How do I calculate the cost of a minimum wage increase?

For each employee under the new floor: (new floor - current hourly pay) x hours per week x 52. Add payroll taxes on top if your budget includes them. For the part inside 2027, count each floor only from its effective date.

Which rate do I budget for if the city is higher than the state?

The higher one on each date: federal, state or city. Budget with the city rate for staff who work there.

What about states that have not announced 2027 yet?

Budget with the last published rate and mark those employees: the real raise will be at least that and usually a little more. Recheck when the state announces (the lookup shows the month the state gives).

Do salaried employees count?

Yes, twice over: non-exempt salaried staff must earn at least the minimum wage per hour worked, and exempt staff must be paid at least the state's exempt salary threshold, which rises in several states in 2027.

How to budget for 2027 minimum wage raises (worked example)

Budgeting for 2027 raises takes four numbers per employee: where they work, what they are paid now, the floor that applies there in 2027 and from which date. Sample data: on the six-person list below, 5 people fall under a 2027 floor and the raises cost $7,510 over a full year ($7,510 inside 2027).

Open the raise calculator

Step 1: list each employee with the place they work

State and, where it has its own rate, the city or county. A worker in Seattle is owed the Seattle rate, which is above the Washington one; someone in unincorporated Los Angeles County is owed the county rate.

Step 2: find the 2027 floor and its date

The floor is the highest of federal, state and local minimum wage on each date. Most places change on January 1; some change on July 1 (Alaska, District of Columbia, Oregon, Berkeley, Chicago (city), Cook County, Los Angeles (city), Los Angeles County (unincorporated areas), Montgomery County, Oregon nonurban counties, Pasadena, Portland metro (urban growth boundary), San Francisco, Santa Monica). Tipped staff are compared with the minimum cash wage; exempt staff with the exempt salary threshold.

Step 3: work out the raise and its cost

Sample data: Line cook A earns $17.00 in California and works 38 hours a week. The floor is $17.40 from January 1, 2027: +$0.40 an hour, x 38 hours x 52 weeks = $790 a year.

Store manager E is salaried and exempt at $70,000 in California; the 2027 threshold there is $72,384, so the salary must rise by $2,384 or the job becomes non-exempt (overtime).

Sample data: six made-up employees checked against 2027 floors
Employee	Where	Pay now	2027 floor	Raise /h	Full year
Line cook A	California	$17.00/h	$17.40	$0.40	$790
Server B	Colorado	$12.14/h	$12.69	$0.55	$858
Cashier C	Seattle (city), WA	$21.30/h	$22.14 (pending)	$0.84	$1,398
Stocker D	Michigan	$14.00/h	$15.00	$1.00	$2,080
Store manager E	California	$70,000/yr	$72,384/yr	—	$2,384
Warehouse F	Texas	$12.00/h	$7.25	$0.00	$0

Step 4: add it up and flag what is still pending

Total the full-year cost for the budget and the in-2027 part for this year's cash flow. Mark every employee whose floor is not published yet and recheck when it is. Pay compression (raising people just above the new floor to keep differences) is a decision on top; the numbers here are the legal minimum only.

The raise calculator does all four steps for your own list in your browser.

Frequently asked questions

How do I calculate the cost of a minimum wage increase?: For each employee under the new floor: (new floor - current hourly pay) x hours per week x 52. Add payroll taxes on top if your budget includes them. For the part inside 2027, count each floor only from its effective date.
Which rate do I budget for if the city is higher than the state?: The higher one on each date: federal, state or city. Budget with the city rate for staff who work there.
What about states that have not announced 2027 yet?: Budget with the last published rate and mark those employees: the real raise will be at least that and usually a little more. Recheck when the state announces (the lookup shows the month the state gives).
Do salaried employees count?: Yes, twice over: non-exempt salaried staff must earn at least the minimum wage per hour worked, and exempt staff must be paid at least the state's exempt salary threshold, which rises in several states in 2027.

Minimum wage increases in 2027: the list by state and date
Every state and city minimum wage increase published for 2027, with the new rate, the date (January 1 or July 1), the change and the official source.
Exempt salary threshold 2027 by state
The 2027 minimum salary for exempt (white-collar) employees: federal $684 a week and the higher state thresholds, announced or still pending, with sources.
Tipped minimum wage 2027 by state: the cash wage
The minimum cash wage for tipped employees in every state for 2027, the states with no tip credit, and the federal $2.13, from official sources.

Last updated 2026-09-30. Rates from official state and city sources, checked on the date shown next to each figure. Some 2027 rates are announced later in the year. Not legal advice; check your state labor department and local ordinances. Not affiliated with the US Department of Labor or any state agency.