On January 1, 2027, fifteen states raise their minimum wage, led by Michigan, up $1.27 to $15.00. The Social Security wage base rises to $192,300, and Maryland starts collecting paid family and medical leave contributions. New York, Missouri and Hawaii hold their rates; Vermont's 2027 rate is not yet announced.
- Largest rise: Michigan, up $1.27 (9.2%) to $15.00 an hour (Michigan LEO).
- Highest rate in the table: Washington, $17.73 an hour, up 3.5% (Washington L&I).
- Social Security wage base: $192,300, up $7,800 from $184,500 (Social Security Administration).
- No rise in New York: an inflation off-ramp was met, so the rate stays $17.00 in New York City, Long Island and Westchester and $16.00 elsewhere (New York State DOL).
Which states raise the minimum wage on January 1, 2027?
Fifteen states raise their minimum wage on January 1, 2027: Arizona, California, Colorado, Connecticut, Maine, Michigan, Minnesota, Montana, Nebraska, New Jersey, Ohio, Rhode Island, South Dakota, Virginia and Washington. Vermont's indexed rate is still to be announced. New York, Missouri and Hawaii hold their rates. Washington's $17.73 is the highest rate in the table.
| State | 2026 minimum wage | 2027 minimum wage | Change | Source |
|---|---|---|---|---|
| Arizona | $15.15 | Set by inflation; on the ICA 2027 poster | Increase | ICA 2026 · ICA 2027 poster |
| California | $16.90 | $17.40 | +$0.50 (3.0%) | CA DIR 2027 · CA DIR 2026 |
| Colorado | $15.16 | $15.71 | +$0.55 (3.6%) | Colorado CDLE |
| Connecticut | $16.94 | $17.48 | +$0.54 (3.2%) | Connecticut Governor |
| Hawaii | $16.00 | $16.00 | No change (next step: $18.00 on January 1, 2028) | Hawaii DLIR |
| Maine | $15.10 | $15.70 | +$0.60 (4.0%) | Maine DOL |
| Michigan | $13.73 | $15.00 | +$1.27 (9.2%) | Michigan LEO |
| Minnesota | $11.41 | $11.87 | +$0.46 (4.0%) | Minnesota DLI |
| Missouri | $15.00 | $15.00 | No change (a 2025 law repealed the 2027 inflation step) | Missouri Governor |
| Montana | $10.85 | $11.20 | +$0.35 (3.2%) | Montana DLI |
| Nebraska | $15.00 | $15.26 | +$0.26 (1.7%) | Nebraska DOL |
| New Jersey | $15.92 | $16.48 | +$0.56 (3.5%) | New Jersey DOL |
| New York | $17.00 in New York City, Long Island and Westchester; $16.00 elsewhere | $17.00 and $16.00 | No change (an inflation off-ramp was met) | New York State DOL |
| Ohio | $11.00 | $11.40 | +$0.40 (3.6%) | Ohio Commerce |
| Rhode Island | $16.00 | $17.00 | +$1.00 (6.3%) | Rhode Island DLT |
| South Dakota | $11.85 | $12.30 | +$0.45 (3.8%) | South Dakota DLR |
| Vermont | $14.42 | Not yet announced (expected by December 2026) | Increase set by law (5% or inflation, whichever is smaller) | Vermont DOL · 21 V.S.A. § 384 |
| Virginia | $12.77 | $13.75 | +$0.98 (7.7%) | Virginia Governor |
| Washington | $17.13 | $17.73 | +$0.60 (3.5%) | Washington L&I |
Source: the agency in each row, checked October 24, 2026. Change is our arithmetic from the two official rates. Rates are the general statewide rate for most adult employees; tipped, youth, small-employer and farm rates differ in several states. City and county rates and mid-year changes, such as those in Alaska, Oregon, Florida and the District of Columbia, are not included. Arizona's 2027 rate is set by inflation under state law and printed on the Industrial Commission of Arizona's 2027 poster, posted September 25, 2026.
Two states stand out for the raise they skip. New York stays at $17.00 and $16.00 because one of the law's inflation off-ramps was met, and the state labor department says the Governor is proposing a change to that rule. Missouri stays at $15.00 because HB 567, signed in July 2025, repealed the inflation increase due on January 1, 2027.
What changes in federal payroll taxes for 2027?
