Minimum Wage Increase Statistics in US 2026 | Federal Wage

Minimum Wage Increases in America 2026

The landscape of minimum wage policy in the United States has undergone dramatic transformation in 2025, with 21 states and dozens of localities implementing wage increases that directly impact millions of American workers grappling with an unprecedented affordability crisis. Workers across the US are set for minimum wage increases in 2026, with 22 states and 66 cities and counties scheduled to raise their baseline wages beginning January 1, 2026, according to a comprehensive report from the National Employment Law Project (NELP). This wave of increases represents one of the most significant expansions of worker protections in recent American history, with 19 states and 49 cities and counties implementing changes on January 1, followed by an additional 4 states and 22 cities later in the year, providing critical relief to the lowest-paid workers in the United States.

The driving force behind these increases stems from the stark reality that the federal wage floor remains at $7.25 per hour, where it has been stagnant since 2009—marking the longest period without an increase since the federal minimum wage was introduced in 1938. Given the dramatic rise in cost of living over the past 16 years, numerous states and municipalities have taken matters into their own hands through a combination of ballot measures, inflation adjustments, and legislative action to boost their local minimum wages in 2025. Beginning January 1, 2026, workers in 60 jurisdictions will earn a minimum wage of at least $15 per hour, while 3 states and 40 localities will see baseline pay reach or exceed $17 per hour for some or all employers. Cost-of-living adjustments, designed to help workers’ pay keep pace with inflation, are driving minimum wage increases in 13 states and 44 cities and counties across the US in 2026, reflecting a fundamental shift toward indexing wages to economic reality rather than waiting for political action in America.

Key Facts About Minimum Wage in the US 2026

Data compiled from National Employment Law Project, Bureau of Labor Statistics, state labor departments, and verified news sources as of December 2025

The statistical landscape of minimum wage in the United States in 2025 reveals a nation deeply divided between progressive jurisdictions rapidly raising wages and conservative regions where workers remain stuck at the 1938-era federal floor of $7.25 per hour. The fact that only 842,000 workers nationwide earned at or below the federal minimum wage in 2024—representing just 1.0% of the 80.3 million hourly-paid workers—demonstrates that most states have already moved far beyond the federal baseline, rendering it largely irrelevant except in the 20 states that haven’t established higher rates. This 1.0% figure remains well below the 13.4% recorded in 1979 when data was first collected, though this decline reflects state action rather than federal leadership in the US.

The geographic distribution of minimum wage increases scheduled for 2026 illustrates the continuing momentum of the worker-led Fight for $15 movement that began in 2012. By January 1, 2026, workers in 60 jurisdictions will earn at least $15 per hour—more than double the federal minimum—while 43 jurisdictions will guarantee $17 or more, nearly 2.5 times the federal floor. Notable examples include New Jersey, where long-term care workers will see wages rise to $18.92 per hour, and New York City, Long Island, and Westchester County, all increasing to $17.00 per hour on January 1, 2026. The 13 states implementing cost-of-living adjustments represent a fundamental policy innovation, with wages automatically rising each year based on the Consumer Price Index without requiring new legislation, ensuring that minimum wage keeps pace with inflation in those American jurisdictions through 2025 and beyond.

State Minimum Wage Increases in the US January 1, 2026

Source: State labor departments, GovDocs 2026 minimum wage analysis, and ADP payroll compliance reports through December 2025

The state-level minimum wage increases scheduled for January 1, 2026 across the United States demonstrate significant regional variations in both wage levels and increase amounts. Hawaii leads with the largest single-day increase of $2.00, bringing its minimum wage to $16.00 per hour and marking a dramatic escalation for Hawaiian workers who have long struggled with the nation’s highest cost of living. This $2.00 jump represents a 14.3% raise for minimum wage workers in the Aloha State, providing meaningful relief but still falling short of what economists calculate is needed for basic financial security in Hawaii’s expensive housing market. Michigan and Missouri both implement substantial $1.25 increases, with Missouri reaching the symbolic $15.00 per hour threshold that has been the goal of labor advocates for over a decade, while Michigan catches up after years of stagnation in the US.

