Map Shows Minimum Wage in Each State As California Plans Hike

California plans to raise its minimum wage to $17.40 per hour starting January 1, 2027, making it one of the highest minimum wage states in the nation. This comes as several other states prepare similar wage hikes. Currently, the federal minimum wage remains at $7.25 per hour since 2009. Governor Gavin Newsom announced the increase, highlighting the significant gap between California's wage and Texas' $7.25 minimum.

States and local governments can set a higher minimum wage than the federal rate. Thirty states and Washington D.C. have wage rates above the federal minimum. Proponents argue the federal rate has not kept up with the rising cost of living, especially after the COVID-19 pandemic. However, critics claim higher minimum wages could negatively impact businesses and employment.

Despite California's higher minimum wage, Texas workers face a lighter state tax burden. Nevertheless, California workers earn significantly more due to the higher wage itself. Newsom emphasized this wage disparity, criticizing Republicans for opposing a federal minimum wage increase while providing tax breaks to corporations.

California's minimum wage has been gradually increased since Newsom's election in 2019. When he took office, the rate was $12 for larger employers and $11 for smaller ones. It reached $15 statewide in 2022, $15.50 in 2023, and $16 in 2024. The rate will continue to increase annually for inflation, reaching $16.90 by 2026.

The federal minimum wage last increased in 2009, from $6.55 to $7.25. Some states have no state minimum wage, making the federal rate applicable. For 2026, Washington has the highest statewide minimum wage at $17.13, while California follows closely with $16.90.