8.3 million Americans started 2026 with a pay raise

A new year has brought a new pay rate for more than 8.3 million Americans.

The minimum wage is going up in 19 states this week, with workers in Hawaii earning as much as $2 more an hour. Collectively, these pay increases will boost paychecks by a total of $5 billion, according to the Economic Policy Institute. 

While the federal minimum wage of $7.25 per hour hasn’t budged in nearly two decades, and still applies in eight states, many states and cities have steadily been increasing their minimum wages to well over double that amount. Seattle’s minimum wage, at $21.30 per hour, is now nearly triple that federal threshold.

As is the case with Seattle, 47 cities and counties around the country have also increased their minimum wages, effective January 1. Here’s a look at what’s changed.

PAY IS GOING UP MOST IN HAWAII

Hawaii leads the 19 states with the biggest pay increase for workers this year, as its minimum wage has jumped to $16 per hour, up from $14 previously. And more than 21% of its workforce will benefit from this new legislation, according to the Economic Policy Institute.

But not all pay increases are alike. Several states have increased their minimum wages by less than 50 cents an hour—an amount that adds up to a difference of only several hundred dollars per year in gross earnings. Minnesota workers are only seeing a 28 cent hourly increase, for example.

Arizona 2026 minimum wage: $15.15, up 45 cents from $14.70 in 2025

California 2026 minimum wage: $16.90, up 40 cents from $16.50 in 2025

Colorado 2026 minimum wage: $15.16, up 35 cents from $14.81 in 2025

Connecticut 2026 minimum wage: $16.94, up 59 cents from $16.35 in 2025

Hawaii 2026 minimum wage: $16, up $2 from $14 in 2025

Maine 2026 minimum wage: $15.10, up 45 cents from $14.65 in 2025

Michigan 2026 minimum wage: $13.73, up $1.25 from $12.48 in 2025

Minnesota 2026 minimum wage: $11.41, up 28 cents from $11.13 in 2025

Missouri 2026 minimum wage: $15, up $1.25 from $13.75 in 2025

Montana 2026 minimum wage: $10.85, up 30 cents from $10.55 in 2025

Nebraska 2026 minimum wage: $15, up $1.50 from $13.50 in 2025

New Jersey 2026 minimum wage: $15.92, up 43 cents from $15.49 in 2025

New York 2026 minimum wage: $16, up 50 cents from $15.50 in 2025

Ohio 2026 minimum wage: $11, up 30 cents from $10.70 in 2025

Rhode Island 2026 minimum wage: $16, up $1 from $15 in 2025

South Dakota 2026 minimum wage: $11.85, up 35 cents from $11.50 in 2025

Vermont 2026 minimum wage: $14.42, up 41 cents from $14.01 in 2025

Virginia 2026 minimum wage: $12.77, up 36 cents from $12.41 in 2025

Washington 2026 minimum wage: $17.13, up 47 cents from $16.66 in 2025

WASHINGTON CITIES LEAD WITH HIGHEST PAY

The $21.30 per hour minimum wage that went into effect in Seattle this week isn’t even the highest in Washington—the pay in several localities are even higher. In Tukwila and Burlen, two Seattle suburbs, certain employers must pay workers a minimum of $21.65 and $21.63, respectively, in 2026. 

While some cities, like San Francisco and Los Angeles, updated their minimum wage thresholds at the mid-year mark, most opt for pay changes to coincide with the calendar shange. Some localities explicitly tie their increases to inflation, as measured by the consumer price index that grew at a less-than-3% rate in 2025. 

Workers in major metropolitan areas can potentially earn several dollars more than the state’s minimum wage. Employers in the following cities must pay their workers more this week. 

New York City, Long Island, and Westchester 2026 minimum wage: $17, up $1 from $16 in 2025

San Jose 2026 minimum wage: $18.45, up 50 cents from $18.95 in 2025

Denver 2026 minimum wage: $19.29, up 48 cents from $18.81 in 2025

Minneapolis 2026 minimum wage: $16.37, up 40 cents from $15.97 in 2025

source https://www.fastcompany.com/91468496/8-3-million-americans-started-2026-with-a-pay-raise