2026 Minimum Wage by State: What Employers Must Pay
Federal and state minimum wage rates for 2026
Every year brings tax, payroll, and compliance changes. Miss an update and you could overpay, underpay, or miss a filing deadline. Here are the 2026 Minimum Wage by State updates every small business owner should know.
Key changes at a glance
- Federal minimum: $7.25/hr (unchanged since 2009)
- California: $16.50/hr (up from $16.00)
- New York: $16.50/hr (NYC/Long Island/Westchester); $15.50 rest of state
- Washington: $16.66/hr
- Massachusetts: $15.00/hr
- Florida: $13.00/hr (rising to $14 Sep 2026, $15 Sep 2027)
- Illinois: $15.00/hr
- Tipped wage varies — federal $2.13, many states require full minimum
What this means for your business
If you're running a small business in the US or Canada, these changes likely affect you in one or more of these ways:
1. Payroll adjustments — wage bases, minimum wages, and contribution limits change annually
2. Tax planning — deductions, credits, and brackets shift what you owe
3. Retirement planning — contribution limits determine how much you can save tax-advantaged
4. Compliance deadlines — some deadlines shift based on legislation
Action items
1. Update your payroll software or provider with new rates
2. Adjust employee withholding if they've submitted new W-4s
3. Review your tax plan with your CPA for new opportunities
4. Check state-level changes — many don't adopt federal changes automatically
How TinSuite keeps you current
TinSuite automatically updates:
- Federal and state withholding tables
- Mileage rates
- Contribution limits in our retirement plan integrations
- Sales tax rates across all 51 US states + 13 Canadian provinces
You don't have to remember which law changed when — your software handles it.