Minimum wage rates rose on July 1, 2026, in Alaska, Oregon, and Washington, D.C., along with more than 20 cities and counties, lifting pay for over 880,000 workers. The three statewide floors moved through voter-approved schedules and inflation formulas, while the federal minimum wage stayed frozen at $7.25 an hour.
Key Takeaways
- Alaska, Oregon, and Washington, D.C., raised their statewide minimum wages on July 1, 2026, alongside more than 20 local jurisdictions including Los Angeles, San Francisco, and Chicago.
- The Economic Policy Institute estimates the July 1 increases lift earnings for more than 880,000 workers by a combined total exceeding $397 million.
- Washington, D.C., now sets the highest minimum wage in the country at $18.40 an hour, followed by Washington state at $17.13 and Connecticut at $16.94.
- The federal minimum wage remains $7.25 an hour, unchanged since July 2009, the longest stretch without an increase since the Fair Labor Standards Act took effect in 1938.
Which States Raised Their Minimum Wage on July 1 2026?
Three statewide floors moved on July 1, 2026. Alaska raised its minimum wage from $13.00 to $14.00 an hour, the second step of a schedule voters approved through Ballot Measure 1 in 2024. That measure raises the rate by $1.00 each July until it reaches $15.00 in July 2027, after which the wage adjusts annually for inflation. Alaska prohibits employers from taking a tip credit, so tipped workers receive the full state minimum.
Oregon adjusts its wage each July using a formula tied to the Consumer Price Index, and the state operates a three-tier system based on where an employee works. As of July 1, 2026, Oregon’s standard rate rose to $15.55 an hour, the Portland metro rate to $16.80, and the non-urban county rate to $14.55. Like Alaska, Oregon does not permit a tip credit.
Washington, D.C., increased its minimum wage from $17.95 to $18.40 an hour, keeping the District the highest jurisdiction in the country. The District’s tipped cash wage also rose, moving from $10.00 to $10.30 an hour as the city continues phasing out its separate tipped wage.
How Do the July 1 State Rates Compare?
The following table shows the statewide minimum wage changes that took effect on July 1, 2026.
Which Cities Increased Their Minimum Wage This Summer?
More than 20 cities and counties raised their floors on the same date. San Francisco climbed from $19.18 to $19.61 an hour, among the highest city minimums in the country. In Chicago, the tipped minimum wage rose from $11.02 to $12.62 an hour as the city phases out its lower tipped rate by 2028. Los Angeles also updated its ordinance, with rates that exceed the California statewide floor.
California added a sector-specific change on July 1, 2026. While the state’s general minimum wage held at $16.90 an hour, the industry-specific minimum for covered health care workers reached $25.00 an hour for the largest hospital systems, the highest sector floor in the country. Workers qualify for that rate when they work for covered health care facilities and provide or support health care services.
Why Does the Federal Minimum Wage Still Sit at $7.25?
The federal minimum wage last increased on July 24, 2009, when it rose to $7.25 an hour. As of 2026, that marks the longest period without a federal increase since the Fair Labor Standards Act established the wage floor in 1938. The federal rate no longer functions as the operative wage for most workers: 30 states plus the District of Columbia set higher minimums. Twenty states still use the $7.25 federal floor, and five of them have no state minimum wage law at all, defaulting to the federal rate through the FLSA.
According to the Economic Policy Institute, the average annual wage increase for a full-time, year-round worker from the July 1 changes ranges from $420 in Oregon to $925 in Alaska. The Economic Policy Institute also notes that its Family Budget Calculator finds no county in the nation where a single adult working full time can cover housing, food, transportation, and health care on less than $17 an hour.
The July 1, 2026 increases lifted wages for more than 880,000 workers across Alaska, Oregon, and Washington, D.C., even as the federal floor held at $7.25 for a seventeenth consecutive year.
Disclaimer: This article is provided for informational and news reporting purposes only and does not constitute legal, employment, tax, or financial advice. Wage laws, minimum wage rates, exemptions, and local ordinances may change and can vary based on jurisdiction, industry, employer size, and worker classification. Information in this article reflects publicly available government and institutional sources as of the publication date and may be updated as new legislation or regulatory guidance becomes available. Workers and employers seeking guidance regarding wage compliance or employment obligations should consult the appropriate labor authority or a qualified legal or employment professional.
FAQs
Which states raised their minimum wage on July 1, 2026? Alaska, Oregon, and Washington, D.C., raised their statewide minimum wages on July 1, 2026. More than 20 cities and counties also increased their local rates the same day.
What is the highest minimum wage in the United States? Washington, D.C., holds the highest statewide-level rate at $18.40 an hour as of July 1, 2026, followed by Washington state at $17.13 and Connecticut at $16.94.
Why is Alaska’s minimum wage increasing? Alaska’s increase comes from Ballot Measure 1, approved by voters in 2024, which raises the wage by $1.00 each July until it reaches $15.00 in July 2027, then indexes it to inflation.
Did the federal minimum wage change in 2026? No. The federal minimum wage remains $7.25 an hour, unchanged since July 2009.
How does Oregon’s minimum wage work? Oregon uses a three-tier system based on work location, with separate rates for the Portland metro area, standard counties, and non-urban counties, adjusted each July by a CPI formula.
What is California’s $25 health care minimum wage? California set an industry-specific floor that reached $25.00 an hour on July 1, 2026, for health care workers at the largest covered hospital systems, separate from the state’s general $16.90 rate.
