The real value of the minimum wage in 2026
The federal $7.25 minimum took effect on 2009-07-24. Measured in 2026 dollars using BLS CPI-W, that 2009 dollar of purchasing power is now worth roughly $10.94, while the statutory rate has stayed flat at $7.25.[BLS CPI][EPI Tracker]
Federal floor, real value over time
| Year | Nominal | In 2026 dollars | Erosion vs 2009 |
|---|---|---|---|
| 2009 | $7.25 | $10.94 | baseline |
| 2014 | $7.25 | $9.83 | -$2.58 |
| 2019 | $7.25 | $9.23 | -$1.98 |
| 2022 | $7.25 | $8.15 | -$0.90 |
| 2025 | $7.25 | $7.38 | -$0.13 |
| 2026 | $7.25 | $7.25 | -$0.00 |
Indexed-state real wage today
The 19 states where a source we checked states annual indexing keep purchasing power close to constant. Indexing was not established either way for another 24 jurisdictions, which are not counted here. Among them, the highest 2026 real wage is DC District of Columbia at $18.40.
| State | 2026 rate | Indexing law |
|---|---|---|
| DC District of Columbia | $18.40 | Indexed annually under state law |
| WA Washington | $17.13 | Indexed annually under state law |
| NY New York | $17.00 | Indexed annually under state law |
| CT Connecticut | $16.94 | Announced August 2026. A 3.2 percent employment-cost-index rise for the 12 months to 30 June 2026, under Public Act 19-4. |
| CA California | $16.90 | Indexed annually under state law |
| NJ New Jersey | $15.92 | Indexed annually under state law |
| OR Oregon | $15.55 | Indexed annually under state law |
| CO Colorado | $15.16 | CDLE announced the 2027 PAY CALC Order figures on 13 August 2026, a 3.6 percent adjustment. |
| AZ Arizona | $15.15 | Indexed annually under state law |
| ME Maine | $15.10 | Indexed annually under state law |
| NE Nebraska | $15.00 | Indexed annually under state law |
| VT Vermont | $14.42 | Indexed annually under state law |
| AK Alaska | $14.00 | Ballot Measure 1 (2024) schedule: $14.00 on 1 July 2026, $15.00 on 1 July 2027, inflation adjustment from 2028. |
| FL Florida | $14.00 | Final step of the 2020 constitutional amendment. Florida steps on 30 September, not 1 January. The state has not published the matching tipped cash wage for this step. |
| MI Michigan | $13.73 | Statutory under MCL 408.934. The tipped percentage rises to 42 percent of the full minimum at the same date. Treasurer-calculated inflation adjustment begins October 2027. |
| VA Virginia | $12.77 | Va. Code 40.1-28.10(C). The same section sets $15.00 from 1 January 2028. Consumer-price indexing does not begin until January 2029. |
| SD South Dakota | $11.85 | Indexed annually under state law |
| MN Minnesota | $11.41 | Announced by the Minnesota Department of Labor and Industry. The 90-day training wage for workers under 20 rises to $9.68 at the same date. |
| OH Ohio | $11.00 | Indexed annually under state law |
Real-wage erosion in federal-floor states
The 20 states pinned to the FLSA $7.25 floor have lost purchasing power at the same pace as the federal rate: from $10.94 in 2026 dollars at passage to $7.25 today. That is a real cut of roughly $3.69 per hour over 17 years.
Method note
Real wages use the annual average CPI-W (CWUR0000SA0) from BLS, with 2025 set to the latest annual and 2026 set to the May 2026 release as a partial-year reference. Other deflators (CPI-U, PCE) tell a similar but not identical story; CPI-W is used because most indexed state minimum-wage laws cite it.[BLS CPI series]