Washington State maintains its position as having one of the highest state minimum wages in America at $17.13 per hour on January 1, 2026, though its $0.47 increase is relatively modest in percentage terms. The Pacific Northwest state’s wage continues to be indexed to inflation through the Consumer Price Index for Urban Wage Earners (CPI-W), ensuring automatic annual adjustments without legislative battles. California, despite already having reached $15.00 for all employers back in 2022, continues its upward trajectory to $16.90 in 2026, with additional sector-specific rates even higher—fast food workers in the Golden State earn $20.00 per hour and healthcare workers have separate elevated rates. New York’s multi-tier system sees New York City, Long Island, and Westchester County reaching $17.00 per hour, while the remainder of New York State hits $16.00, reflecting the higher cost of living in the metropolitan regions. The 13 states implementing increases represent diverse regions including the Northeast (Connecticut, New Jersey, Rhode Island, Maine), West Coast (Washington, California, Oregon), Mountain West (Arizona, Colorado, Montana), and Midwest (Michigan, Minnesota, Ohio, Missouri), demonstrating that minimum wage reform has become a bipartisan priority in many American jurisdictions in 2025.

City and County Minimum Wage Increases in the US 2026

Source: City ordinances, National Employment Law Project analysis, and municipal labor department announcements through December 2025

The city and county minimum wage increases taking effect in 2026 across the United States reveal that local jurisdictions are pushing wages even higher than their already-elevated state rates, creating a patchwork of wage floors that can vary dramatically within the same metropolitan area. Seattle leads the nation with a $21.30 per hour minimum wage for 2026, nearly triple the federal minimum and representing the highest baseline wage in America. This Seattle rate applies uniformly to all employers regardless of size, simplifying compliance while ensuring that even the smallest businesses must provide living wages to workers in one of the US’s most expensive housing markets. Denver follows at $19.29 per hour, demonstrating that high minimum wages are not exclusively a coastal phenomenon but have spread to mountain and interior cities in 2025.

Minnesota’s twin cities of Minneapolis and St. Paul both implement $16.37 per hour rates for large employers (those with 101 or more employees) on January 1, 2026, though both cities maintain lower rates for smaller businesses to ease the burden on mom-and-pop operations. This tiered approach has become increasingly common in American cities, recognizing that a restaurant with 5 employees faces different financial constraints than a national retail chain operating in the same neighborhood. California cities showcase some of the most complex tiered structures in the US—Novato in the Bay Area implements three separate rates based on employer size: $17.73 for very large employers (over 100 workers), $17.46 for large employers (26-99 employees), and $16.90 for small employers (25 or fewer). Hayward, another Bay Area city, uses a simpler two-tier system with $17.79 for large establishments and $16.90 for small businesses in 2026. The 49 cities and counties implementing increases on January 1, 2026 are concentrated in states that allow local governments to exceed state rates—primarily California, Colorado, Minnesota, and Washington—while many Southern states prohibit cities from establishing their own minimum wages, leaving workers in Texas, Alabama, Mississippi, and other states stuck at the $7.25 federal floor in the US in 2025.

Demographics of Minimum Wage Workers in the US 2024

Source: Bureau of Labor Statistics Characteristics of Minimum Wage Workers Report 2024 and Current Population Survey data

The demographic profile of minimum wage workers in the United States in 2024 reveals persistent inequalities across gender, age, occupation, and industry lines, even as the absolute number earning exactly the federal minimum has declined to historically low levels. The 842,000 workers earning at or below the federal minimum wage of $7.25 per hour in 2024 includes 82,000 earning exactly that amount and 760,000 earning less (primarily tipped workers who receive direct cash wages below the minimum with tips expected to make up the difference). This 1.0% figure represents a dramatic decline from 13.4% in 1979, though this improvement largely reflects state-level action rather than federal wage increases, with 30 states plus DC and numerous localities now requiring higher wages than the federal floor in the US.