The Social Security wage base rises to $192,300 in 2027, from $184,500, so the most an employee pays in Social Security tax rises to $11,922.60, matched by the employer. The 6.2% and 1.45% tax rates, the $7,000 FUTA wage base and the $7.25 federal minimum wage do not change. The 2027 401(k) limit is not yet announced.
| Item | 2026 | 2027 | Source |
|---|---|---|---|
| Social Security wage base | $184,500 | $192,300 | SSA |
| Maximum Social Security tax per employee (6.2%, matched by the employer) | $11,439.00 | $11,922.60 | SSA, our arithmetic |
| Medicare tax | 1.45% each on all wages; employees pay 0.9% more above $200,000 | No change | SSA |
| FUTA tax | 6.0% on the first $7,000 of wages, less a credit of up to 5.4% | No change | IRS |
| FUTA credit-reduction states for 2026 | Not yet announced (expected November 2026) | Paid with the 2026 Form 940, filed in early 2027 | IRS · DOL |
| 401(k) and 403(b) elective deferral limit | $24,500 | Not yet announced (expected November 2026) | IRS |
| HSA contribution limit, self-only / family | $4,400 / $8,750 | $4,500 / $9,000 | IRS 2026 · IRS 2027 |
| Health FSA limit; transit and parking benefit, per month | $3,400; $340 | Not yet announced (expected October or November 2026) | IRS |
| Federal minimum wage | $7.25 | $7.25, unchanged since July 24, 2009 | DOL |
| Form W-2 for 2026 wages | New box 12 codes TT (qualified overtime) and TP (cash tips), and new box 14b | Due to employees and the SSA by February 1, 2027 | IRS |
Sources: Social Security Administration, IRS and U.S. Department of Labor, checked October 24, 2026. The maximum Social Security tax is our arithmetic: 6.2% of the wage base. The IRS standard mileage rate for 2027 is left out until the IRS announces it.
Which state paid leave contributions change in 2027?
Maryland starts collecting paid family and medical leave contributions on January 1, 2027, at 0.9% of wages, split evenly between employer and employee. Washington's premium rises to 1.2%, New York's to 0.452%, and Colorado's falls to 0.86%. Minnesota stays at 0.88%; California's 2027 SDI rate is not yet announced.
| Program | 2026 | 2027 | Source |
|---|---|---|---|
| Maryland FAMLI (new) | No contributions | 0.9% of wages up to the Social Security wage base: 0.45% employer, 0.45% employee. Employers with fewer than 15 employees remit half. First payment due April 30, 2027. | Maryland Labor |
| Washington Paid Family and Medical Leave | 1.13% | 1.2%; employees pay 70.7% of it | Washington ESD |
| New York Paid Family Leave (employee-paid) | 0.432%, up to $411.91 a year | 0.452%, up to $451.81 a year | NY PFL 2026 · NY PFL 2027 |
| Colorado FAMLI | 0.88% | 0.86% | Colorado FAMLI |
| Minnesota Paid Leave | 0.88% | 0.88%, no change | Minnesota Paid Leave |
| California SDI (employee-paid) | 1.3%, no wage limit | Not yet announced (expected December 2026) | California EDD |
Source: the agency in each row, checked October 24, 2026. Rates are a percentage of covered wages. Wage caps and small-employer rules differ by program.
How should employers use these figures?
Load the new rates into payroll before the first pay run of 2027, and apply them to work done from January 1, even when a pay period started in December. Pay remote employees by the rules of the state where they work, and check city or county rates, which can be higher.
Where a state ties the overtime-exempt salary to its minimum wage, as California does, recheck salaried staff as well. For the year-end filing dates that follow, see the tax season checklist.
This page is general information, not tax or legal advice. Confirm your own requirements with a tax professional.
Sources and method
Every figure on this page comes from an official source: a state labor department or governor, the U.S. Department of Labor, the IRS or the Social Security Administration. We checked each one on October 24, 2026. Change columns are our arithmetic from two official rates. Where an agency has not yet published a 2027 figure, we say so.
The minimum wage table lists every state with a statewide change on January 1, 2027, plus three states that hold their rates. States not listed have no January 1, 2027 change that we could confirm from an official source. We update the page as agencies publish the figures still marked "not yet announced".
- Federal: SSA 2027 COLA fact sheet; IRS Topic 759 (FUTA), FUTA credit reduction, retirement plan limits, Rev. Proc. 2025-19, Rev. Proc. 2026-24, Rev. Proc. 2025-32 and the 2026 Form W-2 instructions; U.S. Department of Labor minimum wage and FUTA credit reductions.
- State minimum wages: the state labor department, governor or statute linked in each row of the table.
- Paid leave programs: the state agency linked in each row of the paid leave table.