Minimum Wage Increases Coming in 2026 as Nationwide Affordability Crisis Deepens

WASHINGTON, D.C. — As housing costs, grocery prices, and basic living expenses continue to outpace wages for millions of workers, new minimum wage increases taking effect across the country in 2026 will provide some relief to families navigating the nation’s worsening affordability crisis. According to Raises from Coast to Coast in 2026, a new report from the National Employment Law Project (NELP), 88 jurisdictions (22 states and 66 cities and counties) will raise their minimum wage floors by the end of 2026.

“As affordability challenges grow, NELP supports 2026 wage increases that move us toward a good-jobs economy, rooted in living wages for all. Workers need good jobs, and that starts by having a meaningful federal minimum wage,” said Yannet Lathrop, senior researcher and policy analyst with the National Employment Law Project. “With no progress at the federal level, workers and advocates have successfully pushed through state and local measures, all while consistently naming that affordability is a top priority. After years of worker-led organizing, these gains offer limited but important relief—especially for Black and brown workers who lead these fights and are disproportionately harmed by low wages and economic insecurity. It’s time for Congress to take action for workers at the national level.”

On January 1, minimum wage floors will rise in 19 states and 49 cities and counties, for a total of 68 jurisdictions. Later in the year, an additional 4 states and 22 localities will follow with scheduled or inflation-adjusted increases, resulting in 26 midyear raises. These changes reflect a combination of legislative action, cost-of-living adjustments, and wage standards approved by voters at the ballot box. These increases demonstrate the growing role that state and local policymakers play in closing the gap between paychecks and the cost of essential goods.

With millions of workers still earning far too little to meet basic needs, the 2026 minimum wage increases represent both an important step forward and a reminder of the work that remains.

By the end of 2026, 79 jurisdictions will reach or exceed a $15 minimum wage, and 57 jurisdictions—including California, New Jersey, New York, and Washington State—will reach or surpass $17 an hour. Several jurisdictions will raise wages twice during the year for some or all workers, including California, San Diego, West Hollywood, Saint Paul, and multiple cities in Washington State, further strengthening earnings for workers in high-cost regions.

The 2026 increases come at a time when the country’s affordability crisis has deepened. Since 2020, overall prices have risen more than 23 percent according to a NELP analysis of the consumer price index, straining household budgets and pushing millions into economic insecurity. Studies have consistently shown that higher minimum wages reduce food insecurity, increase access to healthier foods, and help lift families out of poverty, all without contributing to overall inflation.

This year also brought significant state and local policy momentum. In 2025, cities such as Los Angeles, Portland (OR), Santa Fe, Burien (WA) and others enacted or implemented substantial wage increases, while legislators in Rhode Island and voters in several local jurisdictions approved measures to raise the wage floor. These victories reflect broad bipartisan support for higher wages and underscore the ongoing energy of worker-led movements demanding better pay and economic security.

At the same time, the report notes that some states continue to resist raising wage standards, particularly across the South, where the majority of the nation’s Black workforce resides. In 2026, a total of 20 states will keep their minimum wages at the federal level of $7.25 per hour, and 8 other states with wage floors above the federal rate will not increase their minimum wages due to the absence of inflation indexing. These policy choices deepen regional inequities and leave millions of workers vulnerable to rising living costs.

In the absence of federal progress, NELP will continue working alongside workers, advocates, and policymakers at every level of government to advance a good-jobs economy, rooted in living wages for all. With millions of workers still earning far too little to meet basic needs, the 2026 minimum wage increases represent both an important step forward and a reminder of the work that remains.

READ THE REPORT: Raises From Coast to Coast in 2026

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