Gender disparities remain pronounced, with 1.3% of women earning at or below the federal minimum compared to 0.8% of men—meaning women are 62.5% more likely to be stuck at the wage floor in America in 2024. This gap persists despite women comprising 47% of the overall US workforce, and research shows that if the federal minimum wage were raised to $15 per hour, 59% of those receiving raises would be women, representing approximately 19 million female workers. Age is perhaps the most significant demographic factor, with workers aged 16-24 dramatically overrepresented among minimum wage earners, as these positions are often viewed as “starter jobs” for teenagers and young adults entering the workforce in the United States. However, the reality is more complex—while minimum wage jobs were once predominantly held by students and part-time workers, increasing numbers of adults rely on these wages as primary income sources to support themselves and families in 2025.

Occupational and industry concentrations are stark, with 3.2% of service occupation workers earning the federal minimum or less, and this category accounts for nearly 3 out of 4 of all workers at the wage floor in the US in 2024. Most are employed in food preparation and serving-related jobs, where tipped workers receive base wages as low as $2.13 per hour under federal law with tips expected to bring total compensation above minimum wage. The leisure and hospitality industry leads all sectors with 5.6% of workers earning federal minimum or less, and this single industry employs about two-thirds of all workers at the wage floor—almost entirely in restaurants and other food services where tipping is customary in America. Geographically, Louisiana and South Carolina have the highest percentages of workers earning federal minimum or less at approximately 2.0%, reflecting these states’ reliance on the federal floor rather than establishing higher state minimums, leaving workers particularly vulnerable to economic hardship in the US in 2025.

States with No Minimum Wage Increase in the US 2025-2026

Source: Department of Labor state minimum wage compilation, National Conference of State Legislatures, and state labor law analysis through 2025

The stark geographic divide in minimum wage policy across the United States in 2025 is perhaps nowhere more evident than in the 20 states that maintain no minimum wage higher than the $7.25 federal floor, leaving millions of American workers in these jurisdictions with wages that have not increased in purchasing power since 2009. The concentration of low-wage states in the South is particularly pronounced, with Alabama, Georgia, Louisiana, Mississippi, South Carolina, and Tennessee all maintaining the federal minimum, creating what labor advocates describe as a “wage desert” across much of the region. NELP researcher Tsedeye Gebreselassie noted in December 2025 that “the contrast between states and cities that are raising wages every year and those that are stuck at $7.25 is really jarring,” emphasizing that the affordability crisis facing American workers stems not just from things costing too much, but from workers not earning enough money to buy basic necessities in the US.

The 7 states that either have no state minimum wage law at all or set their state minimum below the federal level—Alabama, Georgia, Louisiana, Mississippi, South Carolina, Tennessee, and Wyoming—must still comply with the federal minimum of $7.25 for workers covered by the Fair Labor Standards Act, which includes the vast majority of employees. However, the absence of state legislation signals these governments’ philosophical opposition to wage floors and ensures no state-level increases will occur without federal action, leaving workers at the mercy of Congressional gridlock. Adding insult to injury, over 25 states have enacted “preemption laws” that explicitly prohibit cities and counties from establishing minimum wages higher than the state rate, blocking progressive urban areas in otherwise conservative states from helping their residents in the US. For example, while Austin, Texas and Birmingham, Alabama might wish to establish higher local wages to address their high costs of living, state law forbids such action, ensuring that workers in these cities earn the same $7.25 as workers in rural areas with much lower living costs in America in 2025.

The $14.05 gap between Seattle’s $21.30 rate and the federal $7.25 floor represents an unprecedented divergence in labor standards within a single nation, essentially creating two different Americas for low-wage workers. A full-time worker in Seattle earning minimum wage would make approximately $44,304 annually before taxes ($21.30 × 40 hours × 52 weeks), while an identical worker in Mississippi would earn just $15,080 ($7.25 × 40 hours × 52 weeks)—a staggering $29,224 difference based solely on geography. This nearly 3-to-1 income disparity for the exact same work demonstrates the profound consequences of America’s fragmented approach to wage policy in 2025, where a worker’s earnings are determined more by their zip code than their effort or productivity in the US.

