New minimum wage in California 2026: amount, when it takes effect, and who will receive it: other states also change
California prepares another minimum wage increase for 2026 as inflation formulas trigger annual adjustments and several states follow suit.
California is among the states set to raise the minimum wage in 2026. The Golden State also belongs to the group whose rate is higher than the federal minimum of $7.25, which has not changed since 2009.
The most recent increase in California took effect on January 1, 2025, when the hourly minimum rose to $16.50 – a figure that exceeds that of most states and will climb again next year, coming close to $17.
What is the new minimum wage in California for 2026?
Current state law requires California’s Department of Finance to calculate the appropriate adjustment to the statewide minimum wage each year based on changes in inflation. In simple terms, if inflation rises, so does the minimum wage. This calculation aims to protect workers’ purchasing power.
The state minimum can rise each year by 3.5 percent or by the percentage change in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) between the previous year and the current one. The lower of the two figures is selected, unless the result is negative.
After completing its review, the Department of Finance confirmed that the state minimum wage will increase to $16.90 per hour next year. The new rate will take effect on January 1, 2026. While this amount applies broadly, certain industries operate with different minimums.
For example, fast food workers earn $20 per hour. Some healthcare employees also earn more. Additionally, a number of cities and counties in California have minimum wages higher than the statewide level.
Other states raising the minimum wage in 2026
More than 20 states have scheduled increases for next year.
Those raising their minimum wage in 2026 include Alaska, Arizona, California, Colorado, Connecticut, South Dakota, Florida, Hawaii, Maine, Michigan, Minnesota, Missouri, Montana, Nebraska, New Jersey, New York, Ohio, Oregon, Rhode Island, Vermont, Virginia and Washington.
These states will introduce their new rates either on January 1, 2026, or in July or September, depending on local legislation.
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