a $20.25 an hour wage floor, in West Hollywood. 

Representative image of the Washington, DC skyline of monuments and highways. (Image source: Getty Images/ Stock photo by SeanPavonePhoto)
Representative image of the Washington, DC skyline of monuments and highways. (Image source: Getty Images/ Stock photo by SeanPavonePhoto)

These 19 states will be joined by Alaska, Florida, and Oregon later in the year, as per Fox Business. Alaska is set to raise the minimum wage from $13 to $14 per hour, effective July 1. In Florida, the minimum wage will rise to $15 per hour from September 30, and in Oregon, the minimum wage of $15.05 per hour will be adjusted based on CPI inflation data on July 1. 

Representative image of an elderly woman reviewing a paycheck (Image source: Getty Images/Photo by Ivan Pantic)
Representative image of an elderly woman reviewing a paycheck (Image source: Getty Images/Photo by Ivan Pantic)

However, the latest round of pay hikes will not take effect in 20 states, primarily in the South, that lack a minimum wage floor or offer a minimum wage that does not exceed the federal minimum wage of $7.25 per hour. 

More on Market Realist: 

Walmart is helping its employees earn more money with a clever strategy

Economists predict tough times ahead for workers in 2026 — should you be worried?

Top investor has a major warning about AI that could have a 'terrifying' impact on job market

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