Economic Impact of Minimum Wage Increases in the US 2025

Source: Economic Policy Institute, National Employment Law Project, Congressional Budget Office studies, and state economic impact analyses through 2025

The economic impact of minimum wage increases across the United States in 2025 and 2026 extends far beyond the direct wage gains for affected workers, creating ripple effects throughout local economies, businesses, and government budgets. For the millions of workers receiving raises when new rates take effect on January 1, 2026, the immediate financial relief is substantial—a worker in Hawaii moving from $14.00 to $16.00 per hour gains $4,160 annually if working full-time ($2.00 × 40 hours × 52 weeks), potentially lifting families out of poverty or enabling them to afford necessities like healthcare, childcare, or reliable transportation in America. The Economic Policy Institute has consistently found that minimum wage increases disproportionately benefit workers of color, women, and single parents who are overrepresented in low-wage occupations, making these policies powerful tools for reducing economic inequality in the US.

Consumer spending receives an immediate boost from minimum wage increases in 2025, as low-wage workers have virtually no discretionary income and spend raises almost entirely on basic needs like food, housing, utilities, and clothing rather than saving or investing. This increased spending flows directly into local businesses—grocery stores, landlords, utility companies, and retailers—creating a multiplier effect as those businesses then spend their increased revenue on inventory, employees, and services within their communities in the United States. Small business owners, particularly in the restaurant industry where labor costs can represent 30-35% of operating expenses, express legitimate concerns about their ability to absorb higher wages without raising prices or reducing staff hours. However, economic research from jurisdictions that have implemented $15 or higher minimums—like Seattle, San Francisco, and Washington State—generally finds minimal negative employment effects, with businesses adapting through modest price increases (3-5% on average), slight reductions in hours, increased productivity expectations, or improved operational efficiency rather than large-scale layoffs in America in 2025.

The failure of the federal minimum wage to increase since 2009 represents a dramatic loss of purchasing power, with the $7.25 rate worth approximately 30-40% less in 2025 than when it was established due to inflation in the US. If the minimum wage had kept pace with productivity gains since 1968, it would have reached approximately $22.88 per hour by 2021 according to economic analysis, meaning that minimum wage workers are being paid far less than their parents’ generation received for equivalent work when adjusted for economic growth. The Raise the Wage Act of 2025, introduced by Representative Bobby Scott and Senator Bernie Sanders in April 2025, proposed gradually increasing the federal minimum to $15 by 2027 and then indexing it to median wages, but the legislation stalled in Congress without a vote, leaving state and local governments to continue filling the federal leadership void in the United States through the end of 2025.

Cost-of-Living Adjustments and Inflation Indexing in the US 2025

Source: State minimum wage statutes, National Employment Law Project indexing analysis, and Bureau of Labor Statistics CPI data through 2025

The adoption of cost-of-living adjustments (COLA) and automatic inflation indexing represents one of the most significant innovations in minimum wage policy in the United States in 2025, fundamentally changing the dynamics of wage-setting by removing annual increases from the political arena and ensuring workers’ real wages don’t erode over time. 13 states and 44 cities and counties now tie their minimum wages to inflation indexes—typically the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W)—with rates automatically adjusting each year based on changes in the cost of living without requiring new legislation or ballot measures in America. This approach, championed by NELP researcher Tsedeye Gebreselassie who told CBS News that “in the face of federal inaction, these raises are indexed to inflation, so they match the cost of living,” ensures that workers maintain purchasing power even as prices for housing, food, healthcare, and other necessities rise in the US.

