New year, new paycheck. In 2025, more than twenty states across the country are set to increase their minimum wage rates, with the majority of these adjustments set to take effect on January 1.
The wave of wage adjustments reflects a growing trend toward improving earnings and financial stability for low-income workers, particularly as the cost of living continues to rise.
Although the changes vary in scale and scope depending on the region, they're driven by both inflationary pressures and a growing recognition of the need for higher wages to maintain a decent standard of living.
The hourly wages range from a low of $10.55 in Montana to a high of $16.66 in Washington, according to an analysis by labor and employment law firm Ogletree Deakins.
Meantime, the federal minimum wage rate remains unchanged at $7.25 per hour for non-tipped employees and $2.13 per hour for tipped workers.
2025 State Minimum Wage Updates
• Alaska -- $11.91
• Arizona -- $14.70, $11.70/tipped workers
• California -- $16.50
• Colorado -- $14.81, $11.79/tipped workers
• Connecticut -- $16.35
• Delaware -- $15.00
• Florida -- $14.00, $10.98/tipped workers (effective Sept. 30)
• Illinois -- $15.00, $9.00/tipped workers
• Maine -- $14.65, $7.33/tipped workers
• Michigan -- $10.56, $4.01/tipped workers (effective Jan. 1), followed by $12.48, $5.99 (effective Feb. 21)
• Minnesota -- $11.13
• Missouri -- $13.75, $6.88/tipped workers
• Montana -- $10.55
• Nebraska -- $13.50
• New Jersey -- $15.49, $5.62/tipped workers
• New York -- NYC & Downstate: $16.50, $13.75/tipped service worker, $11.00/tipped food service; Remainder of State: $15.50, $12.90, $10.35.
• Ohio -- $10.70, $5.35
• Rhode Island -- $15.00
• South Dakota -- $11.50, $5.75/tipped workers
• Vermont -- $14.01, $7.01/tipped workers
• Virginia -- $12.41
• Washington -- $16.66