California employs a unique indexing formula under AB 10, which allows minimum wages of at least $15 to be raised annually by up to 3.5% (rounded to the nearest 10 cents) for any increase in inflation over 7% as measured by the national Consumer Price Index. This provision was triggered in 2024 and 2025, increasing the Golden State’s minimum from $15.50 to $16.50 to $16.90 over three years despite already being among the nation’s highest. Washington State has indexed its minimum wage since 1998 through a voter-approved initiative, with the rate calculated annually by the state Department of Labor & Industries using the prior year’s CPI-W for the Seattle-Tacoma-Bellevue metropolitan area. The $0.47 increase for 2026 (from $16.66 to $17.13) reflects inflation running at approximately 2.8%, ensuring that Washington workers maintain their real wage gains in the US in 2025.

The advantages of indexing extend beyond workers to employers and policymakers as well in America. Businesses can more accurately forecast labor costs and plan budgets knowing that annual increases will be modest and predictable rather than facing sudden large jumps from legislative battles or ballot initiatives every few years in the United States. State legislatures avoid contentious annual debates over minimum wage bills that consume legislative time and political capital, instead focusing on other policy priorities while wages adjust automatically. Workers gain certainty that their purchasing power will be protected without needing to organize campaigns and lobby legislators every time inflation erodes their earnings. The 44 local jurisdictions with indexed wages are predominantly in California, Oregon, Colorado, and Minnesota, where state law permits cities and counties to exceed state minimums and local governments have embraced automatic adjustment mechanisms that have become the gold standard for US minimum wage policy in 2025.

Tipped Workers and Special Wage Categories in the US 2025

Source: Department of Labor Wage and Hour Division, state tipped wage regulations, and Fair Labor Standards Act provisions through 2025

The treatment of tipped workers in the United States in 2025 represents one of the most controversial and inequitable aspects of minimum wage policy, with federal law still permitting employers to pay as little as $2.13 per hour in direct cash wages to workers who regularly receive tips—a rate that has not increased since 1991 and stands at just 29% of the already-inadequate federal minimum wage of $7.25. Under the Fair Labor Standards Act’s tip credit provision, employers can count employee tips toward their minimum wage obligation, paying reduced direct wages as long as tips bring total compensation to at least $7.25 per hour; if tips fall short, employers must make up the difference, though enforcement of this requirement is often lax in America. This system leaves tipped workers—predominantly restaurant servers, bartenders, and food delivery workers—with highly unstable incomes that fluctuate based on customer generosity, shift timing, and economic conditions, creating financial precarity for millions of workers in the US in 2025.

43 states permit some form of tip credit, though the specifics vary dramatically across jurisdictions in America. 7 states—Alaska, California, Minnesota, Montana, Nevada, Oregon, and Washington—prohibit tip credits entirely, requiring employers to pay the full minimum wage before tips, ensuring that gratuities function as true bonuses rather than subsidies for employers who would otherwise need to pay higher wages. Connecticut maintains one of the most complex systems in the US, with separate tipped minimums for bartenders ($8.23 per hour) and hotel/restaurant waitstaff ($6.38 per hour), both well above the federal $2.13 but still substantially below the state’s standard $16.94 minimum. Nebraska presents a particularly stark example of policy incoherence—the state’s minimum wage reaches $15.00 per hour on January 1, 2026 following a successful ballot measure, yet tipped workers remain at the federal $2.13 floor, creating a $12.87 gap between standard and tipped minimums in the Cornhusker State.

Youth wage provisions in some US states add another layer of complexity in 2025, with jurisdictions like Washington allowing employers to pay workers under age 16 just 85% of the state minimum ($14.56 instead of $17.13 in 2026), based on the theory that younger workers are less productive and need training. Ohio implements business-size thresholds, with smaller employers (annual gross receipts under $385,000) exempt from the state minimum wage requirement entirely, defaulting to the $7.25 federal rate. These carve-outs and special categories create administrative complexity for businesses, enforcement challenges for labor departments, and widespread confusion among workers about their rights in the United States. Advocates like One Fair Wage, a national organization, argue that eliminating the tip credit and requiring full minimum wage for all workers would reduce poverty, sexual harassment (which is higher in tipped industries where workers depend on customer satisfaction for income), and income inequality, while opponents claim that such changes would devastate the restaurant industry and reduce overall worker compensation if employers eliminate tipping altogether in America in 2025.

Fight for $15 Movement Impact in the US Through 2025

Source: Fight for $15 campaign records, Service Employees International Union, and labor movement documentation through 2025

The Fight for $15 movement, which began with approximately 200 fast food workers walking off their jobs in New York City on November 29, 2012, has fundamentally transformed minimum wage policy across the United States over the past 13 years, achieving victories that once seemed impossible and reshaping public discourse around wages, dignity, and economic justice in America through 2025. The initial one-day strikes by workers at McDonald’s, Burger King, KFC, Wendy’s, and other chains demanding $15 per hour and union rights were met with widespread skepticism from economists, business groups, and even some progressive allies who considered the target unrealistic—after all, $15 represented more than double the $7.25 federal minimum and seemed politically unattainable in the US. Yet within just three years, by 2015, the movement had spread to 270 cities, pressured major employers to raise wages, and achieved its first major victory when New York and California became the first states to commit to phased $15 minimums.

By 2025, the movement’s impact is undeniable across the United States. At least 12 states have enacted or committed to $15 minimum wages (including California, Connecticut, Florida, Illinois, Maryland, Massachusetts, New Jersey, New York, Rhode Island, Delaware, Missouri, and Nebraska), with several exceeding that threshold through inflation adjustments. 60 jurisdictions have minimum wages of $15 or higher as of January 1, 2026, including major cities like Seattle ($21.30), San Francisco, Los Angeles, Denver, Minneapolis, New York City, and dozens of others where workers can actually earn living wages. Major private employers, facing sustained pressure from strikes, protests, and negative publicity, voluntarily adopted $15 minimums even ahead of legal requirements—Amazon in 2018, Target in 2020, Costco at $17 in 2021, and Bank of America reaching $25 by 2025 for all US employees. The movement’s greatest victory came in April 2024 when California implemented a $20 minimum wage specifically for fast food workers, the sector where the campaign began, delivering the highest sector-specific wage floor in American history.

NELP’s Tsedeye Gebreselassie credited worker-led organizing as the driving force behind the wave of increases in 2025, noting that the Fight for $15 demonstrated that when workers organize, speak out, and sustain pressure through strikes and political action, transformative change becomes possible even in an era of political polarization in the US. The movement expanded beyond wages to address related issues including predictable scheduling, sick leave, healthcare access, and racial economic justice, recognizing that low-wage workers—disproportionately women and people of color—face interconnected challenges requiring comprehensive solutions in America. While the federal minimum remains stuck at $7.25 in 2025, the state and local victories achieved through worker organizing have effectively raised wages for tens of millions of Americans, creating momentum that continues to drive policy changes across the United States and inspiring similar movements in other countries around the world.

Regional Wage Disparities Across the US in 2025

Source: Department of Labor state wage comparison, regional economic analysis, and metropolitan area wage data through 2025

The regional disparities in minimum wage policy across the United States in 2025 have created fundamentally different economic realities for low-wage workers depending on where they live, work, and raise families in America. The West Coast stands out as the highest-wage region, with Washington ($17.13 state, $21.30 in Seattle), California ($16.90 state, higher in many cities), and Oregon (approaching $15) all providing wages more than double the federal floor, reflecting both high costs of living and progressive political environments that prioritize worker protections. Urban areas within these states push even higher—San Francisco and surrounding Bay Area cities exceed $18, while Los Angeles and San Diego maintain $16.90+, creating a wage belt along the Pacific where minimum wage work can support basic necessities, though housing costs still strain budgets in the US.

The Northeast corridor from Washington DC through New York to Boston similarly maintains strong wage floors, with DC at $17.50 (highest in the nation), Connecticut at $16.94, New York City at $17.00, Massachusetts at $15.00, and New Jersey at $15.92, reflecting dense urban populations, high living costs, and labor-friendly political traditions in America. The Midwest presents the starkest internal variations in 2025—Illinois provides $15.00, Minnesota offers $11.41 (but cities like Minneapolis reach $16.37), while neighboring Wisconsin, Iowa, Indiana, and Kansas remain at $7.25, creating bizarre situations where workers doing identical jobs in adjacent communities earn radically different wages based solely on which side of state lines their employers are located in the US.

The South represents the most consistent region in 2025—consistently low wages with nearly every state maintaining the $7.25 federal minimum and prohibiting cities from establishing higher local rates in America. Texas, Tennessee, Alabama, Mississippi, Louisiana, Georgia, South Carolina, North Carolina (with limited exceptions), and others ensure that their workers remain among the lowest-paid in the developed world, often justified by appeals to “business-friendly” policies and “right-to-work” laws. The Mountain West falls between extremes, with Colorado at $14.81 (and Denver at $19.29), Arizona at $15.15 (with Flagstaff and Tucson higher), and Montana at $10.55, while Idaho, Utah, and Wyoming stick with $7.25 in the US. Urban-rural divides within states create additional complexity in 2025—New York City workers earn $17.00 while upstate New York provides $16.00, Seattle delivers $21.30 while rural Washington offers $17.13, and Denver mandates $19.29 while rural Colorado requires only $14.81—differences that reflect both cost of living variations and political power dynamics where progressive urban areas push higher wages over objections from suburban and rural interests in America.

Living Wage vs. Minimum Wage Gap in the US 2025

Source: MIT Living Wage Calculator 2025, city minimum wage ordinances, and Economic Policy Institute cost of living analysis

The persistent and often dramatic gap between minimum wages and actual living wages across the United States in 2025 reveals that even in jurisdictions with the highest wage floors, many workers cannot afford basic necessities on minimum wage earnings alone in America. The MIT Living Wage Calculator, which estimates the hourly wage required for individuals and families to cover food, childcare, healthcare, housing, transportation, and other essential expenses without public assistance, demonstrates that minimum wages fall short of living wages in virtually every US jurisdiction, leaving millions of full-time workers dependent on government programs, family support, or multiple jobs to survive. San Francisco, despite having one of the highest minimum wages in the nation at $18.67 in 2025, still falls $9.13 short of the estimated $27.80 living wage for a single adult, meaning a full-time minimum wage worker would need to work approximately 65 hours per week to meet basic needs in the Bay Area.

Seattle comes closest to closing the gap among major US cities, with its $21.30 minimum falling only $2.26 below the calculated $23.56 living wage for a single adult in 2025—a differential that could potentially be covered through modest overtime, annual raises, or supplemental benefits. However, even this relatively small gap assumes the worker has no dependents, no debt, no medical issues, and no unexpected expenses, making it a bare-minimum calculation that leaves zero room for savings, emergencies, or quality-of-life expenditures in America. Denver similarly performs well relative to other cities, with its $19.29 minimum just $1.66 below the $20.95 living wage, reflecting Colorado’s combination of moderate-to-high wages and moderate-to-low costs compared to coastal metropolitan areas in the US in 2025.

The situation becomes far more dire when families are considered—MIT’s calculator estimates that in San Francisco, a single parent with one child requires $60.66 per hour to meet basic needs without assistance, meaning even two full-time minimum wage jobs ($37.34 combined) would leave the family $23.32 short per hour or approximately $48,500 annually. In New York City, a single parent with one child needs $51.38 per hour, while the city’s $17.00 minimum provides only 33% of required income, forcing families onto public assistance programs like SNAP (food stamps), Medicaid, and housing subsidies that effectively represent taxpayer subsidies to employers who refuse to pay living wages in the United States.

Disclaimer: This research report is compiled from publicly available sources. While reasonable efforts have been made to ensure accuracy, no representation or warranty, express or implied, is given as to the completeness or reliability of the information. We accept no liability for any errors, omissions, losses, or damages of any kind arising from the use of this report.

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